Page 14 - FSUOGM Week 27

FSUOGM POLICY FSUOGM

Turkmenistan reportedly wins 3-yr

arbitration case against Iran

TURKMENISTAN THE International Court of Arbitration (ICA) price hike, raising the prices of its gas exports to
has reportedly announced its verdict over a $360 from $40 per 1,000 cubic metres.
Iran and Turkmenistan three-year-long Iran-Turkmenistan gas row, but NIGC has long relied on a gas swap deal with
have been embroiled the details of the verdict have not officially been Turkmenistan to supply gas to northern Iranian
in a dispute over gas disclosed, according to a report by Iran’s Finan- provinces during the cold winter months.
pricing and debts. cial Tribune newspaper. Analysts were left puzzled in 2017 by Turk-
The report, in turn, cited the Islamic menistan’s decision to stop gas exports to Iran
Republic News Agency (IRNA) referring to as it left Ashgabat with China as its only viable
information from the Oil Ministry and the gas export customer. While the situation has
National Iranian Gas Company (NIGC). The improved since then with Turkmenistan regain-
report noted that the verdict “convicts” Iran ing Russia as an importer of Turkmen gas in
for failing to pay for gas it bought from Turk- 2019, the gas-exports-reliant Central Asian
menistan in 2007-2013, making Iran liable to nation’s economy felt the heat of poor deci-
pay $2bn to Ashgabat to settle its debt. The sion-making by Turkmen authorities through-
ministry and the NIGC said that under the out 2017-2019.
ICA arbitration rules, the details of the ver- ICA’s decision, if honoured by the Iranian
dict would not be revealed unless the two sides side, would be welcome news for Turkmeni-
agree on releasing them. stan, which has seen its battered economy and
In April 2018, Turkmenistan and Iran agreed its budget plunge further into financial obliv-
to go to an international tribunal over the gas ion in 2020 due to the impacts of the corona-
row. Ashgabat said Tehran owes Turkmenistan virus (COVID-19) pandemic and lockdown
some $1.8bn of historical gas dues that built up measures.
over several years, while Iran disputed this and Turkmenistan has been claiming to have zero
said Turkmenistan had changed its prices retro- cases of coronavirus infections despite taking
spectively. The Turkmen foreign ministry had some measures to curb the spread of unnamed
said that Iran’s debts stem from the NIGC’s fail- “infectious diseases”. Experts doubt the Turk-
ure to abide by a “take or pay” provision of the men leadership’s data, as independent reports
gas supply contract. Prior to the development of have indicated that nearly all regions of the coun-
the row, Turkmenistan demanded a ninefold gas try appear to be having cases of the virus. ™

P14 www. NEWSBASE .com Week 27 08•July•2020