Turkey Won't End Iran Trade: Minister

Turkish energy minister Fatih Donmez on August 8 said that his country's energy trade with Iran will continue despite US political pressure and its re-imposition of trade sanctions against Iran.

However he added that he was "hopeful" that a Turkish delegation due in Washington, also August 8, would be able to conclude a mutually acceptable result.

In an interview given to TV channel A Haber, Donmez said that Turkey's 9.6 Bcm/yr gas imports from Iran were important for Turkey's security of energy supplies. The interview, believed to be Donmez's first since being appointed energy minister, was also relayed by Turkish state news agency Anatolia. 

"We don't have the option of leaving Turkish citizens without electricity; therefore our trade will continue according to the contract," he said, noting that Turkey's Iranian gas import contract runs until 2026.

Turkey has historically been a major market for Iranian crude. However no mention was made by Donmez, either in the report by Anatolia or in a segment of the interview viewable on the A Haber internet site, of whether Turkey would suspend crude oil imports from Iran starting in November. Many western oil majors have already signaled they will halt buying Iranian crude by then.

Donmez criticised Washington's decision to re-impose sanctions against Iran as being "one sided" and noted that the European Union was also "uncomfortable" with the US move. He also pointed out that the previous sanctions regime imposed on Iran followed a decision by the United Nations "which we were obliged to comply with."

Turkish officials have repeatedly stated that Ankara will not accede to US demands to apply a new round of sanctions against Iran, stressing the importance of Turkish trade with Iran.

Earlier this week the Turkish lira fell to a record low against the dollar, after Washington said it was reviewing Turkey’s duty-free access to US, a move that could affect $1.66bn of Turkish imports. However the Trump administration has also shown some pragmatism, by providing a waiver from the new US sanctions against Iran for Shah Deniz and the Southern Gas Corridor, in which NIOC affiliate Nico has a stake.