Turkey's Petroleum Pipeline Corporation (BOTAS) announced on Tuesday that it has decided to take the natural gas price dispute with Russian natural gas exporter Gazprom Export to the arbitration court on Monday.
BOTAS and Gazprom Export have international natural gas purchase and sale agreements, signed on Dec. 15, 1997 and on Feb. 18, 1998 which allows Turkey to receive a total of 20 billion cubic meters of gas from Russia.
Under the agreements, both sides have the right to ask for a price revision, and after the revision is negotiated, an agreement needs to be reached within six months, according to BOTAS's written statement.
Accordingly, BOTAS asked for a price revision which was agreed upon by both sides to come into effect from Dec. 29 2014, BOTAS's statement reads. Since the December preliminary agreement was made, BOTAS did not instigate legal action in the following six month period up to June 29, 2015.
Although both sides had reached an understanding, Gazprom Export failed to sign the relevant documentation within the six month period following the preliminary agreement, and despite BOTAS's best efforts, and additional four months passed by without a response from Russia.
After writing to Gazprom Export on Oct. 6, 2015, and not receiving a reply, BOTAS announced its decision to take the matter to the arbitration court where the corporation believes the situation will be resolved by the court's decision.
By Zeynep Beyza Karabay
Anadolu Agency
zeynep.karabay@aa.com.tr