Turkey to abandon take-or-pay principle in gas agreements

April 23, 2014

Turkey intends to deviate from a 'take or pay' principle in executing gas supplies agreements with Azerbaijan and Iran, Azernews reported on April 22. The news was announced by Turkish Energy and Natural Resources Minister Taner Yildiz at a meeting with journalists on April 21, local Turkish media reported.

"We should abandon the agreement on a 'take or pay' principle towards Azerbaijan and Iran, as it previously happened with Russia," he said. Yildiz went on to stress that Turkey will refuse a 'take or pay' principle in its agreements with Iran in 2014 and Azerbaijan in 2015.

"Therefore, Azerbaijan and Iran should ensure gas supplies to Turkey in sufficient volumes," he noted. "In case of supplying insufficient volumes, they will not be included in this mechanism [take or pay]."

Copyright: Azernews, 2014