Turkey says it's cutting Iran oil purchases by 10%

Ankara's energy minister says Turkey will makeup shortfalls with purchases of oil from Libya.

March 30, 2012 15:33
2 minute read.
oil pipeline in Turkey

oil pipeline in Turkey_370. (photo credit: Reuters)


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user uxperience almost completely free of ads
  • Access to our Premium Section and our monthly magazine to learn Hebrew, Ivrit
  • Content from the award-winning Jerusalem Repor
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

ISTANBUL - Turkey will reduce the amount of oil it buys from Iran by around 10 percent, Turkish Energy Minister Taner Yildiz said on Friday, a week after Washington warned Iran's customers they could be subject to US sanctions unless they significantly cut purchases.

Turkey will partly replace the oil with 1 million tons it expects to buy from Libya, Yildiz told reporters. The country is also in talks with Saudi Arabia on spot oil purchases and longer term contacts, Yildiz added.

Be the first to know - Join our Facebook page.

"We plan to increase the number and the route of countries we buy oil from," Yildiz said.

Turkey imports around 200,000 barrels per day of oil from Iran, representing 30 percent of its total imports and more than 7 percent of Iran's oil exports.

Having been omitted from a list of countries granted exemptions by Washington, Turkey remained hopeful of obtaining a waiver to avoid U.S. financial sanctions.

The United States exempted Japan and 10 EU nations from sanctions because they have significantly cut purchases of Iranian crude oil, but left Iran's top customers China and India exposed to the possibility of such steps.

Turkey's sole refiner Tupras, a unit of Koc Holding, said in a statement to the Istanbul stock exchange that it would cut its purchases of Iranian crude by 20 percent.

Click here for full Jpost coverage of the Iranian threat

Tupras is the main Turkish customer, currently buying some 30 percent of its crude oil from Iran, and it has an 9 million tons annual purchase contract.

Koc Energy Group Chairman Erol Memioglu told reporters last month that the existing Tupras oil contract with Iran ends in August.

He said that he expected more clarity on the details of the sanctions in May, before Washington's measures on oil-related transactions take effect on June 28.

Both the United States and the European Union have imposed unilateral sanctions against Iran's financial and energy sectors over its nuclear program, whereas Turkey has said it is only compelled to observe the softer UN sanctions.

Trade between Turkey and Iran has risen sharply over the past decade, leading to Turkey being regarded as a possible weak link in the international sanctions against Iran.

Turkey has struck a new contract to buy oil from Libya, and has held talks with Saudi Arabia about possible supplies over the past few months.

Iran says its nuclear program is solely for civilian purposes, and denies that it is building weapons. A meeting between Iranian nuclear negotiators and representatives of six major powers is expected on April 13, with Istanbul a possible venue for the talks.

Tupras shares were little moved after the announcement, up 0.9 percent at 44.9 lira, by 12:07 GMT.

Related Content

July 19, 2018
Sources close to Netanyahu: Trump knew the Iran nuclear deal was bad