Ankara, Tehran keen on keeping economic co-op on high despite political differences

/By AzerNews/

By Sara Rajabova

Despite the objections by some powers in Iran against Turkish president’s visit to the Islamic Republic, Recep Tayyip Erdogan paid an official visit to Tehran on April 7.

The main goal of the visit was to discuss the recent developments taking place in the region, as well as exchange views on the economic issues.

The two ambitious countries of the Middle East have managed to maintain good economic relations despite the disagreements on the political arena.

The high-ranking officials of the both countries have voiced intentions to increase the trade volume between the two countries up to $ 30 billion.

Erdogan has once again repeated in Tehran Turkey's intension to bring the volume of bilateral trade turnover to $30 billion, TRT Haber TV channel reported from the joint press conference of Erdogan and his Iranian counterpart Hassan Rouhani on April 7.

Erdogan’s delegation included the country’s Foreign Minister Mevlut Cavusoglu, Economy Minister Nihat Zeybekci, Minister of Customs and Trade Nurettin Canikli, Minister of Energy and Natural Resources Taner Yildiz and other government members.

The Turkish president preference to gather the high-ranking officials from the economic and trade sector into his delegation also shows that Ankara have determined to boost economic relations with Tehran, in spite of political differences.

Reportedly, during the visit the sides signed a total of eight intergovernmental agreements.

Erdogan said currently, the trade turnover between the two countries does not exceed $14 billion, which is an unsatisfactory figure, according to the report.

He also added that Iran and Turkey should carry out trade with their national currencies.

The bilateral trade turnover between Turkey and Iran stood at $13.6 billion in 2014, according to Turkish Statistical Institute, while this figure was equal to $14.4 billion in 2013.

Turkey wants gas discount

One of the main goals of Erdogan's visit was to gain discount from the Iranian gas for what energy-hungry Turkey has been struggling for long.

Erdogan said Ankara hopes Iran will provide Turkey with a discount on the gas supplied to the country, noting that Turkey buys the most expensive gas from Iran.

He went on to add that in case if Iran provides a discount for Turkey on the supplied gas, Ankara can increase the volume of purchases.

Turkish media reports Turkey buys Iran’s gas at $490 per 1,000 cubic meters. For Azerbaijan’s gas, which is supplied via the South Caucasus Pipeline (Baku-Tbilisi-Erzurum), Turkey pays $335 per 1,000 cubic meters.

Meanwhile, Russia’s gas costs Turkey $425 per 1,000 cubic meters.

Turkey has a contract with Iran for the supply of 10 billion cubic meters of gas per year, a contract with Russia – for supply of 20 billion cubic meters of gas, and a contract with Azerbaijan – for supply of 6.6 billion cubic meters of gas per year.

In March 2012, Ankara asked the International Court of Arbitration on the prices of the Iranian gas supplied to Turkey.

As stated previously by the minister of energy and natural resources, Taner Yildiz, Ankara and Tehran will again discuss the prices of the Iranian gas supplied to Turkey. He also said Iran demanded that Turkey withdraw the appeal from the International Court of Arbitration, which is unacceptable for Ankara.

The minister said during a visit of Iran’s President Hassan Rouhani to Turkey, the Iranian delegation proposed Ankara new conditions under which the gas prices can be reduced, but the said terms are unfavorable for Ankara.

Iran, Turkey share joint viewpoints on Yemen crisis

Besides the economic issues, the discussion of recent regional developments was also on the focus of the two countries' presidents.

The two leaders have highlighted their positions on the Yemen crisis that has been hot topic of discussions recently.

Turkish president’s recent Iran remarks over the Yemen crisis have sparked a diplomatic controversy between the two countries. Tehran handed an official note of protest over Ankara in connection with President Erdogan’s statement who said “Iran is trying to dominate in the region.”

However, Erdogan showed his determination on his Tehran visit and said to discuss issues of concern with Iran.

Iranian president Rouhani said the Islamic Republic and Turkey share joint viewpoints about the ongoing crisis in Yemen.

“We both believe that a ceasefire should be established in Yemen as soon as possible and foreign countries should stop their attacks,” Rouhani said.

He further said Iran and Turkey with cooperation of other countries can help establishing peace, security and formation of an inclusive government in Yemen.

Rouhani went on to add that alongside with the Yemen crisis the two parties also talked over latest regional developments in particular in Iraq, Syria and Palestine.

Iran and Turkey are already clashing over a number of political issues. The Tehran-Ankara disagreement is more noticeable in Syria where, while Tehran supports President Bashar Assad, Ankara backs some of the opposition groups fighting Damascus.

The issue of cooperation in energy, transport, transit, trade and facilitating the grounds for investment of the two countries’ private sectors as well as conducting joint investments in third countries also discussed in the meeting, Rouhani said.

He said Iran and Turkey have agreed to cooperate in security issues such as fighting terrorism on common borders.