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Iran to pay $1.9 billion to Turkey for gas dispute

- Two countries also agree on 13.3 percent discount on gas prices

Iran聽will pay聽$1.9 billion compensation to Turkey in line with decision of the International Court of Arbitration which ruled in favor of Turkey over a gas price dispute between the countries which dated from 2012,聽Hamid Reza Araqi,聽Iran's deputy minister of petroleum said on Tuesday.聽

According to semi-official聽Iranian Students' News Agency, Araqi noted that the two countries聽also agreed on a 13.3 percent discount on the prices of gas delivered from the Islamic Republic to Turkey.聽

In 2012, Turkey sued聽Iran聽in the International Court of Arbitration for overpricing on gas purchases during the four-year period between 2011 and 2015.

The court ruled in favor of Turkey in February 2016 and ordered that both parties agree on a reduction between the rates of 10 percent and 15 percent in the price of聽Iranian gas exports to Turkey.

Reporting by Ahmet Dursun

Writing by Dilara Zengin聽

Anadolu Agency聽

dilara.zengin@aa.com.tr