Turkey uses US-agreed mechanism for Iranian gas payments

Turkish Treasury and Finance Minister Mehmet Şimşek has clarified the mechanism used for paying for Iranian gas imports to ensure compliance with international sanctions. He stated that Turkey does not make direct payments to Iran for these energy imports.

Instead, a mechanism agreed upon with the United States is utilized, where funds are held in a highly monitored and regulated account. Iran is permitted to access these funds only for the purchase of sanctioned-exempt items, such as food, medicine, and similar essential goods. Şimşek described this as a ‘well-established and effectively functioning framework’ for managing natural gas payments.

Additionally, the Minister noted that Iran’s share of Turkey’s natural gas imports remains relatively limited, as Ankara has invested heavily in diversifying its energy sources and increasing storage capacity. The United States has also become a significant supplier of liquefied natural gas to Turkey.