The state-owned Turkish Pipeline Corporation (BOTAS) is expected to sue the Greek government for debts of around 300 million USD arising from natural gas purchases from Turkey in a Swiss court of arbitration, daily Today’s Zaman reports quoting officials from the corporation as saying on Wednesday. The decision comes on the heels of recent statements from Energy Minister Taner Yildiz, who stated that Turkey was ”not going to exercise its right to arbitration and will postpone recovery of the Greek debt until Greece gains financial stability.” The minister also ruled out the suggestion by international institutions that Greece could pay off its debt in the form of real estate, meaning the sale of Greek islands in the Aegean. Yildiz said such a move ”would be taking advantage of a neighbor at a very difficult time.” As part of a deal with the Greek natural gas company DEPA, inked in 2007, BOTAS has been selling the natural gas it purchases from Azerbaijan to Greece since early 2008.
Unable to repay the 300 million USD debt to Turkey whilst under heavy financial strain, Greece was expected to outline a plan for payment of the debt, which has been outstanding for 11 months now. BOTAS officials said they have taken the issue to the Swiss arbitration court — which was stipulated as the responsible court for possible disagreements in a gas sale contract between BOTAS and DEPA — and are expecting a response shortly. Sources said BOTAS’s move was ”necessary at a time when the debts are under the threat of not being paid.”
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