Business | Oil & Gas
Iran fails to sign energy deals with cautious Turkey
Iranian President Mahmoud Ahmadinejad and his Turkish counterpart failed on Thursday to sign energy deals opposed by Washington, which is seeking to pressure Tehran into halting its nuclear programme.
- Reuters
- Published: 22:51 August 15, 2008
Istanbul: Iranian President Mahmoud Ahmadinejad and his Turkish counterpart failed on Thursday to sign energy deals opposed by Washington, which is seeking to pressure Tehran into halting its nuclear programme.
A joint statement from Ahmadinejad and President Abdullah Gul in Istanbul said the two Muslim countries would continue discussing further energy cooperation.
Neither side gave a reason for the delay but stern faces by Turkish and Iranian officials at the Ottoman palace where the talks took place suggested a sombre mood.
"I think Turkey cannot afford politically to make a deal with them now and that's why it failed," said Soner Cagaptay, Turkish Research Programme director at the Washington Institute.
A source from Prime Minister Tayyip Erdogan's office told Reuters earlier that Ahmadinejad's visit might not yield the expected oil and gas deals following new demands from the Iranian side, including pricing and investment conditions.
Gul and Erdogan have come under fire for inviting Ahmadinejad, who has lobbied hard since coming to power in 2005 to visit Nato member Turkey, which has strong ties with the US and Israel.
Europe has shunned the Iranian leader, who has called for the destruction of Israel and defied international demands for a suspension of his country's nuclear enrichment programme - the subject of ongoing talks between Iran and Western powers.
"As long as we defend our rights, we support the negotiation process started in Geneva. We are open to the suggestions of our friends," Ahmadinejad told a joint news conference with Gul at an Ottoman palace on the Bosphorus.
The US has voiced its opposition to the energy deal amid a standoff between Iran and Western countries and is trying to isolate the Islamic Republic over fears it is pursuing a secret nuclear weapons programme. Tehran denies this.
"The American government has been against our people for 30 years, they always find an excuse," Ahmadinejad said.
After Russia, Iran is the biggest provider of gas to Turkey.
Analysts have questioned whether the Turkish government was serious about going through with the $3.5 billion investment project, given the possible US sanctions Turkish firms could face and comes as Western firms pull out of Iran.
"Ahmadinejad's visit has symbolical meaning. With this visit Iran gives the world the message that it is not possible to isolate Iran," Arif Keskin, analyst at Ankara's Centre for Eurasian Strategic Studies, told CNN Turk.
More from Oil & Gas
More from Business
Business Editor's choice
-
Saudi-Bahraini economic ties hit new high
Whilst press reports continue speculating on a possible new political structure defining ties between Saudi Arabia and Bahrain, facts on the ground confirm ever- stronger economic ties between the two neighbours
-
Cupid targets the Fed with early tweets
Declarations range from pure romance to cute overtures and racier fare
-
Do unemployment figures flatter to deceive?
Jobseekers and recruiters give out mixed signals ranging from optimism to downright despair even as official data show recovery
