U.S. Aside, Turkey O.K.'s Iran Gas Pact
Published: August 12, 1996
TEHERAN, Iran, Aug. 11— Turkey initialed a $20 billion natural gas agreement with Iran today, insisting that the accord does not defy United States measures that seek to block foreign investment in the Islamic republic.
The 22-year agreement calls for Iran, a major oil and gas producer, to sell 140 billion cubic feet of gas a year to Turkey beginning in 1998.
The accord comes just days after President Clinton signed a law that authorizes the United States Government to penalize American and foreign companies that invest more than $40 million a year in the oil and gas sectors in Iran and Libya. Washington accuses the two countries of sponsoring terrorism.
Washington's allies in Europe and elsewhere have condemned the law, and the action by Turkey, a NATO member, poses a direct challenge to American attempts to further isolate Iran.
Turkish officials say the deal does not violate sanctions. ''The sanctions ban investments in Iran,'' said Abdullah Gul, the Government spokesman. ''We're not going to invest in Iran. This is only a trade agreement. The two countries will build their own sides of the gas pipeline.''