UANI

• “Iran stopped exporting natural gas to Turkey after Bootash Natural Gas Co. requested a halt in supply, the Iranian Oil Ministry news website reported, citing the head of public relations for the National Iranian Gas Co. Gas exports from the Bazargan facilities was cut off at 11 p.m on Sep. 22, Majid Bojarzadeh said, according to the website, Shana. Turkey’s Bootash Natural Gas said it wanted to examined the pipeline and repair ‘probable defects’ in the export link, the report cited him as saying.” (Bloomberg, "Iran Stops Gas Exports to Turkey Due to Pipe Repairs" 9/26/2011)

Gubretas, full name Gubre Fabrikalari TAS, is a Turkish chemical fertilizer company, and describes itself as "one of the biggest industrial corporations in Turkey." In addition to manufacturing and trading all types of fertilizer, it also provides port service to assist in their transportation and export (Company Website).

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In February 2011, Gubretas's chairman revealed that the company had been approached by Iranian companies for advice in evading US banking restrictions. Bloomberg reported that this solicitation concurred with Gubretas's plans to add 1 million tons of production capacity at its Iranian fertilizer plant.

AK Makina is a Turkish mechanical company that trades in machinery from such manufacturers as Hyundai-Kia, Hyundai Heavy Industries, LG, and others (Company Website). 

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A leaked US diplomatic cable shows that Ak Makina has been attempting to export machinery to an Iranian company, Shahid Hemmat Industrial Group, that has been developing a liquid missile propellant for the Iranian nuclear program. Despite American requests to the Turkish government to stop the transaction, it appears that Ak Makina has not cut their ties with Iran (Aftenposten, Turkish Firm Ak Makina Continued Assistance to Missile-Related Entities in Iran, 6/26/2009). 

Karsan Otomotiv is Turkey’s only multi-branded commercial vehicle producer. Karsan’s website notes that it “makes the production of Peugeot Partner under Peugeot license, Hyundai HD 35/75 under Hyundai license, Renault Trucks Premium Uzunyol, Premium Lander and Kerax under Renault Trucks license, Citroen Berlingo under Citroen license and J9 Premier under its own brand.” Karsan was ranked 267th in the list of “Turkey’s Top 500 Industrial Organizations” in 2008. (Company Website)

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On March 9, 2011, following extensive discussions, UANI announced that Karsan had ended its business in Iran. Karsan had demonstrated that it had withdrawn from Iran and committed to foregoing any business in Iran until such time as Iran fulfills its obligations to the international community related to its illegal nuclear program. (UANI, "UANI Applauds Turkish Company Karsan for Ending Its Business in Iran," 3/9/11)

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Karsan entered into a five-year exclusive distribution agreement in 2007 with Iran’s Sanat Khuodro Kamau to export J9 minibus models to Iran. (Karsan Report, May 10, 2007)

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A Karsan company report on February 15, 2008, notes that the company “signed a contract to export J9 Premier to Iran, which will be sold to some Middle East countries via Iran.”

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A July 2010 press release indicated that the updated J10 model would be sold in Iran, Syria, and African countries. (Press Release)

Hema Endustri is a Turkish engineering company that manufactures components for the automative, construction, agriculture, aviation, and defense industries. It specializes in the manufacture of hydraulic units, engine components, and power trains (Company Website). 

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Reuters reported on September 16, 2010, that Hema is planning to sign a deal worth $262 million with Iranian car manufacturer Iran Khodro. The deal calls for joint manufacturing of automative components in a free-trade zone near Iran's Turkish border. 

“The armed forces closed down the recently inaugurated Imam Khomeini International Airport (IKIA) on 8th May.  Because of security concerns, the armed forces closed the airport after a commercial airliner landed at the airport.  This was the first aircraft to land at IKIA. The armed forces announced that the decision to entrust the airport’s operation to a foreign company ‘threatens the security of the country as well as its dignity. The airport was built and was expected to be run by Turkish-Austrian consortium Tepe-Akfen-Vie (TAV). Iran’s two domestic airlines had announced that they would not transfer their operations to the airport.” (Zawya, “New Imam Khomeini Airport Closed after First Flight,” May 2004)

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The Guardian Council, comprising six Islamic clerics and six lay jurists, has in effect become an upper house of parliament. The council can vet all legislation passed by the Majlis and veto any laws that it judges do not comply with Islamic law or Irans constitution. Its influence was most apparent in 2004 and 2005 when it ratified legislation giving the Majlis retroactive veto power over two major foreign investment contracts, those of Turkcell (Turkey) and Tepe-Akfen-Vie (a joint Austrian-Turkish consortium). (Economist Intelligence Units Country Commerce Select, The operating environment: Political conditions, March 19, 2008)

“Iranian natural gas flows to Turkey were halted after an explosion and could take up to a week to resume after repairs are completed, officials at the Turkish pipeline operator Botas said on Wednesday. It was the second time in a little over a month that an explosion halted gas imports from Iran on the key link.” (Reuters, Iran-Turkey gas pipeline hit by blast, flow stopped, Aug. 25th 2010)

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“BOTAŞ was established on August 15, 1974 by The Turkish Petroleum Corporation (TPAO) under Decree No 7/7871, for the purpose of transporting Iraqi crude oil to the Ceyhan (Yumurtalık) Marine Terminal, in accordance with the Iraq-Turkey Crude Oil Pipeline Agreement signed on August 27, 1973 between the Governments of the Republic of Turkey and the Republic of Iraq. Because of Turkey’s increasing need for diversified energy sources, since 1987 BOTAŞ has expanded its original purpose of transporting crude oil through pipelines to cover natural gas transportation and trade activities, therefore becoming a trading company.” (Botas Website)

"Turkish lender Halkbank , little known outside Turkey, has gained a reputation in the oil market over the past 18 months for handling transactions that other banks fear to touch - trade deals with Iran... Halkbank's stance toward Iran largely has reflected the attitude of the Turkish government, which owns 75 percent of the bank, towards international sanctions against Tehran over its nuclear programme... Halkbank handles payments to Iran by Tupras, which is owned by the Turkey's largest conglomerate Koc Holding, according to industry sources with knowledge of the transactions. Indian refiners, unable to pay Iran for imported oil through their own banking system for fear of U.S. retribution, turned to Halkbank in mid-2011 to make payments. In December, Halkbank refused to open an account for an additional Indian refiner, BPCL, for that purpose. No reason was given, though there was speculation that Turkey wanted to avoid further antagonising Washington. Halkbank was contacted over the status of the bank's dealings with Iran, but senior officials were unavailable for immediate comment." (Reuters, "Iran dealings put Turkey's Halkbank in spotlight," 1/4/2012)

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"Halkbank, as the bank is popularly called, was revealed to have facilitated payments of $100 million between Indian oil refiners and the National Iranian Oil Company. This fund transfer was a multi-step process coordinated with Union Bank of India, and designed specifically to evade international sanctions." (Bloomberg, "Iran Receives $100 Million in Oil Payments From India, PTI Says," 8/2/2011)

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Conducts business with U.S. banks and Iranian banks. ("Iran's Dirty Banking", Avi Jorisch)

"Iran’s Oil Ministry said the country had signed a €1 billion ($1.3 billion) pipeline deal to take gas to Turkey and a Turkish firm called Som Petrol said it was the partner in 
the project.

“The one billion euro deal to build 660km gas pipeline was signed on Thursday during the Iranian Oil Minister’s trip to Turkey,” the Iranian ministry said in a statement on Friday...

“The pipeline will enable Iran to export 50 to 60 million metres of gas per day ... It will be constructed within three years,” Javad Oji, head of the National Iranian Gas Export Co. (NIGC), told the Iranian Oil Ministry’s official ebsite (sic) SHANA.

Oji was quoted by the Mehr news agency as also saying that 23 per cent of the project would be handled by the Iranian side and 77 per cent by the Turkish side. One of the world’s biggest oil and gas producers, Iran has been hit by US and UN sanctions that have hindered access to foreign investment and slowed its development as a major exporter.

The website identified NIGC’s Turkish partner as ASB Co., but Som Petrol said it had signed the deal.

“We signed the agreement on the Iran-Turkey pipeline yesterday,” Som Petrol’s Chairman Sitki Ayan told Reuters.

This agreement can be seen as continuation of a project that began in 2008.

Iran and Turkey first agreed on a pipeline project in 2008 with the aim of carrying Iranian gas to Europe.

Ayan said the pipeline would carry 110 million cubic metres of gas per day and is planned to be completed in 2014...

Som Petrol already has operations in Turkmenistan and has been looking to expand business with Iran. A unit of Som Petrol had applied to the energy regulator EPDK for permission to purchase electricity from Iran, according to officials from the regulator.

Turkey’s Energy Minister Taner Yildiz said neither the Turkish government nor state pipeline concern Botas were involved in the deal with Iran, though several private firms had  hown (sic) interest.

"Turkey will seek a waiver from the United States to exempt its biggest refiner Tupras from new U.S. sanctions on institutions that deal with Iran's central bank, a Turkish energy ministry official told Reuters on Wednesday... U.S. ally Turkey gets about 30 percent of its oil from neighbour Iran, and Tupras - Turkey's biggest crude oil importer, owned by its largest conglomerate, Koc Holding - is a big buyer of Iranian crude... Turkey's Energy Minister Taner Yildiz said Tupras will continue to buy oil from Iran 'until there is a new development'. 'Iran is one of the countries Tupras imports oil from. We have not received information on the new sanctions. Tupras continues to buy oil today,' Yildiz told reporters." (Reuters, "Turkey to seek US waiver on Iran oil -energy official," 1/4/2012)

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"Turkey's biggest crude oil importer Tupras has renewed its annual deal to buy crude oil from Iran for 2012, at almost the same volumes as this year, industry sources familiar with the matter said. They said Tupras had no plans for now to purchase extra amounts from the Islamic Republic... But industry sources said Tupras had no such plans, at least for now. 'I don't think there is such an intention right now,' one trading source said. 'Tupras has become much more commercial since its privatisation. If Iranian crude makes economical sense, they might take on more, if not they wouldn't, as simple as that,' he added... Tupras purchased 7.41 million tonnes of crude oil from Iran in 2010, according to a presentation on its website, which makes up for almost 38 percent of the 19.6 million tonnes of crude it refined in 2010... Another industry source said the amount that Tupras agreed to buy for 2012 was 'more or less the same' with that of this year's, which falls in line with the analysts' expectations. Tupras is Turkey's sole refiner with a total capacity of 28.1 million tonnes in four refineries. Since its privatisation bid in 2005, it is owned by Turkey's largest conglomerate Koc Holding." (Reuters, "Turkey's Tupras renews annual Iran crude oil deal," 12/21/2011)

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"Open sources reported that Tupras sold gasoline to Iran in 2010.... [It] notified GAO that it stopped selling gasoline to Iran in July 2010, following the announcement of U.S. sanctions against Iran on July 1, 2010." (U.S. Government Accountability Office, Report: "Firms Reported in Open Sources to Have Sold Iran Refined Petroleum Products between January 1, 2009 and June," September 3, 2010)

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"Tupras, Turkey's sole refiner, purchases about a third of its crude from neighbouring Iran. In June, Turkey provided about half of Iran's gasoline needs, but sales last month dropped 73 percent to $25.6 million, equivalent to about one cargo, as sanctions against Iran took effect... 'In the current situation, sales of petroleum products to Iran are not being made. Therefore, there is no possibility that our company will face any kind of sanctions,' Tupras said." (Reuters, “UPDATE 2-Tupras Q2 net misses forecast, no Iran sales,” 08/23/10)

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“Operating four oil refineries, with a total of 28.1 million tons annual crude oil processing capacity, Tüpraş is Turkey’s largest industrial enterprise. In addition, a 50,000 ton capacity petrochemical production facility, a majority stake (79,98 %) in shipping company DİTAŞ and 40% share ownership of petrol retailer Opet, creates synergies and adds value to the operations. The roots of Tüpraş, an integrated petroleum company with a large market share, corporate reliability, production complexes and affiliates, dates back to İPRAŞ (İstanbul Petrol Rafinerisi A.Ş.) founded by the U.S. Caltex Company. In 1983, İPRAŞ and three other publicly owned refineries were brought under the Tüpraş umbrella by arrangements made for a more effective operation of State Economic Enterprises” (Company website, "About Tupras")

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An article on recent further impacts of the sanctions on Iran reports, "Only three cargoes of gasoline have so far reached Iran in July, according to a shipping document seen by Reuters, much less than the seasonal norm, as new sanctions cause ships carrying fuel to be diverted."

"The document seen by Reuters showed only three cargoes of gasoline had arrived this month and were supplied by Turkish refiner Tupras and Unipec, the trading arm of China's Sinpoec." ("Iran Fuel Imports Nosedive as Sanctions Bite," Reuters, July 26, 2010).

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Following new U.S. sanctions against Iran in July 2010, Tupras is supplying Iran with about half of its gasoline imports: "Iran is depending more on friendly powers in the international arena for fuel supplies after the U.S. passed far-reaching sanctions a week ago that aim to hinder Tehran's fuel imports and deepen its international isolation.

The Islamic Republic is buying around half of its July gasoline imports from Turkey and the rest from Chinese sellers, oil traders said on Thursday, as most other suppliers have stopped selling due to the U.S. sanctions.

Turkish refiner Tupras began supplying gasoline to Iran in June after a hiatus of at least 18 months, trade sources said, just days after Turkey and Brazil brokered a nuclear fuel swap plant with Tehran designed to quell international fears over the Islamic Republic's atomic ambitions."

"Iran would import around 90,000 barrels per day (bpd) of gasoline in July, steady from June, oil traders said. It would take around nine cargoes, four or five of them from Turkey and the rest from Chinese sellers, they said."

"The limited pool of suppliers was driving up the cost of gasoline for Iran and making it harder for the Islamic Republic to buy the quantities it needs, traders said.

"These restrictive measures mean it is getting very serious for Iran," said Mehdi Varzi, a London-based energy consultant. "The oil market is a big market, and they will always find suppliers, but it is getting more difficult and it is costing more."

"Two of the gasoline cargoes coming from Turkey were scheduled to load from Turkish refiner Tupras' Izmit refinery, while two or three were scheduled to load from Tupras' Izmir refinery, sources said. The cargoes would be loaded load onto ships owned by the state energy giant National Iranian Oil Company (NIOC), they added.

A Tupras spokeswoman was not immediately available for comment on Thursday" (Webb, Simon, "Iran relies on friendly powers for fuel supplies," Reuters, July, 8 2010).

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"Turkey buys 10 billion cubic metres of gas annually from Iran, which meets about 30 percent of Turkey's domestic needs. Iran is set to receive its first shipment of gasoline from Turkey in at least 18 months in June, industry sources have said.

"Iran supplied Tupras with 3.2 million tonnes of crude in 2009, down from 7.5 in 2008 and 8.86 in 2007, according to a Tupras investor presentation. That makes Iran Turkey's second-biggest supplier after Russia (5.48m T in 2009, 6.57m T in 2008, 9.06m T in 2007)" (“Turkey's economic relations with the Middle East,” Reuters, June 24 2010).

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As of April 2010, Tupras imports 63 thousand barrels of crude oil per day from Iran. ("Iran’s Crude Oil Buyers in Europe, Asia," Reuters, April 18 2010.)