Turkey Dramatically Cut Oil Imports From Iran In December

Dow Jones Newswires – Turkey dramatically cut its oil imports from Iran in December, partially replacing them with purchases from Saudi Arabia, marking the clearest sign yet that Ankara is weaning itself off Iranian energy as international sanctions tighten against Tehran.

Turkey's oil imports from Iran fell 40.5% on the month, to 432,700 metric tons in December from 727,700 tons in November, according to data released by government energy regulator EPDK Thursday .

Imports from Saudi Arabia rose 86% on the month in December, to 299,300 tons.

Overall crude imports also fell 20.8% on the month, but the numbers clearly suggest that Turkey is seeking to cut its dependence on Iranian energy.

The news that Turkey appears to be cutting Iranian imports comes after Deputy Prime Minister Ali Babacan said Friday that Turkey's sole refiner Tupras (TUPRS.IS) is looking for alternative oil sources to Iranian supplies.

Turkey has come under pressure from Washington and Brussels to halt its purchases of Iranian energy. Turkey's key policy makers have repeatedly said it is only bound by United Nations sanctions on Iran, not the stronger U.S. or European Union sanctions.

But sanctions have had a marked effect on bilateral trade between Ankara and Tehran. Trade between the neighbors, which surged twelve fold in the past decade amid growing diplomatic ties, plunged 65% in January alone. Most Turkish banks have stopped processing payments for Iranian customers, while the number of Iranian visitors to Turkey dropped 85%, according to travel agents in Istanbul.

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