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Türkiye does not make direct cash payments to Iran for the natural gas it imports, Finance Minister Mehmet Simsek said on Wednesday, explaining that the funds are held in a tightly regulated account under an arrangement with the United States.
Addressing how Iranian gas purchases work under U.S. sanctions, Simsek explained that Türkiye had previously received exemptions for natural gas imports from certain countries, while the funds can only be used to buy permitted goods such as food and medicine.
"When Iran purchases certain products that are permitted under the sanctions regime, the money accumulated in this segregated account is used to pay for those transactions," Simsek told reporters at a meeting at the Presidential Complex in Ankara.
Simsek contended that Iran accounts for a relatively small share of Türkiye's natural gas imports as the country has diversified its supply chain. Türkiye has also invested heavily in alternative sources and storage capacity, while the United States is among its leading LNG suppliers, he stressed.
Türkiye receives Iranian gas through the Eastern Anatolian pipeline under a 25-year agreement that took effect in 2001 and covered up to 10 billion cubic meters a year. Iran supplied 7.7 billion cubic meters in 2025, accounting for 13.2% of Türkiye's total gas imports, though the volume remained below the contracted amount.
Market data, however, shows that Iranian supplies have picked up since February, reaching 4.5 billion cubic meters in the first half of the year, or 14.8% of total imports.
The agreement expired on July 29, but neither Türkiye nor Iran has publicly indicated whether talks on a potential renewal have begun.
Türkiye's Energy and Natural Resources Minister Alparslan Bayraktar said earlier this week that Ankara had not received any proposal from Washington to end Iranian gas imports and continues to closely monitor developments in its energy ties with Iran.
U.S. LNG has also gained a larger foothold, reaching 9.5 bcm and a 16.2% share of the market share. In the same period, volumes stood at 5.6 bcm, representing an 18.4% share.
Simsek also emphasized Türkiye's cooperation with its allies and its ability to manage the issue going forward. "Our priority has always been to protect the integrity of our own financial system and, through this, contribute to the integrity of the international financial system," Simsek said.
"Türkiye is determined to fight terrorist financing, all forms of illegal financial activity, money laundering, sanctions violations, and all forms of illegal trade," he added.
He also stressed that companies operating in Türkiye must comply with national laws and avoid transactions that could be subject to sanctions, while authorities assess disclosures and allegations within the framework of the rule of law.
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