Azerbaijan clears Turkmen gas debt

Baku and Ashgabat have settled the long-standing dispute over Azerbaijan’s debt to Turkmenistan for gas supplies from the Central Asian state. A relevant agreement was signed in the Azerbaijani capital on Wednesday.

The arrears remained outstanding since the early 1990s. The Turkmen side claimed the debt amounted to $44.8 million, but Azerbaijan argued the real figure was only $18 million. The amount of the arrears was not elaborated at the signing.

“The debt issue that had long remained unresolved was solved thanks to mutual compromises and respect,” Azerbaijani First Deputy Prime Minister Yagub Eyyubov said after the signing ceremony. “Azerbaijan’s economy is dynamically developing and it no longer has any debt obligations to any other state.”

The entire bulk of the funds contributed by the South Caucasus republic will be spent on the education reform in Turkmenistan, notably, on the purchase of computers and multi-media equipment.*