Turkish firms stopped selling oil products on Saturday to Iraq, which already suffers fuel shortages, due to $1 billion in unpaid debt, CNN Turk channel quoted Foreign Trade Minister Kursad Tuzmen as saying, according to Reuters. But the Iraqi oil ministry said part of the debt had already been repaid, with the rest to follow within days. Iraqi state oil marketer SOMO had already told Turkey on Thursday that the debt would be paid within 15 days. But 34 Turkish firms exporting oil products such as gasoline and liquefied petroleum gas stopped loading oil for Iraq in the Turkish ports of Mersin and Iskenderun. "Our firms have stopped loading from oil facilities today because no development has been seen on payments and the firms' receivables exceeded $1 billion," Tuzmen said. If Baghdad pays its debt, then the problem will be solved and oil flow into Iraq will resume, he said. In Baghdad the Oil Ministry was optimistic the dispute would be settled. "The ministry paid $250 million two days ago and the rest of the money will be paid within days," ministry spokesman Asim Jihad said. "The ministry had agreed with the firms as well to provide Iraq with oil products for the first quarter of 2006." Ankara had set Jan. 21 as the deadline for payment of debts and warned it would stop selling to its crude-rich neighbour.
