July 27, 2007 - 18:08 AMT
U.S. may apply sanctions against Turkey over agreement with Iran
"Turkey's preliminary memorandum of understanding (MoU) on possible gas cooperation is of concern for two reasons. First, a MoU could seriously set back the work that Turkey and the U.S. have been doing for a decade to develop Caspian Basin gas resources as well as a pipeline infrastructure to bring those resources to Turkey and to international markets," U.S. Ambassador to Turkey Ross Wilson said when commenting on Turkey's energy deal with its neighbor Iran.

"By continuing to support projects like the trans-Caspian gas pipeline, Turkey's regional leadership will help diversify its and other European countries' energy supplies, make Turkey a key gas transit country and strengthen the developing economies of Turkey's neighbors. A major increase of Iranian gas exports to Turkey and beyond may hinder the development of gas resources in Azerbaijan, Kazakhstan and western Turkmenistan," Amb. Wilson added, APA reports.