Russia’s Gazprom ‘has agreed’ gas prices with private Turkish importers

MOSCOW/ISTANBUL

Gazprom Export, the exporting arm of Russian gas giant Gazprom, said on April 13 it has agreed 2016 gas prices with seven private Turkish importers, but a pricing spat with Turkish pipeline operator Botaş has still not been resolved.

Turkey said last year it had struck a deal for a 10.25 percent discount on gas from Gazprom, but a final agreement was delayed, prompting state pipeline operator Botaş to appeal to the International Chamber of Commerce (ICC), according to Reuters.

Gazprom Deputy CEO Alexander Medvedev said earlier on April 13 his company hoped to resume talks with Botaş over the pricing dispute.

Gazprom reduced gas supplies to Turkish companies in February. Sector representatives then said the Turkish private sector and Gazprom were in talks over the future of a 10.25 percent price discount, but the Russian side recently canceled this discount unilaterally, underlining “disagreements over the gas price.” 

Gazprom Export said on Feb. 25 it is continuing negotiations with gas consumers in Turkey and aims to maintain stable contractual relations. 

Turkish companies import 10 billion cubic meters (bcm) of gas from Gazprom annually, in line with a 2013 contract. Russia is Turkey’s largest gas supplier with annual sales of 28-30 billion cubic meters worth around $6.5 billion. Turkey imports 60 percent of its gas and 35 percent of its oil from Russia.

Moscow’s relations with Ankara nosedived after the Turkish Air Force downed a Russian bomber on a mission to hit militant targets in northern Syria in November 2015.