NEWS NATIONAL NEWS        27/10/2015

Turkey has taken Gazprom to court to get price discount for gas

Following the deterioration in relations between Turkey and Russia following Russia’s decision to launch airstrikes in Syria, Turkey’s state-owned pipeline company Bota? has filed a case for international arbitration against Gazprom to seek a price discount for Russian gas supplies.

Gazprom sold some 27.3 billion cubic metres of gas in 2014 to Turkey, which is Gazprom’s second-largest export market after Germany. Russia supplies more than half of Turkey’s gas imports.

The two countries have yet to reach a deal for the construction of the Turkish Stream pipeline across the Black Sea despite nearly a year of negotiations. Gazprom, which has already spent billions of dollars improving infrastructure on the Russian side of the Black Sea and ordering pipes for the project, had wanted a rapid agreement. However, Turkey’s insistence on a discount slowed down the negotiations. Both sides said this summer they had agreed on a 10.25 per cent price discount for Gazprom’s supplies to Turkey, but no agreement was signed and Moscow scaled down its vision for the pipeline, cutting its planned capacity in half.

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