Source: Russia and Turkey will suspend the discussion on the project “Turkish stream”

Source: Russia and Turkey will suspend the discussion on the project “Turkish stream”

MOSCOW, December 1. The discussion of the project “Turkish stream” will be suspended in connection with the termination of activity of the intergovernmental Commission Russia-Turkey.

This was told by a source familiar with the negotiations.

Earlier Tuesday, the government has decided to suspend the activities of the mixed intergovernmental Russian-Turkish Commission on trade and economic cooperation, headed by Minister of energy Alexander Novak.

“In connection with the suspension of the activities of the intergovernmental Commission Russia-Turkey discussions on the project “Turkish stream” is also suspended,” the source said.

The press service of the Ministry of energy and Gazprom have so far refrained from commenting on this issue.

Cooperation with Turkey in the gas sphere

Russia transports gas to Turkey via the gas pipeline “Blue stream”, laid under the Black sea, and the TRANS-Balkan gas pipeline (the so-called “Western corridor” through Ukraine, Moldova, Romania and Bulgaria). In 2013, Russia supplied to Turkey 26.6 billion cubic meters of gas in 2014, to 27.4 billion cubic meters. This provided 60% of Turkey’s demand in natural gas.

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© Mikhail Klimentyev/press service of the Russian President/TASS

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During the visit of Russian President Vladimir Putin to Turkey on 1 December 2014, agreement was reached on the construction of the gas pipeline “Turkish stream”. Originally it was planned that the capacity of four branches of the pipeline will be 63 billion cubic meters of gas per year, of which 16 billion will be supplied to Turkey, and 47 billion on a gas hub on the Turkish-Greek border.

In October 2015 the head of “Gazprom” Alexey Miller said that Russia is planning to build only two legs of the “Turkish stream”, but his real power will not be more than 32 billion cubic meters. The length of the offshore pipeline was to be approximately 900 km, ground – 180 km.

At the same time it was announced that negotiations on signing of an intergovernmental agreement were delayed by the political situation in Turkey, where at that time there was approved the composition of the Cabinet of Ministers. 7 October 2015 the Deputy Chairman of the Board of “Gazprom” Alexander Medvedev admitted the postponement of the implementation of the project at the end of 2017.

Dossier on the topic

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Turkish business in Russia

Russian business in Turkey

During Putin’s visit there was reached a preliminary agreement on granting Turkey discount on gas with a possible increase as the implementation of joint projects. According to the document signed by Gazprom and Turkish company Botas on December 29, 2014, the parties were to reach agreement on the discount during the six months.

Turkey insisted on a 15% discount. Russia, in turn, linked the issue of granting discounts with the project “Turkish stream”. Since the agreement on the pipeline was not signed, and Turkey was not given a discount, the company Botas on October 26, 2015 filed a lawsuit against Gazprom in international arbitration court.

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© Mikhail Metzel/TASS

Russian-Turkish economic relations. Dossier