Turkey wants to renew gas deal, Russian energy minister says

Turkey wants to renew gas deal, Russian energy minister says

Nerdun Hacıoğlu MOSCOW
Turkey wants to renew gas deal, Russian energy minister says

Russian Energy Minister Alexander Novak (L) meets his Turkish counterpart Taner Yıldız on Nov 26 to discuss a series of energy issues, including a potential discount in the gas price.

Turkey wants to renew the bilateral gas agreement with Russia rather than requesting a discount in the existing deals, Russian Energy Minister Alexander Novak has said. “Gazprom and Turkey’s BOTAŞ have still been discussing the deals. As far as I know, Turkey wants to renew the existing gas deal with Russia upon a new principle of price setting, rather than asking for a gas discount upon the existing principle. Gazprom will decide to accept or reject this idea. We’ll see what it said soon,” he said in an exclusive interview prior to Russian President Vladimir Putin’s visit to Turkey.

Turkey hopes to receive a discount on gas prices, Turkish Energy Minister Taner Yıldız said Nov. 26 during his Moscow visit days before Putin’s Turkey visit on Dec. 1.

The results of the talks between Gazprom and BOTAŞ are expected to be announced during Putin’s visit.

Novak also praised the good partnership relations between the two countries.

“Turkey has acted in the opposite direction of the western countries about Russia. And Turkey does not create any problems with the South Stream gas pipeline. We appreciate this … Who knows, maybe a new pipeline may be built through the western parts of Turkey when the South Stream project is completed,” he said.

Novak also said the recent sanctions against Russia will not affect Turkey’s first nuclear plant, which is being built by Russian Rosatom.

“The Akkuyu nuclear power plant project constitutes one of the building stones of the economic relations between the two countries. A new industrial sector has been born in Turkey. The project will be completed in line with the pre-defined plans. Loans can be secured to finance the project from other countries than the western countries,” he said.

He also noted the bilateral trade is in favor of Russia.

“Some $18 billion of goods and services were exported from Russia to Turkey in the last nine months of this year. This figure is quite high, as the total of the trade volume was $23.7 billion. This is mainly caused by Turkey’s huge energy imports,” he noted.

Novak also noted Ukraine paid $1.45 billion of their $3.1 billion debt.

“Ukraine has not made the payment for 4 billion cubic meters of gas yet. We are ready to open the valves 48 hours after they make the payment,” he said, adding that Russia follows its contracts on the deals with Ukraine on gas transit.

“Ukraine will most probably use the gas from the transit pipe as their reserves will not be enough, so the problem still exists,” he said.