May 27 2018

Russia and Turkey end dispute over terms of gas supplies

Russian state energy giant Gazprom and the Turkey's state-owned BOTAS signed a protocol on the construction of the land-based part of the transit leg of the TurkStream gas pipeline on Saturday, Reuters reported.

The construction was stalled by a legal rift on gas prices and Turkey had delayed issuing a permit for the Russian company to start building the land-based parts of the pipeline needed by Moscow to reduce its reliance on Ukraine as a transit route for its gas supplies to Europe.

Earlier on Saturday, Turkish President Recep Tayyip Erdogan announced that Gazprom and BOTAS had resolved the dispute and reached a retroactive agreement for a 10.25 percent discount on the natural gas Ankara buys from Moscow.

Russian affairs expert Dr. Kerim Has, in a tweet post, stated that the discount prices were only limited for 2015 and 2016. And the discount was made possible in exchange of the authorization for the TurkStream from Ankara. Sourcing Kommersant, Dr. Has added in 2018, the prices will continue raising.