Turkey to Ask for Russian Gas Discount at Meeting

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Turkey to Ask for Russian Gas Discount at Meeting

Turkey will seek to have the price of Russian gas shipments into the country discounted at upcoming talks next week, Minister for Energy and Natural Resources Taner Yildiz said on Friday.

“The agreement, we signed with the Russian side, offers to us a right to request revision of gas prices. We shall pass the request to Gazprom’s representatives,” Yildiz said.

Although deputy chief executive of Russia’s Gazprom is scheduled to visit Turkey, sources from the gas giant said the company would not hold talks over gas price during the trip.

“The agenda will not be devoted to the global cooperation in the gas sphere. “We have not drafted any documents on prices,” the source is quoted by ITAR TASS as saying.

The meeting might also carry deliberations on the possible creation of the South Stream project which crosses into Turkey’s territory.

The huge project can go a long way in solidifying Russia’s position as the leading supplier of gas in Europe, but the envisioned venture has been jeopardized by the conflict between the country and Ukraine.

Other possible energy items on the agenda of the meeting with Alexander Medvedev of Gazprom include nuclear power and gas supplies.

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Yildiz said that his country was selling gas below costs and was striving harder to ensure higher costs of obtaining the commodity are not passed on to consumers (citizens and industries).

Turkey spends as much as $60 billion on energy every other year, pushing to the roof its current account deficit and playing a central role in destabilizing the country’s economy.

Turkey accounts for the second-largest volumes of Russian gas shipments after Germany. It also buys most of its energy from abroad. The country bought 26.1 bcm of gas from Russia in 2013.

According to Reuters, Yildiz said that his country has not made the request yet but would discuss the issues on Monday. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com