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Gazprom Cancels Gas Discount for Turkey

Gazprom Cancels Gas Discount for TurkeyGazprom Cancels Gas Discount for Turkey

Russia's Gazprom has cancelled a discount in gas prices for Turkish customers, industry officials said on Friday, in the latest salvo in a diplomatic and trade row after Turkey shot down a Russian warplane two months ago. Turkey said last year it struck a deal giving it a 10.25% price discount on gas from Russia's Gazprom but a final signature on the accord had been delayed, prompting state pipeline operator Botas to appeal to the International Chamber of Commerce. Officials from Turkey's private sector gas companies told Reuters that Gazprom had cancelled the discount and alerted the Turkish companies last week during a meeting in Vienna. "Following this, private sector companies have begun sending notifications to their customers about the new situation. The new price and how it will be applied retrospectively is yet to be figured out," an executive at a private sector firm said. Russia is Turkey's largest gas supplier with sales of 28-30 billion cubic meters annually worth around $6.5 billion. Turkey imports 60% of its gas and 35% of its oil from Russia.

 

Financialtribune.com