Gazprom willing to maintain stable relations with Turkish firms
Gazprom, the state-run Russian gas giant, is reported to be engaged in ongoing negotiations with Turkish firms

Gazprom engaged in negotiations with Turkish natural gas firms with a view to maintaining stable commercial ties, according to Russian news agency Tass. More news is expected to come regarding the price discount on imported Russian gas that has previously agreed on between Turkey and Russia



Concerning stable contracts, Gazprom, the state-run Russian gas giant, is reported to be in ongoing negotiations with Turkish firms, according to statements made to the Russian Tass news agency. Accordingly, it is expressed that negotiations between Gazprom Export and private natural gas firms in Turkey have been progressing positively. Also, following the completion of the negotiations, it has been reported that further information will be given through press releases. The statement also included Gazprom's willingness to preserve the stability of commercial relations with Turkish firms.Meanwhile, negotiations between representatives from Gazprom and Turkish firms over whether a previously applied price discount on imported Russian gas will continue to apply in 2016 are still in progress, Anadolu Agency (AA) reported in January, which aligns with information received from Gazprom sources.Earlier in the day, AA reported that six private Turkish companies said they will no longer be able to utilize the 10.25 percent discount, according to notifications they received from Gazprom. The 10.25 percent price discount being applied to these companies had been in effect since Jan. 1, 2015. Yaşar Arslan, president of the Natural Gas Distribution Companies' Association of Turkey (GAZBİR), reportedly said that the Turkish companies involved objected to the cancellation of the discount, asserting that recent developments between Gazprom and Turkey's private gas sector would not affect the impending fall in gas prices in Turkey. In the first quarter of 2015, Gazprom agreed to reduce the price of natural gas sold to Turkish companies from $374 to $300 per 1,000 cubic meter, while the price fell in the second quarter to $260.The six Turkish companies involved - Enerco Enerji, Bosphorus Gaz, Avrasya Gaz, Shell, Batı Hattı, and Kibar Enerji - import 10 billion cubic meters of gas from Russia annually in line with an agreement signed in 2012 between the parties. Apart from these private companies, the state-run Turkish BOTAŞ Petroleum Pipeline Corporation also buys gas from Russia that is imported through pipelines. Another purchaser, Ege Gaz, imports gas in the form of liquefied natural gas (LNG). In 2014, Turkey bought around 27.3 billion cubic meters of Russian gas.The natural gas trade between Turkey and Russia became an issue after Turkey downed a Russian Su-24 jet on Nov. 24 for violating Turkish airspace along the Syrian border, resulting in political tensions that have led to economic sanctions. The Russian government banned imports of Turkish produce and industrial goods and started denying work permits to Turkish workers in Russia. While Moscow has damaged its reputation as a reliable trade partner in Ankara's eyes, Gazprom announced that it will continue to supply the gas promised under the agreement.The price of natural gas is not an issue that emerged after the downing of the jet and the ensuing crisis. During a visit to Turkey in December 2014, Russian President Vladimir Putin announced that Moscow was scraping the South Stream pipeline project, which would have carried Russian natural gas to Europe through Bulgaria, replacing it with the planned Turkish Stream pipeline. The Turkish Stream pipeline project was designed to carry natural gas to Europe over the Turkish-Greek border, but negotiations on a possible natural gas deal between Turkey and Russia have been met with constant delays as both parties push the other to sign the deal first. Russia promised to provide a 10.25 percent discount to BOTAŞ, but Gazprom did not apply it, insisting that Turkey must first approve the proposed pipeline project. Six private Turkish gas companies have yet to receive a discount as per the agreement, which ends this month.