Russia’s Gazprom could leave Turkish gas market

Published 28.06.2017 14:44
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Russian state-owned gas and oil giant Gazprom could leave the Turkish domestic market, Russian daily Kommersant reported Wednesday.

According to the daily, Gazprombank is in the final stage of leaving Promak company, which owns a controlling stake of 60 percent in two importers of Russian gas to Turkey – Enerco and Avrasya.

Promak is a joint enterprise between Gazprombank and trader Akfel Holding, founded in 2014. Gazprombank owns 40 percent of the company.

Earlier, Gazprom's deputy board chair Aleksandr Medvedev said that the company plans to sell its other Turkish asset – the Bosphorus Gaz, citing the "unpredictable" Turkish market as the reason.

Bosphorus Gaz announced June 1 that the Şen Group, which owned 29 percent of the company's shares, reached an agreement with Gazprom to acquire the remaining 71 percent.

Kommersant noted that the most important factor for sale was the losses Bosphorus Gaz suffered in 2016, which amounted to about $113.6 million.

If Gazprom sells its share in Promak, the company could completely leave the Turkish market by the end of the year. Kommersant added, however, that the final decision has not been made yet, and that the Russian gas and oil giant is still looking for options to reanimate its business in Turkey.

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