Page 8 - MEOG Week 38 2022

MEOG PIPELINES & TRANSPORT MEOG

Putin agrees Turkey can pay

for Russian gas in rubles

TURKEY RUSSIA has agreed to Turkey paying for 25% of intention of breaching the sanctions imposed on
its imported Russian gas supplies in rubles and Moscow as a result of its invasion of Ukraine.
the agreement will come into effect in the near Russia provides around a quarter of Turkey’s
future, Russian President Vladimir Putin said on oil imports and almost half of its natural gas
September 16. purchases.
Putin’s remarks came following his meeting Russia is ready to increase gas supplies to
with Turkish counterpart Recep Tayyip Erdogan Turkey if the country increases its consump-
on the sidelines of the Shanghai Cooperation tion, Russian news agency TASS quoted Deputy
Organisation (SCO) summit held in Samarkand. Prime Minister Alexander Novak as saying last
“In the near future, our agreement on the week.
supply of natural gas of Russian origin to Turkey “If Turkish partners increase gas consump-
with payment for 25 percent of these supplies in tion and apply for additional volumes, we will
Russian rubles should come into force,” Putin consider it and ensure these supplies,” he said.
said. “As far as I understand, the [relevant] issues Novak recalled that Russia and Turkey have
have been agreed upon, so I am sure that work in several long-term contracts for the supply of gas
this regard will proceed in accordance with our via the Turkish Stream and Blue Stream pipe-
agreements,” he added. lines. “The volumes reach around 26 billion
Prior to the meeting, Erdogan briefed report- cubic metres of gas per year,” he added.
ers that he intended to ask Putin for a discount TASS said Gazprom reported earlier that it
on gas supplied to Turkey. After the meeting, increased gas supplies to Turkey by 63% in 2021.
there was no announcement on any agreed direct According to the Russian Federal Customs
discount, though the ruble-payment arrange- Service, natural gas supplies from Russia to Tur-
ment should allow Turkey to ease pressure on its key amounted to 26.76bn cubic metres last year,
meagre FX reserves. Russian news services reported.
Putin and Erdogan during a meeting in According to the latest data from the Turkish
Sochi, Russia, last month agreed to more broadly Energy Market Regulatory Authority (EPDK),
cooperate in energy, transport, agriculture and Russia remained Turkey’s largest supplier of
construction industries. US and EU officials natural gas in June. It accounted for 44% of the
are growing increasingly concerned about how country’s gas imports, even though imports
the relationship might facilitate extensive sanc- declined by 29.5% y/y to 1.7bn cubic metres in
tions evasion, though Ankara denies it has any the month.™

P8 www. NEWSBASE .com Week 38 21•September•2022