Turkish heel dragging could delay gas pipeline says Russian Federation

Ankara said in February it obtained the discount on 28-30 billion cubic metres (bcm) of gas it buys from Russian Federation and that it should have been enacted as of January 2015.

Russian Energy Minister Alexander Novak said there was a risk construction of an underwater pipeline to Turkey could be delayed if a related intergovernmental agreement was not signed soon, according to Interfax news agency, AzerTag reports. However, according to official sources, Russian Federation is not willing to provide the agreed discount unless Turkey signs the agreement for Turkish Stream. “It is my understanding that the Turkish side continues to work on it too”, he added.

The project, which will take Russian gas to Europe without crossing Ukraine, was publicly announced during President Vladimir Putin’s visit to Turkey in December following the cancellation of the South Stream project to transport gas to Europe via Bulgaria.

As Russia’s second biggest client for its natural gas, Turkey requests the discount be provided regardless of the status of the Turkish Stream project. Turkey is due to receive 15.75 billion cubic meters out of the total capacity of the pipeline. The project was cancelled in 2014.