Türkiye negotiates new gas agreements with Russia — Bloomberg
Photo: Türkiye and Russia's Gazprom are in negotiations (Getty Images)
Türkiye and Russia's Gazprom are negotiating the extension of two key agreements on gas supplies via pipeline, Bloomberg reports.
According to the agency's sources, contracts between Russian gas giant Gazprom and Turkish state-owned company Botas for the supply of up to 21.75 billion cubic meters of gas per year expire on December 31, 2025.
The parties are discussing maintaining annual supply volumes at around 22 billion cubic meters.
US pressure
The negotiations are taking place amid growing pressure from the administration of US President Donald Trump, which is trying to limit energy imports from Russia. Last month, the US imposed sanctions on two of Russia's largest oil companies, after which Turkish refineries began to reduce imports of Russian oil.
Ankara had previously refused to join Western calls to reduce purchases of Russian gas, which is supplied to the country mainly under long-term contracts through a network of pipelines.
However, in September, Türkiye signed several agreements for the supply of liquefied natural gas, including with the US. With the growth of its own production from fields in the Black Sea, the country may receive surplus gas volumes.
Gas market and Türkiye's position
For Gazprom, Türkiye remains one of its key markets after losing most of its European consumers due to Russia's full-scale war against Ukraine.
This, according to the agency, gives Ankara additional leverage to negotiate lower prices when renewing contracts.
In 2024, Gazprom's supplies to Türkiye amounted to about 21.6 billion cubic meters of gas, making the country the second-largest buyer of Russian pipeline gas after China.
Historically, Türkiye remains the fourth-largest gas market in Europe, which is almost entirely dependent on imports. Iran and Azerbaijan also provide a significant share of imported gas.
Türkiye reduces imports of Russian energy resources
The US has imposed sanctions on Russia's two largest oil companies, Rosneft and Lukoil.
According to Reuters, Türkiye, which, along with China and India, is one of the main buyers of Russian oil, has begun to diversify its supplies to avoid the risks associated with trading in energy resources that finance Russia's war against Ukraine.
In particular, one of Türkiye's largest oil refineries, SOCAR Türkiye Aegean Refinery (STAR), owned by an Azerbaijani company, recently purchased four batches of crude oil from Iraq, Kazakhstan, and other producing countries.
Due to Western sanctions, Turkish fuel suppliers have begun to raise prices for diesel fuel.
