Turkey requests discount in Russian gas imports

29th September 2011, Comments 0 comments

Turkey said Thursday it had demanded a gas discount in natural gas imports from Russia, threatening to revoke the contract if a reduction was not agreed.

"We have asked them (Russia) for a reduction. If Russia does not sufficiently meet this demand, we will display the will to end the contract," Energy Minister Taner Yildiz told reporters in Ankara.

Turkey depends on Russia for 60 percent of its domestic gas use. The energy minister was referring to an agreement under which Turkey imports gas supplies from the energy giant via a western pipeline.

Ankara is seeking ways of keeping gas prices for domestic consumers down, the media reported. But the rising costs of natural gas raw materials and high exchange rates were putting pressure on the government.

Yildiz said natural gas raw material prices had increased by around 39 percent over the last 29 months, adding that this would prompt Turkey to revisit each and every expiring agreement one by one.

"One of them is the agreement about the western line. If we cannot see a sufficient discount, we will end it," said the minister.

The agreement with Russia expires by the end of this year.

© 2011 AFP

0 Comments To This Article