Europe mistrusts Putin’s proposal to establish a gas center in Turkey

Although Russian President Vladimir Putin’s proposal to set up a gas hub in Turkey to send gas to Europe allows Moscow to hide its gas exports, this may not be enough for European countries to start buying Russian gas again, according to analyst reviews.

European countries imported 40 percent of the natural gas they consumed from Russia until Russia invaded Ukraine on February 24.

Western countries implemented a series of sanctions against Russian oil and natural gas after the invasion. It reduced the purchase of oil and oil products from Russia and began to look for alternative sources.

NEEDS INVESTMENT AND TIME

After explosions occurred at the Nord Stream gas pipelines, which pass under the Baltic Sea and are among the main shipping routes for Russian gas to Europe, Putin focused in October on the southern natural gas route and proposed establishing of a natural gas center in Turkey. .

Turkey said it would evaluate Putin’s proposal, but did not commit. Analysts noted that investment and time will be needed for the proposal to be implemented.

Alexei Gromow of the Moscow-based Institute of Energy and Finance Foundation, “Given the determination of EU countries to abandon Russian gas in the near future, does Europe need this project?” he said he.

‘NOT RUSSIAN GAS, IT WILL BE GAS FROM THE CENTER’

A Gazprom source said he believes the gas center will facilitate sales.

The source, who did not want to be named, said: “This will not be Russian gas, it will be gas from the center.”

A European trade source said that China, which assumed the title of the world’s largest importer of liquefied natural gas (LNG) from Japan last year, is already implementing a similar system, and that gas bought from Russia as LNG no longer carries the “Russian gas label” after mixing it with other gases. Did.

The same trade source stated that southern and eastern European importers may not consider the origin of the LNG.

‘EUROPE WILL HIGHLY NOT WANT TO MAKE DIRECT CONTRACTS’

S&P Global Ratings director Alexander Gryaznov noted that Europe does not impose an embargo on Russian gas, unlike oil, and said Europe may want to buy from Moscow through intermediaries.

Gryaznov said: “Most likely, Europe does not want to make direct contracts with Russia, it may seem politically acceptable to buy with free volume from the spot market in Turkey,” adding that it will take time and money to set up a gas hub.

Grivach, on the other hand, drew attention to the business opportunities that the natural gas hub will create, saying: “If the hub goes live, various opportunities for (gas) exchange will arise.” (Reuters)