Turkey in negotiation stage with Russia for natural gas discount

Senior Turkish officials, reporting to the US financial agency Bloomberg, said they will meet a Russian delegation in Ankara today to demand a discount of more than 25 percent on Turkey’s natural gas imports from Russia.

Turkey will request that the discount be applied retrospectively to previous purchases made in 2022, according to officials who spoke on condition of anonymity. In addition, a discount will be requested within the 2023 payments.

A potential deal with Russia could ease pressure on the TL, one of the world’s worst-performing currencies last year, and help the government stave off rising energy prices ahead of next year’s elections.

YOU CAN ALSO REQUEST DEFERRED

The authorities will request a deferral of payments until 2024 if Turkey does not provide the desired discount level.

Russia fulfilled almost half of Turkey’s 59 billion cubic meters of natural gas imports last year. Erdogan said Turkey’s total energy bill by 2022 could reach $100 billion, doubling last year’s amount.

The energy exchange between Turkey and Russia has been growing and gaining momentum in recent years. On the other hand, the trade volume between the two countries has increased, especially with Turkey’s neutral position in the Ukraine war.

RUSSIA SEEKS NEW MARKETS

Russia is looking for new markets as it cuts gas supplies to much of Western Europe, once its biggest customer.

In recent months, Erdogan had announced that he was looking forward to Russian President Vladimir Putin’s proposal to establish a new gas center in Turkey. It was said that this center could be used to transport energy products to Europe.

However, European officials stated that they did not like this idea, arguing that Putin is using energy resources as a weapon.