Turkey cancels gas deal with Russia

The state-owned Turkish Petroleum Pipeline Corporation, or BOTAŞ, has cancelled a natural gas supply deal with Russia’s Gazprom after failing to agree on discounts. The cancelation means Turkey loses supply for some 15 percent of its gas needs. The West Line was providing gas for Istanbul, the country’s biggest city. The cancellation doesn’t mean natural gas purchases from Russia will stop, Turkish Energy Minister Taner Yildiz told reporters at Parliament in Ankara on Saturday. Firms from Turkey’s private sector will probably sign new contracts with Gazprom, the world’s biggest gas producer and Russia’s exporter of fuel, within three months to continue the gas flows, the minister said. "Russia is the most important country for our natural gas imports. Our annual natural gas import from three channels in Russia is nearly 30 billion cubic meters," Yildiz said. "Our annual natural gas consumption is nearly 37 billion cubic meters. On the other hand, Turkey is able to import 45 billion cubic meters of natural gas under its agreements," he said. Yildiz said the decision to break the contract did not mean that Russian gas supplies would end or cause any problems between Ankara and Moscow, whose "strategic relationship cannot be affected by a few contracts."