Turkey refuses to extend contract for purchase of Russian gas

ANKARA (Itar-Tass) - Turkey has refused to prolong a gas
contract with Russia, Turkey's state Anatolian news agency reported on
Saturday.
"Turkey has annulled a gas contract with Russia because we've failed
to agree on discount for fuel delivery," Turkish Minister of Energy and
Natural Resources Taner Yildiz told the news agency.
Turkey refused to extend a contract for the purchase of Russian gas
that is delivered via the western corridor through the Balkans. The
Turkish minister of energy and natural resources mentioned the possibility
of not extending the contract as early as last Thursday. He stressed that
the future of the gas contract depended on whether Moscow was going to
agree to discounts requested by Ankara. The minister added that Turkey
would annul the contract and would hand over the question of gas purchases
to private companies. The Turkish-Russian contract for gas deliveries
officially expires at the end of 2011.
He added that the decision was not going to affect the relations
between the two countries.
Taner Yildiz said the decision was not going to affect relations
between the two countries and added that not all contracts with Russian
had been annulled.
"We have three or four gas purchase contracts with Russia. One of them
has expired and hasn't been prolonged. This fact is unlikely to cause any
problems. The private sector will partly continue gas purchases. It can,
if it wants, to sign a contract with the Russian side in future," Yildiz
stressed.
The deal was struck in 1986. It was supposed to expire this December.
The Botas Corporation is the chief importer of Russian gas. Turkey also
receives Russian gas from other sources, including the Blue Stream
pipeline.
Taner Yildiz said that apart from Russia, Turkey received gas via
pipelines from Iran and Azerbaijan and liquefied gas from Nigeria and
Algeria. He added that the Turkish domestic market was not going to be
affected by the latest break of the gas contract with Russia and wouldn't
face any price hikes for fuel though quite recently the Turkish
authorities have announced an increase of internal tariffs for gas.

.