Russia a step closer to the construction of “alternatives” in Turkey – Forbes
Russia a step closer to the construction of “alternatives” in Turkey – Forbes
© Gazprom
The Russian side has not yet ratified the agreement.
Call it anti-Ukrainian pipeline, but after some difficulties, an alternative route for transporting Russian gas to the EU via Turkey are about to become official in Moscow.
This writes Kenneth Raposa in the article “Russia step closer to the construction of “alternatives” in Turkey,” published on the website of Forbes.
The Prime Minister of Turkey Binali Yildirim arrived in the city for a two-day visit at the invitation of his Russian counterpart Dmitry Medvedev. According to the Turkish newspaper “Daily Sabah”, Yildirim also plans to discuss the deal on the pipeline with Vladimir Putin. The pipeline of “Gazprom-Botas” was proposed last year by the two governments, but the deal never took place, after the Turkish military shot down a Russian fighter jet over Syria. Relations were frozen but soon to thaw. The deal pipeline is proof that relations between two allies dominated by cold mind.
Read also: Russia and Turkey signed an agreement on “Turkish stream”
The leader of Turkey, Recep Tayyip Erdogan ratified the agreement this week. The transaction was published in the Gazette, the “Resmi Gazete”, it removes all legal restrictions on the construction of the pipeline. The Russian side has still not ratified the agreement, but it is expected that this will happen this week. The most obvious stumbling block is that Russia removes sanctions against Turkey in the field of agribusiness. This could be an obstacle for the deal, if Turkey decides that the relationship is not fully restored.
Medvedev in November said that the government will ratify the agreement before the end of the year.
See also: “Gazprom” has received permission for the construction of the offshore section of Turkish stream
The project “Turkish stream” was launched after an unsuccessful attempt “Gazprom” to build another pipeline with European energy companies like Eni Spa (Italy). This deal fell through in 2014, when Ukraine and Russia began fighting for territory after the overthrow of Pro-Russian leader Viktor Yanukovych in February 2014. Then sanctions were imposed, and they are still. The result of the complex rupture of relations of Moscow and Kiev, Gazprom was forced to look for alternative routes to Europe, its largest trading partner. Russian gas accounts for almost a third of all foreign supplies gas in Europe.
Gazprom
Many politicians in Brussels oppose the pipeline, arguing that it would take away a vital source of income for Ukraine, a key transit route for Russian gas to Europe. Russia also tried to build an additional pipeline across the Baltic under the name “Nord stream-2”, but it was closed by the Antimonopoly office in Poland. The project remains only on paper.
But most likely, “Gazprom” will build it “Turkish stream” to supply the European markets.
Gazprom is likely to Finance Turkish stream, through the issuance of Eurobonds.
See also: “South stream” is not. Russia has no plans to build a gas pipeline bypassing Ukraine
“Turkish stream” connects the major Russian gas storage facilities with the transport networks of Turkey. The marine component of the system that will pass through the Black sea, built by “Gazprom”. The pipeline will consist of two parallel pipes – “Blue stream” and “New Blue stream” with a capacity of 15.7 billion cubic meters. Agreeing on construction, December 1, 2014 “Gazprom” and “Botas” signed a Memorandum of understanding. And in September 2016, “Gazprom” has received the first building permit. Both companies signed the contract on 10 October and were only waiting for the approval [of the construction] of the pipeline. Erdogan approved it on Tuesday and it is expected that Medvedev will close the deal this week.
Putin agreed with Erdogan on establishment of the gas pipeline “Turkish stream”
TSN. Wounds
11 Oct, 08:01
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President Putin has invited his counterpart Erdogan a discount on gas and promised to lift the ban on Turkish fruit. Moscow has signed with Ankara the intergovernmental agreement on the gas pipeline “Turkish stream”. It will supply natural gas to Europe bypassing Ukraine. Work on the project was suspended due to tensions between the two countries.