Turkish Stream faces delays over gas price dispute

Turkish Stream faces delays: Russia’s plan to build a new $15bn across Turkey could be delayed by the failure of Gazprom and Turkey’s counterpart Botas to agree on the price of gas. The two companies had been given a six-month window to come to an agreementbut this ran out on Monday, and Botas now has the right to take the matter to international arbitration, inside sources told Bloomberg yesterday. The dispute over prices means that there is  no immediate prospect of signing a binding pact for the new pipeline, and is  a blow to President Vladimir Putin’s plan to use the new link to ship gas to  Europe, bypassing  Ukraine. The deal may have also stalled because the ruling party in Ankara lost its parliamentary majority in last month’s general election.
If true, the delay would explain Gazprom’s announcement earlier in the week that it was planning to re-open talks with Kiev about the possibility of extending its transit contract beyond 2019.
At $10bn Turkey is Russia’s second largest gas export market with Botas by far and away its largest Turkish client. 

Source: Bloomberg