The call from Ankara arrives as Turkey seeks to soften the effect of higher energy prices on its ailing economy suffering from a 24-year inflation high and sliding currency.
State-run energy importer BOTAŞ is seeking to postpone some of the payments to 2024, according to one source, who spoke to Bloomberg on condition of anonymity as the payment discussions are private. The talks arrive following an agreement between Ankara and Moscow that allows BOTAS to pay 25 percent of its fees in rubles as opposed to dollars.
Turkish President Recep Tayyip Erdogan last month announced plans for Turkey to pay for Russian gas in roubles after meeting with his Russian counterpart Vladimir Putin in Sochi, Russia, , BloombergHT reported.
Turkey buys up to half the natural gas it needs from Russia, its largest global energy partner.
At the end of December, Gazprom and Turkish state pipeline company BOTAŞ signed a latest deal for the supply of natural gas. The four-year agreement envisaged supplying 5.75 billion cubic metres of gas via the TurkStream pipeline. TurkStream has a capacity of 31.5 bcm, of which half is comprised of a line to supply Turkey’s domestic customers. The remainder usually carries Russian gas into Europe through Bulgaria.
Russia’s ongoing curtailment of natural gas flows to Europe since its war with Ukraine erupted in February, has pushed up international prices and led to acute fuel shortages in some emerging and developing economies, according to the International Energy Agency.
Turkey is grappling with an economic crisis, with the lira losing 44 percent of its value against the U.S. dollar in 2021 and roughly 28 percent this year. Inflation in the country registered at a new 24-year high, surpassing 83 percent in September, Sozcu newspaper reported on Monday, citing TUIK, the Turkish state statistics agency.
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