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Gazprom did not cancel gas discount for Turkish importers, negotiations continue — source

January 29, 15:27 UTC+3 MOSCOW
According to the source, the discount was granted on January 1, 2015, but now, due to the decline of gas prices, it could be possibly abandoned
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© Stanislav Krasilnikov/ITAR-TASS

MOSCOW, January 29. /TASS/. Gazprom did not cancel a 10.25% discount on gas for six Turkish companies-importers; the negotiations are still in progress, Russian source close to the situation told TASS Friday.

According to the source, the discount was granted on January 1, 2015, but now, due to the decline of gas prices, it could be possibly abandoned. "Although, so far, there is no decision, the negotiations are still in progress," the source said.

Anadolu Ajansi reported earlier that Gazprom cancelled a 10.25% discount on gas, used by six Turkish private sector companies that import, that import 10 bln cubic meters of gas per year according to the existing agreements.

On October 26, 2015, Turkish oil and gas company Botas has filed an arbitration case against Gazprom, disputing the price for Russian gas. According to the statement by the company, the agreement, which was signed on December 29, 2014, entitles the Turkish side to do this.

"Botas has sent a written request to Gazprom Export regarding gas discount (in 2014 - TASS). The talks resulted in an agreement to reduce price and define discount due to take effect on December 29, 2014. After the 6-month period stipulated by the agreement expired on June 29, 2015 Botas did not apply to arbitration regarding price revision. However, the required documents, defined by agreements achieved earlier, were never signed," the statement said.

Gazprom official representative Sergey Kupriyanov then confirmed to TASS "the contracts stipulate" the possibility of Botas’ applying to arbitration.

Later in the Turkish Ministry of Energy and Natural Resources reported that the question of reducing the price of Russian gas could be resolved without a trial if Russia provided a discount of 10.25%, which was previously agreed.

The crisis in relations between Moscow and Ankara emerged after on November 24, the Turkish Air Force’s fighter jet shot down a Russian Sukhoi Su-24M bomber. Ankara claimed the Su-24M bomber violated the Turkish air space in the area of the border with Syria. However, Russia’s Defense Ministry has said the Su-24M plane stayed exclusively over the Syrian territory and "there was no violation of the Turkish air space."

Russia’s President Putin said the attack of the Turkish Air Force on Russia’s Su-24 warplane would have serious consequences for Russia-Turkey relations. On November 28, the Russian president signed a decree on measure to ensure Russia’s national security and protect Russian citizens from criminal and other illegal actions and on the use of special economic measures in respect of Turkey. The decree introduces visa regime starting January 1, 2016, prohibits charter flights between Russia and Turkey and obliges Russian travel operators against selling travel packages to Turkey. Visa restrictions, however, will not be applicable to Turkish citizens, who have temporary sojourn permits or leaves to remain in Russia and those commissioned to work at diplomatic missions.

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