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Turkish Stream gas pipeline

Turkish Stream project participants to be exempt from certain taxes

Russian gas holding Gazprom and Turkey’s Botas may engage new participants and raise third party funding for the gas pipeline construction project

© EPA/KERIM OKTEN

Turkish Stream gas pipeline

MOSCOW, October 11. /TASS/. Russia and Turkey will exempt the Turkish Stream pipeline project from certain main taxes. In particular, offshore segment operations in exclusive economic zones and on continental shelves of both nations will not be taxed. Such statements are made in the intergovernmental agreement for implementation of the project signed on October 10.

The Turkish party will not impose the value added tax (VAT) on services provided to the offshore segment company and on its revenues. Gas transmission services will also be exempt from tax. Furthermore, transportation means and technical aids imported to territories of both countries will be exempt from customs duties and taxes in Russia and in Turkey, the document says.

Gazprom, Botas may engage new participants

Russian gas holding Gazprom and Turkey’s Botas may engage new participants and raise third party funding for the gas pipeline construction project.

"Third party funds may be drawn by joint decision of members in the company for the onshore segment 2 and by decision of the Russian member to the offshore segment," the document reads.

The intergovernmental agreement also provides for cancellation of building the second line subject to notification to the Turkish side.

"Performance capacity of the offshore segment may be lowered on account of cancelling the Offshore Segment 2 [second line of the gas pipeline - TASS], with a formal notice of the Russian party to the Turkish party," the document says.

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