Russia’s Gazprom Settles Pricing Dispute With 6 Turkish Companies, To Resume Full Supply

Russian gas supplier Gazprom has settled pricing disputes with private Turkish companies and is set to resume the full supply, according to Russian and Turkish media. Gazprom had reduced gas supply by half to the companies early February.

Gazprom works with at least seven private Turkish gas companies, including Bati Hatti, Kibar Enerji and Shell Turkey, along with the state-owned Botas. Gazprom agreed with the companies, including Bosphorus Gaz and three affiliates of Akfel Holding, in April 2015 to provide retroactive discount of 10.25 percent, Sputnik News reported, citing RIA Novosti. However, last month, Enerco Enerji, one of the Turkish companies, said Gazprom cut down its gas supplies to Ankara and stopped the discount.

A source told RIA Novosti that Gazprom and the Turkish companies settled the dispute recently and a formal announcement will be made soon. Following the settlement, the Russian giant will resume delivery in full capacity with the newly agreed price reduction, Turkey’s Anadolu Agency reported.

The Turkish companies reportedly import 10 billion cubic meters of gas from Gazprom, of the total 27 billion cubic meters imported by Turkey from Russia annually. The Russian company was due to enforce the 10.25 percent discount with Botas, but Gazprom confirmed that it was never applied, according to Anadolu Agency.