Russia, Türkiye in final talks to renew major gas supply contracts

Russia and Türkiye are holding talks to maintain current levels of natural gas supplies from Gazprom PJSC as the two countries negotiate the renewal of two major pipeline contracts, according to sources familiar with the discussions, quoted by Bloomberg.

The existing agreements between Russia’s state-owned gas producer and Türkiye’s state energy company BOTAŞ, covering a combined supply of up to 21.75 billion cubic meters per year, are due to expire on December 31.

Negotiations are underway to keep annual deliveries at around 22 billion cubic meters, the sources said, speaking on condition of anonymity since the talks are not public.

Türkiye’s vast energy market has been a crucial outlet for Gazprom, which lost most of its European customers after the war prompted a broad diversification away from Russian energy. This reliance on the Turkish market gives Ankara leverage to seek price reductions as part of the new supply terms.

In 2024, Gazprom delivered 21.6 billion cubic meters of gas to Türkiye, according to Bloomberg’s estimates based on figures from the national energy regulator EMRA. This made Türkiye Gazprom’s second-largest pipeline gas buyer after China, providing significant support for the Russian company’s financial performance.

For comparison, Russian gas exports via Ukraine to Europe, which ceased early on January 1, had previously totalled more than 15 billion cubic meters annually.

Pipeline deliveries from Gazprom have long been the backbone of Türkiye’s gas imports. The country, which ranks as Europe’s fourth-largest gas market, remains heavily dependent on imported energy, with Iran and Azerbaijan also supplying substantial portions of its overall gas needs.

By Tamilla Hasanova