You're reading: Gazprom offers discount to private Turkish importers

MOSCOW – Russian energy giant Gazprom has given a discount to the private Turkish importers Enerco Enerji, Bosphorus gas, Avrasya Gaz, Shell, Bati Hatti, Akfel Gas and Kibar Enerji, which account for more than a third of Russian gas imports, the Russian newspaper Kommersant reported.

The new agreement has been introduced retroactively starting January 1, 2015, and concludes at the end of this year. In other words, Gazprom has to return a portion of payments already made by the importers. Kommersant estimates this to be between $250 million and $300 million.

The discount totals around 25 percent in the first quarter and another 15 percent in the second. In May, the price will fall to around $260 per 1,000 cubic meters. In 2014, the private importers paid $374 per 1,000 cubic meters, but the price is now less than $300 per 1,000 for the first quarter and around $260 per 1,000 cubic meters for the second quarter. Pricing in the contract has also changed. Instead of the fixed cost that went into effect in 2014, the parties have returned to oil indexation.

Similar talks between Gazprom and the state-owned company Botas are still at a standstill, which calls the Turkish Stream project into question, Kommersant added.