Gas center ensures transparent prices
Moscow and Ankara have begun working to establish a gas distribution hub in Turkey - RT quoted Aleksey Miller, head of Russian oil giant Gazprom, as saying.
According to Mr. Miller, this initiative is aimed at helping to ensure transparent and fair prices in the gas market.
The idea of a gas supply center in Turkey was proposed by Russian President Vladimir Putin in October. Mr. Putin said that this center will allow Russia to redirect the damaged Nord Stream pipeline gas in the Baltic Sea to the Black Sea area.
The Russian president also noted that the gas hub will not only be a distribution platform but can also be used to determine gas prices and avoid "politicizing" energy.
Turkish President Recep Tayyip Putin welcomed the idea, saying the EU would be able to buy Russian gas via Turkey.
Meanwhile, many Western countries, including the US, have criticized the plans of Russia and Turkey. US State Department spokesman Vedant Patel reiterated that Washington continues to urge allies to take steps to diversify energy sources, in order to reduce energy dependence on Russia.
French President Emmanuel Macron said the proposal to turn Turkey into a gas hub is meaningless, as Europe aims to eliminate Russian energy.
Meanwhile, Russian Deputy Prime Minister and Energy Minister Aleksandr Novak affirmed that Russia and European energy importers are actively discussing increasing gas supplies through Turkey after the center was established.
"Currently, work is underway with countries that will participate in the project, as well as with consumers who need Russian gas," Novak said in an interview with TASS news agency.
Potential customers
Minister Novak added that the European gas market is still " relevant" to Russia and has many means to provide additional volumes, including through the Yamal - Europe pipeline, which has been closed "for political reasons".
The TurkStream pipeline (Türkiye Flow) is operating at full capacity; the pipeline through Ukraine supplies Europe with 1/3 of the volume prescribed in the contract, despite all conflicts; and Russia's transportation of liquefied natural gas (LNG) to Europe has increased to 19.4 billion USD this year.
When asked about the restoration of the Nord Stream gas pipelines that were blown up in the Baltic Sea, Mr. Novak said that this would take time and money, and a full assessment of that possibility could only be carried out after the investigation is over.
Mr. Novak said that China, Turkey, Kazakhstan and Uzbekistan are potential customers of the new gas center. There are also prospects for gas transit to Pakistan and Afghanistan via Central Asian infrastructure or from Iranian territory on the basis of exchanging: Russia will receive Iranian gas in the south of the country and provide gas to Iranian consumers in the north.
In addition, there is a temporary agreement to increase supply to Azerbaijan.
Deputy Prime Minister Novak called the sanctions a "deficial ban" on the supply of Russian energy to Western countries. Many decisions, including the imposition of oil and gas price ceilings, were made for political gain and "stimulated a long-term and profound crisis and instability in Europe," he said.
The Deputy Prime Minister said that Russia is building a new logistics system for oil and gas transportation, but until it is resolved, the European embargo could reduce Russia's oil production by 7-8% in 2023.
Mr. Novak revealed that there may be some exceptions to the delivery of oil and oil products in the European embargo, noting that even Germany and Poland have requested oil deliveries in 2023 without specifying the origin of the fuel, although German officials have previously said they want to mention Kazakhstan's oil.
"When consumers start to interfere in the market economy, it only leads to imbalance," Novak stressed.
He also praised the shift to rubles, saying that this method helps stabilize the market.
"For example, Gazprom has completely converted the gas payment of the Power of Siberia pipeline into yuan and rubles on a sideways basis. Trade in Indian rupees, Turkish lira and Russian rubles are also rising," he said.
Regarding the prospects of the Russian energy industry, Mr. Novak said: “Russia is the largest energy country (with 20% of export gas exports and more than 20% of the world's oil), ranked third in the world for coal supply. Obviously, the energy consumption will only increase in the future, so I cannot imagine how the world economy will manage without our energy. And set yourself ambitious goals " - Deputy Prime Minister of Russia said.
