Gazprom signed 30-year contracts for gas supplies to Turkey

Gazprom signed long-term contracts with several private Turkish companies on Monday. Turkey's energy market regulator issued licenses to purchase Russian gas for 30 years to three private companies - Akfel, Bosphorus, Kibar Enerji and Bati Hatti - for 23 years.

Four companies have agreed with Gazprom to supply 6 billion cubic meters of natural gas per year. The western branch of the pipeline, which provides gas to Turkey and runs through Ukraine, Romania and Bulgaria, is capable of pumping up to 14 billion cubic meters of the blue fuel per year. "This deal is very important for Gazprom. Turkey has always been a major and stable partner for us," a Gazprom spokesman said.

But not everything was smooth in Gazprom's relations with Turkish energy companies. Thus, in late 2011, the Botas gas company refused to extend a 25-year contract due to a dispute over prices. For some time, blue fuel was purchased under short-term contracts. Turkey is currently trying hard to diversify its hydrocarbon market in order to reduce the cost of not only gas but also electricity. The price of electricity in the country is closely linked to the price of gas, as most of it is generated by thermal power plants.

Gazprom, on the contrary, as a supplier of natural gas to Europe, seeks to diversify this market, which accounts for 80 percent of its exports.

This decision did not have a strong impact on the share price.