Agreement on the Turkish Stream is reached

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Russian President Vladimir Putin met with his Turkish counterpart Recep Tayyip Erdogan met in Ankara on October 10 to discuss the Turkish Stream project and finally signed the contract. Analysts estimate the deal by US$12.7 billion, Oilprice.com informs. A pipeline will be built from Russia to Turkey to ensure stable natural gas supplies to the country as well as Europe under the Black Sea.

“You now witnessed the signing of the intergovernmental agreement on the construction of the Turkish Stream. As part of this project and the broadening of our cooperation, we agreed on a mechanism by which to provide a discount on gas (for Turkey),” said Putin according to RT.

The presidents of Russia and Turkey came also to other agreements including speeding up the construction of Turkey’s first nuclear energy plant and strengthening bilateral military contacts. According to Russia’s Energy Minister Alexander Novak, Gazprom and Botas are now responsible for figuring out the amount of the discount. The planned capacity of the pipeline is 63 billion cubic meters of natural gas.