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FX.co ★ Russia to bear most expense in Turkish Stream

Russia to bear most expense in Turkish Stream

Russia to bear most expense in Turkish Stream

The Turkish Stream pipeline is the focal point of the economic partnership between the Kremlin and Ankara. The agreement was signed by Russia’s President Vladimir Putin and his Turkish counterpart Recep Tayyip Erdogan in October 2016. The parliaments of both countries ratified the agreement in a month. Turkey’s Minister of energy and natural resources Berat Albayrak made an official statement that the construction work kicks off since early 2017.

Importantly, both parties confirmed their commitment to the project implementation. Speaking about Turkey’s interest, as part of the deal it insisted on a generous discount on gas prices from Russia. As for the technical features, the grand-scale project consists of two gas pipelines to run across the Black sea bottom. The first pipeline aims to supply gas directly to Turkish consumers. The second one is designed to deliver gas to Europe. The underwater part of the pipeline is almost 910 km, the overland part on Turkey’s territory measures 180 km. The total project’s worth is estimated at EUR 11.4 billion. Russia is due to allocate EUR 7 billion being in charge of the underwater construction.

Interestingly, Russian companies are responsible for the design and construction of the sea section. Turkey is to bear the expense of the overland section.

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