Gazprom sets up company to construct pipeline to Turkey

Gazprom spokesman Sergei Kupriyanov said the company led by Alexey Miller will set up a company named Gazprom Russkaya to proceed with the construction of a pipeline to Turkey.

“Gazprom is establishing a company to build a new gas pipeline to Turkey. The company will be registered in Saint Petersburg. Corresponding procedures have begun today," Kupriyanov told reporters, as reported by Sputnik.  

Turkey and Russia signed a Memorandum of Understanding for a pipeline project bringing Russian gas to the Turkish border with Greece. 

One week ago, Putin announced Russian decision to drop the South Stream project during a joint conference with Turkey’s President Tayyip Erdogan.  

According to the agreement, Turkey will also be receiving a six percent discount on gas purchases commencing in 2015 and will be taking an additional 3 BCM in supplies. Russia recently supplies Turkey via the Blue Stream pipeline which delivered 13.7 bcm of gas in 2013.