Reuters: Turkey Could Take Russia to Arbitration Over Gas Price Next Week

Turkish energy company BOTAS might take Russia's Gazprom into an international arbitration process if an agreement between the two countries on natural gas prices is not signed by Monday, energy sector officials said.

Russia, which supplies more than half of natural gas Turkey consumes annually, agreed with Ankara to cut prices by 10.25 percent, although the agreement has not yet been signed, one energy sector official told Reuters on Friday.

"According to provisions of the agreement between Gazprom and BOTAS, the right is given to discuss demands such as gas price reductions for six months from Dec. 29, 2014," the official said.

"If the price reduction deal is not signed by the night of June 28, from June 29 Turkey can go to international arbitration."

Turkey could open a case against Gazprom on the grounds it is paying a price above the European Union average, the official said, adding Ankara would look to use the arbitration process to secure a discount. MORE