Turkey to pay for some Russian gas in rubles
Turkey has agreed to pay for some Russian gas supplies in rubles, Turkish president Recep Tayyip Erdogan announced on August 6 following talks in Sochi with Russian counterpart Vladimir Putin the previous day.
The Kremlin has also confirmed the switch in currency, but neither side has disclosed what percentage of payments will be made in rubles. Most European buyers of piped Russian gas supplies have already agreed to settle bills in rubles, by transferring their payments to accounts at Gazprombank, where they are converted into the Russian currency before transfer to Gazprom.
Erdogan also said that five banks were at work to extend the use of Russia's Mir payment system, which will make it easier for Russian tourists in Turkey. On his return flight, the Turkish leader said there was a new "road map" to enhance bilateral relations, serving as "a source of power between Turkey and Russia in financial terms."
Turkey has not supported Western sanctions against Russia, but it has also provided military support to Ukraine, including most notably the Bayraktar TB2 drone that has proved highly effective against Russian forces, and has locked Russian warships out of the Black Sea. And while the NATO member has supported Finland and Sweden's bid to join the defence alliance, it has also hosted as-yet-unsuccessful peace negotiations between Moscow and Kyiv.
Russia was Turkey's largest gas supplier last year, delivering 27.15bn m3. Turkey also takes piped gas from Azerbaijan and Iran, and imports LNG from various sources.