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Russia, Turkey OK Pipeline Deal, End Gas Dispute


Russian President Vladimir Putin and Gazprom Chief Executive Alexei Miller inspect the work on the Turkish Stream gas pipeline project aboard the Pioneering Spirit pipeline-laying ship in the Black Sea near Anapa, Russia, June 23, 2017.
Russian President Vladimir Putin and Gazprom Chief Executive Alexei Miller inspect the work on the Turkish Stream gas pipeline project aboard the Pioneering Spirit pipeline-laying ship in the Black Sea near Anapa, Russia, June 23, 2017.

Russian state gas giant Gazprom said Saturday it had signed a protocol with the Turkish government on a planned gas pipeline and agreed with Turkish firm Botas to end an arbitration dispute over the terms of gas supplies.

The protocol concerned the land-based part of the transit leg of the TurkStream gas pipeline, which Gazprom said meant that work to implement it could now begin.

Turkey had delayed issuing a permit for the Russian company to start building the land-based parts of the pipeline, which, if completed, would allow Moscow to reduce its reliance on Ukraine as a transit route for its gas supplies to Europe.

A source said in February the permit problem might be related to talks between Gazprom and Botas about a possible discount for Russian gas.

Turkish President Tayyip Erdogan said earlier Saturday that Turkey and Russia had reached a retroactive agreement for a 10.25 percent discount on the natural gas Ankara buys from Moscow.

Gazprom said in the Saturday statement, without elaborating, that the dispute with Botas would be settled out of court.

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    Reuters

    Reuters is a news agency founded in 1851 and owned by the Thomson Reuters Corporation based in Toronto, Canada. One of the world's largest wire services, it provides financial news as well as international coverage in over 16 languages to more than 1000 newspapers and 750 broadcasters around the globe.

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