Gazprom’s delegation leaded by Alexey Miller, Gazprom’s Management Committee Chairman paid today a working visit to Turkey and held negotiations with Mehmet Hilmi Guler, Turkish Energy and Natural Resources Minister.

The parties addressed a wide range of issues on interaction between Russia and Turkey in the gas business and, first of all, on potential deepening of cooperation between the countries.

The talks are expected to establish pre-requisites not only for successful development of cooperation between the 2 countries in the gas supply business but in the investment sector, as well. The parties reached an accord to set up a joint working group that will work on new projects and will produce a cooperation agreement planned to be signed in September, this year.

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Russian-Turkish cooperation in the gas industry began back in 1984 when the Governments of the Turkish Republic and the USSR signed an Agreement on natural gas deliveries to Turkey. Over 1987 to 2003, Russia provided Turkey with a total of some 105.8 bcm of natural gas piped by the TransBalkans and Blue Stream gas pipelines.

Russian gas exports to Turkey are on an annual rise. So, in 2003, gas exports climbed 6% reaching 12.5 bcm.

The most promising project being implemented within cooperation between Russia and Turkey in the gas business – the Blue Stream gas pipeline constructed within the Russian-Turkish Inter-Governmental Agreement dated 15 December 1997.

The Blue Stream gas pipeline is designed to transit Russian natural gas to Turkey through the Black Sea and is an addition to the existing gas transmission corridor from Russia to Turkey via the Ukraine, Moldova, Romania and Bulgaria. Gas supplies by the Blue Stream gas pipeline substantially enhance the security of gas shipments to Turkey, developing, thus, the country’s gas market and infrastructure.

The Blue Stream gas pipeline is a unique gas transmission facility unparalleled in the world. Its throughput reaches up to 16 bcm per annum.

At present, Gazprom is examining the prospect of increasing investments into the Turkish gas industry. In 2004, Gazprom’s subsidiaries acquired a 40% stake in the Turkish Bosphorus Gas gas distribution company owning and managing shares in gas trading businesses transmitting gas to Turkish consumers.

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