President Vladimir Putin, says that Russian retaliation against Turkey for downing an SU-24 fighter jet is not finished yet.
“It is a mistake to think that Russia’s reaction will be limited to some tomatoes and some penalties in other sectors,” said Putin.
The Turkish Stream pipeline, that should have bee operational in 2019 to replace the South Stream, which Gazprom resigned to because of opposition from the European Union, is now in danger of never being completed.
The Turkish Stream, which was to supply Russian gas to southern Europe via the Black Sea and Turkish territory, thus avoiding transit through Ukraine, has now been paralyzed by the Kremlin.
“Right now negotiations are frozen, since they have suspended the work of the intergovernmental commission on trade and economic cooperation by government order,” said Alexander Novak, the Russian Minister of Energy.
Novak made the announcement after the Russian President, Vladimir Putin, accused Turkey of “lining their pockets with stolen oil” from the Islamic state in Syria and Iraq during the speech on the State of the Nation in the Kremlin.
The government had already banned imports of certain fruit and vegetables from Turkey and suspended the charter after the shooting down of the Su-24 bomber in Syria, but this is the most important gap of all between the two countries, especially for the Russian project.
Russia, which had planned to redirect the gas that is now flowing through the Greek-Turkish border and into Ukraine, was expecting to receive authorization to begin work on strategic projection of the pipeline in order to build the first thread in December 2016.
However, negotiations were already complicated after Ankara demanded that Moscow gave a discount on the price of gas before signing the agreement.
“The granting of a discount valued at 10.25% was accosted verbally, but it was not placed on any document.
“We believe that this is not correct,” said Aliz Riza Alaboyun, the Turkish Miniter of Energy during a visit to Moscow. This issue was addressed last June in Baku, capital of Azerbaijan, between Putin and Erdogan.
Gazprom reached an agreement with Turkey for the laying of the onshore section of the pipeline that would supply gas to Istanbul and then pump it into the Greek-Turkish border to the European Union.
The overland pipeline -180 km- was started in the Turkish port of Kiyikoy after covering 660 kilometers in the bottom of the Black Sea.
Novak said there is no suspension on the construction of the Akkuyu Nuclear Power Plant, the first in the history of Turkey, which is being built by Russian engineers. Moscow has already invested 3,000 million in this project.