Turkish Stream, which was to supply Russian natural gas directly to Turkey under the Black Sea, has seen construction suspended in light of recent political tensions between the two countries over the shooting down of a Russian fighter jet and reports that Turkey is being supplied with oil from ISIS.
Last Monday, Russia called off a Russian-Turkish Trade Commission which was to discuss economic cooperation between the two nations which had been preparing the paperwork for Turkish Stream. The pipeline was supposed to transport 63 billion cubic metres of gas annually, 16 billion to Turkey and 47 billion to the Greek-Turkish border.
The International Business Times reports that Turkish Stream faced problems even before political tensions had heightened. In October, Gazprom reportedly said that it planned to halve the amount of gas that would be supplied to Turkey through the Turkish Stream pipeline because it would use its new Nord Stream 2 pipeline to supply Europe’s needs.
Global Risk Insights highlights the fact that Turkey and Russia are relatively dependent upon each other when it comes to the energy sector. They write that in Turkey, “domestic energy demand is surging and internal energy sources are extraordinarily limited.” Conversely, Russia’s economy is heavily propped up by oil and gas exports. The recent depreciation of the rouble, alongside the persistently low price of oil mean that Russia needs all of the foreign exports that it can have.