Turkmenistan Halts Gas Exports to Russia
Turkmenistan Halts Natural Gas Exports to Russia Due to Pricing Dispute
In a recent development, Turkmenistan has stopped its natural gas exports to Russia following a failure to reach a new pricing agreement. The previous five-year contract, signed in 2019, obligated Turkmengaz to provide Gazprom with up to 5.5 billion cubic meters of gas each year, with the commitment expiring on June 30, 2024. Unfortunately, negotiations between the two parties on revised pricing terms did not yield a new deal.
Turkmengaz head, Maksat Babayev, disclosed that the original contract included a provision for a price review by the end of June. Despite holding discussions, the two sides were unable to come to a mutual agreement on pricing. Babayev informed TASS, “We conducted negotiations but were unable to reach a commercial consensus.”
It is emphasized that any decision regarding the continuation, resumption, or suspension of gas supply is primarily dependent on commercial terms. Currently, the absence of an agreed-upon price has resulted in the suspension of further gas exports from Turkmenistan to Russia.
The 2019 contract between Gazprom and Turkmengaz stipulated the annual delivery of 5.5 billion cubic meters of natural gas from Turkmenistan to Russia until June 2024. The halt in exports underscores the importance of reaching a mutually acceptable pricing arrangement for both parties involved.
