Russia agrees to deferred gas payments: Energy Minister

Turkiye has agreed with Russia’s Gazprom on deferring payment for part of the natural gas it imported after a price surge last year, Energy Minister, Fatih Donmez said, Reuters reports.

According to the report, Turkiye’s current account deficit soared last year, driven by an increase in energy import costs to $97 billion (TL1.89 billion), nearly double the average of recent years.

The report added that energy prices have since eased, as markets adjusted to the disruption caused by Russia’s invasion of Ukraine.

“There were negotiations; an agreement was reached with Russia, with the Gazprom company to defer the payments above a certain level after the prices rose extraordinarily last year in a way that no one could foresee,” Donmez told broadcaster Haber Global in an interview.

Turkiye’s current account deficit surged to $48.75 billion in 2022 from $7.23 billion in 2021 and $31.89 billion in 2020, data from the Central Bank showed.

READ: Russia, Ukraine, Turkiye and UN to discuss grain deal on Friday