• 3 hours Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 4 hours Oil Gains Spur Growth In Canada’s Oil Cities
  • 5 hours China To Take 5% Of Rosneft’s Output In New Deal
  • 5 hours UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 hours Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 7 hours VW Fails To Secure Critical Commodity For EVs
  • 8 hours Enbridge Pipeline Expansion Finally Approved
  • 9 hours Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 10 hours OPEC Oil Deal Compliance Falls To 86%
  • 1 day U.S. Oil Production To Increase in November As Rig Count Falls
  • 1 day Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 1 day Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 1 day EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 1 day Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 1 day Aramco Says No Plans To Shelve IPO
  • 4 days Trump Passes Iran Nuclear Deal Back to Congress
  • 4 days Texas Shutters More Coal-Fired Plants
  • 4 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 4 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 4 days Chevron Quits Australian Deepwater Oil Exploration
  • 5 days Europe Braces For End Of Iran Nuclear Deal
  • 5 days Renewable Energy Startup Powering Native American Protest Camp
  • 5 days Husky Energy Set To Restart Pipeline
  • 5 days Russia, Morocco Sign String Of Energy And Military Deals
  • 5 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 5 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 5 days India Needs Help To Boost Oil Production
  • 5 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 5 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 5 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 5 days District Judge Rules Dakota Access Can Continue Operating
  • 6 days Surprise Oil Inventory Build Shocks Markets
  • 6 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 6 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 6 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 6 days Oil M&A Deals Set To Rise
  • 6 days South Sudan Tightens Oil Industry Security
  • 7 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 7 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 7 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years

Russian Retaliation: How Will Turkish Gas Supplies Be Affected?

Moscow has no plan to cut off its supply of gas to Turkey in response to its downing of a Russian jet fighter, but that doesn’t mean Russian President Vladimir Putin isn’t furious with Ankara.

Hours after Tuesday’s incident, Russia's deputy energy minister, Anatoly Yanovsky, said the gas will be delivered according to the contract signed by the two countries. “It could not have been otherwise,” he said.

That would be fortunate for Turkey, which is heavily dependent on other countries for its energy, importing about 95 percent of it, including 55 percent or 27 billion cubic meters of the gas it consumes from Russia.

Related: Big Oil: Which Are The Top 10 Biggest Oil Companies?

Turkey says one of its F-16 fighters shot down the Russian Sukhoi Su-24 while it was in Turkish air space after the pilot repeatedly ignored warnings that it return to Syrian air space. Putin responded that the Russian jet never got within a kilometer of Turkey’s border; that, like Turkey, it was targeting Islamic State (IS) targets in the Syrian province of Latakia; and that it presented no threat to Turkey. “This incident stands out against the usual fight against terrorism,” Putin said. “Our troops are fighting heroically against terrorists, risking their lives. But the loss we suffered today came from a stab in the back delivered by accomplices of the terrorists.”

The key word here is “accomplices,” because the Russian leader suggested that the Turkish government has played a role in financing the operations of IS, also known as ISIS and Daesh. He said his government has long known about shipments of oil moving to Turkey from areas of Syria controlled by terrorists, and that the money to pay for the oil finances such groups.

Related: As Prices Tank, This Natural Gas Exporter Became A Net Importer

“IS has big money, hundreds of millions or even billions of dollars, from selling oil,” Putin said. “ In addition, they are protected by the military of an entire nation. One can understand why they are acting so boldly and blatantly, why they kill people in such atrocious ways, why they commit terrorist acts across the world, including in the heart of Europe.”

Putin said he is baffled by the incident. “We have always treated Turkey as not only a close neighbor, but also as a friendly nation,” he said. “I don’t know who has an interest in what happened today, but we certainly don’t.”

The incident came at a sensitive time for Western powers fighting the Islamic State in various parts of the Middle East. News of the shoot down came as French President Francois Hollande was in Washington to try to persuade President Obama to join with Russia in a stronger alliance against IS. The incident involving the jets, though, only intensified tensions between Moscow and NATO.
Still, at least one political analyst in Turkey says any action taken by Putin against Ankara is likely to be political, not economic.

Related: Oil Prices Down As Storage Keeps On Filling Up

“I don’t think the situation between the two countries will have an economic dimension,” political columnist Ugur Gurses told the Turkish newspaper Today’s Zaman. “In the past Russia did not immediately react economically to countries with which it was engaged in a dispute.” Gurses pointed to the continued flow of gas to European countries, even though they joined with the United States to impose harsh economic sanctions on Russia because of its unilateral annexation of Ukraine’s Crimean peninsula in March 2014.

The reason? Russia needs the money. According to Gurses, “Due to falling [oil] prices, the economy constricted,”and therefore, “On the topic of the downed plane, [Russia] won’t adopt a ‘let’s-close-the-valve’ attitude. The political reverberations will be more contentious.”

By Andy Tully of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Alex on November 26 2015 said:
    Interestingly, back in 2012, when the Syrian Air Force shot down a Turkish plane for repeatedly violating Syrian airspace, Erdogan was furious and said that a brief violation of a country's airspace shouldn't be a pretext to shoot down a plane.
    And now, we can see double-standards at their best. Even if the Russian plane hypothetically violated Turkish airspace for a short period of time it wasn't a reason to shoot it down. There definitely were other options to solve the problem.
  • Alex on November 26 2015 said:
    Ankara is preparing to annex the North Part of Syria. So it is furious about Russia's
    activity in this country. This is the key for SU-24 accident!

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News