Turkey and Azerbaijan still negotiating gas prices

Turkey and Azerbaijan continue to negotiate about the price of Azeri natural gas transited through Turkey to Europe. The last dialogue on this subject was held in Baku in the middle of May, but no agreement has been achieved so far. A further meeting will be held in Turkey in the near future.

Baku’s attempt to change the gas tariff was initially seen as a reaction to Turkey possibly opening its borders with Armenia but this is not the case. Azerbaijan and Turkey had agreed back in 2002 that price tariffs will change after 2008, and therefore since last April the sides have been discussing the issue. The negotiations have slowed due to the instability in the world market, but both sides are optimistic about achieving a consensus for mutual benefit.