The Russian Energy Ministry expects that an intergovernmental deal on the Turkish Stream gas pipeline will be signed after a new government is formed in Turkey, Russian Energy Minister Alexander Novak said.
Russia is ready to "continue the talks any time," but "it is unlikely the Turkish authorities will be able to do it before the elections" and the formation of a new cabinet," RIA Novosti cited Novak as saying.
President Recep Tayyip Erdogan approved the composition of the interim government in late August, which will be changed on November 1st.
The director of the Center for Studies of World Energy Markets at the RAS Institute of Energy Research, Vyacheslav Kulagin, said in an interview with Vestnik Kavkaza, that he agrees with Novak, noting that it is quite reasonable to postpone the conclusion of the intergovernmental agreement till the elections of a new government.
"The change of leadership in Turkey will have a significant impact on all projects, especially interstate projects under the final decision. We have repeatedly seen such examples when a change of leadership in the country led to the change of the preferences in foreign economic cooperation and some projects have received new impetus to the development, while others, on the contrary, were closed. Of course, the fate of the Turkish Stream will depend on the position of the new government," the expert noted.
Kulagin said that this is especially topical as Russia needs to diversify gas supplies.
The expert stressed that this does not mean the complete cessation of works on the Turkish Stream before the elections. "The preparatory works are under way: communications with suppliers, additional agreements, additional analyzes, calculations and so on," he stressed.
"If you will remember the South Stream, there was a long preliminary stage, but the gas pipeline has not been built anyway," Kulagin said.
"I think that the shareholders of the project should not rush, otherwise it will just be a loss of money," the expert added.
Despite the fact that the Turkish side is ready to start work on the project, it is still necessary to wait for the new government. "Even if some agreements will be reached, they will be suspended due to elections. Those who come to power must clearly understand their responsibility for everything that happens," the director of the Center for Studies of World Energy Markets at the RAS Institute of Energy Research said.
According to the expert, the Russian authorities can use the time before the elections to re-evaluate all the pros and cons of the project. "After that, it will be easier for the Russian side to understand how the project is needed and in what configuration," Kulagin noted.
"We cannot build the Turkish Stream and the Nord Stream, realize Chinese projects the Power of Siberia and Altai at the same time. The total cost of these projects amounts to approximately $50 billion. This is especially important because gas prices fell after oil," he stressed.
"Now it is better to take a sober look at all the projects and to make a decision on the basis of pre-investment grades," Vyacheslav Kulagin concluded.
