Turkey braces for natural gas hit

Turkey, one of the major importers of Russian natural gas, is bracing for the impact of possible western sanctions on Russia in light of its invasion of Ukraine.

Since Russian forces stormed into Ukraine on Thursday, the US, EU and UK have issued escalating sanctions against Moscow to punish Russia’s economy.

But one crucial sector has been missing in the discussion, according to TIME magazine: measures targeting exports of oil and gas, which provided 36% of Russia’s national budget last year.

For Ankara, supplies from Russia are crucial. In 2021, Russian natural gas made up 45% of import-dependent Turkey’s gas purchases, which hit a record high after a drought and a related rise in gas-driven power production.

Turkey also imports crude oil from Russia, between 10% and one third of its annual imports.

President Erdogan has developed strong economic and political relations with both Moscow and Kyiv in recent years, leaving Turkey walking a thin line in its response to the Russian invasion of Ukraine.

Ankara cannot afford to fall out with Russia economically because of tourism revenues, gas supplies, grain and other agricultural trade, and a nuclear power project.