Ankara in talks with Washington to boost LNG supply
The talks come as Europe is looking to impose a price cap on Russian oil imports
By News Desk - September 06 2022

(Photo credit: Gabriel Bouys/AFP)

Turkey is currently engaged in talks with the US on a potential agreement that will allow Ankara to purchase liquefied natural gas (LNG) from Washington, according to a Turkish media report released on 6 September.

The negotiations are reportedly taking place over concerns of increased consumption and likely gas shortages through the coming winter. Ankara is said to be expecting an increased tourist presence that will necessitate additional energy imports.

This news comes as the European Commission, the executive body of the EU, is considering imposing a price cap for countries looking to purchase and import Russian oil.

The pricing cap is part of a recent western initiative to mitigate the severe energy crisis that Europe is facing, as well as to limit Russian’s energy profits.

In a statement issued last month, the G7 group of nations said that it is “committed to considering a range of approaches, including options for a comprehensive prohibition of all services that enable transportation of Russian seaborne crude oil… unless the oil is purchased at or below a price to be agreed in consultation with international partners.”

Experts have said, however, that such a price cap would be difficult to impose and can “backfire” without the participation of Russia’s main crude oil purchasers: China and India.

The reported talks between Ankara and Washington likely come as a response to this potential price cap, as Turkey – which has refused to sanction Russia following its invasion of Ukraine – has recently boosted its business and energy cooperation with Moscow.

Turkey recently hiked energy costs, contributing to an alarming rise of the country’s inflation rate, which reached 80 percent in July as a result of President Recep Tayyip Erdogan’s controversial economic policies.

Experts have said that Turkey’s inflation could, at some point this year, top 100 percent if the economic deterioration persists.

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