In 2023, Turkey became significantly dependent on oil and gas supplies from Russia. This year, the share of Russian energy in Turkey’s energy balance exceeded 40%, which is a substantial increase compared to previous years. This growth is attributed to the reduction of supplies from other regions, as Western countries impose sanctions and embargoes on Russian oil and petroleum products.
Turkey is a major consumer of natural gas, and in 2023, Russia held a leading position, accounting for 42.2% of the country’s total gas imports, which amounted to 21 billion cubic meters. In addition to Russia, Azerbaijan, Algeria, and Iran also supply gas to Turkey.
Russia also significantly increased its oil supplies to Turkey, reaching 10.7 million tons in 2023. This is because Russia became the top oil supplier to the country, raising its share in the total import of oil and petroleum products to 51%.
In addition to oil and gas, Russia has become an important supplier of thermal coal for Turkey. In 2023, coal exports from Russia to Turkey increased by 46%, reaching a historic high of 27.5 million tons. The share of Russian coal in Turkey’s total coal imports was 70%, which is a record figure.
The main reason for the increase in energy supplies from Russia to Turkey is the sanctions and embargo imposed by the European Union on Russian energy resources. This led to a significant reduction in supplies to Europe and the redirection of some production to other regions, including Turkey.
Amid geopolitical changes and economic conditions, Russia will continue to play a key role in Turkey’s energy supply in the coming years. Given the increase in energy consumption in Turkey, deeper cooperation in this area between the two countries is expected.
Thus, 2023 was a pivotal year for energy relations between Russia and Turkey, highlighting the importance of energy cooperation in a changing world order.
In 2023, Turkey continued to depend on external energy supplies, especially natural gas and oil, which are critical for the country’s heating sector, electricity generation, and industry. The analysis of data for 2023 from Turkey’s Energy Market Regulatory Authority (EPDK) reveals interesting trends and challenges facing the country’s energy sector.
According to EPDK, Turkey planned to import about 56 billion cubic meters of natural gas in 2023, but actual supplies amounted to 50 billion cubic meters. This is due to a warm winter, which reduced the demand for gas for heating.
The main gas exporters to Turkey are Russia, Azerbaijan, Algeria, and Iran. In 2023, Russia supplied 21 billion cubic meters of gas, accounting for 42.2% of total imports, remaining the main supplier. Azerbaijan, Algeria, and Iran maintained stable positions in the Turkish market, supplying 10.2, 6, and 5.4 billion cubic meters of gas, respectively.
Against the backdrop of geopolitical tensions and EU sanctions against Russia, gas supplies to Europe have decreased, but Turkey remains a reliable partner for Russia in this aspect. The share of gas supplied by Russia to the EU has dropped from 40% to 15% over the past two years, while Turkey continues to maintain a consumption level of over 40% for Russian supplies.
Turkey’s domestic natural gas production also increased by 113%, reaching 807.3 million cubic meters. Production zones in Zonguldak, Tekirdag, Kirklareli, Duzce, and Istanbul play a key role in ensuring the country’s own gas resources.
Turkey’s natural gas exports also grew by 54%, reaching 900 million cubic meters, with LNG accounting for 23% of total exports. The new natural gas law adopted in 2023 allowed Turkey to re-export purchased LNG, which could further increase gas exports.
In the oil sector, Turkey also relies on imports, mainly from Iraq and Kazakhstan, with some of the supplies being carried out via the Baku-Tbilisi-Ceyhan pipeline. Turkey’s oil imports increased by 5.2%, reaching 13.35 million tons, with the United States becoming the largest supplier with a share of 17.73%.
In 2023, Turkey continued to strengthen its energy ties with Russia, despite sanctions and the changing geopolitical context. Gas and oil supplies remain the main elements of the country’s energy strategy, ensuring supply stability and opportunities for future economic development.
Ukrainian analyst Alexander Okhrimenko told News.Az that most of Russia’s gas is sold not to Turkey, but to China. Compared to Europe, yes, Russia can sell more gas to Turkey. Very little gas is supplied to Hungary. Russia and Turkey are strategic partners, and it is unlikely that this will change.
“This is beneficial for Turkey on the one hand. On the other, it is the only way to sell Russian gas. Due to sanctions, Russia cannot sell gas to Europe normally. Turkey cannot exist without Russian gas. Turkey buys a lot of gas from Russia, produces products for the chemical industry and supplies them to Europe and Arab countries. Russian gas supplies are very important for Turkey. Turkey did not support the sanctions imposed by the European Union,” he said.
He added that in this situation, if the European Union imposed sanctions on the import of Russian gas, Turkey, on the contrary, began to buy more Russian gas, as Russia simply cannot sell this gas to other countries.
Alexander Okhrimenko noted that the main buyers of Russian oil are China and India, and that Turkey buys significantly less Russian oil compared to these countries. “However, compared to Europe, Turkey buys more oil, with the exception of Hungary. Europe practically does not buy Russian oil. Currently, Saudi Arabia and the USA actively sell oil to Europe,” he noted.
“It turns out that Turkey is saving Russia by buying oil from it. Russia cannot sell oil to other European countries. Previously, Russia sold a lot of oil to Europe, even less to China. Now Russia is completely dependent on China. Turkey is just saving them,” he said.
Commenting on the issue of energy, the expert noted that Turkey produces energy but is not connected to the European energy system. Turkish companies cannot sell electricity to Bulgaria, Germany or France. There are both political and economic nuances. Therefore, Turkey produces petroleum products from Russian oil, uses them domestically, and sells something in Europe. Turkey consumes chemicals, but energy production is also costly, and electricity is not sold to Europe. There is a clear restriction here.
“Now Turkey is trying to make money from Russia. Sanctions have led to the fact that Russia cannot freely trade with Europe and sells oil and gas to China, but there are still surpluses, and here Turkey is saving Russia. However, there is a small ‘but’. Turkey does not pay for oil and gas in dollars. It offers lira or rubles. Russia complains a lot, but there is nothing it can do. Turkey says it cannot pay in dollars because it fears sanctions. Moreover, the United States often threatens Turkey with sanctions if it pays in dollars or euros. Russia trades with Turkey. It cannot be said that this somehow affects the EU economy. The main oil producers in the EU are Germany and France. Compared to them, Turkey is very small. Therefore, even if Turkey tries to earn a lot, it cannot create real competition or influence the EU market,” he pointed out.
Alexander Okhrimenko said that Arab countries have their own oil and Turkey is not connected with them. However, he has heard about the possibility of diversifying Turkmen gas through Uzbekistan via the Caspian Sea to Azerbaijan and then to Turkey via a gas pipeline. The expert believes that if gas from Saudi Arabia is supplied through Iraq to Turkey, it would be interesting for Turkey. But it is very difficult to reach an agreement politically.
“Turkey receives a lot of liquefied natural gas (LNG) from Russia, Qatar, and the USA. Currently, the world is increasingly relying on LNG, and the USA is actively pushing Russia out of this market, trying to sell as much as possible. The USA exerts pressure on the global oil market, attracting Saudi Arabia to its side. Therefore, the situation for Russia is becoming very difficult. Turkey buys oil at a discount,” he added.
The expert said that at present, many countries are simply trying to make money off Russia. The situation in Russia is complicated, sanctions create many problems, and it is clear that China is making money, Vietnam and North Korea have concluded beneficial contracts for themselves. “In this situation, both Turkey and Hungary are winning by imposing beneficial contracts on Russia.
At the same time, in the energy sector, Turkey is actively developing its own energy production. Despite significant dependence on imports, Turkey seeks to diversify energy sources and increase its own production. Against the backdrop of global changes and growing energy needs, Turkey is taking steps to ensure energy security and sustainable development,” he added.
“Thus, 2024 promises to be an interesting and challenging year for Turkey’s energy sector. Cooperation with Russia continues to play a key role, but at the same time, Turkey is not ceasing to look for new sources and ways of energy supply. In the context of global instability and geopolitical changes, Turkey’s energy strategy is aimed at maximizing the use of available resources and diversifying energy supplies,” he said.
He added that the ongoing cooperation between Russia and Turkey in the energy sector will depend on many factors, including geopolitical relations, economic conditions, and global changes in the energy market. Turkey, as before, will strive to ensure supply stability and security of its energy infrastructure.
In conclusion, it can be said that 2023 was a year of significant changes and achievements in Turkey’s energy sector. In the coming years, Turkey will continue to strengthen its position in the global energy market, using all available resources and opportunities to ensure stable and sustainable development.
News.Az
Source link : https://news.az/news/russia-top-energy-supplier-to-turkey-despite-western-sanctions
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Publish date : 2024-06-28 23:37:47
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