On May 26, 2018, Gazprom and the government of Turkey signed a protocol for the construction of the onshore section of the TurkStream gas pipeline. The pipeline will deliver Russian gas to European consumers. As a follow-up to the protocol, Gazprom and Botas inked an agreement detailing the terms and conditions of the construction work. TurkAkim Gaz Tasima A.S., a joint venture that will be established on equal terms, will build the onshore section.

In addition, Gazprom Export and Botas signed documents to settle out of court the ongoing arbitration dispute on the contract terms of Russia’s gas supplies to Turkey. The arbitration will be resolved shortly.

TurkStream is a project for building a gas pipeline stretching across the Black Sea from Russia to Turkey and further to Turkey’s border with its neighboring countries. The first string of TurkStream is intended for Turkish consumers, while the second string will deliver gas to southern and southeastern Europe. Each string will have the throughput capacity of 15.75 billion cubic meters of gas per year. South Stream Transport B.V., a wholly-owned subsidiary of Gazprom, is responsible for the construction of the gas pipeline’s offshore section, which commenced on May 7, 2017.