Putin loses juicy pipeline project

Russian energy giant Gazprom has scrapped its plans to establish a major gas hub in Turkey, deeming the project unviable, according to a report by Bloomberg.

As Russia’s gas export revenues have plummeted due to sweeping Western sanctions imposed since the start of the war in Ukraine, Moscow had viewed the Turkish project as a potential lifeline to revive its gas trade.

However, Ukraine recently refused to renew a key transit agreement that had allowed Russian gas to flow to several European countries. This comes as the Nord Stream 1 and 2 pipelines remain out of service, further limiting Moscow's export options.

Europe was once Gazprom's most lucrative market, generating around $8 billion in monthly revenue. But those profits have dropped dramatically as sanctions continue to bite.

Despite President Vladimir Putin still publicly backing the initiative in October 2024, Gazprom ultimately withdrew, citing diverging strategic goals with Ankara.

Energy expert Tom O’Donnell explained that Turkey has grown more demanding in its energy partnerships, pushing for terms that Russia was unwilling to meet.

(QG - Source: Newsweek - Picture : © Unsplash)