PRESS: Russia’s Gazprom can lose largest asset in Turkey

MOSCOW, Dec 20 (PRIME) -- Russian gas giant Gazprom can lose its largest asset in Turkey because the stakes of the company and Gazprombank in Akfel Holding, an importer of Russian gas to Turkey, have been in fact nationalized, business daily Kommersant reported on Tuesday, citing sources with knowledge of the situation.

Turkey took control over the company and changed its board of directors, as sources knew in early December but the status of Russian investments was then unclear. The Savings Deposit Insurance Fund of Turkey (TMSF) later informally told them that it “fulfills the functions of the shareholders.”

The Turkish authorities allowed this to happen under an extraordinary decree issued after a coup attempt in July. The document permits to take under state control companies suspected of financing of the Gulen movement. In case of Akfel, the founders, Murad and Fatih Baltaci were the matter of the investigation.

The largest structures of Akfel Holding – Akfel Gas, Avrasia and Enerco – have contracts with Gazprom for 2.25 billion cubic meters, 500 million cubic meters and 2.5 billion cubic meters, respectively. A joint venture of Akfel and Gazprombank owns 60% stakes in Avrasia and Enerco. Gazprom has a minority stake in Akfel Holding.

Gazprom has an option for a 50% stake in Akfel Gas but has not closed the deal signed in 2014 as it was not approved by the Turkish authorities.

Akfel and the affiliates account for 55% of Russian gas supplies to private Turkish importers and for 20% of the supplies to Turkey.

End