Turkey has agreed with Russia's Gazprom to defer payment for part of its imported natural gas following a sharp rise in prices last year.
This was stated by Energy Minister Fatih Donmez, Reuters reports.
Turkey's current account deficit widened sharply last year due to an increase in the cost of energy imports to $97 billion, nearly double the average in recent years. Since then, energy prices have declined as markets adjust to disruptions caused by Russia's invasion of Ukraine.
"There were negotiations, an agreement was reached with Russia, with the Gazprom company to postpone payments above a certain level after last year the prices increased tremendously, which no one could have predicted," Donmez said in an interview with the Haber Global TV channel.
Donmez did not specify when the deal was made, but said it was done in consultation with finance ministries and that such deals were common.
In January, he said that the negotiations, in particular on delaying payments, were continuing. He did not give a figure for the deferred payment, but said it was done to help the current account balance.
Turkey's current account deficit widened to $48.75 billion in 2022 from $7.23 billion in 2021 and $31.89 billion in 2020.
Turkey has sought to turn its chronic current account deficit into a surplus as part of its economic program, which prioritizes investment and exports while keeping interest rates low.
The cost of energy imports began to fall in January and fell by 19% year-on-year in the first four months of 2023, government data show.
