Russia abandons the idea of returning to the European gas market through Turkey.

On June 3, Gazprom PJSC quietly shelved plans to develop a new natural gas distribution hub in Turkey, thus losing the potential opportunity to regain a foothold in the European market that was lost after the outbreak of the Russia-Ukraine conflict. With the Nord Stream pipeline to Germany halted and gas shipments through Ukraine set to expire in 2024, the company has been looking at Turkey as a path back to Europe, which already connects two of Russia's main pipelines, which was once the company's largest export market. But after months of considering various options, the company concluded that it was not feasible and essentially halted the work, the people said. Although Russian President Vladimir Putin recently touted the proposal last October, it has always faced significant challenges. Turkey's lack of backup export pipeline capacity to southern Europe and Ankara's reluctance to allow Gazprom to co-sell gas have limited Russia's influence on the hub, people familiar with the matter said. The European Union is also moving forward with a proposal to ban gas imports from Russia by the end of 2027.

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