MOSCOW (Reuters) - Turkey is preparing to cut imports of liquefied petroleum gas (LPG) from Russia by a quarter next year, two sources told Reuters, saying the shift was prompted by a chill in ties between Ankara and Moscow after the downing of a Russian jet.
Russia imposed sanctions on some Turkish goods after Turkey shot down a Russian military jet on Nov. 24, saying it had violated its airspace. Russia refutes that, saying the plane was in Syrian air space.
"Turkish firms are not simply worried about a reduction in LPG deliveries from Russia because of the current (political) situation they are already preparing for this," one trader who works in the LPG market told Reuters.
"It may be more expensive, but the process of how to ensure future deliveries from elsewhere is being worked out. We are not just talking about deliveries from Algeria, but from the United States as well."
Disclosure that such preparations are underway follows news that Russia may adopt further punitive measures on Ankara, including freezing work on the Turkish Stream gas pipeline project, two sources at Russian gas giant Gazprom (MM:GAZP) told Reuters.