Turkey’s Energy Security And The Impact Of The Ukraine War – OpEd
The Ukraine war has significantly influenced Turkey’s energy security policies and its relations with Russia. Turkey relies on Russia for approximately 40% of its annual natural gas demand, which totals 56 billion cubic meters.
This dependency creates economic and political vulnerabilities in Turkey’s energy security framework. As of 2024, the price of Russian natural gas stands at $527 per 1,000 cubic meters, while in the U.S. domestic market, the same amount costs approximately $105. This price disparity has substantially increased Turkey’s import costs.
Proposal for Barter Trade
To address payment challenges arising from sanctions linked to the Ukraine war, Turkey should explore alternative trade models. Hungary’s approach—exporting agricultural and industrial products to Russia in exchange for natural gas through a barter system—serves as a viable example. Similarly, Turkey could adopt this method by exporting agricultural goods, white goods, and automobiles, thereby offsetting its energy costs.
Additionally, given the difficulties in repatriating earnings from Turkish construction projects in Russia, converting these revenues into oil imports and using them to pay domestic contractors could be a practical solution. This approach would alleviate financial bottlenecks in energy trade and establish a more sustainable balance in the sector.
Diversification and Domestic Production
Ensuring diversity in energy sources and prioritizing domestic production are crucial for enhancing Turkey’s bargaining power in global energy markets. Investments in renewable energy could reduce dependency on imports and bolster Turkey’s energy independence. Moreover, being a competitive player in the energy market requires robust financial strategies and diversified energy resources.
Innovative policies and efficient use of domestic resources will enable Turkey to build a more resilient energy infrastructure and strengthen its security against global crises.
