Turkey receives over $900 million from "German bank" buy liquefied gas

Bloomberg reported that the Turkish state gas company Botas received a $929 million loan from the German bank Deutsche Bank to purchase liquefied natural gas and reduce dependence on Russia.

And Bloomberg says, based on an emailed statement from Deutsche Bank, that the three-year loan will allow Botas to buy LNG from the two designated exporters in 10 countries, including the US, Algeria and Qatar.

It is noteworthy that funding is guaranteed by the Turkish government and may increase in the future.

This is Botas’ first LNG loan deal and paves the way for energy diversification for Turkey, currently dominated by Russia and Iran.

Botas has experienced difficulties associated with rising gas prices and rising inflation in the country to its highest level in 24 years. The company says that they are forced to sell gas to consumers at home for only 30% of its real price.

Government financial support for Botas in the first quarter of this year exceeded the total support provided to it for all of 2021.

The company is also the largest client of the Central Bank of Turkey in terms of foreign exchange sales to state-owned companies, which amounted to $18 billion in the first half of this year.

Bottas said he would benefit from a loan to buy LNG from suppliers in Germany, France, Italy, Spain, Switzerland, Singapore and the UK.

Source: Bloomberg.

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