Tension between Russian and Turkey evoked as Turkey shot down a Russian bomber plan. But these two countries are having higher volume trade each other.
Russia is the largest natural gas and oil supplier to Turkey. Turkey imports almost 55% of natural gas from Russia only. Recently, Turkey has raised its imports of spot LNG from the country. Turkey is highly dependable on Russia on natural gas as half of the electricity production is generated by the natural gas powered stations.
"While we don't expect Russia to shut natural gas supply to Turkey, it is most likely that a potential 10% price cut from Gazprom is now off the table", says Barclays in a report.
