Employees of Russian energy giant Gazprom who service the Nord Stream and TurkStream gas pipelines are hurriedly learning Turkish and have largely departed the European Union, with many relocating to Turkey, according to a special report by The Moscow Times cited by Ukrainian media.
Two employees told The Moscow Times they were moving to Turkey, where Gazprom plans to establish a gas hub. The company initiated Turkish language courses last year as workers prepared for the move, with many renting apartments in İstanbul and relocating their families by year’s end.
The exodus includes both Russian nationals and EU citizens employed by Gazprom, with many accepting the relocation due to above-market salaries, company sources said. The energy giant offered compensation packages about 30 percent higher than industry standards.
The company-maintained operations on the TurkStream pipeline through its Dutch subsidiary and sanctions on European companies and their executives have complicated operations.
Gazprom dissolved two Dutch subsidiaries last year — Gazprom Sakhalin Holdings B.V. and Gazprom Finance B.V.
The tax advantage ended when Russia terminated its double taxation agreement with the Netherlands. The company has since transferred these assets to Russian jurisdiction.
Following the expected halt of gas transit through Ukraine in early 2025, Gazprom will maintain only one pipeline route to Europe — TurkStream — out of the five that existed before the war.
TurkStream remains the only route for Russian gas exports to the EU, following a series of pipeline closures. The pipeline, known in Turkey as TurkAkım, connects Russian gas fields to Turkey and southeastern Europe via the Black Sea.
The pipeline system, operating since January 2020, runs from Anapa, Russia, to Kıyıköy, Turkey. It consists of two lines with a combined annual capacity of 31.5 billion cubic meters. One line serves Turkey’s domestic market, while the second supplies European customers, bypassing Ukraine.
Gazprom’s gas exports to Europe have plunged more than 80 percent from 2021 levels, with the company delivering only 32 billion cubic meters last year to what was once its largest market, according to Reuters data. The figure represents a slight increase from 2023, when supplies hit their lowest point since the mid-1970s.
The Russian energy giant posted a record loss of 629 billion rubles in 2023, its worst financial performance since its 1990 founding, while gas production fell to 404 billion cubic meters, company records show.
Gazprom’s exports to Europe and Turkey are expected to decline further to 45 billion cubic meters in 2025 from 50 billion in 2024, said Ronald Smith, an analyst at BCS Global Markets.
As as alternative solution, Russia plans to establish a gas trading hub in Turkey’s Trakya region and an electronic trading center in Istanbul to facilitate gas sales to Europe.
Gazprom aims to use Turkey as a trading hub to sell gas to Europe, potentially allowing sales through intermediaries, energy analysts say.
The arrangement could help the Russian company navigate sanctions-related challenges in European markets, according to industry experts.
Russia and Turkey are in ongoing talks to develop an electronic gas trading hub in Istanbul, as Turkey seeks to establish itself as a regional energy center, officials from both countries said.
The project, planned to launch in 2025 at the İstanbul Financial Center, would operate as a partnership between Turkey’s state pipeline operator BOTAS and Gazprom, with prices set by a new Istanbul gas index, according to the energy ministry.
However, the initiative faces several challenges, including management disputes and infrastructure needs, energy analysts said.