The Turkish state gas pipeline operator Botas has informed Gazprom that it will end its contract with the Russian energy giant for the delivery of natural gas to Turkey via the western route, Turkish media reported on Sunday.
"Russia has failed to take steps that would satisfy the Turkish side. Proceeding from this, Botas has officially informed Russia that it will not extend the agreement," Haber Turk newspaper reported, referring to sources in the Turkish Energy Ministry.
Turkey insisted on a 20 percent gas price reduction, the paper said.
Turkish Energy Minister Taner Yildiz said on Saturday that Turkey had decided not to prolong its 25-year old deal with Moscow on natural gas supplies expiring in December.
Yildiz earlier spoke of the possibility to review the contract for the supply of about 6 billion cubic meters of natural gas to Turkey annually from Russia through Ukraine, Bulgaria and Rumania, if Gazprom refused to cut the gas price.
After Yildiz's first statement, Gazprom said it was expecting information from Botas, which is a contract party under the deal.
Russia also supplies gas to Turkey directly via the Blue Stream pipeline on the Black Sea bed. In 2010, it supplied 18 billion cubic meters to Ankara, about 60% of Turkey's total domestic gas consumption.