![Turkish Minister of Energy and Natural Resources Berat Albayrak (R) and CEO of Russian energy company Gazprom, Alexey Miller during a press conference at Mabeyn Palace in Istanbul, Turkey on October 10, 2016 [Metin Pala / Anadolu Agency]](https://i0.wp.com/d2.middleeastmonitor.com/wp-content/uploads/2016/10/20161010_2_19495504_14904943-e1527429115703.jpg?fit=920%2C614&ssl=1)
Reuters reports Russian state gas giant Gazprom said on Saturday it had signed a protocol with the Turkish government on a planned gas pipeline and agreed with Turkish firm Botas to end an arbitration dispute over the terms of gas supplies.
The protocol concerned the land-based part of the transit leg of the TurkStream gas pipeline, which Gazprom said meant that work to implement it could now begin.
Turkey had delayed issuing a permit for the Russian company to start building the land-based parts of the pipeline which, if completed, would allow Moscow to reduce its reliance on Ukraine as a transit route for its gas supplies to Europe.
A source said in February the permit problem might be related to talks between Gazprom and Botas about a possible discount for Russian gas.
Turkish President Tayyip Erdogan said earlier on Saturday Turkey and Russia had reached a retroactive agreement for a 10.25 percent discount on the natural gas Ankara buys from Moscow.
Gazprom said in the Saturday statement, without elaborating, that the dispute with Botas would be settled out of court.