OGZPY PJSC Gazprom (PK)

By Laura Mills

MOSCOW--Russia's state gas firm OAO Gazprom said Wednesday that it had received permission to build part of a pipeline that would link it to Turkey, as relations between the two countries improve.

The company said in a statement that it had been told via diplomatic channels that it had permission to start building the offshore part of Turkish Stream, an underwater pipeline that will link to Turkey.

While a preliminary agreement to build the pipeline has been in place since 2014, talks came to a standstill after Turkey shot down a Russian warplane along the Turkish-Syrian border last November, killing two pilots.

Russian officials have said they expect to have a final agreement on the construction of the Turkish Stream within the next two months.

The Kremlin announced in 2014 that it was shelving plans for Gazprom's South Stream pipeline project, which would have supplied natural gas to Europe with an underwater link to Bulgaria. Russia, which was the target of European Union sanctions for its role in the conflict in neighboring Ukraine, said the project did not get the necessary approvals from Bulgaria.

Write to Laura Mills at laura.mills@wsj.com

(END) Dow Jones Newswires

September 14, 2016 09:03 ET (13:03 GMT)

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