Turkey decided to terminate its 25-year old deal with Moscow on natural gas supplies, Turkish Energy Minister Taner Yildiz was quoted by CNN-Turk as saying.

Turkey, Russia's second largest energy importer, said it would not renew the 1986 deal which expires on December if Russian gas giant Gazprom refuses to cut prices. Under the agreement, Russia is to supply about six million cubic meters of natural gas to Turkey annually through Ukraine, Bulgaria and Rumania.

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, RIA Novosti reported.