Turkey has suspended talks with Gaz de France over a pipeline project that would bring Caspian natural gas to Europe in reaction to a French resolution on so-called Armenian genocide, reports The New Anatolian daily newspaper.

The Nabucco pipeline will transport gas from Central Asia, through Turkey, Bulgaria, Romania and Hungary to Austria.

Start of the pipeline construction is scheduled for 2008. The first gas shipments have to be made by 2012. The planned pipeline would reduce Europe's dependency on Russian gas.

Turkey strongly opposes the claims that its predecessor state, the Ottoman government, caused the Armenian deaths in a planned genocide.

After French lawmakers voted last October to make it a crime to deny that the claims were genocide, Turkey said it would suspend military relations with France.

A top energy minister official told The New Anatolian that Ankara would suspend partnership with all French corporations including Gaz de France. "This move covers all public tenders.

This move also should be understood by other countries which are planning to recognize so-called Armenian claims as genocide," the source added.

Reports said that Ankara would suspend partnership with Gaz de France until the French presidential elections. "We will decide according to policies to be followed after the elections," reports quoted a senior energy ministry official.

According to the source, BOTAS, Turkey's official energy agency, does not want to see French corporations including Gas de France as partner in all energy sectors.

Energy Minister Hilmi Guler declined to comment on the issue of Gaz de France. He stated that Ankara attaches great importance to the Nabucco project, adding that they realized the first phase of this project. Turkey is in an important position in meeting Europe's gas need and we are aware of this," he added.

Bulgaria, Romania and Hungary have already approved the partnership with GdF.

Austrian oil and gas group OMV heads the consortium planning to build the pipeline. Bulgargaz, Transgaz from Romania, MOL of Hungary and and Turkey's BOTAS are also partners in the project.

French Foreign Ministry stated yesterday that Turkish counterparts had not yet confirmed on suspension of talks with Gaz de France. Spokesman of the French Foreign Ministry Jean-Baptiste Mattei has declined to give further information.

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