VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
Turkey is one of Russia's leading trade and economic partners.
In 2009 mutual trade amounted to $19.6 billion (versus $33.8 billion in 2008; $38 billion according to Turkish statistics). In 2009 Russia was Turkey's biggest trade partner after Germany (17% of its trade). Turkey's share in the foreign trade of Russia was 4.2% (7th place).
Russian exports are predominantly energy (75%), metals and metal products (15.2%). The main imports from Turkey are food (34.9%), machines and equipment and transport means (21.9%), and textiles (16.7%). In the first two months of 2010 trade increased to $3.9 billion compared with the same period of 2009 (up 34.9%), with Russian exports increasing to $3.4 billion (up 41.6%).
Turkey is the second largest importer of Russian wheat (after Egypt). In 2009 Turkey imported more than 2.6 million tons of grain and its products.
During the talks between Vladimir Putin and Recep Erdogan in Ankara in August 2009 the target was set of achieving a breakthrough in mutual trade bringing it to $100 billion over the next five years.
The total volume of Turkey's investments in Russia is $6 billion. Enterprises with Turkish capital operate in many Russian regions in such sectors as the production of television sets and household appliances, building materials, household chemicals, textiles, glass and glassware, foodstuffs (beer) and in the services: retailing, tourism and finances (6 banks).
The total Russian investments in Turkey (about $4 billion) increased many times after the signing in late 2005 of a contract between Russian Alpha Group and Çukurova Holding to buy a 13.2% stake in a major Turkish mobile phone operator Turkcell (the cost of the deal is $3.3 billion). In July 2008 Lukoil bought all the shares of a major Turkish operator of the Akpet network of petrol stations (693 stations and other retailing infrastructure) for a total of $555 million.
Cooperation in the tourist sphere is developing actively. In 2009 Turkey was visited by 2.5 million Russian citizens. In the first two months of 2010 the number of Russian tourists increased by 20% on the same period of last year.
Since 1987 Turkey has been one of the major buyers of Russian natural gas. In 2008 it bought 24.5 billion cubic metres of which 10.5 billion cubic metres were delivered by Blue Stream pipeline. Ankara has evinced an interest in expanding the Blue Stream gas transportation system.
During the visit to Turkey by the Russian Energy Minister Sergey Shmatko on March 17, 2009 an agreement was reached to create an inter-ministerial working group to work out a strategic action plan in the field of energy cooperation. During Vladimir Putin's working visit to Ankara on August 6, 2009 intergovernmental protocols were signed on cooperation in the gas and oil sectors as well as an interagency protocol on cooperation in the nuclear energy field.
The gas protocol envisages, among other things, that before December 2010 Turkey will issue a permit for the construction of the South Stream Gas Pipeline (the permit for the relevant geological prospecting and reconnaissance was issued on October 20, 2009).
As a result of the October 19, 2009 meeting in Milan between Igor Sechin and the Italian Energy Minister Skajola and the Turkish Energy Minister Yildiz a tripartite declaration on the construction of the Samsun-Ceyhan pipeline was signed which envisages a possible construction of an oil refinery in Ceyhan as well as joint marketing of the finished products and the creation of a trading company for the purpose.
Russian companies have shown an interest in promoting cooperation with Turkey in the nuclear energy field. A consortium comprising Russia's Atomstroyexport, INTER RAO UES and the Turkish company Park Teknik is bidding to build the first nuclear plant in Turkey.
The company Silovye Mashiny has completed the Torul Hydroelectric power plant project ($130 million two 50 mW units). The company is contemplating taking part in building the thermal power plants Afsin-Elbistan (4 x 300 mW), Orhaneli (1 x 200 mW), and hydroelectric power stations Pembelik (2 x 54 mW) and Derekoi (3 x 35 mW). The company Tekhnostroyexport is conducting construction work on the Deriner hydroelectric power station and is planning to take part in the building of Bairam and Balik hydroelectric power stations.
The company Stroytransgaz is negotiating to take part in building an underground gas storage facility beneath Lake Tuz and in the privatization of the Istanbul gas distribution company.
About 150 Turkish construction companies are currently operating in Russia. Since the late 1980s they have built more than 800 objects in Russia, signed more than $20 billion worth of contracts and delivered more than $12 billion worth of services. The more notable projects are the construction of Sheremetyevo-3 air terminal, four thermal power plants (two 170 mW plants in Moscow and two 800 mW plants in Surgut), a unit for Shatura Thermal Plant and several buildings as part of the Moskva City project.
Future projects include the construction of glass container plants in Novosibirsk and the Krasnodar Territory (at a total cost of about 200 million euros), a metallurgical plant in Rostov Region ($130 million), a plant for the production of carpets and rugs in Rostov-on-Don (680 million roubles) a plant for the assembly of agricultural machines in the Krasnodar Territory.
The presence of Russian contractors in Turkey is on a much smaller scale: they have delivered about $400 million worth of works and services.
An example of successful cooperation in the light industry is the Gloria Jeans corporation in Rostov Region (which makes outer garments from Turkish denim fabrics). The Turkish company Aimasan owns 40% of the JV Rockland in Serpukhov (Moscow Region), which manufactures products under the Tervolina brand. The shoe-making enterprise Bris-Bosfor is operating in Novorossiisk. Similar cooperation is being established in the cities of Tver and Galich, Kostroma Region, at a leather goods factory with the participation of the Turkish company Sarkem.
Under an agreement between the Magnitogorsk Metallurgical Plant and the Atakas group of companies (Turkey) construction is underway in Turkey of a modern facility that will produce 2.3 million tons of hot rolled sheet, 750,000 tons of cold rolled sheet, 900,000 tons of zinc-plated rolls, 400,000 tons polymer coated sheet. The total cost of the project is about $1.7 billion.
The Novolipetsk Metallurgical Plant (NLMK) is considering the construction of a full-cycle metallurgical plant in the city of Zonguldak (Turkey).
For the purpose of promoting and coordinating bilateral trade and economic cooperation an Intergovernmental Russian-Turkish Commission for Trade and Economic Cooperation was created in 1992. Its Russian co-chairman is Deputy Prime Minister Igor Sechin (since June 2009) and the Turkish cochairman is the Minister of Energy and Natural Resources T. Yildiz. The latest 10th meeting of the IGC took place in Istanbul on May 5-6, 2010. The Commission comprises 5 joint working groups (for trade, investments, contract services and the legal framework; for energy; for transport; for industry, high technology and small and medium enterprises and for tourism).
In the late 1980s a Russian-Turkish Business Council (now operating under the aegis of the Russian Chamber of Commerce and Industry) and the Turkish-Russian Business Council were created to establish and promote direct business ties between Russian and Turkish regions. Taking part are over 40 Russian regions and more than 150 Turkish companies and firms.