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
Energy holds a key place in trade and economic cooperation between Russia and Turkey, accounting for 70% of Russian exports to Turkey. The two countries have now decided to raise cooperation to a strategic level. For this purpose, their energy ministers agreed in March 2009 to set up an inter-ministerial working group to prepare a strategic action plan for energy cooperation.
Turkey has been buying Russian natural gas since 1987, and ranks third (after Germany and Italy) in the volume of purchases, which meet 64% of the country's requirements in this fuel. Russian gas reaches Turkey through the so-called "Western route" via Ukraine, Romania and Bulgaria - under a September 18, 1984 intergovernmental agreement ( about 14 billion cubic metres) - and through the Blue Stream gas pipeline - under a December 15, 1997 intergovernmental agreement (16 bcm).
In 2008, Turkey was supplied 24.5 bcm of gas (compared with 23.5 bcm in 2007), including 10.5 bcm through Blue Stream. In the first six months of 2009, Turkey received 9.6 bcm, including 4.7 bcm through Blue Stream. Both sides are interested in expanding pipeline capacity by laying another line alongside Blue Stream (Blue Stream-2) and taking it across Turkey to the Mediterranean.
Blue Stream has a length of 1,213 km, and runs overland 373 km in Russia, 396 km under the Black Sea, and 444 km in Turkey. Its underwater section is the world's deepest. Its depth is 2,200 m, or one-third greater than previous records. The project cost $3.2 billion, with $1.76 billion contributed by Japanese, Italian and British export lenders.
Blue Stream was officially launched on November 17, 2005 at a ceremony in Samsun, Turkey, attended by then-President Vladimir Putin of Russia and Prime Ministers Recep Erdogan of Turkey and Silvio Berlusconi of Italy.
In January, as a result of a Russian-Ukrainian gas crisis, and through the fault of the Ukrainian side, gas stopped flowing to Turkey through the Western corridor. At Turkey's request, Gazprom Export more than doubled daily quotas through Blue Stream. Among all gas exporters, Russia alone responded quickly to Turkey's request for more deliveries - Iran pleaded limited resources, and Azerbaijan proved incapable of boosting supplies. The Turkish government and public took the shortages in their stride, and Russia was not blamed.
Ankara now wants to expand Blue Stream, taking it further south to Israel. Meeting in Sochi on May 16, 2009, Mr Putin and Mr Erdogan agreed to start the building of Blue Stream-2. At the same time, the two leaders decided to prolong the 6 bcm Western route contract, which expires on December 31, 2011.
The two countries are also negotiating an official permission for Gazprom's subsidiary - Piter Gaz - to carry out a route study for the South Stream gas pipeline in Turkey's exclusive economic zone.
Russian companies also show an interest in nuclear energy cooperation with Turkey. Meeting on September 24, 2008, Turkey's tendering commission for the construction of the country's first nuclear power plant accepted the bid of a Russian consortium that includes Russia's Atomstroiexport and INTER RAO UES, and Turkey's Ciner Group. Currently, the commission is examining the consortium's offer on electricity prices.
Efforts continue to diversify cooperation in fuel and energy, by involving Russian companies in the production, transportation and distribution of electricity. Russian firms are also interested in buying some of Turkey's regional state-owned power network companies.
Tekhnostroiexport is engaged in construction work on the Deriner hydroelectric power plant (to be completed in 2010) and Torul plant (which has been tentatively accepted), and is planning to take part in the construction of Bairam and Balik hydroelectric plants. Stroitransgaz is in talks exploring participation in the construction of an underground gasholder under Lake Tuz and in the privatization of the Istanbul gas distribution company.
