Russian Turkish. Investment projects in Russia and Turkey. Withering tourism business
Make up for lost time and go to new level interactions. Russian-Turkish negotiations in the Kremlin. Vladimir Putin and Recep Erdogan discuss large-scale joint projects in the field of energy, regional security, the fight against terrorism, and Syria.
First there was a meeting in a narrow format, then in an expanded format. And, as the Russian President noted, ties between Moscow and Ankara are being restored, and at a rapid pace.
A few minutes ago, a working lunch began with the participation of members of the Russian and Turkish delegations. It is taking place as part of a meeting of the High-Level Cooperation Council, which resumed after a two-year break due to a crisis in relations after the Turkish Air Force shot down a Russian bomber in Syria.
Vladimir Putin met the Turkish President in the Green Living Room of the Grand Kremlin Palace. During the protocol shooting, Recep Erdogan asked in English first Vladimir Putin, and then Sergei Lavrov: “How are you?” The meeting in a narrow format lasted almost three hours - twice as long as planned.
In addition to the presidents, the conversation was attended by the heads of foreign affairs departments, the Russian Defense Minister, the head of Turkish intelligence, the deputy head of Erdogan’s administration and the special representative of the Russian President for the Syrian settlement.
It is known that the presidents also discussed issues of military cooperation one-on-one, without members of their delegations.
39 people took part in the meeting of the High-Level Cooperation Council. There are impressive delegations at the negotiations on both sides: the cabinets of ministers of Russia and Turkey in almost full strength, as well as representatives of big business. Considering that before the crisis, official Ankara was one of Moscow’s largest business partners, the development of trade and economic relations is on the agenda.
In 2016, trade turnover between our countries decreased by a third and reached the levels of ten years ago. One of the important tasks, according to Vladimir Putin, is to return trade and economic relations to their previous level.
“Russia and Turkey have already achieved good results in reciprocal investments, $10 billion on each side. Of course, this is not the limit. Launching new joint projects should contribute to the active work of the Russian-Turkish Investment Fund. It is gratifying that cooperation in the energy sector has reached a truly strategic level. Türkiye ranks second in terms of volumes of Russian gas purchases. Last month, an intergovernmental agreement on a large-scale project for the construction of the Turkish Stream gas system came into force. The practical implementation of this project will allow increasing the volume of natural gas supplies to Turkey and increasing its transit potential,” said the Russian President.
“We attach great importance to the development of our trade turnover and the development of our economic relations. Unfortunately, in Lately Trade turnover has decreased, but we set ourselves the goal of increasing it. As for the construction of the Akkuyu NPP, the speedy launch of this project is of vital importance for us. We are monitoring its implementation,” the Turkish President said in turn.
The ambitious project to build Turkey's first nuclear power plant, Akkuyu, is scheduled to be completed by 2023. The nuclear power plant will consist of four power units with Russian reactors. Estimated cost of work: $20 billion. It is also planned that today a whole package of documents will be signed, such as an agreement on the creation of a joint Russian-Turkish investment fund of up to one billion dollars to finance projects in the two countries.
“Activation of bilateral economic ties would help increase the share national currencies in mutual settlements. We know that Mr. President actively supports this. A concrete step in this direction will be the creation of service infrastructure in Turkey bank cards Russian payment system “Mir,” noted Vladimir Putin.
“As for tourism, we lost some time and could not develop our relations in this direction. But I am sure that we will be able to catch up with this backlog, and, of course, I think we will switch to new payment methods. As for the visa-free regime, we need to resolve this issue as soon as possible,” Recep Erdogan emphasized.
Another key issue at the negotiations, of course, is interaction in Syria and the fight against terrorism. Along with Iran, Russia and Turkey are the direct initiators of the Astana peace negotiations to resolve the Syrian conflict.
“Military-technical cooperation, contacts between law enforcement agencies and special services, including in the field of counter-terrorism, require special attention. Russian strong structure We are interested in establishing an exchange of information about the movements of persons involved in terrorism across the territory of our countries,” said Vladimir Putin.
The leaders will talk about the results of the whole day of Russian-Turkish negotiations at a joint press conference, which will be held in the Malachite foyer. Everything is ready for the press conference and it is expected to begin soon.
In Ankara, he will hold talks with Turkish President Recep Tayyip Erdogan and take part in the next meeting of the High-Level Cooperation Council between Russia and Turkey. The editors of TASS-DOSSIER have prepared material on the development of Russian-Turkish political relations since 2015.
Crisis of 2015-2016
In 2015, relations between Russia and Turkey, which had been developing steadily in various areas for many years, faced a serious crisis. It was caused by an incident with a Su-24 bomber of the Russian Aerospace Forces, which was shot down by a Turkish Air Force fighter on November 24, 2015 over Syrian territory. Russian pilot Oleg Peshkov was killed during the ejection. Russian President Vladimir Putin described Ankara’s actions as “a blow that supporters of terrorism dealt us in the back” and emphasized that this event would have serious consequences for future Russian-Turkish relations. In turn, Erdogan refused to apologize and said that if a similar situation were repeated, Turkey would do “the exact same thing.”
On January 1, 2016, Russia introduced bans on charter flights air transport with Turkey and for the sale of tours; suspended the visa-free regime and imposed sanctions on a wide range of Turkish goods (primarily agricultural products). Major economic projects were suspended, in particular the implementation of the Turkish Stream gas pipeline and the Akkuyu nuclear power plant. Bilateral political contacts were frozen.
Gradual normalization of relations
The process of normalizing bilateral relations began in the summer of 2016 after Turkish President Recep Tayyip Erdogan sent a message to Vladimir Putin apologizing for the downed bomber. On August 9, 2016, Erdogan came to meet with Vladimir Putin in St. Petersburg. As a result of the negotiations, a decision was announced to bring relations to the pre-crisis level.
Already in August, the ban on the sale of tours to Turkey was lifted and restrictions on charter flights between the two countries were lifted (based on the results of five months of 2016, the share Russian tourists accounted for only 1.7% of the total number of foreigners entering Turkey; in 2015, every tenth person entering the country was a Russian). Russia and Turkey agreed on the necessary decisions for the implementation of the Akkuyu NPP project. Ankara has granted the nuclear power plant status as a strategic investment (priority economic development project). In October 2016, an intergovernmental agreement on the Turkish Stream gas pipeline was signed in Istanbul. In the same month, the Russian government lifted the ban on the import of some sanctioned fruits.
Murder has become a new challenge for bilateral relations Russian Ambassador in Turkey by Andrei Karlov on December 19, 2016. Moscow and Ankara regarded the terrorist attack as a provocation aimed at disrupting the process of normalization of relations. The Turkish President promised that those responsible for the death of the ambassador would be found and punished. The political dialogue continued. However, negotiations on a visa-free regime, initiated by the Turkish side in October 2016, were suspended.
On March 10, 2017, during a meeting with Recep Tayyip Erdogan in Moscow, Vladimir Putin stated that the countries had returned to the path of cooperation. As a result of the negotiations, a number of documents were signed, including a medium-term program of trade, economic, scientific, technical and cultural cooperation between the governments of the two countries for 2017-2020, as well as an agreement between the Russian Direct Investment Fund and the Turkish Sovereign Fund on the creation of a Russian- Turkish investment fund. An agreement was reached to hold a “cross” year of culture and tourism in 2019. Political normalization between Moscow and Ankara has contributed to the gradual resumption of bilateral trade and the unfreezing of cooperation in areas such as energy, gas industry, nuclear projects, tourism.
Cooperation to resolve the Syrian crisis
One of the areas of cooperation after the normalization of relations was Syria. Despite the fact that Moscow acts as an ally of the Bashar al-Assad regime, and Ankara supports the forces opposing it, by the end of 2016, Russia and Turkey, joined by Iran, became key participants in the Syrian settlement. As a result of negotiations between these countries in Moscow, a ceasefire was established in Syria on December 20, 2016 (began to operate on December 30, 2016). Turkey, Russia and Iran acted as guarantors of the inter-Syrian negotiation process in Astana (began in January 2017). Summing up the results of the annual work of the Astana format, the foreign ministers of the guarantor countries at a meeting in the capital of Kazakhstan in March 2018 noted significant progress in resolving the Syrian crisis. In particular, de-escalation zones were created, principles of humanitarian demining were developed, a working group was formed to release detainees and hostages, the situation with the provision of humanitarian assistance was improved, and conditions were created for the resumption of the political process in Syria.
In addition, the Russian and Turkish air forces conducted joint operations in Syria against militants of the Islamic State (IS, banned in Russia). On February 12, 2017, the parties signed a memorandum on preventing incidents and ensuring the safety of aviation flights during operations in Syria. The need for coordination of aviation actions arose after the incident in the area of the city of Al-Bab (in northern Syria) on February 9, 2017, when three Turkish soldiers were unintentionally killed and 11 were injured as a result of Russian bomber strikes on the positions of IS militants.
Among Russia's foreign trade partners, including 5th in exports and 13th in imports. Turkey's share in Russia's foreign trade turnover is 4%.
According to official Russian statistics, in 2013, investments worth $953.9 million came from Russia to Turkey, and $526.4 million from Turkey to Russia.
Russian investments were directed mainly into the authorized capital of small and medium-sized enterprises in the service sector. Recently, there has been a tendency to expand areas of investment cooperation with Turkey in such areas as the fuel and energy sector and ferrous metallurgy, nuclear energy, banking, mobile connection and Internet technologies.
The largest one is the construction by Russian specialists of the Akkuyu nuclear power plant (NPP) in the city of Mersin (the investment volume will be about 20 billion dollars). The start of construction of the nuclear power plant itself is scheduled for the end of 2016.
One of the priorities is the implementation of the project for the construction of a new gas pipeline "from Russia to Turkey along the bottom of the Black Sea. Gazprom considers it realistic to build two strings of the gas pipeline with a total capacity of up to 32 billion cubic meters of gas per year. Construction was planned to begin in June 2015, but the project is still remains under discussion.
The Omsktekhuglerod group of companies registered a representative office in Istanbul in 2013, OMSK CARBON ISTANBUL Dis Tic Ltd. The products of two plants are supplied to Turkey - the Volgograd and Omsk carbon black plants, which are part of the Omsktekhuglerod group, both directly from Russia to customer factories, and through organized own warehouses in Gebze and Mersin.
In 2012, the Russian Sberbank acquired the Turkish Denizbank, which ranked sixth in the top ten largest banks in Turkey (the transaction amount was $3.5 billion). The scope of the transaction also included subsidiary branches of Denizbank in Russia, Austria, as well as financial, leasing and other financial companies.
Another major project was the contract between the Russian Alfa Group and the Çukurova holding for the acquisition of a stake in the largest Turkish operator cellular communications"Turksel" worth 3.3 billion dollars.
OJSC Magnitogorsk Iron and Steel Works (OJSC MMK), together with a Turkish partner, implemented a project to build a plant for the production of sheet metal in the city of Iskenderun in 2011 and is currently its sole owner (total investment is about $2 billion).
In 2010, Mechel OAO acquired 100% of the shares of the Turkish trading group Ramatex, whose main activity was the distribution of rolled structural and stainless steel, as well as other types of metal products. The transaction amount was $3 million.
In 2009, NK OJSC LUKOIL, represented by LukoilEurasiaPetrol A.S, completed payments under the contract for the purchase of 100% of the shares of Akpet, a large operator of the Turkish gas station network (5% of the Turkish retail petroleum products market). The total amount of the transaction was $555 million.
An example of industrial cooperation is the project for the assembly production of GAZelle BUSINESS cars of the Russian holding company GAZ and the Turkish company Mersa Automotive in Sakarya province (150 kilometers from Istanbul), which was launched on December 2, 2012. The company assembles GAZelle BUSINESS vehicles with a diesel engine from kits supplied by the GAZ Group.
Currently, Turkish investments in Russia are mainly directed to the textile, food, chemical, woodworking, electronic and electrical industries, production of construction and finishing materials, automotive industry and production of auto components, services, trade, tourism, and the banking sector.
At the present stage, a feature of the investment activities of Turkish companies is the transfer of capital investments from major cities to the regions, in particular from Moscow to the Moscow region, Tatarstan, Vladimir and Penza regions.
Turkish business pays significant attention to the development of investment cooperation with the subjects of the Southern federal district Russia, as well as investing in special economic zones (SEZ).
There remains a wide presence of Turkish companies in the Russian contracting services market. There are about 100 Turkish construction organizations in Russia at sites in Moscow and the region, St. Petersburg, as well as Tatarstan, Bashkortostan, Sverdlovsk, Vladimir, Rostov regions and Krasnodar region. Total from the late 1980s to the present Turkish companies Over 800 facilities have been built in Russia.
As an example of the successful work of enterprises with Turkish capital, one can cite the activities of the Novorossiysk shoe factory "Bris-Bosphorus". The Rockland joint venture operates stably in Serpukhov, Moscow Region (40% of the capital of which belongs to the Aimasan company, and 60% to Russian partners). The products of this enterprise are sold under the Tervolina brand.
Similar cooperation is being established in the cities of Tver and Galich, Kostroma region, at a tannery with the participation of the Turkish company Sarkem.
An example of cooperation with Turkish textile companies is CJSC Gloria-Jeans Corporation in the Rostov region.
The material was prepared based on information from RIA Novosti and open sources
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The history of interstate Russian-Turkish relations goes back over five centuries (historians date back to the message of Prince Ivan III on maritime trade issues, sent on August 30, 1492 to the Ottoman Sultan Bayezid II). Embassy Russian Empire in the Ottoman Empire opened on a permanent basis in 1701. Diplomatic relations between Russia (RSFSR) and Turkey (the Government of the Grand National Assembly of Turkey - GNT) were established on June 3, 1920. On March 16, 1921, the Treaty on friendship and brotherhood. The basic document of modern Russian-Turkish relations is the Treaty on the Fundamentals of Relations Russian Federation and the Republic of Turkey, signed in 1992. In December 2004, the official visit of the head of the Russian state, President of the Russian Federation V.V. Putin, took place in Turkey for the first time in the previous thirty years. As a result, the leaders of the two countries adopted a Joint Declaration on deepening friendship and multifaceted partnership between the Russian Federation and the Republic of Turkey. Subsequent years were characterized by intensive development of political and economic ties. In 2009, a Joint Declaration was signed on advancing to a new stage of relations and further deepening friendship between our countries. In 2010, the leaders of the two countries established the High Level Cooperation Council (HLCC) - a governing body co-chaired by the heads of state, developing the “strategy and main directions for the development of relations” between Russia and Turkey and coordinating the implementation of important political, trade projects -economic, cultural and humanitarian cooperation. 5 meetings of the Council were held, the last one in December 2014 in Ankara. Within the framework of the SWM, the Mixed Intergovernmental Russian-Turkish Commission on Trade and Economic Cooperation (IPC), created in 1992, continued its work, and a Joint Strategic Planning Group (JSGG) was created , headed by the Ministers of Foreign Affairs) to discuss the main issues of Russian-Turkish interaction in international affairs. The Public Forum, created in 2010, also functions within the framework of the SWOT, aimed at further developing bilateral relations between the peoples and civil society organizations of the two countries, as well as maintaining an atmosphere productive dialogue. After a long period of dynamically developing cooperation, relations deteriorated dramatically due to the destruction of a Russian military aircraft by the Turkish Air Force in Syrian airspace on November 24, 2015. Seven months later, during which bilateral ties were virtually frozen, Turkish President R.T. Erdogan on June 27 2016 sent a message to the President of the Russian Federation, in which he expressed interest in resolving the situation and apologized in connection with the death of the Russian pilot. A readiness was expressed to do everything possible to restore traditionally friendly relations between Turkey and Russia, as well as to jointly respond to crisis events in the region and fight terrorism. On June 29, 2016, a telephone conversation took place between V.V. Putin and R. T. Erdogan, which marked the beginning of the resumption of political dialogue between Russia and Turkey. In August-December 2016, a number of bilateral contacts took place on top level(August 9, 2016 working visit of R.T. Erdogan to St. Petersburg, September 3, 2016 meeting of presidents “on the sidelines” of the G20 summit in Hangzhou (China), October 10, 2016 meeting of leaders “on the sidelines "World Energy Congress in Istanbul). On December 5-7, 2016, a working visit of the Prime Minister of Turkey B. Yildirim to the Russian Federation took place, within the framework of which his negotiations were organized with V.V. Putin, D.A. Medvedev, V. .I. Matvienko, as well as a working trip to Tatarstan. On December 1, 2016, a regular meeting of the SGSP was held in Alanya under the chairmanship of the Ministers of Foreign Affairs of Russia and Turkey S.V. Lavrov and M. Cavusoglu. Inter-parliamentary relations are being resumed. On September 15, 2016, in Strasbourg, “on the sidelines” of the European Conference of Presidents of Parliaments, a meeting was held between the Chairman of the Federation Council of the Federal Assembly of the Russian Federation, V.I. Matvienko, and the Chairman of the TNST, I. Kahraman. On December 19, 2016, in Ankara, as a result of a terrorist attack, the Extraordinary and Plenipotentiary Ambassador of the Russian Federation to the Republic of Turkey A.G. Karlov. The Turkish leadership condemned this crime as "a provocation directed against Turkey, the Turkish state and people, as well as undermining the process of gradual normalization of Russian-Turkish relations." The parties agreed to establish close cooperation between the investigative authorities of the two countries in order to conduct a thorough investigation into the circumstances of the crime, identify and punish its organizers, as well as take the most effective measures to ensure the safety of Russian citizens, foreign institutions and their personnel. Trade and economic cooperation In line with the general understanding of the gradual restoration of bilateral relations, the special economic measures taken by Russia towards Turkey after the destruction of a Russian military aircraft by the Turkish Air Force are gradually being cancelled. On June 30, 2016, by Decree of the President of the Russian Federation No. 314, the ban on tour operators selling tourism products to Russian citizens that included visiting the Republic of Turkey was lifted. On August 27, 2016, the Government of the Russian Federation adopted Resolution No. 846, allowing the resumption of charter air transportation with Turkey, and on October 9, 2016, Government Resolution No. 1020 was adopted, lifting the ban on the import of certain categories of agricultural products into Russia. Bilateral interdepartmental negotiations are currently underway on the issue of removing or mitigating special economic measures regarding the import of Turkish goods to Russia. Energy cooperation On December 1, 2014, at the 5th meeting of the SWTC, the presidents of Russia and Turkey discussed the possibilities of implementing a new gas pipeline project (Turkish Stream) in order to meet the needs of the Turkish market and possible transit supplies to Europe. On October 10, 2016, an intergovernmental agreement on the implementation of this project was signed in Istanbul. In Turkey, in accordance with the Russian-Turkish intergovernmental agreement signed in May 2010, a nuclear power plant is being built at the Akkuyu site (Mersin province). A joint program for training Turkish personnel for the Turkish nuclear industry is being implemented. Currently, more than 300 Turkish students are studying in this specialty at Russian universities.