Less than three months after Turkey’s president Erdogan, in the aftermath of the mid-July “failed coup” visited Putin in Russia in his first and very symbolic foreign trip, Putin has returned the favor with a visit of his own to Turkey, where he promptly confirmed that economic relations between the two nations are on solid footing with the November 2015 downing of a Russian fighter jet over Turkey now largely forgotten, and where Turkey and Russia earlier today signed the strategic Turkish Stream gas pipeline agreement.
As noted previously, once completed the pipeline will carry Russian natural gas to Turkey under the Black Sea, and on to Greece and Europe. The project, with an estimated total cost of $13 billion, was announced in December 2014 during Putin’s visit to Turkey as an alternative to the canceled South Stream pipeline through Bulgaria, which the Bulgarian government killed due to European pressure.
The signing of the deal came after a bilateral meeting between Turkish President Recep Tayyip Erdogan and his Russian counterpart Vladimir Putin who was in Istanbul to attend the 23rd World Energy Congress. During the signing ceremony, Erdogan said ministers and experts will continue to hold bilateral talks after the deal.
As Hyrriyet reports, Erdogan also said they reached consensus on the acceleration of the process for the Akkuyu nuclear plant. In addition, Putin also added that the two countries also reached consensus on discount in natural gas prices. He stated that Moscow lifted restrictions on citrus exports.
Russia’s Gazprom and Turkey’s BOTAS in 2014 signed a memorandum of understanding (MoU) for the construction of the Turkish Stream gas pipeline, with a capacity of 63 billion cubic meters (bcm) of gas per year from Russia to Turkey across the Black Sea. However, talks on the project were halted last year after Turkey shot down a Russian air force jet and Moscow retaliated with trade sanctions but since then the two countires have made significant progress to mend relations. Erdogan said in August at a joint news conference with his Russian counterpart that building the gas pipeline quickly was a priority.
On Sept. 7, Gazprom said it had received first regulatory approvals from Turkey, allowing the project to move into implementation phase.
The meeting of the two leaders marked the third time after bilateral relations were put back on track in August since the jet crisis.
Putin said the need to develop the Turkish Stream natural gas project had been stressed in his talks with Erdogan, adding that Russia also actively planned to expand its hydrocarbon exports eastward to China, Japan and India. “Russia will further interact in energy with all interested parties for mutual beneficial partnerships on an equal footing,” he added.
Just as important in light of the ongoing deterioration in Russian relations with the west, Erdogan also said the two leaders discussed Syria and the Euphrates Shield Operation as well as strategies and cooperation regarding humanitarian aid to Aleppo. Putin said Moscow was on the same page with Ankara about delivering humanitarian aid to Aleppo.
Also today, Russian paper Izvestia resported that Cairo and Moscow were in talks on a deal which would allow Russia to deploy a military facility in Egypt.
“The negotiations over possible participation of Russia in rebuilding of Egyptian military sites on the Mediterranean coast near Sidi Barrani are quite successful. If both parties agree to the terms, as soon as 2019 the base may become operational. Cairo is ready to lease it to Moscow because it would use it to pursue high-priority geopolitical goals, which align with Egypt’s interests,” a diplomatic source told the newspaper.
A military source told the newspaper that the new asset would be convenient, considering the growing instability in the region. “The utility of an airbase near Sidi Barrani is obvious for Moscow. Even though Russia has a similar base in Syrian Khmeimim, the presence of Russian warplanes in Egypt would allow Moscow conduct military missions in the western Mediterranean,” Talaat Musallam, a strategic and security expert and former Egyptian armed forces general told the newspaper.
However, shortly after the Russian report emerged, Egypt’s Al-Ahram daily denied the report which claimed that Moscow and Cairo are negotiating a deal on a Russian airbase in western Egypt. Commenting on the report, military expert Nabil Fuad told RIA Novosti that Egypt’s military doctrine does not allow it to host foreign-controlled military bases. “That is a principal issue for Egypt not to allow foreign military bases on its territory,” he said, adding that during the Cold War Soviet military specialists would work at Egyptian military facilities, rather than have their own.
Then again, in light of Egypt’s ongoing negotiation with the IMF to obtain a $12 billion loan, it would stand to reason that Egypt would vocally reject any speculation, however informal, that it is seeking to turn its back on the west and become another Russian satellite nation.
Egypt, a long-time ally of the United States, somewhat distanced itself from Washington after a period of instability, which started with mass protests against strongman Hosni Mubarak in 2011. Cairo’s relations with Russia saw resurgence, particularly in defense sphere. Russia was the first non-Arab country that President Sisi visited after his election in 2014.
penury on Mon, 10th Oct 2016 8:50 pm
This appears to be part of the continuing action to degrade the petro dollar. Argue against it all you want, refuse to accept that it can happen, but you should take some action to protect yourself when it happens.
rockman on Mon, 10th Oct 2016 9:14 pm
And it’s part of a long term strategy of Russia to free itself of the Ukrainian pipelines that carry much of the NG it sells to the EU. Same reason it built the North Stream pipeline and the plans to expand it. And also the reason the EU has tried to block all such efforts. The Russian NG shipped through the Ukraine is major leverage over Russia by the Ukraine and EU.
And some EU countries actuality support such Russian efforts because they want to remove their energy independence from the Ukraine/Russian dynamic.
makati1 on Mon, 10th Oct 2016 9:27 pm
penury, we both know that the economic war has been ongoing for some time. A gradual process to kill, or at least diminish the dollar as the world reserve currency has been under way for years. That Russia and China have joined forces is what scares TPTB. Together, they have the ability to succeed.
makati1 on Mon, 10th Oct 2016 9:30 pm
rockman, winter is coming and they know that their NG supplies thru the Ukraine are not guaranteed. I see 2017 as a pivotal year in many areas.
JuanP on Mon, 10th Oct 2016 11:01 pm
The Russians have been saying for years that when the current transit contracts with Ukraine expire they will not be renewed. I believe they are not bluffing. Southern Europe needs a new gas pipeline to replace the ones running through Ukraine. The Turkish Stream could be it.
The USA will do anything within its power to stop this pipeline from becoming operational. I wonder who will win this fight. If Russia manages to build this pipeline it will be a heavy blow against the American policy of dividing Eurasia.
Cloggie on Tue, 11th Oct 2016 1:53 am
And it’s part of a long term strategy of Russia to free itself of the Ukrainian pipelines that carry much of the NG it sells to the EU.
Not really. The real urgency to circumvent Ukraine only emerged after the successful US coup in Kiev early 2014, when the Ukraine became a weapon against Russia. Before that, Moscow wouldn’t dream of building Turk Stream.
What should have been build was South Steam, the preference of Moscow until now, but that was blocked by McCain c.s., who overruled the despicable US satraps in Brussels.
Now Southern Europe becomes dependent on Turkey for its future energy supply, when that country will be in a position to close the tab any moment it chooses to do so. And will impose an extra fee.
https://www.rt.com/business/164588-brussels-bulgaria-halts-south-stream/
rockman on Tue, 11th Oct 2016 11:57 am
“The real urgency to circumvent Ukraine only emerged after the successful US coup in Kiev early 2014…”
Really? Consider what was happening 11 years ago. Matters are a tad less volitie today:
“The Russia–Ukraine gas disputes refer to a number of clashes between Ukrainian gas company Naftohaz Ukrayiny and Russian gas supplier Gazprom over natural gas supplies, prices, and debts. The situation had grown beyond simple business disputes into political issues involving political leaders from several countries that threatened natural gas supplies in numerous European countries.
A serious dispute began in March 2005. During this conflict, Russia claimed Ukraine was not paying for gas, but diverting that which was intended to be exported to the EU from the pipelines. Ukraine admitted that natural gas intended for other European countries was retained and used for domestic needs. The dispute reached a high point in January 2006, when Russia cut off all gas supplies passing through Ukrainian territory.”
Just MHO but the prospect of cutting off NG supplies to the EU during the middle of winter ranks a fair bit higher in importance then a regime change in Kiev. LOL. Which is why Russia eventually built the Nord Stream pipeline (without objection from the EU (especially Germany where the pipeline lands):
Nord Stream includes two parallel lines. The first line was laid by May 2011 and the second in 2011–2012. At 759 mi in length, it is the longest sub-sea pipeline in the world. It has an annual capacity of 1.9 trillion cubic feet but its capacity is planned to be doubled to 3.9 trillion cubic feet by 2019, by laying two additional lines.
It’s the southernmost EU countries that favor the route thru Turkey. And as an aside why Russia really doesn’t want ME NG to be pipelined to the EU through any of the MENA countries, like Syria for instance. NG that would most likely have to transit thru Turkey.
penury on Tue, 11th Oct 2016 12:35 pm
Completely off subject and only directed to Makati, How is the Presidents ban on smoking expected to work? When I last was there it seemed to be quite common?
makati1 on Tue, 11th Oct 2016 5:50 pm
penury, I have read most of Duterte’s articles and missed the one on smoking. It wouldn’t surprise me. Cigarettes are cheap here to get everyone addicted. A 20 pack of Winston is about $1.10.
I just accessed it. He said it yesterday and I missed it.
“… that no smoking would be allowed in public places, whether indoor or outdoor. … Philip Morris International, which controls around 70 percent of the cigarette market in the Philippines, (is not happy) …”
It is based on the law that he had in Davao, where he was mayor for 22 years. Break the law and you will pay about $100 (About a week’s wages for a laborer.) or spend 4 months in jail.
I have no doubts that it will happen. Makati already has a law similar to that one and if you work in a building, you have to go outside to smoke. No smoking in malls, restaurants, buses, taxis, etc. Since I never got into the habit, I hope he implements it. There are other laws in the pipeline also, I am sure. And the people will support him. After all, most Filipinos cannot afford to smoke anyway. No loss.
Cloggie on Wed, 12th Oct 2016 1:48 pm
@rockman – before EuroMaidan, Ukraine was a country friendly to Russia. Yes there were troubles, like illegally tapping by dirt-poor Ukraine, but things could always be settled peacefully and Russia always behaved very leniently towards its satellite and didn’t dream of closing down pipelines through Ukraine as it was one of Ukraine’s very few sources of income. As far as I know there were no plans to close down pipelines through Ukraine before EuroMaidan.
South Stream was intended to increase capacity of transporting NG to Europe, not to sideline Ukraine.
That changed after EuroMaidan, when a government putsched itself into office, that was outright hostile to Russia and the war in Donbass emerged. Now indeed the official position of Moscow is to halt deliveries through Ukraine after 2018.
It’s the southernmost EU countries that favor the route thru Turkey.
I really doubt that as in Southern Europe everybody is (historically) hostile towards Turkey. Bulgaria most certainly would favor South Stream over its own territory. Now there will be an extra, completely unnecessary and geopolitical sensitive dependency on Turkey.
Turk Stream is really the least favored pipeline by Putin other than no pipeline at all.
There is still a chance that South Stream will be build instead of Turk Stream, namely if Trump would make it to the White House. Let’s hope that happens.
https://en.wikipedia.org/wiki/Turkish_Stream
rockman on Thu, 13th Oct 2016 4:22 pm
Cloggie – So true. One thing certain about energy deals between the countries in that part of the world: nothing is certain