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ANKARA: Turkey-Russia relations

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  • ANKARA: Turkey-Russia relations

    Euractiv, Belgium
    Jan 17 2005

    Turkey-Russia relations


    In Short:

    Given their dynamically growing economic co-operation, the leaders of
    Turkey and Russia are now working for closer political dialogue to
    match.

    Background:

    For centuries, Turkey and Russia have been rivals for regional
    supremacy. Recently, the two countries have realised that friendly
    relations are in the interest of them both. Accordingly, co-operation
    rather than rivalry appears to dominate their ties. This development
    has been welcome by the EU, which sees these countries as the two
    largest imponderables on the European horizon.

    The general understanding is that Russia is a European country while
    Turkey belongs to Asia, despite the fact that the two vast countries
    both span the continents of Europe and Asia (although they no longer
    share a border). The reason for the above distinction is that in both
    countries the majority of the population as well as the capital city
    are located on the continent where they are respectively assigned.

    Issues:

    In December 2004, Turkish Prime Minister Recep Tayyip Erdogan paid a
    visit to Moscow before Russian President Vladimir Putin reciprocated
    with a trip to Ankara in January 2005. This sequence of top-level
    visits has brought several important bilateral issues to the
    forefront.

    Trade
    In 2004, trade between Turkey and Russia was worth some $10 billion.
    This figure is now expected by both Moscow and Ankara to reach $25
    billion by 2007. Russia is Turkey's second-largest trading partner
    after Germany, while Turkey is Russia's 14th trade partner. Russia
    exports to Turkey fuel and energy products (72% of total), as well as
    metals (16%) and chemical goods (4%). Turkey, in turn, sells textiles
    (30%), machinery and vehicles (23%), chemical goods (15%) and food
    products (15%) to Russia.

    Turkish companies are present in significant numbers in Russia's
    construction, retail and brewing industries. Russia's investment in
    Turkey is worth $350 million while Turkey's investment in Russia
    totals $1.5 billion.

    The two countries consider it their strategic goal to achieve
    "multidimensional co-operation", especially in the fields of energy,
    transport and the military. Specifically, Russia aims to invest in
    Turkey's fuel and energy industries, and it also expects to
    participate in tenders for the modernisation of Turkey's military.

    In the strategic energy sector, the two countries are in agreement to
    implement large-scale projects, some of which compare with the Blue
    Stream gas pipeline. Among other developments, Russia will increase
    gas supplies to Turkey and will allow Russian companies to engage in
    gas distribution in Turkish territory. Talks are also underway on
    ways to increase Russian electricity deliveries to Turkey.

    European Union
    Moscow's initial reaction to Turkey drawing closer to the EU was
    lukewarm. "If you enter the EU we cannot meet frequently," Putin was
    reported as telling his host, Prime Minister Erdogan, during the
    former's visit to Ankara in late 2004. However, at the two leaders'
    next meeting in Moscow in January 2005, Putin already said that
    Russia was in favour of Turkey's EU membership, primarily since it
    promised to open up new trading channels for Russia. ''We welcome
    Turkey's success at the EU Brussels summit,'' Putin said in Moscow.
    ''I hope that Turkey's integration in the European Union will open up
    a new horizon for Russian-Turkish business cooperation.''

    Cyprus
    Regarding the outstanding issue of Cyprus (which is tied closely to
    Turkey's EU membership bid), Russia has declared support for the plan
    put forward by UN Secretary General Kofi Annan. ''We will support any
    resolution that comes out of the implementation of UN Secretary
    General Kofi Annan's plan," said Putin. He added that the economic
    embargo on northern Cyprus was "unjust". In April 2004, Russia used
    its veto to block a resolution that sought to outline new UN security
    arrangements in Cyprus.

    World Trade Organisation
    In return, Turkey's Erdogan has pledged to "fully support" Russia's
    quest for membership of the World Trade Organisation. "Many barriers
    in the way of trade and economic co-operation between our countries
    may undoubtedly be removed after completion of Russian-Turkish
    negotiations on Russia's WTO entry on acceptable terms," reacted
    Putin. The EU concluded a deal with Russia on the latter's accession
    to the WTO in May 2004. Russia may become a full member of the WTO in
    2005.

    Chechnya / the Kurd issue
    The conflict in Chechnya remains high on the two countries' bilateral
    agendas. Several Turks trace their ancestry to the Caucasus,
    including Chechnya, and they have always been sympathetic towards the
    Muslim militants in the war-torn Russian region. Earlier, Russia
    issued calls for Turkey to crack down on Turkish `philanthropic
    organisations' that allegedly channelled money and arms to rebel
    groups in Chechnya. In turn, Turkey accused Russia of backing Kurdish
    rebel groups who have been fighting for autonomy in Turkey's
    southeastern regions since the early 1980s. The recent rapprochement
    promises to bring both countries closer to negotiated solutions.

    Caucasus
    The Caucasus remains a moot point between the two countries. Turkey's
    main ally in the Caucasus region is Azerbaijan, whereas Russia's ally
    is its rival, Armenia, which continues to insist that Turkey
    committed 'genocide' against its people during World War One. ''We
    are all aware about the historical problems between Azerbaijan and
    Armenia. Russia will contribute to the peace process," Putin said.
    "We do not want negative relations with any of our neighbours,
    including Armenia," Erdogan responded.
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