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Russia Says Turkey Backs All Its Energy Projects

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  • Russia Says Turkey Backs All Its Energy Projects

    RUSSIA SAYS TURKEY BACKS ALL ITS ENERGY PROJECTS
    By Gleb Bryanski

    Reuters
    Jan 13 2010

    Putin says expects Turkey to clear S.Stream in 2010

    MOSCOW, Jan 13 (Reuters) - Russia said on Wednesday it has won Turkish
    support for all its major oil, gas and nuclear projects while carefully
    avoiding its usual harsh criticism of the rival trans-Turkish EU-backed
    Nabucco gas pipeline.

    Russian Prime Minister Vladimir Putin told a news conference after
    talks with Turkish Prime Minister Tayyip Erdogan Ankara had pledged to
    fully clear Russian gas pipeline project South Stream before November
    2010, when building is due to begin.

    "We have an agreement that before November 10, 2010 ... the Turkish
    government will make all the necessary judgements and issue a
    construction permit. In the course of today's talks Mr Erdogan
    confirmed these intentions," Putin said.

    "I very much hope this work will be finished as planned," he said,
    adding that the work on South Stream was going according to plan with
    environmental, geological and seismic studies near completion.

    Putin also said the project, which apart from Russia's gas export
    monopoly Gazprom (GAZP.MM) involves Italy's ENI (ENI.MI), may benefit
    from an inter-governmental agreement between Russia, Turkey and Italy.

    Russia designed South Stream to deliver gas to southern Europe under
    the Black Sea to rival Nabucco and bypass Ukraine.

    But the need to bypass Ukraine may decrease if Kiev elects a more
    pro-Russian president at an election this month and save indebted
    Gazprom (GAZP.MM) billions of euros it needs to spend on South Stream.

    Some analysts have suggested Gazprom may even one day join Nabucco,
    which is so far lacking volumes to make the project profitable.

    Turkey aspires to become a key transit hub for Europe, but is facing
    a tough balancing game between rival projects supported by Moscow
    and the European Union. [ID:nLDE60A13N]

    Once Cold War foes, NATO member Turkey and Russia have in recent years
    deepened their ties by signing a raft of agreements from gas and oil
    pipelines to nuclear power plants, and have sought closer security
    cooperation in the Caucasus region.

    Turkey, which is using the energy card to promote its membership of
    the EU, has insisted that South Stream and Nabucco are not rivals,
    but complementary.

    Putin said the governments of Italy, Turkey and Russia should also
    consider signing a deal to support an oil link between Turkey's Black
    Sea coast and the Mediterranean. [ID:nLJ71240]

    He said cooperation between the two states should involve asset swaps
    between major firms and added Russian firms were ready to take part
    in privatisation of Turkey's state assets.

    Both Putin and Erdogan pledged to increase the use of national
    currencies in bilateral trade, currently at $15.3 billion, which the
    leaders want to boost to $100 billion within the next five years.

    Turkish Energy Minister Taner Yildiz and Russian Deputy Prime Minister
    Igor Sechin also signed a memorandum on building nuclear power plants
    in Turkey in a sign Russian firms would be given a second chance to
    build Ankara's first plant.

    Turkey cancelled a previous tender to build a nuclear power station,
    after a court earlier ruled the tender, won by Russian Inter RAO
    IRAO.MM and Atomstroiexport and Turkey's Park Teknik, invalid due to
    problems it cited with the pricing of electricity from the plant.

    [ID:nLK400328]

    KARABAKH

    Putin told Erdogan that Turkey should not link the problem of
    Nagorno-Karabakh, a region of Azerbaijan populated by ethnic Armenians
    who are now in control of the area, to its bilateral relations with
    Armenia.

    "Both the Nagorno-Karabakh problem and the Turkish-Armenian problem
    are very complicated by nature. I do not think it is a right thing
    to tie them into one package," Putin said.

    "It is unwise from both tactical and strategic point of view to
    package these problems," he added.

    Turkey closed its border with Armenia in 1993 in protest over Yerevan's
    backing for Karabakh separatists. The two countries signed accords
    last October to establish diplomatic relations and open their border.

    The accords are still pending parliamentary approval.

    Turkey says it will go through with its deal with Armenia only if
    the latter makes concessions to Azerbaijan on Nagorno-Karabakh but
    Armenia says attempts to link a thaw in relations with the Karabakh
    issue would not work. For a factbox on Russian gas pipeline projects
    [ID:nL5035511] For a factbox on Nabucco [ID:nLE022229] For a factbox
    on Turkish-Armenian ties. [ID:nLE357596] (Writing by Dmitry Zhdannikov;
    editing by Sue Thomas)
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