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Prime Minister Vladimir Putin And Turkish Prime Minister Recep Tayyi

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  • Prime Minister Vladimir Putin And Turkish Prime Minister Recep Tayyi

    PRIME MINISTER VLADIMIR PUTIN AND TURKISH PRIME MINISTER RECEP TAYYIP ERDOGAN ADDRESS A NEWS CONFERENCE ON OUTCOME OF THEIR NEGOTIATIONS

    States News Service
    January 13, 2010 Wednesday

    The following information was released by the government of the
    Russian Federation:

    Vladimir Putin: Mr Prime Minister, ladies and gentlemen,

    Our talks today have been very productive and meaningful. We have held
    nine such similar meetings, all of which were, like our talks today,
    conducted in an atmosphere of friendly confidence and understanding.

    We discussed key bilateral issues in detail, focussing on closer
    Russian-Turkish trade and economic partnership in all its aspects.

    Our bilateral trade has grown steadily over the years, and in 2008
    Russia became Turkey's main economic partner.

    The global financial and economic crisis undoubtedly caused a slight
    decline in our bilateral trade. But that is why we have come together
    today, to see how we can overcome these hardships together, how we
    can increase investment and return to steady growth in trade and in
    our economic partnership.

    As Mr Erdogan said today, our trade can hit the $100 billion mark
    within five years. I think this goal is attainable.

    We are determined to continue using tried and tested forms of
    cooperation, but also to explore new areas of partnership.

    With regard to existing areas and traditional forms of partnership,
    I would draw your attention first and foremost to our cooperation in
    the field of energy.

    Russia has been, and remains Turkey's largest, and highly reliable,
    energy supplier. We provide approximately 70% of Turkey's demand
    in natural gas. We believe we can take this further, moving beyond
    simply trading, to asset exchanges and cross- capitalisation.

    Today we discussed our ambitious joint projects-in particular, the
    South Stream gas pipeline and the Samsun-Ceyhan oil pipeline. The
    fact that these two projects are crucial to Russia, Turkey and the
    whose of Europe both in terms of finding a solution to environmental
    problems, and in terms of ensuring reliable energy supplies to Europe
    is, I think, indisputable.

    We are ready to cooperate in the electric and nuclear power industry.

    We signed an intergovernmental agreement on cooperation in the
    civilian nuclear power industry last year. It provides a solid basis
    for successful partnership in that field, too. We are determined to
    build up the high tech part of our bilateral links. Investments will
    be channelled to the high-tech sector.

    Today, Turkish companies have $6 billion invested in Russia, and
    Russian companies have $4 billion invested in Turkey. Lucrative
    investment opportunities span a wide range of sectors: steel,
    construction and light industry, telecommunications, transport and
    many other fields. Russian companies are also ready to take part in
    privatization programmes carried out by Turkish government.

    We have talked about the prospects for expanding our cooperation on
    agriculture, including supplying the Russian market with poultry and
    other foods.

    We have mentioned the tangible progress that has been made on difficult
    issued we have discussed on many occasions before, for example:
    customs regulations. Today we can state that they have been resolved.

    Two Turkish banks have launched rouble transactions. We will extend
    the use of national currencies in Russian-Turkish trade.

    Last but not least, turning to cultural matters, we have agreed to
    start work on an intergovernmental agreement on visa-free trips for
    Russian citizens to Turkey and vice versa. I hope these preparations
    will not take us long.

    I thank Mr Erdogan for the constructive attitude he has displayed at
    the negotiating table, and all our Turkish friends and partners for
    their cooperation throughout 2009. I wish everyone success this year.

    Thank you.

    Recep Tayyip Erdogan (as translated): Thank you (in Russian).

    Ladies and gentlemen,

    I would like to begin by expressing my gratitude and sending my
    best wishes to the friendly Russian people. I am glad to have this
    opportunity to visit Russia now.

    Thank you for the hospitality you have shown me and my delegation
    from the moment we landed in Russia.

    My talks with Russian President Dmitry Medvedev and Prime Minister
    Vladimir Putin have been really very useful, fruitful and constructive.

    We discussed our bilateral relations in detail; we talked about how
    we should improve them and guarantee their further development.

    In 2008 Russian-Turkish trade reached truly historic levels. Though
    it shrank significantly last year due to the global financial crisis,
    we intend, within the next five years, to boost it to $100 billion
    per year.

    In June, we will celebrate the 90th anniversary of the establishment
    of diplomatic relations between Soviet Russia and the new republican
    Turkish government. The fact that our relations are so positive
    now, developing dynamically in every sector, is a source of great
    satisfaction.

    We understand that Russian President Dmitry Medvedev will visit
    Turkey in May or June this year. During this visit, we will see real
    progress on a series of essential areas in the development of our
    bilateral relations.

    Turkey is proud to have Russia as its leading foreign economic partner,
    and that it ranks 7th among Russia's foreign economic partners.

    An essential part of Russian-Turkish trade and economic relations
    is our cooperation in the energy sector. This partnership plays a
    unique role due to the direct impact it has on bilateral trade and
    economic relations, and because of its strategic influence. We are
    especially satisfied to see that developing cooperation in natural
    gas has now spread to other fields of energy: in particular to oil
    and nuclear power.

    Our countries' relevant agencies and experts will work to step up
    partnership in the fields I have mentioned so as to obtain practical
    results as soon as possible.

    We are working together, as before, to establish an oil processing
    joint venture, which we regard as yet another important step forward
    in our energy partnership.

    I want to lay special emphasis on the following. As we know, our
    bilateral trade suffers from the fluctuations of foreign currency
    exchange rates on the market.

    Turkey has finished reforming its regulatory basis to allow us to
    start using national currencies. Two Turkish banks have already
    started carrying out foreign transactions in Russian roubles, as Mr
    Putin has mentioned here.

    Mr Putin has informed me that Russia is doing the same. As soon
    as this work is complete, we will be ready to switch entirely to
    the rouble and the lira for bilateral transactions. Business in
    both countries will benefit, liberated from their dependence on the
    speculative fluctuations on the currency markets. So it will become
    more competitive. This change will also symbolically express both
    countries' independence.

    I would like to express my appreciation to President Dmitry Medvedev
    and Prime Minister Vladimir Putin, and through them, to the entire
    Russian nation. Russia presently ranks second after Germany in terms of
    the number of tourists who visit Turkey. Despite the global economic
    crisis, foreign tourism saw only a token shrinkage last year against
    2008 due to our work.

    We not only expect Russian tourists to come to Turkey but a growing
    number of Russian entrepreneurs and investors as well. I am convinced
    that our partnership will continue to grow ever closer in every field,
    and particularly in agriculture.

    Mr Putin was ahead of me to announce that we had determined to start
    preparations for visa-free bilateral arrangements. I think we will
    soon conclude this work, thus extending our partnership. I hope the
    corresponding decisions will have been taken by the time Mr Medvedev
    visits Turkey.

    May the year 2010 bring peace, wellbeing and prosperity to our nations
    and the whole world! Thank you.

    * * *

    Question: This question is for Mr Putin. Though I represent the
    Sabah daily newspaper, I am asking my question on behalf of eight
    Turkish media correspondents covering the visit. Mr Prime Minister,
    you have indeed discussed many regional problems at the negotiating
    table today. My question concerns one of them, the situation in the
    South Caucasus.

    As we all know, major positive changes began with the signing, on
    October 10, 2009, of protocols on the normalisation of Turkish-Armenian
    relations. Both countries have now submitted protocols to parliament
    for ratification. Armenia is making swifter progress.

    Turkey, however, has said more than once that if this process is to be
    expedited, progress should be made on resolving the Nagorno-Karabakh
    situation, proceeding from relevant resolutions of the UN Security
    Council and the principle of Azerbaijan's territorial integrity.

    Does Russia intend to do anything to expedite this process?

    Vladimir Putin: First of all, I want to say that Russia, more than any
    other country, is interested in the normalisation of relations between
    all the countries it neighbours in the region. A vast array of ties
    bind us with Azerbaijan and Armenia alike. There are millions, and
    I stress that, millions, of Azeris and Armenians who live in Russia,
    and who have friends and relations here.

    Russia's economic contact with those countries is developing. It is
    known, for instance, that we have begun to import natural gas from
    Azerbaijan. I repeat, we are interested in the prompt resolution of
    all problems inherited from our Soviet past. The Karabakh problem
    is no exception. We are certainly aware also of Turkey and Armenia's
    troubled past. In this sense, too, we want to see the normalisation
    of Turkish-Armenian relations.

    We have welcomed Turkish initiatives to normalise these relations, and
    view them with great optimism. We hope that this negotiation process
    will be devoid of any trace of extremism or fundamentalist positions
    rooted in the problems of the past. The Armenian leadership is also
    heading in the right direction, and we welcome this. I understand
    that both the Karabakh and Turkish-Armenian problems are extremely
    complicated in their own right, and I don't think they should be
    joined together in a package. Each problem is hard to resolve even
    taken on its own, and if we lump them together, any hope of their
    resolution automatically recedes into the distant future. So I don't
    think that either strategically or tactically there is any benefit
    from drawing these problems together. We will do everything within
    our power to help resolve each of these problems.

    Doubtless, the solution depends on Armenia and Azerbaijan in the
    former instance, and on Turkey and Armenia in the latter. We will
    treat the stances of all our partners with the utmost respect, as we
    have always done.

    Russia's mission is to support whatever positive initiatives are
    needed to settle these two complex problems.

    Question: Good afternoon. Mayak and Vesti FM Radio. I want to ask
    Mr Erdogan about the construction of a nuclear plant in Turkey. The
    situation is rather vague. As we know, Russia won the tender in
    September 2002, and the proposals made by the Russian companies were
    approved. However, recently, in November, the Supreme Administrative
    Court found certain irregularities in how the tender was held,
    and it was officially declared to be invalid. Will Russia build the
    plant, after all, or not? And is Turkey able to remove those tender
    violations?

    My question to Mr Putin develops this topic. How are the related
    negotiations with Turkey proceeding? What competitive advantages,
    do you think, do Russian companies have against other participants
    in the tender?

    And if you allow me, I feel I must ask another question, about South
    Stream, one of the largest joint ventures. Its construction will
    begin quite soon. Are the partners ready to start work in Turkey
    on schedule? Please, Mr Erdogan, does Turkey confirm its agreement,
    made last August, for work on this to start as soon as November 2010?

    Vladimir Putin: So your Turkish colleague asked only one question on
    behalf of eight journalists, while you are asking a whole range of
    questions on your own behalf.

    Recep Tayyip Erdogan: As for the nuclear plant tender, a decision was
    made following the court verdict that further work will be based on
    direct inter-governmental agreements. The relevant ministries and
    agencies in both countries are working on this, and negotiations
    are underway. We hope they will soon conclude, and that we will have
    made some real headway. I do not think it will take long. In fact,
    they are in their final stages.

    Vladimir Putin: And South Stream?

    Recep Tayyip Erdogan: That question was addressed to you, Mr Putin.

    Vladimir Putin: As for the nuclear plant, we are sure of our major
    competitive advantages. And in terms of technology, it is at about
    the same level throughout Europe. Where European companies have had
    particular successes, we invite them to join in partnership. When
    we implement our projects abroad, we give 15-20% of the work to our
    European partners. Currently this is mainly Siemens. Unlike many of our
    competitors, we can provide the full service. We grant credits, supply
    equipment, and offer major construction works to local builders. This
    accounts for 20-25 or even 30% of the whole contract.

    We supply nuclear fuel and are willing to take and process nuclear
    waste. This range of services allows us to charge reasonable rates,
    well below what our competitors demand. We have agreed today to go
    ahead with this and we are confident of its success.

    As for the works on South Stream, they are going to schedule. I thank
    Mr Erdogan and the Turkish government once again for authorising a
    Russian company to carry out exploration work on the sea bed of the
    Black Sea. Environmental assessments have been 100% completed and
    85-90% of the geological and seismic studies have been carried out.

    The data obtained will be compiled and submitted to the Turkish
    government for their evaluation quite soon.

    The Turkish government has pledged, in an agreement, to consider these
    documents and authorise construction before November 10 this year. The
    Prime Minister confirmed this during today's talks. I am sure that
    this will go according to plan. Incidentally, we have also agreed to
    step up work on another joint project, Samsun-Ceyhan, and I have even
    suggested a tripartite inter-governmental agreement between Turkey,
    Russia and Italy because all three countries are involved in both
    projects. Mr Erdogan has agreed, and we will now discuss this idea
    with our Italian partners.
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