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  • ANKARA:The Future of Turkey-Russia Relations

    Journal of Turkish Weekly
    Jan 23 2010


    [JTW Interview] The Future of Turkey-Russia Relations

    Saturday, 23 January 2010

    USAK Eurasia Expert Hasan Selim Ozertem commented on the recent
    Erdogan-Putin meeting.

    How does the history between Turkey and Russia play into the modern
    day mentality of relations?

    Turkish- Russian relations should be analyzed in a historical
    perspective because with the interpretation of identities of Czarist
    Russia and the Imperial era of the Ottoman Empire from the past, it is
    hard to claim that they had good relations and in spite of some
    periodical deviations, the character of the relations have not
    dramatically changed since the Cold War either.

    Turkey and Russia have always seen each other as rivals, especially in
    regional issues like foreign policies in the Balkans, Central Asia,
    the Caucasus and the Black Sea region. The Cold War identities of both
    of these countries and opposing polarity created threat perceptions of
    the two states against each other.

    However, beginning in the 1980s, and with the 1984 gas agreements,
    Turkey began selling consumption goods to Russia, buying gas from
    Russia and paying in terms of commodities. A new era in
    Turkish-Russian relations began; however, it was difficult to deepen
    these relations with the dynamics of the Cold War. Yet, by 1991,
    Turkey was fully engaged in the Russian economy. During that period,
    it was the Turkish entrepreneurs taking the risk and going to Russia
    to supply the necessary supplements, the services in the construction
    sector. In that way, the Turkish businessmen's role in Russia's
    transition to the liberal economy in the 1990s cannot be ignored. Yet
    again, the relations have developed on a basis of bilateral interests.

    The construction of identities and threat perceptions between the two
    countries have not suddenly transformed into a peaceful character
    because Turkey is still a NATO member and the legacies of Czarist and
    Communist periods still have a critical part in Russian identity. Just
    like the Soviet Union Russia tries to pursue hegemonic policies in
    it's `near abroad'; Turkish and Russian policies have continued to
    contradict on regional policies, even in the post Cold War period.
    Looking at these facts, we may say that Turkey and Russia have much to
    do in their bi-lateral relations but without changing or deviation of
    their policies, it is hard to expect regional cooperation between the
    two parties in the short and medium term. In fact, Erdogan's visit to
    Moscow clearly draws from this kind of picture after his meetings with
    President Dimitry Medvedev and Prime Minister Vladimir Putin. This
    meeting is actually the first gathering of coordination meetings that
    was agreed upon during Putin's visit to Ankara in August of last year.
    It was during that visit that Turkey and Russia signed 20 agreements
    and memorandums of understandings to deepen their economic, military
    and political relations in addition to cultural affairs; yet, these
    agreements were not finalized during Putin's visit and in regular
    meetings between the two parties they have agreed to negotiate the
    terms of these agreements and directly engage with problems that are
    seen as obstacles in front of the improvement of bilateral relations.

    What were the main points of Prime Minister Erdogan's visit last week to Russia?

    Last week was the beginning of coordination meetings between Russian
    and Turkish policy makers and the most important headlines from this
    meeting included overcoming the obstacles in front of economic
    relations, debating on new cooperation areas and regional issues as
    well.
    In terms of economics, there are three important points. The first is
    the use of domestic currencies between Turkey and Russia in economic
    affairs; bypassing the US dollar's dominance in bilateral trade. In
    doing so, exchange costs will be minimized and the advantage will be
    maximized in bilateral trade between Turkey and Russia. These kinds of
    relations have already begun after Putin's visit last year and
    currently, one Turkish and a Russian bank have already begun
    conducting business in Turkish lira and Russian ruble. The parties
    have agreed to extend these kinds of trade relations between the two
    countries.

    Aside from this, there is the energy issue. The issue is debated in
    terms of hydrocarbon, trade between Turkey and Russia and the
    construction of a nuclear power plant on Turkey's Mediterranean coast.
    As known, Russia supplies almost 65 percent of Turkey's natural gas
    and has an important share in terms of Turkey's oil consumption.
    However, Russia wants to extend its position towards the Middle East
    and wants to construct another pipeline under the Black Sea. This
    project, known as Blue Stream 2, will pass through Turkish territory
    and reach Israel. During Soviet times, it was Yevgeny Primakov, then
    Prime Minister of the federation, who was the architect of the
    Soviet's foreign policy in the Middle East. After the collapse
    however, and due to some regional and domestic problems within Russia,
    Russian influence in the Middle East became minimized. Now it seems
    Russia would like to resurrect its foreign policy in the Middle East
    in terms of politics and economics in this new period so that they can
    diversify their consumers in the energy market and find new partners
    in the international arena.

    The second issue that should be mentioned is that Russia also pursues
    an aggressive policy in terms of constructing another pipeline under
    the Black Sea, which is known as the South Stream pipeline project.
    With this policy, Russia aims to bypass Ukraine and reach European
    energy markets with a new line. Even though this is not supported
    enough by experts considering the energy security of the EU, it seems
    that Greece and Italy support this project politically. Under these
    circumstances, Russia needs to take permission from Turkey to
    construct this pipeline through Turkey's economic zone in the Black
    Sea to bypass Ukraine. By taking permission from Turkey in August, it
    seems Russia is taking decisive steps to realize this project as soon
    as possible. However, after the presidential elections in Ukraine, the
    big picture can change. Nevertheless, by giving permission to Russia,
    Turkey takes one step forward to build up trust measures between the
    two countries and now it seems that Russia has a positive stance in
    regards to being a partner in the Samsun-Ceyhan pipeline project. With
    this project, Turkey aims to minimize the tension in the straights and
    transmit Caspian and Siberian oil to Ceyhan. Up until now, Russia has
    had a neutral stance on the Samsun-Ceyhan pipeline project; yet, it
    was trying to construct alternative pipelines that would pass through
    Bulgaria and reach Greece (the Burgas-Alexandropoulis pipeline). But
    due to problems with Bulgaria, and Turkey's propositions of a
    deepening partnership in different sectors, now Russia has a warmer
    stance in terms of sending Siberian oil from the Novorossiysk port to
    the Samsun-Ceyhan. In fact, this project will open new doors for
    Turkey and Russia in the Middle East.

    At present, there are two pipelines bringing oil to the Ceyhan ports,
    and with the integration of Samsun-Ceyhan, the capacity of the ports
    will reach nearly 5 million barrels per day. This makes Ceyhan an
    important hub in the eastern Mediterranean. Turkey has also proposed
    that foreign companies build up refineries for crude oil coming to
    this port. This would mean integrating Middle Eastern oil to these
    refineries and easily supplying the demand of refined oil in the
    Middle East. Russia would also find the chance to invest within their
    expertise in the hydrocarbon sector by being a part of the
    Samsun-Ceyhan pipeline and investing in the Ceyhan port.
    Apart from the hydrocarbon issues, maybe the most important outcome of
    this meeting is deciding to build a nuclear power plant in Turkey's
    Mersin-Akkuyu district. The Russian and Turkish consortium won the
    bids in terms of nuclear construction in 2009, but the Turkish Council
    of State cancelled the bid due to a legal dispute. It seems now that
    Turkey and Russia have signed governmental agreements to overcome this
    legal problem. There will be no bidding process for the Russian and
    Turkish consortium this time and consequently Russia will be able to
    build up a nuclear power plant in Turkey as well as supply the fuel
    for this power plant. This is regarded skeptically by Turkish experts
    since this would mean being further dependent on Russia on energy and
    not only at the hydrocarbon level, but in nuclear technology fuel too;
    although Turkey is in the process of diversifying its energy sources,
    it is not diversifying its suppliers. However, the government thinks
    that building up a nuclear power plant should not be delayed due to
    Turkey's energy deficit that will emerge in a couple of years time and
    security concerns with Iran's nuclear ambitions in the Middle East.
    Certainly, Iran having nuclear technology would negatively affect
    Turkey's position in the region; this kind of initiative can be seen
    as a balancing step to Iran's position.

    What are some measures that will be implemented to narrow the trade
    gap between Russian and Turkey?

    Apart from the energy issue, another subject on Erdogan's agenda was
    to close the gap between Russia and Turkey in foreign trade. In 2009,
    trade volume was around $22 billion but Turkey's share of that was
    only around $3 billion. This is because Turkey has had some problems
    in selling its agricultural products to Russia and the negative
    effects of the financial crisis have had an impact on Russian
    consumption. It seems that Russia will soften the measures for Turkey
    in terms of promoting trade since both countries signed an agreement
    on plant quarantine so that Turkey's trucks and shipments will not
    wait for too long at Russian borders and mobilization between the two
    will increase. Second, Russia agreed to soften the measure in terms of
    importing chicken from Turkey; Russia currently imports around 750,000
    tons of poultry per year and they will open a quota of 50,000-60,000
    tons from Turkey each year. According to Turkish authorities this
    amount can increase up to 500,000 tons per year. However, the main
    concern of the business sector in Turkey is the high costs of
    production; Turkish entrepreneurs have asked for subsidies to ease the
    situation in terms of taxes.

    In addition to these measures to boost Turkey's position in its
    foreign trade relations with Russia, the two parties have agreed to
    increase trade volume to $100 billion in five years time. Even though
    it can be interpreted as overly ambitious, providing these kinds of
    numbers shows the dedication to take each and every step to promote
    trade between Russia and Turkey. Taking into consideration the
    financial crisis and the two countries potential, it will take more
    than 5 years to reach this target; however, it seems that as each year
    passes, the trade volume is expected to increase.

    Can you weigh the importance of regionalism and the lifting of the
    visa requirements between Turkey and Russia?

    In international relations, even though globalization is the hottest
    debate right now, it seems that regionalization policies are also
    gaining impetus. Increasing transportation costs due to the high level
    prices of oil and China's increasing dominance in the economy,
    countries are choosing to enhance their economic relations with
    neighboring countries. Russia and Turkey's relations can be
    interpreted in these terms.

    Since 2002, Turkey has been initiating its `zero problem policy' and
    it seems that it is beginning to obtain some positive results when we
    look back at 2009. The EU's share in Turkey's foreign trade was more
    than 50 percent a decade ago, but today, we see it has now decreased
    to nearly 40 percent. Turkey's foreign trade with the Middle East,
    African states, Central Asia and Russia has increased dramatically
    over time. Moreover, looking at Russia, it seems that due to the
    reservations of countries like Poland, it has had troubles enhancing
    its relations with the EU. Now, they have chosen to enhance their
    relations with their `near abroad' and within the Middle East.

    The Russian and Turkish economies can be seen as complimentary when we
    think of Russia's advantageous position in hydrocarbons, nuclear
    technology and military power, and Turkey's position in industrial and
    consumption goods. These two countries have to increase their economic
    relations and the areas in which they cooperate in. Increasing
    economic relations also helps to overcome the threat perception and
    the negative interpretation of `the other' both in Russia and Turkey.
    It is hard to deny the Western position in terms of contributing to
    the enhancement of this relationship. Russia and Turkey have now
    started this process to eliminate the visa regime and pursue open
    border diplomacy in the region which has the potential to open many
    doors for these two. Up until now, Russia had some security concerns
    regarding its Caucasian Republics and Turkish groups supporting
    radical movements in the region; however, it seems that through
    enhancing relations it is helping to deepen and legitimize those
    relations to be constructed and this paves the way of creating trust
    building measures between them. In this context, starting the process
    of eliminating visas between the two countries to promote mobility can
    be interpreted positively. Even though experts are not optimistic in
    terms of fully eliminating the visa regime, at least they expect some
    loosening of measures for this year. This would further help to
    enhance tourism and business relations, especially for Turkey's
    business relations because the Turkish entrepreneur would now have the
    chance to solve problems first hand; he can simply hop on a plane and
    fly to Moscow or St. Petersburg etc. Additionally, Russia can become a
    popular tourism destination for Turkish citizens. This would help the
    regionalization efforts of these two countries.

    How do Russia and Turkey approach the Nagorno Karabakh issue differently?

    Moscow and Ankara have different perspectives in terms of bringing
    stability to the Caucasus and Turkey believes that the Nagorno
    Karabakh (NK) issue should be solved within the terms of international
    law and that the Minsk Group should pursue a proactive policy and put
    pressure on Armenia and Azerbaijan. Even though the process began last
    year, they have not come close to reaching a solution for the problem.
    Turkey and Armenian signed two protocols on October 10th, 2009; Turkey
    wants a long lasting solution in NK and to approve these protocols in
    the Parliament. Yerevan however, does not seem to be interested in
    solving the problem or in leaving the occupied territory of
    Azerbaijan. Turkey closed its borders in 1993 due to this occupation
    of the Kalbajar district of Azerbaijan and since then, Yerevan and
    Ankara have not had diplomatic relations. With these protocols, those
    relations are expected to begin along with the opening of the border
    between Armenia and Turkey. Russian Prime Minister Putin argues that
    the solution to the NK issue and the start of bilateral relations with
    Armenia should not be put into one package. He argues that these two
    issues should be solved separately; this stance seems to support the
    Armenian thesis and does not push Armenia to solve the problem within
    the Minsk Group. At the end of the day, without the solution of the NK
    issue, it will be hard to sustain long lasting stability in the
    Caucasus but it seems that neither Russia nor the West is aware of
    this fact. Although Turkey sees these issues as organically dependent
    upon each other, Russia and the West want to solve the problems
    separately and act as if they are independent. To sum up, it can be
    said that even though the two countries have promising futures in
    developing both bi-lateral and regional relations, it seems as though
    Russia wants to limit this to something only in bilateral terms; just
    until the trust issue is sustained between Turkey and the Russian
    Federation.

    Interview by Stacy Maruskin (JTW)
    Saturday, 23 January 2010
    Journal of Turkish Weekly

    http://www.turkishweekly.net/news/96359/-j tw-interview-the-future-of-turkey-russia-relations .html
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