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  • Gazprom Will Always Be Gazprom

    GAZPROM WILL ALWAYS BE GAZPROM
    Karine Ter-Sahakian

    PanARMENIAN.Net
    December 10, 2012

    The contracted gas supply to Turkey made about 30 bln cubic meters
    in 2012, of which Turkey will select 27 bln.

    Relations between Russia and Turkey have always based on gain,
    both now and during the Ottoman Empire epoch. However, political
    disagreements sometimes prevail over the economic ones - to some
    extent, though. Russia is already Turkey's second largest trade
    partner, and it strives to achieve annual turnover worth $100 bln. In
    2012, the turnover will hit $35 bln.

    PanARMENIAN.Net - During Vladimir Putin's visit, Rosatom Nuclear Energy
    State Corporation (Rosatom) reached an agreement with the Turkish
    Ministry of Energy on additional capitalisation of the authorized
    capital for construction of the first nuclear power station in Turkey
    expected to cost over $20 bln. Turkey is the third largest buyer of
    the Russian gas. In 2011, the Turkish government agreed with Gazprom
    OJSC to construct the South Stream gas pipeline; the ceremony of
    South Stream first welding takes place on December 7 in Anapa.

    Since 2011, Turkey has increased import of the Russian gas by 44%.

    Speaking in Ankara, Putin did not rule out that Russia and Turkey may
    boost the resources of South Stream pipeline, and may also access the
    gas markets of third countries. This pipeline supplies Turkey with 16
    bln cubic meters of natural gas. According to Putin, Turkey is becoming
    sort of an energy hub for Europe, but diversification of routes for raw
    material supply to key global markets still remains a major priority
    for Russia. In 2012, the volume of contracted gas supply to Turkey
    totaled 30 bln cubic meters, of which Turkey will select 27 bln.

    According to media reports, Turkey asks for Russia's gas supply to
    be increased by at least 3 bln cubic meters. "There are two variants
    here; either the Blue Stream capacities should be built up, and
    Gazprom considers the possibility to increase its volume of supply,
    or the South Stream may be used," the Russian Minister of Energy
    Alexander Novak stated. So far, no final decision on increased gas
    supply from Russia to Turkey and neighbouring countries is taken,
    the issue is still under consideration, he added. Turkey is using
    gas as key fuel for the electric power plants, and plans to become
    third largest consumer of electric energy in Europe within 10 years
    by pressing Great Britain, and a trading center for energy carriers.

    Maybe, it will succeed in this with support of the Russian and
    Azerbaijani gas.

    Meanwhile, Gazprom strives to decrease the dependence on EU which
    accounts for 80% of the company's export. Currently, Gazprom supplies
    gas to Turkey in two directions, the western one (through Ukraine
    and Bulgaria) and the trans-Black Sea Blue Stream gas pipeline. So,
    what's good for Gazprom, that's good for Russia, too.

    Following Putin's visit, Gazprom may become the key sponsor of the
    Turkish Antalyaspor football team. Also, the Turkish business has
    much impact on the government; hence it can press the latter if the
    political relations start to deteriorate.

    As to the Syrian issue, some disagreements still persist here. "Turkey
    wants to prompt Russia to distance itself from the government of Syrian
    president Bashar Assad," Tagesspiegel reports. A day prior to president
    Putin's one-day visit to Istanbul, the Turkish PM Recep Tayyip Erdogan
    said if Russia changes its stance on the Syrian conflict, then Iran,
    Assad's another major ally, will join its voice demanding that the
    Syrian president should resign. Still, Erdogan will hardly be very
    insistent during his meeting with Putin, "because Turkey would like
    to avoid tension in its ties with the major energy supplier."

    Most likely, Russia and Turkey are going to "bury the quarrel" caused
    by the forced landing in Ankara of the Syrian jet flying from Russia.

    The jet carried renovated spare parts for the radar station of the
    Syrian air defense. The cargo is still in Ankara, but the issue will
    not be discussed during Putin's visit. Moscow and Ankara are trying
    to release the tension; the Kremlin called on Turkey to "forget"
    the incident with the detained jet heading from Russia to Damascus,
    while NATO assures Russia that the deployment aims "at defense only".

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