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Russia Today
July 21 2014
Turkey and Russia discuss Customs Union collaboration
Stalled progress towards EU membership has shifted Turkey's economic
interest, and it is now looking for closer cooperation with Russia's
Customs Union, Economic Development Minister Aleksey Ulyukayev said.
Ulyukayev discussed the plan with Turkish Economy Minister Nihat
Zeybekci at the G20 trade ministers meeting in Sydney, Australia, over
the weekend.
The talks focused on how the two countries can transition to using
national currencies, instead of the dollar and euro, in trade.
"We have discussed the possible forms of cooperation, including the
formation of a free trade zone between the Customs Union and Turkey.
We have agreed to create a working group and to begin a more detailed
discussion of these possibilities and prospects in September,"
Ulyukayev said on the sidelines of G20, RIA Novosti reported.
The free trade zone so far consists of Russia, Belarus, and
Kazakhstan, and is meant to rival the European Union. At present,
Turkey has a free trade zone agreement with the European Union.
Turkey, with a population of 76 million, has a $1.1 trillion economy
driven by strong industry and service sectors with automotive,
construction, and electronics on the rise.
Another developing industry is the transport of Central Asian gas to
European markets through its territory, which borders eight countries,
including oil-rich Iran, Iraq, and Azerbaijan.
Total trade between Russia and Turkey was $32.7 billion in 2013,
making Russia Turkey's second-largest trade partner, after the
European Union. Turkey is Russia's eighth biggest trade partner.
Turkey first applied for EU membership in 1987, and signed a free
trade agreement with the EU in 1995. It fell into recession in 2001
and as a result unpegged the Turkish Lira from the dollar-euro basket.
The lira, along with the ruble, has fallen tremendously in the past
year as a result of the strengthening dollar and euro. Russia plans to
protect its economy from Western sanctions by increasing non
dollar-based trade.
India and China will also be prioritized as partners.
"We need to increase trade volume conducted in national currencies.
Why, in relation to China, India, Turkey and other countries, should
we be negotiating in dollars? Why should we do that? We should sign
deals in national currencies- this applies to energy, oil, gas, and
everything else," Ulyukayev said in a March interview with Russian TV
channel Vesti 24.
On May 29 Russia, Belarus, and Kazakhstan signed the Eurasian Economic
Union document, which will come into effect in January 2015.
The Customs Union began on January 1, 2010, and started operating
under a comprehensive customs code in July 2011.
Commonwealth Independent States (CIS) like Armenia, Tajikistan, and
Kyrgyzstan may be brought into the free trade zone later.
If Turkey joins, it would be the first member that is not an ex-Soviet
state to join the free-trade zone.
http://rt.com/business/174316-turkey-russia-customs-union/
July 21 2014
Turkey and Russia discuss Customs Union collaboration
Stalled progress towards EU membership has shifted Turkey's economic
interest, and it is now looking for closer cooperation with Russia's
Customs Union, Economic Development Minister Aleksey Ulyukayev said.
Ulyukayev discussed the plan with Turkish Economy Minister Nihat
Zeybekci at the G20 trade ministers meeting in Sydney, Australia, over
the weekend.
The talks focused on how the two countries can transition to using
national currencies, instead of the dollar and euro, in trade.
"We have discussed the possible forms of cooperation, including the
formation of a free trade zone between the Customs Union and Turkey.
We have agreed to create a working group and to begin a more detailed
discussion of these possibilities and prospects in September,"
Ulyukayev said on the sidelines of G20, RIA Novosti reported.
The free trade zone so far consists of Russia, Belarus, and
Kazakhstan, and is meant to rival the European Union. At present,
Turkey has a free trade zone agreement with the European Union.
Turkey, with a population of 76 million, has a $1.1 trillion economy
driven by strong industry and service sectors with automotive,
construction, and electronics on the rise.
Another developing industry is the transport of Central Asian gas to
European markets through its territory, which borders eight countries,
including oil-rich Iran, Iraq, and Azerbaijan.
Total trade between Russia and Turkey was $32.7 billion in 2013,
making Russia Turkey's second-largest trade partner, after the
European Union. Turkey is Russia's eighth biggest trade partner.
Turkey first applied for EU membership in 1987, and signed a free
trade agreement with the EU in 1995. It fell into recession in 2001
and as a result unpegged the Turkish Lira from the dollar-euro basket.
The lira, along with the ruble, has fallen tremendously in the past
year as a result of the strengthening dollar and euro. Russia plans to
protect its economy from Western sanctions by increasing non
dollar-based trade.
India and China will also be prioritized as partners.
"We need to increase trade volume conducted in national currencies.
Why, in relation to China, India, Turkey and other countries, should
we be negotiating in dollars? Why should we do that? We should sign
deals in national currencies- this applies to energy, oil, gas, and
everything else," Ulyukayev said in a March interview with Russian TV
channel Vesti 24.
On May 29 Russia, Belarus, and Kazakhstan signed the Eurasian Economic
Union document, which will come into effect in January 2015.
The Customs Union began on January 1, 2010, and started operating
under a comprehensive customs code in July 2011.
Commonwealth Independent States (CIS) like Armenia, Tajikistan, and
Kyrgyzstan may be brought into the free trade zone later.
If Turkey joins, it would be the first member that is not an ex-Soviet
state to join the free-trade zone.
http://rt.com/business/174316-turkey-russia-customs-union/