
Sunday, July 06, 2008

Relations with Russia

There were some problems in Turkish-Russian relations in 2003, as Turkish government put again the issue of Blue Stream natural gas at the negotiation table. But this issue was solved with an agreement on which both sides reached compromise.

Prime Minister Recep Tayyip Erdogan visited Russia as the leader of Justice and Development Party (AK Party). During his meetings in this country, Blue Stream and bilateral cooperation was discussed.

Talks on Blue Stream which has been continued between Turkey and Russia throughout the year yielded results in November. Russian Gazprom company accepted a decrease in price and amount of natural gas that it sells to Turkey. There will be a decrease in price of natural gas which is bought from west line and Turusgas company in Russia. The price of natural gas in Turusgas and west line will be decreased from 150 U.S. dollars to 138 U.S. dollars in a cubic meter. According to the agreement on which compromise has been reached recently, there will also be a decrease in the price of natural gas which is bought through Blue Stream line.

The agreement also foresees that Turkey will buy more natural gas from Russia in winter, and less natural gas in summer. This agreement saved Turkey from paying duties for natural gas which it did not buy due to Blue Stream. Russian side did not want to decrease the price of natural gas which was bought through Blue Stream line. However, costs decreased in three lines and the price of natural gas bought from three lines became equal, due to decrease in the prices of gas taken from Turusgas company and west line.

CHALLENGING BARGAIN PROCESS

Arbitration process which had been started as a result of disagreement on price between Pipeline Transportation Corp (Botas) and Gazprom with an agreement which was signed earlier was stopped, as the sides reached compromise that the problem should be solved by talks. The two sides also took a decision on technical delegations to start talks.

Gazexport company, which carries out marketing business of Russian natural gas producer Gazprom, claimed that price formula in Blue Stream Project was different from all other agreements and that it stemmed from a mistake in spelling. It demanded the formula to be corrected.

After Botas and Gazexport signed the agreement on natural gas which relieved Turkey, Russian President Vladimir Putin spoke to Prime Minister Erdogan by the phone and said that the problem on natural gas between the two countries was solved and it was a good development and stated that they were pleased with both sides' acting with compromise that would further improve relations. Erdogan said that the agreement would further improve relations between the two countries. The two leaders congratulated each other on the agreement.

RUSSIAN TOURISTS

Many foreign tourists change their decision to spend holiday in Turkey due to terrorist attacks in Turkey. However, Russian tourists did not cancel their reservations for hotels in Turkey after those terrorist attacks.

The number of Russian tourists who visited Turkey increased by more than 50 percent in first nine months of 2003 when compared to the same period last year.
The number of Russian tourists who came to Antalya to spend their holidays was 495 thousand 410 between January 1 and September 30, 2002 and this figure became 716 thousand 704 in the same period of 2003. Russian tourists had 19 percent of share among foreign tourists who came to Antalya in the first nine months of 2003. This ratio was 9 percent in the same period last year.

TURKISH INVESTORS IN RUSSIA

Investments of Turkish companies in Russia increased during the year. Turkish Vestel company became the first foreign company which produces TV in Russia.

Vestel made 15 million U.S. dollars worth of investment for the factory in Aleksandrova town 120 km far from Moscow. Company officials said that this investment would increase 40 million U.S. dollars and stated that if the factory works in full capacity, the number of employees will increase from 150 to 500.

Koc and Enka group's Ramstore which is the biggest supermarket chain in Russia opened its 17th shop in Nijni Novgorod on November 25.

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