Transfer of part of Russian gas payments to rubles and the need to ensure the implementation of grain agreements (Anatolia)
The economic aspect comes at the summit of Russian President Vladimir Putin and Turkish President Recep Tayyip Erdogan, which concluded yesterday in the Black Sea resort of Sochi, as a complement to the role that Ankara plays in reducing the economic effects of the Russian war on Ukraine, which was reflected in global markets, as a result of Disrupting food exports from Russia and Ukraine, after Ankara succeeded in sponsoring the signing between Russia, Ukraine and the United Nations of the “Document on the Safe Shipping Initiative for Grains and Foodstuffs from Ukrainian Ports” in Istanbul on July 22, which turned into a reality, after the first ship was exported. Corn from Ukraine, via Istanbul to Lebanon last week.
The two presidents agreed, according to Russian Deputy Prime Minister Alexander Novak, to transfer part of Russian gas payments to the ruble and the need to ensure the implementation of the grain agreements reached in Istanbul, including the unimpeded export of Russian grain.
The statement issued by the two presidents’ summit yesterday indicated that tangible steps were taken to increase the volume of trade between the two countries on a balanced basis and in light of the specific goals, and to meet their aspirations for each other in the fields of economy and energy, and to enhance cooperation on issues on their long-time agenda in sectors such as transportation, trade, agriculture and industry. Finance, tourism and contracting.
On his return from the Sochi summit yesterday, Turkish President Recep Tayyip Erdogan had referred to the exchange of ideas with the Russian President on further developing our trade and economic cooperation. “We mentioned previously that our goal in trade is $100 billion” in this direction, and endeavors to develop cooperation in areas such as Energy, Trade, Tourism and Agriculture “We are determined to ensure that the volume of bilateral trade reaches a more balanced basis,” noting that a memorandum of understanding was signed as a road map regarding economic and trade relations between the Minister of Trade and Russian Deputy Prime Minister Alexander Novak.
On the Akkuyu plant and whether the two presidents discussed it, Erdogan said: “It is impossible not to discuss such an issue. We talked. The Akkuyu Nuclear Power Plant has a special significance in our country’s energy strategy. Our goal continues to operate the first reactor in 2023. We have discussed this The issues are again in our talks with the Russian side. 25,000 people are currently unemployed. It is said that such a place is closed. I did not accept such a thing, nor did the Russian side.”
Erdogan adds that next week, “When I go to see the drilling ship Abdulhamid Han in Mersin Tasuku, I will go to Akkuyu on the same day, and I will personally follow up the work in Akkuyu with my delegation. After that, I will tell Mr. Putin about the current situation there. According to him, I will say “Let’s define our own roadmap. In other words, they don’t accept anything like stopping the process for once.”
The Ak-Qyu Nuclear Power Plant is one of the largest projects in the history of our republic. The reason why this is so important is that, according to Erdogan, “some of Turkey’s expectations are expected to be met, not only in terms of electricity generation capacity but also in terms of energy supply. On the other hand, one of the issues that we focused on from the beginning in the field of energy is localization and nationalization. In In this context, IC İçtaş, which started as an initiative of the Russian side and a Turkish partner, has produced important knowledge and know-how over time. But recently, an interesting development occurred and the Russian side Rosatom stopped working in this company, of which it was a partner, and dissolved it.” .
The Turkish president revealed the “Shanghai Five” meeting in Uzbekistan, “during the month of next September, which Putin invited us, and Turkey will participate.”
The Turkish economist, Yusuf Kateboglu, believes that the Sochi summit was “one of the most important meetings between the two presidents” because its fruits included understanding on 16 articles, the economy of which was its backbone and foundation, in addition to political and military materials and military industries.
Kateboglu added to Al-Araby Al-Jadeed that the continuation of the implementation of the grain and agricultural products transfer agreement, in letter and spirit, topped the four-hour discussions, with the addition of the inclusion of the “initiative document” of Russian grains and requirements for their industry and chemical fertilizers, which will be reflected, in the opinion of the Turkish analyst, on the Global markets, an abundance of products and a break in prices that rose, after the war last February, to record levels, because the two countries “Russia and Ukraine” contribute about 29% of global wheat exports, 19% of the world’s corn supply and 80% of sunflower oil exports.
He pointed out that about 20 million tons of wheat are ready for export from Ukraine, and it may rise to about 70 million tons after the current season, and the inclusion of Russia, the most productive and exported, in the agreement, may eliminate the worsening crisis in the markets, because production expectations in Russia refer to 88 million tons in 2022. The war, which has raged since February, has reduced Ukraine’s wheat crop from 32 million tons in 2021 to 20 million tons in 2022.
The two presidents also agreed, according to Yusuf Kateboglu, to remove obstacles in front of the 4,800-megawatt Aqqiu nuclear power plant in Chad, in the Turkish state of Mersin, after Russian hints to delay the delivery of the reactor early next year and the Turkish president’s insistence on the need to deliver the first phase according to the agreement. 2023 and the continuation of the implementation of the project in accordance with previous agreements.
The spokesman believes that one of the results of the expected Sochi summit is the agreement to continue exporting Russian gas through the TurkStream pipeline, to be part of the price of Russian gas in rubles, in addition to strengthening dealing in local currencies, the “Swap Agreement” to raise the value of trade exchange, which exceeded 33 billion. dollars last year. After the two presidents focused during the Sochi summit yesterday, on supporting the export quotas for Turkish products for the Russian market, giving Turkish companies the largest share in the Russian construction and real estate sector, promoting tourism, and not including Turkey within the visa imposed by Russia on European countries.
Attention is focused on the continued export of Russian gas to Europe through the TurkStream pipeline, which entered service on January 8, 2020, amid an official ceremony attended by Russian President Vladimir Putin and Turkish President Recep Tayyip Erdogan.
Turk Stream is one of the gas export pipelines, extending from Russia to Turkey via the Black Sea, with a design capacity of 31.5 billion cubic meters of gas annually. The pipeline aims to transport gas to Turkey, as well as to southern and southeastern Europe through Turkish territory.
The marine section of the Turk Stream project extends from the Russian city of Anapa to the Turkish state of “Karklareli” overlooking the Black Sea, with a length of 930 km, and consists of two lines, one feeding Turkey and the second Europe, and the land section consisting of two lines with a length of 142 and 70 km.
The Turkish analyst, Bakir Atakcan, considers that the meeting of the two presidents in Sochi will reflect “global economic benefit” because it will contribute to resolving the crisis of agricultural products “cereals and oils”, increasing the offer of fertilizers, which have reached their peak prices, and most importantly, in the opinion of the Turkish analyst, the continued export of Russian gas through Turkey, to Europe, where high energy prices contributed to the highest inflation in decades.
Atakcan added to Al-Araby Al-Jadeed that the Russian-Turkish understanding on selling in rubles will be reflected in the strengthening of trade exchange in local currencies between the two countries. Trade, tourism and construction sectors.
The Turkish analyst does not exclude the growth of the investment sector, in the Turkish and Russian markets, because Russian money will find an outlet in the Turkish market, and the sanctions have paralyzed Russian sectors and affected the markets, which means new opportunities for Turkish capital, especially since Russia exempts Turks from the visa, and will grant Turkish investors Additional features.
It is noteworthy that Russia and Turkey relied on the volume of exchange reaching $100 billion, after steady increases, investments and joint projects, as data from the Russian Federal Customs Authority show that the value of trade exchange between the two countries during 2021 amounted to 33 billion and 25 million dollars, an increase of 57%, compared to a year ago. 2020.
According to the data, the value of exports from Russia to Turkey amounted to 26 billion and 512 million dollars (an increase of 66.4%), while imports from Turkey amounted to 6 billion and 513 million dollars, an increase of 27.4%. Turkey’s share in Russia’s total foreign trade revenue rose to 4.2%, compared to 3.7% in 2020.
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