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Monday, October 24, 2016

Ankara gave the go-ahead for the construction of “Turkish stream”

“Turkish stream” came to a halt a year ago, before all the political turmoil, when Ankara demanded that Gazprom a big discount on the future deliveries of blue fuel. In the state Duma the newspaper OPINION stated that this time the chances of agreeing on the fate of the “Turkish stream” has grown considerably, because Turkey receives gas via Ukraine, and now approached the period after which the Ukrainian pipe will simply be empty.

On Tuesday, arrived in Moscow government, the Turkish delegation headed by Deputy Prime Minister Mehmet Sensecam and Minister of economy Nihat Zeybekci. The sides discussed the resumption of relations in trade and energy sectors. In particular, one of the key themes was the “Turkish stream”.

“Linking gas pipeline with the current price – it’s all complete nonsense. Who does it – it’s just narrow-minded people, no matter what they rank

Ankara has eliminated all legal barriers to construction of NPP “Akkuyu” and supports “Turkish stream”, said Nihat Zeybekci at the end of the meeting. Political decisions on joint projects are accepted, the final momentum will be given at the meeting of heads of state, the Minister added. Earlier it was reported that the summit is scheduled for August 9 in St. Petersburg.

“From the point of view of the needs of Turkey in natural gas, we are open to the construction of the first branch of the “Turkish stream”, – quotes the Minister TASS. He called the very real problem of linking the construction of “flow” and a discount on the gas price for state oil and gas company Botas. As you know, this debate has slowed the project a year ago. In exchange for permission to build a pipeline to Ankara demanded from Gazprom a significant discount.

The President of the Russian gas society, Chairman of the state Duma Committee on energy, Paul Zavalny calls at all to separate one question from another.

“As a rule, pricing is a multi-factor model. Quantities, flexibility and reliability of gas supplies and the price of the oil basket, the price on the spot market. That is, the price may be at a different time. For example, before more and more welcome long-term contracts are now more and more, the spot component. And the pipelines are built on decades. Therefore, the principle of linking pipeline construction with the current price – it’s all complete nonsense. Who does it – it’s just narrow-minded people, no matter what they rank,” said the head of Committee of the newspaper VIEW.

They “went North”

The Director of the national energy security Fund Konstantin Simonov on Tuesday recalled in an interview with “Kommersant FM” that in the framework of the “Turkish stream” was planned four threads, and two threads from that South stream has moved North. “That is Nord stream – 2” is, consider two threads that “southern” or “Turkish stream”, which was never built,” – said the expert. Simonov is not recommended to discuss with Turkey the construction of the transit pipeline. “I personally think it’s dangerous all the same Turkey now to give the status of a transit country. Because today Erdogan belongs to us and tomorrow we can again return to a state of conflict. Because it is, unfortunately, unpredictable politician,” – said the expert.

“Everything will depend on the position of the EU in General to gas supplies and Russia in particular. Everything will depend on demand. If demand is high, then you will need this and that”, – commented Pavel Zavalny. Unlike Simon, he believes that Ankara is quite possible to entrust the role of a transit country as it would benefit not only Russia but also Turkey itself.

As you know, Turkey is dependent on Russian gas by 60%. Gazprom delivers gas directly via Blue stream under the Black sea (this is from 16 to 19 billion cubic meters). “Blue stream” meets the needs of the country at 68%. The remaining volumes go through Ukraine and Romania. However, in 2019, the contract between Russia and Ukraine on this issue will end, and Moscow has made it clear that is unlikely to renew it.

“It turns out that Turkey carries a high risk because of such a transit country as Ukraine. Turkey should be interested in the construction of at least one straight pipe. First, to provide myself, and secondly, to become a gas corridor to the EU. So what does the price of gas, why? perplexed logjam. – In case of realization of “flow” Turkey becomes a transit country for gas supplies. And not just anywhere, but in the South-Eastern part of Europe where there is a shortage of gas. Then would rise and its geopolitical role. You have to be very stupid not to see this and build this project some obstacles.

The first line will be for Turkey, and the second delivery will go to Greece via the existing gas transportation system, said the Deputy of the state Duma. “So even do not need permission of Brussels. Is the supply in the interests of Turkey and the countries of South-Eastern Europe, just to replace supplies via Ukraine, reminded the logjam. – Here as for prospects, third, and fourth thread, then, Yes, you have to take into account the opinion of the European Union”.

The Ministry of energy of Russia and Turkey will establish a working group to implement “flow”, promised on Tuesday, Deputy Chairman of Gazprom Alexander Medvedev.

We will remind, the agreement on the construction of “Turkish stream” was reached in December 2014. Originally it was planned that the power of the four strings of the pipeline will be 63 billion cubic meters of gas per year, of which 16 billion cubic meters will be supplied to Turkey and the rest in the gas hub on the Turkish-Greek border. On June 7, President Vladimir Putin said that Moscow did not refuse finally no project “Turkish stream or South stream, but both need a clear position of the European Union. Later, the representative of Gazprom highly appreciated the readiness of the “Turkish stream” to attract project financing.

Twice entered into one river

The Minister of economic development Alexei Ulyukayev agreed to meet with his counterpart on the 6th of August in Turkey, even before the summit in St. Petersburg. The Ministers decided to meet every three months. It is planned that the next meeting of the Russian-Turkish Commission on trade-economic cooperation will be held in October in Istanbul.

“Speaking about the agenda of the meeting of the presidents, it will be formed. I am confident that the agenda will be broad,” he said. “Today we discussed how to return to previous relations, investment, the lifting of restrictions on Charter operations, the energy sector – said Deputy Prime Minister Simsek. – I hope that Russia will cancel visa”. In General, decided to gradually resume bilateral cooperation in economy, energy, agriculture, transport and other areas.

As reported Zeybekci, Turkey was also asked to allow the import of Turkish products, which are under the food embargo. The Ministry of agriculture and Ministry of food, agriculture and livestock of Turkey have agreed to intensify cooperation between the organs of phytosanitary and veterinary supervision. Also the Rosselkhoznadzor considers the possibility of lifting the previously imposed restrictions on the supply of certain products from Turkey, said the Department.

As was announced after the talks, despite a twofold reduction in turnover in the first half, continuing the supply to Russia of Turkish agricultural products do not fall under the ban. And Russia continues to export to Turkey the grain, which remains the basis for the Turkish milling industry.

“The ancients said – it is impossible to step twice into the same river because the river changes every time it is new. This applies to the global economy, global politics – it is changing before our eyes. So, of course, we restore all that was best in our trade, economic and investment relations until November of last year, and to go further”, – summed up the negotiations, the Minister of economic development Alexei Ulyukayev.

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