Dangote refinery seeks US crude boost    Taiwan's tech sector surges 19.4% in April    France deploys troops, blocks TikTok in New Caledonia amid riots    Egypt allocates EGP 7.7b to Dakahlia's development    Microsoft eyes relocation for China-based AI staff    Beyon Solutions acquires controlling stake in regional software provider Link Development    Asian stocks soar after milder US inflation data    Abu Dhabi's Lunate Capital launches Japanese ETF    K-Movement Culture Week: Decade of Korean cultural exchange in Egypt celebrated with dance, music, and art    MSMEDA chief, Senegalese Microfinance Minister discuss promotion of micro-projects in both countries    Egypt considers unified Energy Ministry amid renewable energy push    President Al-Sisi departs for Manama to attend Arab Summit on Gaza war    Egypt stands firm, rejects Israeli proposal for Palestinian relocation    Empower Her Art Forum 2024: Bridging creative minds at National Museum of Egyptian Civilization    Niger restricts Benin's cargo transport through togo amidst tensions    Egypt's museums open doors for free to celebrate International Museum Day    Egypt and AstraZeneca discuss cooperation in supporting skills of medical teams, vaccination programs    Madinaty Open Air Mall Welcomes Boom Room: Egypt's First Social Entertainment Hub    Egypt, Greece collaborate on healthcare development, medical tourism    Egyptian consortium nears completion of Tanzania's Julius Nyerere hydropower project    Sweilam highlights Egypt's water needs, cooperation efforts during Baghdad Conference    AstraZeneca injects $50m in Egypt over four years    Egypt, AstraZeneca sign liver cancer MoU    Swiss freeze on Russian assets dwindles to $6.36b in '23    Climate change risks 70% of global workforce – ILO    Prime Minister Madbouly reviews cooperation with South Sudan    Egypt retains top spot in CFA's MENA Research Challenge    Egyptian public, private sectors off on Apr 25 marking Sinai Liberation    Debt swaps could unlock $100b for climate action    Amal Al Ghad Magazine congratulates President Sisi on new office term    Egyptian, Japanese Judo communities celebrate new coach at Tokyo's Embassy in Cairo    Financial literacy becomes extremely important – EGX official    Euro area annual inflation up to 2.9% – Eurostat    BYD، Brazil's Sigma Lithium JV likely    UNESCO celebrates World Arabic Language Day    Motaz Azaiza mural in Manchester tribute to Palestinian journalists    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Ankara-Moscow pivot: a new era begins
Published in Daily News Egypt on 08 - 08 - 2016

Presidents Erdogan and Putin will be drafting a new joint road map in St. Petersburg. In return for Erdogan's call for more trade, Putin may ask Ankara to jump start ties with Syria, Aram Duran reports from Istanbul.
As Turkey further drifts away from the United States and the European Union, especially following the coup attempt on July 15, the country is going through a period of rapprochement with Russia following approximately a year of suspended political and economic relations.
Russian President Vladimir Putin's call to offer support to President Recep Tayyip Erdogan immediately following the July 15 coup attempt , has launched a new period in the diplomatic and economic relations that were suspended after Turkey shot down a Russian fighter jet on the Syrian border on November 24, 2015.
Erdogan and Putin, who will be meeting in St. Petersburg on August 9 for the first time after the warplane crisis, will be drawing the route for the new period of Ankara-Moscow relations.
Return to ‘good old days'
Without a doubt, return to the economic and commercial relations of a year ago will be at the top of Erdogan's agenda. Visa requirements for Turkish citizens, an import ban on Turkish goods, limiting activities of Turkish firms in Russia and deterring Russian citizens to vacation in Turkey after the fighter jet crisis, have all seriously hurt the Turkish economy.
Along with the Russia crisis, both the spread of the fighting in the Eastern part of the country between the PKK and the Turkish army to urban areas and the suicide bombings of "Islamic State" (IS) in major urban centers, like Istanbul and Ankara, has dropped the annual average tourism income of 30 billion dollars by 35 per cent and the number of tourists visiting the country by 30 per cent. The number of tourists from Russia was down 90 per cent in this period. This was a heavy economic blow to Turkey, which in the past hosted nearly four million Russian tourists every year. Southern coasts of Turkey have been unprecedentedly empty this summer.
Turkey's Union of Travel Agencies (TURSAB) Chairman Basaran Ulusoy hopes to get back to the "good old days" following the August 9 summit with Russia.
Ulusoy expects Russia to lift the ban soon on nearly 30,000 charter flights bringing Russian tourists to Turkey and allow the Turkish tour operators to start marketing in the country. "We hope Erdogan and Putin will open a fresh page on the economy starting with tourism. This is our priority expectation as the Turkish business world," he said.
Will the trade ban be lifted?
Another major issue in Erdogan's brief case is to revitalize the trade of goods and services between the two countries which dropped more than 60 percent following the fighter jet crisis. In an agreement reached back in 2010 between the two countries, mutual trade was targeted to reach 100 billion dollars.
However, given the Russian economic recession due to the Western embargo and the dropping oil prices followed by the fighter jet crisis, the amount of foreign trade never exceeded 35 billion dollars anyway. Now, Erdogan is expected to ask Putin to launch broader trade cooperation, especially in the areas of construction, energy, textiles and food.
Turkish Exporters Council (TIM) Chairman, Mehmet Buyukeksi, pointed to the need to normalize Turkish-Russian ties for regional economic as well as political reasons, stating that there was a need to establish a "joint fund" between the two countries and possibly find a common solution to the civil war in Syria.
"As exporters we suffered substantially from the break down in relations with Russia. Although there is a shrinkage in the Russian economy due to the drop in oil prices and the EU embargo, we expect to make up for the losses we suffered in our export in the first seven months of this year, and in 2017, we expect the trade volume between the two countries to begin increasing once again," Buyukeksi said.
Russia persistent on ‘visa'
As a gesture of goodwill, Turkey wants Russia's visa requirement on Turkish citizens to be lifted immediately. However, the Kremlin is not expected to respond to this Turkish visa request positively in the short run. Russia has security concerns about entries from Turkey and has signaled that it will continue visa requirements.
Union of Turkish Builders Chairman, Mithat Yenigun,stressed that there are approximately 10,000 Turkish workers operating in Russia and waiting for their visas to be extended while many projects ready to be signed have been delayed.
"We expect the barriers before our sector to be lifted following the August 9 summit. Until now, 53 Turkish firms have been banned in Russia and many more had contracts cancelled. Decisions taken at the Erdogan-Putin summit should be reflected in Russian bureaucracy immediately," Yenigun hopes.
Another major topic waiting to be solved is how cooperation in the energy sector will continue. From Turkey's perspective, as an energy importer, Russia's importance is vital. Turkey meets 55 percent of its natural gas, 15 percent of oil and 40% of its coal needs from Russia. Turkey will also be 100 percent dependent on Russia in nuclear energy, once the Mersin Akkuyu Nuclear Energy Plant is in operation. With the completion of the Turkish Stream pipeline project, which will transfer Russian natural gas to Europe via Turkey, Turkey will become a regional energy transit center. Both of these projects came to a halt after the fighter jet crisis. Now, statements are being made pointing to the completion of both of these projects.
‘Relations with Assad may be reestablished'
The future of relations with Syria is another topic on the agenda. According to Turkish-Russian relations expert Prof. Dr. Mesut Hakkı Casin, a new joint road map could be launched after the two leaders meet.
Prof. Casin underlines the fact that Turkey is among the nations guaranteeing the territorial integrity of Syria and that Erdogan is against a political establishment on the border controlled by the PKK-PYD (Kurdistan Workers' Party and Kurdish Democratic Union Party).
"That would pose a security threat to Turkey. On the other hand, Putin wants reestablished dialogue between Erdogan and the Assad administration. Syria's future will be the most important topic between the two countries only next to the positive economic steps to be taken during the August 9 summit," Casin noted.


Clic here to read the story from its source.