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July 8, 2015

July 08, 2015


Energy Cooperation in the History of Turkish-Russian Relations

The Black Sea separates the territory of the Russian Federation from that of the Republic of Turkey. While Russia has massive oil and gas reserves, Turkey has limited oil and gas sources and is accordingly heavily dependent on foreign supplies to meet its growing energy needs. The countries’ disproportionate levels of resources have led to a strategic relationship in the energy market. This paper examines the history of this relationship in four periods: the Soviet Union period, from 1992-2001, from 2002-2009, and from 2010-2015.


i) Before the dissolution of the Soviet Union: from cooperation in industrial construction to the first natural gas deal
The negotiations that led to the signing of the Montreux Convention in July 1936, under which Turkey regained control over the Bosphorus and the Dardanelles Straits, proved to be a critical step in the emerging Turkish-Russian economic collaboration. Just after the Montreux Convention, on October 8, 1937, Turkey and the Union of Soviet Socialist Republics (USSR) signed the Trade and Navigation Agreement (Doc. 1). This pivotal agreement has shaped the economic relations of Turkey and the USSR for a long time.[i]
Bilateral trade relations between Turkey and USSR were very limited during World War II and the early Cold War years. After the 1950s, the new policies of Soviet Russia, which gradually shifted from harsh communism to a more moderate view, led the two countries to rebuild their relations.[ii]  Beginning in the second half of the 1960s and throughout the 1970s and 1980s, economic and industrial cooperation helped to reshape the countries’ relationship.
Turkey and the USSR signed two agreements on March 15, 1977. The first was designed to improve their economic relations. This agreement emphasized the two countries’ cooperation in the promotion of industrial development and energy issues. The parties also signed an agreement regarding scientific and technical cooperation. Energy was a significant concern during the negotiations in meetings following this cooperation agreement. 
The construction of the Arpacay Dam; cooperation in the expansion of the Iskenderun Iron and Steel Plant; the construction of the Orhaneli Thermal Power Plant; and the expansion of the Seydisehir Aluminium Plant, the Keles Thermal Power Plant Project (Doc. 2) and the Black Sea Oil Refinery Project[iii] are some of the earliest and most prominent attempts at cooperation (please see Table 1 for the whole list).
Under the given agreements, the USSR supplied Turkey with the necessary expertise, equipment, materials, and technical services for its industrial development (the conditions of the Iskenderun Project can be seen in Doc. 3). The financial value of the USSR’s support was considered a debt incurred by Turkey. For example, the USSR supplied $200 million to fund the expansion of the Seydisehir Aluminium Plant, under the condition of a 5% yearly interest rate over a 10-year repayment period.[iv] The USSR likewise provided $53 million to fund the construction of the Orhaneli Thermal Power Plant, under the condition of a 3.5% yearly interest rate over a 10-year repayment period.[v] In addition to the two countries’ cooperation in industrial construction, the two countries cooperated in the energy market, with Turkey importing oil and oil products from the USSR.
In those years, Turkey made a significant portion of its payments to the USSR in Turkish goods (via the barter system) instead of cash (provisions of the Iskenderun Project can be seen in Doc. 3 as an example). The goods were often industrial products, such as aluminum and iron, or agricultural products. For example, a $37.8 million loan (the total amount of the year 1981) was repaid in Turkish tobacco, hazelnuts, citrus fruits, seeded raisins, seedless raisins, olives, fruits and vegetables, meerschaum (sepiolite), mohair, cotton, leather, and other assorted merchandise (Doc. 4). In 1984, $60 million was repaid in tobacco, hazelnuts, unpeeled hazeluts, raisins, olives, citrus fruits, olive oil, dried figs, dried apricots, leather, fur, cotton cloth and dress, barite, meerschaum (sepiolite), corundum, accumulators, and other industrial merchandise (Doc. 5).
The parties signed an agreement regarding the barter conditions on May 20, 1982. According to this agreement:
-          the payments were to be made in freely convertible currency,
-          the deliveries of goods were to be made at current prices of the main world markets for corresponding goods which were to be expressed in freely convertible currency.[vi]
This rudimentary economical and industrial collaboration led the parties to cooperation in more substantive energy projects. According to official documents, Turkey was the first party to declare its intention to sign a natural gas agreement during the sixth Turk-Soviet Economic Cooperation meeting held June 3-12, 1983, in Moscow (Doc. 6). The Soviet party agreed to undertake a feasibility study related to Turkey's interest in purchasing natural gas. The two parties signed an agreement in Ankara on September 18, 1984, stipulating conditions for the supply of natural gas from the USSR to Turkey. According to this intergovernmental agreement:
-          the Soviet Union was to sell natural gas to Turkey starting in 1987 using a route through Romania and Bulgaria (after the dissolution of the USSR the route turned into Ukraine-Moldova-Romania-Bulgaria line),
-          the length of the agreement was 25 years (with 5 years auto-renewal at the end of the period),
-          the initial amount of gas was to be 1.5 billion m3 in 1987, with a gradual increase to 5.0-6.0 billion m3 plato value in 1993,
-          the price was to be determined by the Turkey's state-owned company, BOTAS, and the USSR's state-owned company, SOYUSGAZ. Generally, the cost of the gas was to be paid in Turkish cotton, grain, meat, vegetable oil, iron, other metals and ores, and other industrial merchandise based on Turkey's availability and the USSR's needs.
Due to the delay in the permission stage, the Turkish Cabinet issued an urgent expropriation decision for the construction of the natural gas pipeline on September 1, 1987. The pipeline began operations in 1988.
This natural gas agreement was an important step for the two parties, and they started to discuss cooperation in other areas of the energy market. On December 26, 1984, the parties signed an agreement regarding scientific and technical cooperation. The first provision of this agreement was cooperation from 1985-1986 in scientific studies on alternative and renewable energy sources. The Scientific and Technological Research Council of Turkey and the Scientific Acedemia of the USSR consequently began to work together (Doc. 7). After a few years, in 1988, the countries recognized “wind and solar energy” as a spesific area of cooperation (Doc. 8). Yet these progressive attempts were unsuccessful due to political tensions in the USSR. 
The parties also made an agreement on July 28, 1986, for cooperation between their State Planning Organizations. This was another important step in the countries’ bilateral relations and comprehensive natural gas deals.
During the construction of the pipeline from the USSR to the western region of Turkey (a.k.a. the Western Line) through Romania and Bulgaria; Turkey sought another pipeline, this one extending from the Soviet Transcaucasian region to the eastern region of Turkey (a.k.a. the Eastern Line). The two parties discussed this project during the ninth Turk-Soviet Economic Cooperation meeting held on November 21, 1986, in Moscow (Doc. 9). This pipeline project was not started during the Soviet period, however. Azerbaijan proclaimed its independence in October 1991, before the official dissolution of the USSR, and the Eastern Line was accordingly only realized after a twenty-year lag. It came to be called the South Caucasus Pipeline. This pipeline ran through the territories of Azerbaijan, Georgia, and Turkey, and became operational at the end of 2006. It offers additional gas supplies to Turkey and the European market from the Shah Deniz gas field.
The last significant agreement between the Soviet Union and Turkey was signed on February 25, 1991, and involved the commercial and economic cooperation of the parties.

ii) 1992-2001: from the early days of the Russian Federation to the liberalization of the Turkish natural gas market
After the dissolution of the USSR, the Russian Federation assumed the Soviet Union's rights and obligations and was recognised as its continued legal entity. Russia’s Foreign Economy Minister Pyotr Aven sent a letter to Turkey on May 14, 1992, regarding the permanence of the rights and obligations of the parties in regard to their intergovernmental natural gas agreement (Doc. 10). The terms reflected changes consistent with Russia’s new legal status, though the fundamental provisions remained the same. 
Turkey and Russia signed an agreement regarding the conditions of the natural gas trade on May 25, 1992, and regarding scientific and technical cooperation on September 5, 1992.
On May 14, 1992, the parties signed an agreement regarding the founding of a Turk-Russian Economic Commission. The first meeting of the commission was held from November 2-6, 1992, in Ankara. The parties discussed increasing the yearly natural gas flow from Russia to Turkey from 5-6 billion m3 to 7-8 billion m3. This represented an increase over the amount allowed under the first agreement. While the parties did not ultimately agree on the increase of 2 billion m3; a new contract was signed on December 10, 1996, between the Turkish state-owned company, BOTAS, and the Russian state-owned company, GAZEXPORT, for an additional 8 billion m3 (through the existing pipeline: Ukraine-Moldova-Romania-Bulgaria route).
This second natural gas agreement was different from the first one because it was not an intergovernmental agreement.[vii] For the operation of the sale, two aforementioned state-owned companies and one additional Turkish company combined to form a new company named Turusgaz.
The most significant difference during this period and the Soviet Union period was the method of repaying debts. The parties abandoned the barter system in relation to the natural gas trade, and this was reflected the contract provisions.
Starting in the mid-1990s, the borrower party became the Russian Federation.  On December 15, 1995, Turkey and Russia signed a credit agreement for Turkey's investments in Russia. According to this intergovernmental agreement:
-          the Turkish Government was to make available $350 million in new credit for financing the export of Turkish goods and services to Russia in connection with duly authorized projects,
-          the aforementioned credit facility was to be implemented by individual loan agreements between Turkish Eximbank (TE) and Vnesheconombank (VEB),
-          the Russian Government was to furnish a Payment Guarantee in form and substance that was to be agreed upon for each individual loan agreement concluded between TE and VEB in accordance with this Protocol.[viii]
In the following years, Turkey’s domestic demand for natural gas led to strong cooperation between the two regional powers. Turkey and Russia agreed to build a direct natural gas pipeline from Russia to Turkey through the Black Sea in 1997; this project came to be known as the Blue Stream Project. The initial agreement was signed by the Energy Ministry of Turkey and the Russian state-owned company RAO Gazprom on August 29, 1997. According to the project plans, the Russian company Gazprom and the Italian company ENI would jointly build a pipeline with a length of about 1213 km running under the Black Sea and reaching the city of Samsun. Turkey would build a pipeline from Samsun to Ankara, as well as an Ankara-based distribution center.[ix]  
Turkey and Russia signed an intergovernmental agreement for the Blue Stream Project on December 15, 1997. According to this third agreement between Turkey and Russia:
-          Russia was to sell natural gas to Turkey beginning in 2000 through the direct pipeline under the Black Sea,
-          the length of the agreement was to be 25 years (with an additional 5 years auto-renewal at the end of the period),
-          the amount of gas exchanged was to start with 0.5 billion m3 in 2000 and to gradually increase to 16 billion m3 plato value in 2007,
-          the price was to be determined by the Turkish state-owned company, BOTAS, and the Russian state-owned company, ROA Gazprom,
-          the reexportation of natural gas was not to be allowed without the permission of Russia.
Additionally, Turusgaz’s contract (8 billion m3 volume from the Western Line) was mentioned in this intergovernmental agreement.
With the Blue Stream Project, Turkey became the second-largest importer of Russian gas after Germany.
The parties talked about cooperation in nuclear energy for the first time during the third Turk-Russian Economic Commission meeting on November 7, 1997.  After just a month, on the same day of the Blue Stream agreement, the parties signed another intergovernmental agreement regarding cooperation in the energy market, this time emphasizing their desire to cooperate on nuclear energy.
Even though Turkey pushed for the payment of new natural gas agreements with the provision of additional goods, the barter system was not reflected in the Turusgaz contract or the Blue Stream intergovernmental agreement.  
The parties signed an additional agreement stipulating tax exemption for the Blue Stream Project on November 27, 1999.
In addition to their cooperation on these important projects, the parties signed an intergovernmental agreement regarding customs and border control on September 16, 1997.
They likewise signed an intergovernmental agreement titled the Promotion and Reciprocal Protection of Investments on December 15, 1997. According to this agreement, the two parties were bound to:
-          promote the development of mutually beneficial commercial and economic, as well as scientific and technical, cooperation,
-          encourage investors of the other Contracting Party to make investments in its territory and create favourable conditions for them. Each Contracting Party was to admit such investments in accordance with its legislation on a basis no less favourable than investments of investors of any third State which were admitted,
-          accord fair and equitable treatment, as well as full protection and security, to investments of investors of one of the Contracting Parties made in the territory of the other Contracting Party. Neither Contracting Party was to in any way impede by discriminatory measures the management, operation, maintenance, use, acquisition, expansion, or disposal of investments. Each Contracting Party was to observe any obligation it entered into with regard to investments of investors of the other Contracting Party.
It is also important to note that between 1991 and 1998, 138 Turkish firms were actively working on 533 projects in the Russian Federation. These projects had a total value of $9.246 billion, which accounted for 42% of all contracting services provided by Turkish firms.[x]
On the other hand, the substantive energy projects remained under the management of state-owned companies during this period.  

iii) 2002-2009: private companies are on energy stage
Turkey passed the liberal Natural Gas Market Law (Law No. 4646) on May 2, 2001. This law aimed to change the BOTAS’s integrated position in the Turkish energy market. According to the law, BOTAS’s wholesale share in the Turkish market had to decrease to 20% in a certain period of time; moreover, BOTAS had to surrender its existing contracts to the private companies.
After the legislation, BOTAS started to auction off the natural gas contracts. Half of the Turusgas’s contract (4 billion m3) was the first to be auctioned off to some private companies with the approval of the Russian side. Shortly after the end of the first intergovernmental agreement period, the agreement volume (6 billion m3) was released to private companies. The Russian side never accepted a change for the intergovernmental agreements. That’s why, a handover of contract in the Blue Stream never occured. Today, 10 billion m3 amount (half of the second contract + replacement contracts of the first intergovernmental agreement) of the total contracted volume is imported by the private companies whereas the remaining 20 billion m3 amount (half of the Turusgaz contract + Blue Stream intergovernmental agreement) is imported by BOTAS.
On January 12, 2005, the Turkish Prime Minister, Recep Tayyip Erdogan, visited Moscow. He was accompanied by 600 Turkish businesspeople.[xi] This visit represented the new business style between the two countries, as it showed that private companies were beginning to play an active role in natural gas negotiations and the other energy projects.
One of the important one, Samsun-Ceyhan Crude Oil Pipeline project, was planned to provide an alternative route for Russia's oil and to ease the traffic burden in the Turkish Straits: Bosphorus and Dardanelles. In 2005, Italian company Eni and the Turkish company Calik Enerji were appointed to be responsible for the construction and operation of the pipeline. In 2008, it was decided to move the starting point from Samsun Province to Unye, Turkey. On 6 August 2009, Russia and Turkey signed an intergovernmental agreement guaranteeing a support for the project. According to this agreement, the two parties were bound to:
-          encourage the establishment of joint ventures between Turkish and Russian oil companies with regard to hydrocarbon exploration and exploitation in Turkey, the Russian Federation and as well as in third countries,
-          promote the development of Samsun-Ceyhan Crude Oil Pipeline Project,
-          cooperate for the establishment of joint payment systems and stock exchange technologies to be used in the marketing of oil and oil products.[xii]
On 19 October 2009, Eni and Calik Enerji signed an agreement with Transneft and Rosneft to include Russian companies in the development of the project. The 550-km pipeline was planned to have a maximum transport capacity of 1.5 million barrels a day (to cut down the tanker traffic in the straits by 50%).[xiii]
This pipeline project not yet realized because of concerns over its financial viability and political tensions between ENI and Turkey regarding the Mediterrenean gas exploration activities.
Yet the integration of private business into natural gas negotiations could not reverse the trade deficit of Turkey against Russia. As seen in Figure 1, Turkey’s deficit increased rapidly because of the energy deals between Turkey and Russia. One of the main reasons for the deficit was the abandonment of the barter system that had previously existed and that had seen Turkey receive Russian natural gas in exchange for Turkish goods. An increase in the natural gas volume that Turkey required as well as the prices of oil and natural gas favored Russia and propelled the total trade deficit to around $177 billion over the last 10 years (2005-2014). For comparison, the deficit was only $23 billion in the previous 10 years (1995-2004).

Figure 1: Turkey - Russia: Energy Deals and Export Volumes

In addition to its financial deficit, Turkey experienced high dependency on Russian natural gas. In 2014, Turkey imported 49.26 billion m3 natural gas and 54.49% of this amount (26.97 billion m3) came through Russian Federation (Figure 2). Natural gas consumption of Turkey has been increasing rapidly and the significant volume (around 320 billion m3) of the total consumption (545 billion m3) was imported from Russia in the last 30 years (Figure 3). On the other hand, Russian oil share (12.48%) is not as high as Russian natural gas share in the Turkish market (Figure 2).

Figure 2: Import and Export Volumes of Turkey, 2014: Oil and Natural Gas

Figure 3: Natural Gas Consumption of Turkey

Figure 4 shows the contracted volumes of the next 10 years and according to the existing agreements, Russia will increase its market share in the Turkish natural gas market.

Figure 4: Turkey’s Natural Gas Contracts and BOTAS’s Market Share


iv) 2010-2015: nuclear deal
Turkey does not currently have a nuclear power plant. The Turkish government has declared its intention to build three nuclear power plants, while Russia has announced its intention to construct a power plant in Turkey as well. On May 12, 2010, Turkey and Russia signed an intergovernmental agreement to build, own, and operate a nuclear power plant in Akkuyu, Turkey. This power plant would comprise four 1,200 MWe VVER units.
Engineering and survey work started at the site in 2011. According to the Russian company Rosatom, the construction of the first unit will begin in 2015, with four units put into service in 2020. The financing for the plant has been provided by Russian investors, with 93% of the funds coming from a Russian Rosatom subsidiary. Turkey has guaranteed that it will purchase 70% of the power generated from the first two units, as well as 30% from the third and fourth units, over the course of a 15-year power purchase agreement. The electricity will be purchased at a price of $0.1235 per kWh, and the remaining power will be sold on the open market by the producer. Interestingly, the Russian company, Rosatom, announced that it would “transfer 49% of the project's shares to the other investors” before starting construction. The main reason for this transfer may be the poor Russian economic conditions stemming from low oil and natural gas prices and the sanctions due to the Crimea conflict. On the Turkish side, the Turkish Republican People's Party, which is currently the main opposition party, has positioned itself against this nuclear power plant project due to some safety and economic concerns. They failed to block the project in Turkey's Constitutional Court in 2012, but it remained one of their pre-election promises in the Turkish General Election of June 2015.
In addition to this nuclear deal, the other prominent project in recent years is informally known as the Turkish Stream pipeline project. After the European Union’s stance about competition on Russia and the conflict between Russia and Ukraine, Russia declared its intention to diversify its demand route by creating a new direct pipeline that runs through Turkish territory. The construction of the Turkish Stream pipeline was first discussed between Gazprom and BOTAS in December 2014. With an annual capacity of 63 billion m3, this pipeline will replace the South Stream, since the construction was suspended over the European Union’s stance about competition. According to initial plans, the Turkish Stream will extend from Russia, through Turkey and stop at the Greek border, giving Russia access to the southern European market.[xiv] 14 billion m3 natural gas was planned to be consumed in Turkey. If the initial plan will not get off the ground, the contracted volume figures of Turkey will be shaped as in Figure 5.

Figure 5: Turkey’s Natural Gas Contracts (Effect of Turkish Stream Project)

The Russian economic situation is one of the main barriers to the whole project. Moreover, alternative routes and projects for both Turkey and Russia are on the agenda and they are competing with the Turkish Stream Project. On the other hand, the first line of the Turkish Stream (expected to carry 15.75 billion m3 of natural gas) may cost 3.3 billion Euro, and the parties are willing to start with the first line as early as possible.

Conclusion
Since World War II, Russia and Turkey have been actively engaged in economic relations. The degree of cooperation has evolved as the trust between these two countries has developed.
The volume of the trade increased after the first natural gas agreement, which was signed in the mid-1980s. A significant portion of Turkey’s payments to Russia for natural gas were made in goods instead of cash during those years. The import-export volumes were balanced between the countries at this time. At the beginning of the 2000s, the parties abandoned the barter system and the import-export volumes started to favor the Russian economy, thereby causing a substantial deficit for the Turkish economy. With the high natural gas prices, the total trade deficit incurred by Turkey over the last 10 years reached around $177 billion. The liberal Turkish Natural Gas Market law could not slow down or reverse the country’s trade deficit. In addition to its financial deficit, Turkey found that its high dependency on Russian natural gas created another problem. Natural gas consumption of Turkey has been increasing rapidly and the significant volume (around 320 billion m3) of the total consumption (545 billion m3) was imported from Russia in the last 30 years. On the other hand, Russian oil share (12.48%) is not as high as Russian natural gas share in the Turkish market.
During the past 5 years, Turkey and Russia have signed an intergovernmental agreement to build, own, and operate a nuclear power plant at Akkuyu, Turkey and negotiated plans for the Turkish Stream pipeline project. Economic conditions in Russia due to low natural gas prices, as well as some safety and technical concerns and alternative projects remain the main challanges of these important projects.


All opinions/views expressed in this report are the author's own, and do not represent any academic institution or government agency.

About the Author:
Okan Yardımcı is a Petroleum and Natural Gas Engineer, MBA, LL.M. c., Ph.D. c. (finance). Mr. Yardimci is also experienced in econometrics, finance, regulation, Turkish energy market, tariff applications, energy geopolitics and USA energy market. He is giving lectures in some universities and participates in many conferences all over the world. He is publishing his articles and materials on the web: www.enerjiuzmani.blogspot.com
Currenty he is staying in USA for a law education and can be reached by e-mail: okanyardimci@gmail.com





Documents

Doc. 1: The first Trade and Navigation Agreement of Turkey and USSR was signed on October 8, 1937. Document retrieved from the Turkish official gazette dated May 13, 1938.

Doc. 2: Original agreement was for the construction of the thermal power plant in Can, Turkey. Place of the project had been transferred from Can town to Keles town. Russia side accepted the change of the place (from Can town to Keles town) of the thermal power plant project by this letter. Letter is retrieved from the Turkish official gazette dated March 10, 1981. Keles project has never been started as well as Can project. 

  

Doc 3: Conditions of the Iskenderun project. Letters are retrieved from the Turkish official gazette dated March 09, 1981.

Doc 4: $37.8 million loan (the total amount of the year 1981) was repaid in Turkish tobacco, hazelnuts, citrus fruits, seeded raisins, seedless raisins, olives, fruits and vegetables, meerschaum (sepiolite), mohair, cotton, leather, and other assorted merchandise. Letter is retrieved from the Turkish official gazette dated March 29, 1981.

Doc 5: In 1984, $60 million was repaid in tobacco, hazelnuts, unpeeled hazeluts, raisins, olives, citrus fruits, olive oil, dried figs, dried apricots, leather, fur, cotton cloth and dress, barite, meerschaum (sepiolite), corundum, accumulators, and other industrial merchandise. Letter is retrieved from the Turkish official gazette dated March 06, 1984.

Doc 6: Meeting notes of the sixth Turk-Soviet Economic Cooperation were published on the Turkish official gazette on August 23, 1983. The Soviet party agreed to undertake a feasibility study related to Turkey’s interest in purchasing natural gas.

Doc 7: Collaboration programme of the years 1985-1986 regarding scientific and the technical works. Programme is retrieved from the Turkish official gazette dated July 22, 1985.

Doc 8: 1989-1990 Collaboration programme of the years 1989-1990 regarding scientific and the technical works. Parties agreed to cooperate on the wind and solar energy projects. Programme is retrieved from the Turkish official gazette dated December 29, 1988.

Doc 9: Initial talks on the Eastern Line between Turkey and USSR. Document is retrieved from the Turkish official gazette dated January 17, 1987.

Doc 10: Russia Foreign Economy Minister P.Aven sent a letter to Turkey on May 14, 1992 about the permanence of the rights and obligations for the natural gas deal.






Table 1: Milestones of the Turkey and Russia Energy Cooperation
Date
Agreement/Letter/Meeting/Legislation
October 8, 1937
Trade and Navigation Agreement
1970-1980
Several Agreements Regarding Scientific and Technical Cooperation on Turkey Projects (Seydisehir, Orhaneli, Iskenderun…)
March 15, 1977
Agreement Regarding Improvement of the Economic Cooperation
March 15, 1977
Agreement Regarding Scientific and Technical Cooperation
May 20, 1982
Agreement Regarding the Barter Conditions
September 18, 1984
First Intergovernmental Agreement Regarding Supplies of Russian Natural Gas to Turkey
July 28, 1986
Agreement Regarding Cooperation of the State Planning Organizations
February 25, 1991
Agreement Regarding Commercial and Economical Cooperation
May 14, 1992
Letters Regarding Permanence of the Rights and Obligations of the Parties for the First Natural Gas Agreement
May 14, 1992
Foundation of the Turk-Russian Economic Comission
September 5, 1992
Agreement Regarding Scientific and Technical Cooperation
May, 25 1992
Agreement Regarding Principals of the Relationship
December 10, 1996
Contract Between Turkish BOTAS and Russian Gazexport for an Additional 8 billion m3 Natural Gas (Turusgaz Contract)
August 29, 1997
Initial Agreement Between Energy Ministry of Turkey and Russian State Owned Company RAO Gazprom for a New Pipeline (Blue Stream)
September 16, 1997
Agreement Regarding Cooperation and Mutual Assistance in Customs Matters
December 15, 1997
Agreement on the Cooperation in the Energy Area
December 15, 1997
Agreement on the Supplies of Russian Natural Gas to Turkey (Blue Stream)
December 15, 1997
Intergovernmental Agreement Regarding Promotion and Reciprocal Protection of Investments
November 27, 1999
Additional Agreement Stipulating Tax Exemption for the Blue Stream Pipeline Project
May 2, 2001
Natural Gas Market Law (Contract Release Program)
August 6, 2009
Intergovernmental Agreement Regarding Samsun-Ceyhan Pipeline Project
May 12, 2010
Intergovernmental Agreement Regarding Akkuyu Nuclear Power Plant Project
December, 2014
Initial Talks on the Turkish Stream Pipeline Project





References


[i] Gurtuna, A., Turkish-Russian Relations in the post-Soviet Era: From Conflict to Cooperation. Thesis, Middle East Technical University, Ankara, 2006.
[ii] Pirincci, M., Turkish Russian Relations in the Post Soviet Era: Limits of Economic Interdependence. Thesis, Middle East Technical University, Ankara, 2009.
[iii] Black Sea oil refinery project has never been started.   
[iv] According to the agreement between Turkey and the USSR on March 10, 1981 in Ankara. Data retrieved from the Turkish official gazette dated May 10, 1981.
[v] Data retrieved from the Turkish official gazette dated September 01, 1979.
[vi] Conditions of the agreement are retrieved from the Turkish official gazette dated August 11, 1982.
[vii] The full contract was not disclosed but some of the terms were published on the notes of the third Turk-Russian Economic Commission Meeting.
[viii] Conditions of the agreement are retrieved from the Turkish official gazette dated April 11, 1996.
[ix] Novopashin, A., Lavrentiev Stroytransgaz, A., New Pipelines of Natural Gas from Russia to Turkey. Paper presented in Onshore Pipelines Conference, Istanbul, 3-4 December 1998.
[x] Nikolay, K., Turkish Views on Eurasian Collaboration. Insight Turkey, April-June 2002.
[xi] Oku, A., Turkey-Russia Relations Dynamics. Axis Global Challenges Research, 2005.
[xii] Conditions of the agreement are retrieved from the Turkish official gazette dated November 30, 2011.
[xiii] Retrieved from http://uk.reuters.com/article/2009/10/19/eni-pipeline-idUKLJ7124020091019?sp=true
[xiv] Retrieved from http://rt.com/business/256509-gazprom-turkey-pipeline-launch/

5 comments :

  1. I'm sorry for the bad quality of some figures due to the limitations of the blog page.
    Please send me an email for your pdf request.
    okanyardimci@gmail.com

    ReplyDelete
  2. To learn more about the previous years (beginning with a history of Ottoman-Tsarist Russia relations), I highly recommend the below article:
    Volkan Ş. Ediger, Itır Bağdadi, Turkey–Russia Energy Relations: Same Old Story, New Actors, Insight Turkey, 2010.
    http://file.insightturkey.com/Files/Pdf/insight_turkey_vol_12_no_3_2010_ediger_bagdadi.pdf

    ReplyDelete
  3. Summary of the report on naturalgaseurope:
    http://www.naturalgaseurope.com/energy-cooperation-in-the-history-of-turkish-russian-relations-24672?

    ReplyDelete
  4. According to the Turkish media;
    Turkish Stream negotiations between Turkey and Russia are frozen (September 11, 2015)

    ReplyDelete
  5. Updates: Turkey shot down Russian warplane that violate its airspace on November 24, 2015. Undoubtedly, this will affect the ongoing energy projects.

    ReplyDelete