Date: Fri, 13 Feb 2009 14:34:20 -0800 (PST)
Subject: Russia, Turkey Hail Flourishing Neighbourhood Ties

RUSSIA, TURKEY HAIL FLOURISHING NEIGHBOURHOOD TIES

Agence France Presse
Feb 13 2009
France

MOSCOW (AFP) — Russian President Dmitry Medvedev said on Friday
he welcomed diplomatic moves by historical rival Turkey in the two
countries’ Caucasus and Black Sea neighbourhood.

As Medvedev evoked a role for NATO member Turkey in ex-Soviet nations
that abut both Russia and Turkey, a Russian official said Moscow and
Ankara were close to making lucrative new energy deals.

"Our countries naturally want to strengthen security in the Caucasus
region and to ensure proper security in the Black Sea. In this,
we’re fully in solidarity," Medvedev said during a visit by Turkish
President Abdullah Gul.

Medvedev struck a defiant note on "outside powers" in the region,
clearly referring to US support for Tbilisi in a war last summer
between Georgia and Russia.

"The August crisis showed the importance of coordination by all
countries of the region… and showed we can deal with such problems
ourselves, without the involvement of outside powers," Medvedev said.

Russia remains fiercely protective of its role in the Caucasus nations
that broke from Moscow in 1991 — Georgia, Armenia and Azerbaijan —
and Medvedev in August described Moscow as the "guarantor" of the
region’s security.

Moscow’s sense of entitlement has historically put Turkey and Russia
at loggerheads.

But as Gul visited on Friday both countries emphasised cooperation,
not least in Russian help with energy supplies to Turkey.

Medvedev said he welcomed an initiative put forward by Turkey during
last year’s Georgia war known as the Caucasus Stability and Cooperation
Platform.

The latter is part of a push by Turkey that includes improving
relations with Armenia poisoned by differences over Ottoman-era
massacres of Armenians.

Gul told Medvedev on Friday: "Russia and Turkey are neighbouring
countries, which are developing their relations on the basis of
mutual confidence."

Later at a meeting with former president Vladimir Putin, now the
country’s prime minister, Putin applauded the emergence of Russia as
Turkey’s number one trade partner.

Gul responded: "The author of those relations is you. You have done
a great service in this."

On the sidelines of the talks in Moscow the two countries were working
on new energy deals expected to increase Russia’s role in Turkey,
including a plan for Moscow to build a nuclear power station in Turkey.

Russian Energy Minister Sergei Shmatko said the two sides were nearing
agreement on Russia winning the nuclear contract.

A consortium led by Russia’s Atomstroixport partnership was the sole
bidder in a tender launched in September to build a 4,800 megawatt
nuclear power plant at Akkuyu on the Mediterranean coast.

"We expect our proposal will be forwarded by the tendering commission
to the Turkish government in the near future," Shmatko told reporters.

"According to different estimates, such a project could be worth
18-20 billion dollars (14-15.5 billion euros)," he added.

Shmatko also said Russia and Turkey were discussing a long-term
contract worth 60 billion dollars over a period of 15 years to supply
Russian electricity to Turkey.

"The volume of supplies of electricity from Russia to Turkey could
reach 60 billion dollars over 15 years," he said.

In practice Russian-Turkish energy cooperation has fallen short of
Moscow’s expectations.

The Blue Stream gas pipeline that supplies Russian gas to Turkey is
now operating at well below the capacity envisaged by its planners,
as Turkey eyes other energy sources such as Iraq and Central Asia.

Russia is Turkey’s biggest trading partner and bilateral trade was
worth 37.8 billion dollars last year.