Russian, Turkish leaders celebrate booming trade

MOSCOW (AFP) - Russian President Vladimir Putin and Turkish Prime Minister Recep Erdogan celebrated booming trade relations between the two Cold War foes during Kremlin talks in which the two struck new energy and military agreements.

Putin -- who invited Erdogan for a private dinner at his lavish suburban Moscow estate Monday evening -- told the Turkish prime minister that economic ties were growing by the best possible scenario as old tension wanes.

Erdogan, accompanied by a swarm of 600 businessmen, was paying a return visit to Moscow after Putin in December became the first Moscow leader to appear to great fanfare in Turkey in 32 years.

"Our most optimistic forecasts about economic cooperation have come true," Putin told Erdogan as the two sat around a small table with their translators in the Kremlin's gilded oval reception hall.

"According to our forecasts, trade volume could reach 15 billion dollars (annually) very soon," Putin said.

Erdogan had forecast bilateral trade reaching up to 25 billion dollars by 2007 on his arrival to Moscow on Monday.

Trade between the two countries reached 10 billion dollars last year to make Russia Turkey's second-largest trading partner after Germany. NTV television reported that Putin was "surprised" to hear the news.

The two Black Sea states have a raft of diplomatic disagreements that the two sides try to hide at public meetings at which prized economic trade -- in both private and public sectors -- takes center stage.

Both sides have previously accused the other of hiding enemy rebels -- Moscow charges that Chechen guerrillas hide in Turkey and Ankara counters that its independence-driven Kurdish minority finds support in Russia.

Diplomatic ties have also been complicated by Armenia: a former Soviet republic which remains a close Moscow regional ally but which demands that the world accept that Turkey committed "genocide" against its people during World War I.

But Putin made it clear he thought these disputes paled in comparison to the size of potential trade.

Turkey relies heavily on Russia's natural gas supplies that run through the Blue Stream pipe under the Black Sea that Moscow hopes one day to stretch to Israel.

Ankara already negotiated a discount in 2003 for the gas supplies and Turkish media reports said it was hoping to do the same for the coming year.

Putin said vaguely that an agreement on an increase in gas supplies had been reached Tuesday but made no mention of the price.

He also tried to appease his guest by saying he would press the international community to speed up its effort to lift an international blockade on the unrecognized Turkish-controlled northeastern half of Cyprus.

The Russian leader said he spoke to UN Secretary General Kofi Annan on Tuesday morning about "plans for developing economic cooperation with the northern part of Cyprus and the lifting of its economic blockade.

"We do not think that the political isolation of Northern Cypriots is fair," Putin said.

Speaking in broader terms on the two sides' relations, Erdogan said: "Both sides have the political will to move forward."

It remained unclear however what military agreements may have been struck by the two sides.

Putin said only that "we have had previous plans concerning military-technological cooperation. I would like to say a few words about this issue, too."

Erdogan replied that "we will have a chance to discuss the expansion of military-technological cooperation" before reporters were ushered out of the Kremlin hall.

Erdogan will attend a meeting of Russian and Turkish businessmen Wednesday and inaugurate a Turkish Trade Center -- a 9,000-square-meter complex of shops and business, in central Moscow.

Erdogan And Putin Get Together With Turkish Businessmen
Anadolu Agency: 1/12/2005

MOSCOW (AA) - Turkish Prime Minister Recep Tayyip Erdogan has stated that a political will exists in Turkey and Russia to make mutual investments. ''Such investments could not have been imagined 10-15 years ago,'' said Erdogan.

In a meeting with Erdogan, President Putin remarked that Russia supports the UN Secretary General Annan's plan on Cyprus. ''We do not think that the economic isolation of the Turkish Cypriots is fair,'' told Putin.

Erdogan and Putin got together with Turkish businessmen in Moscow's President Hotel.

In a speech delivered at the meeting, President Putin stated that the trade volume between Turkey and Russia will increase. ''Our trade volume could easily reach 15 billion U.S. dollars and is expected to reach 25 billion U.S. dollars in 2007. Joint projects should also be encouraged,'' said Putin.

Putin stressed that the cooperation agreement he signed with the Turkish President Ahmet Necdet Sezer on December 6, 2004, makes an important reference to the good relations between Turkey and Russia.

''We pay high attention to Turkey's relations with the European Union. Half of our trade volume is with the EU states. With Turkey's integration into the EU, we are eager to make our relations better,'' expressed Putin. ''In this framework, many obstacles could be eliminated. Obstacles could be removed with Russia's entrance into the World Trade Organization. We are pleased with Turkey's positive approach in this regard.''

-INVITATION TO VICTORY CEREMONIES-

''We will soon celebrate the 60th anniversary of the victory against fascism. We would be happy to see Erdogan at the celebrations on May 9. Erdogan's visit will be a turning point in our relations. The year 2005 also marks the 85th anniversary of the foundation of Turkish-Russian relations,'' said Putin.

Speaking after President Putin, PM Erdogan expressed that the good relations between Turkish and Russian businessmen will not only help the two countries but the whole region. ''Turkey will strongly support Russian membership to the World Trade Organization. This question will be discussed in Davos on January 24, 2005,'' told Erdogan.

Meanwhile, the Turkish Republic of Northern Cyprus Trade & Industry Chamber Chairman Salih Tunar stated that, despite the Turkish Cypriots' approval of the Annan Plan, the Turks still face blockade. ''We want the isolation of Turkish Cypriots to end and wish to contribute to world peace.''

Erdogan has reminded media members that a ''Russian Year'' will be celebrated in Turkey and a ''Turkish Year'' will be celebrated in Russia in the near future.

Putin added that he discussed the re-construction of Iraq with Erdogan. ''What is happening in Iraq is a matter of concern for the Russians. We will work together with Turkey on Iraq and with the aim to solve (its) problems,'' remarked Putin.

According to Putin, Turkish and Russian delegations also discussed the Baku-Ceyhan oil pipeline, railways and means to make better use of the Black Sea region.

In response to a Turkish journalist's question on Cyprus, Putin explained that Russia supports the Annan plan. ''We will vote in the Security Council according to the document presented to the commission,'' told Putin.

Asked about what he thinks on the Karabagh issue, Putin said that neighborly relations between Russia-Armenia, Turkey-Armenia and Azerbaijan-Armenia should be developed. ''We are all aware about the historical problems between Azerbaijan and Armenia. Russia will contribute to the peace process,'' he indicated.

Erdogan also expressed that Armenia must be positive in its approach to find a solution. ''Turkey's policy is based to find a lasting solution. If Armenia claims that it does not recognize the Kars Agreement, this would be a negative approach. The Ataturk Airport in Istanbul has been made available for Armenian passenger flights. We do not want negative relations with any of our neighbors, including Armenia. We will open our border with Armenia for trade once we witness a positive approach from Armenia,'' stressed Erdogan.

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