Turkey And Russia Sign Strategic "Turkish Stream" Gas Pipeline Deal

Tyler Durden's picture

Less than three months after Turkey's president Erdogan, in the aftermath of the mid-July "failed coup" visited Putin in Russia in his first and very symbolic foreign trip, Putin has returned the favor with a visit of his own to Turkey, where he promptly confirmed that economic relations between the two nations are on solid footing with the November 2015 downing of a Russian fighter jet over Turkey now largely forgotten, and where Turkey and Russia earlier today signed the strategic Turkish Stream gas pipeline agreement.

As noted previously, once completed the pipeline will carry Russian natural gas to Turkey under the Black Sea, and on to Greece and Europe. The project, with an estimated total cost of $13 billion, was announced in December 2014 during Putin’s visit to Turkey as an alternative to the canceled South Stream pipeline through Bulgaria, which the Bulgarian government killed due to European pressure.

The signing of the deal came after a bilateral meeting between Turkish President Recep Tayyip Erdogan and his Russian counterpart Vladimir Putin who was in Istanbul to attend the 23rd World Energy Congress. During the signing ceremony, Erdogan said ministers and experts will continue to hold bilateral talks after the deal.

As Hyrriyet reports, Erdogan also said they reached consensus on the acceleration of the process for the Akkuyu nuclear plant. In addition, Putin also added that the two countries also reached consensus on discount in natural gas prices. He stated that Moscow lifted restrictions on citrus exports.

Russia’s Gazprom and Turkey’s BOTAS in 2014 signed a memorandum of understanding (MoU) for the construction of the Turkish Stream gas pipeline, with a capacity of 63 billion cubic meters (bcm) of gas per year from Russia to Turkey across the Black Sea.  However, talks on the project were halted last year after Turkey shot down a Russian air force jet and Moscow retaliated with trade sanctions but since then the two countires have made significant progress to mend relations. Erdogan said in August at a joint news conference with his Russian counterpart that building the gas pipeline quickly was a priority.

 

On Sept. 7, Gazprom said it had received first regulatory approvals from Turkey, allowing the project to move into implementation phase.

 

The meeting of the two leaders marked the third time after bilateral relations were put back on track in August since the jet crisis.

Putin said the need to develop the Turkish Stream natural gas project had been stressed in his talks with Erdogan, adding that Russia also actively planned to expand its hydrocarbon exports eastward to China, Japan and India.  “Russia will further interact in energy with all interested parties for mutual beneficial partnerships on an equal footing,” he added.       

Just as important in light of the ongoing deterioration in Russian relations with the west, Erdogan also said the two leaders discussed Syria and the Euphrates Shield Operation as well as strategies and cooperation regarding humanitarian aid to Aleppo. Putin said Moscow was on the same page with Ankara about delivering humanitarian aid to Aleppo.

Also today, Russian paper Izvestia resported that Cairo and Moscow were in talks on a deal which would allow Russia to deploy a military facility in Egypt.

“The negotiations over possible participation of Russia in rebuilding of Egyptian military sites on the Mediterranean coast near Sidi Barrani are quite successful. If both parties agree to the terms, as soon as 2019 the base may become operational. Cairo is ready to lease it to Moscow because it would use it to pursue high-priority geopolitical goals, which align with Egypt’s interests,” a diplomatic source told the newspaper.

A military source told the newspaper that the new asset would be convenient, considering the growing instability in the region. “The utility of an airbase near Sidi Barrani is obvious for Moscow. Even though Russia has a similar base in Syrian Khmeimim, the presence of Russian warplanes in Egypt would allow Moscow conduct military missions in the western Mediterranean,” Talaat Musallam, a strategic and security expert and former Egyptian armed forces general told the newspaper.

However, shortly after the Russian report emerged, Egypt's Al-Ahram daily denied the report which claimed that Moscow and Cairo are negotiating a deal on a Russian airbase in western Egypt. Commenting on the report, military expert Nabil Fuad told RIA Novosti that Egypt’s military doctrine does not allow it to host foreign-controlled military bases. “That is a principal issue for Egypt not to allow foreign military bases on its territory,” he said, adding that during the Cold War Soviet military specialists would work at Egyptian military facilities, rather than have their own.

Then again, in light of Egypt's ongoing negotiation with the IMF to obtain a $12 billion loan, it would stand to reason that Egypt would vocally reject any speculation, however informal, that it is seeking to turn its back on the west and become another Russian satellite nation.

Egypt, a long-time ally of the United States, somewhat distanced itself from Washington after a period of instability, which started with mass protests against strongman Hosni Mubarak in 2011. Cairo’s relations with Russia saw resurgence, particularly in defense sphere. Russia was the first non-Arab country that President Sisi visited after his election in 2014.

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Haus-Targaryen's picture

I still don't trust Erdogan. 

Deathrips's picture

Fucked the EU.

 

they fucked themseelves..thanks victoria.

 

RIPS

knukles's picture

So much for that fucking pipeline through Syria that started this whole Goddamned Debacle.

 

           "The Great Debacle"

GadExp's picture

There’s a good chance Erdogan is being “softly” pressured by Putin on this in retaliation for the 2015 jet downing. 

 

However, I am MUCH fonder of the notion that Putin has been concocting these developments for a while now and the jet downing and military coup incidents were just a smoke screen while they solidified their arrangements.

 

Either way, this is the biggest news we've recieved in a LONG time!!!

Blankone's picture

It is also a good chance that Putin is feeling so much pressure in Syria and the US propoganda that this is to keep Erdogan from shooting down another jet or taking too much of Syria too fast.

This is the ferocious Bear's retaliation for having a fighter jet openly shot down.

Motasaurus's picture

Nah. This benefits Russia more than it benefits Turkey. Russia has been trying to get a south stream pipeline in place for well over a decade now, but the US kept leaning hard on the EU to make it impossible. 

I imagine that the conversation went something a little like this:

P: It seems NATO doesn't have your back any more.
E: Shit, shit, shit I'm so sorry. Thank you so much for warning me about the CIA coup.
P: It is no problem but...
E: y...yes?
P: Well, you take my gas or I take Istanbul. 

Bay of Pigs's picture

Might not be a true pivot to Russia but it sure as hell is a slap in the face at the US and NATO.

Zang's picture

Russia getting more and more isolated everyday since the US porch monkey tried to run the world! /sarc

Loftie's picture
Loftie (not verified) Zang Oct 10, 2016 10:18 PM

Why the US lost the Middle East to Putin. http://bit.ly/1PSXaoK

Creative_Destruct's picture

Turkey is THE key geopolitical chess piece in the Middle East. Putin is winning this longer term chess match by causing Turkey to pivot toward Russia away from US, and by adding more and more Euro dependence on Russian gas with each additional pipe line it controls.  

Russia is moving its influence and presence south, its major objective in the historical and continuing "Great Game". And if it gets a significant military presence in Turkey, it's "check" and near "mate" for them against Europe and the US, as far as the ability to both influence ME outcomes, and to prevent Europe and US from further extending and maintaining NATO in Russia's former near-abroad strategic buffer states.

OverTheHedge's picture

I note Greece will be the next country on from Turkey,with a spur to Italy. Colour revolution in Greece, anyone?

BuddyEffed's picture

I'm suspecting the cooperation is a result of the Russian exposure of the Turkey role in the ISIS oil from Iraq and Syria, with a tacit potential for the release of more backstory on that oils journeys and whom it benefits both in it's direct use and it's profit stream.  Rather than risk further exposure, that would just add risk to the existing energy delivery and usage complex, there now is incentive to brush some things aside and to be forward looking with an eye towards more stable relations politically and economically. 

nope-1004's picture

Clearly this proves Putin was rigging the US elections.....

I think......

.........

.....cuz the ClintonNewsNetwork told me so

Freddie's picture

How can Russia trust the Turks or Erdogan?    The Russians stick to their contracts.  My guess is the Turks will make a lot of money and if they F up or cancel again there will hopefully be consequences.

The Bulgarians and Romanians could have had this deal but they wanted to be ZATO bitches.

GadExp's picture

'Cause he's got a pistol held firmly against Erdogan's temple....figuratively speaking.

 

Or 'cause the US/NATO has a firing squad pointed at Erdogan's chest...figuratively speaking, and Russia seems like his best protections from complete anhiliation. 

 

It's hard to tell which scenario is actually the case.

HowdyDoody's picture

The Russian sanctions against Turkey severely hit the Turkish economy. Turkey is a popular tourist desitnation for a large number of Russians. Turkish fruit and vegetables had a big market in Russia. The are many Turkish workers in Russia sending remitances back home. All went to zero after the Su-24 shutdown. The Turkish economy and Turkish business were pleading for something to be done. If Erdogan fucks Russia around any more, the sanctions will be permanent.

I Feel a little Qeasy's picture

Does it never occur to anyone that the aircraft that took off from Incirlik and shot down the Russian jet was not in fact Turkish? Just speculation on my part.

blue51's picture

When the dust settles in Syria, maybe the Syrian congress will pass a bill, that lets Syrians sue the Sauds , US , Israel and whoever else payed the " moderate" headchoppers to kill Syrians.

the phantom's picture

There's still a lot of dust to settle.  Turks were well known, as exposed by Putin, to be supporters of ISIS in many ways.  How has this relationship changed as it would be directly opposed to what Russia/Syria are trying to accomplish in Aleppo?  What is Russia's grand plan on the chessboard regarding the Turks?  All the other players have been flushed out as to their motives.  This one still vexes.  Never trust the Turks.

THE DORK OF CORK's picture

The purpose of these wars is to feed former peasants into the capitalist satanic mill.

These new serfs subsequently loose their identity and become good consumerist Americans  like the rest of us euro roboten.

Grand strategy energy games are just games,  they have a secondary role at best ( perhaps to feed gas into the now vast euro urban centers inflated by the very same concentration of humanity)

Capitalisms prime directive has always been the total destruction of village non monetary cooperation.

 

http://m.youtube.com/watch?v=E1GRlhCrtvE

 

 

http://www.bbc.com/news/world-middle-east-36843990

KungFuMaster's picture

Erdrogan sure is winning, but he was never the enemy of Syria in the first place, not sure why he Became NATO's bitch but it gets me worried. I am not sure why Putin is doing that: he gets an ally with a very bad history. Although Putin has a history of turning enemies into friends.

greenskeeper carl's picture

I doubt the family of that dead Russian pilot they shot down is very happy right now.

garcam123's picture

Yea, poor fuckers....they're probably cryin in their Grey Goose down in Vegas surrounded by hot hookers and wonderful Humbolt bud....Geezeski Uncle Vashichilli.....thanks for the sacrifice!  Hey waitress, you fine thing-ski, we'll have another round and a bump for everybody! Jeezus kristski! God Bless Amerincanski! God Bless Obomski and cuntlery-ski!

East Indian's picture

Last time itself the family was paid a substantial compensation by the Turks. About $ 5 million or so. It should go alonger way in Russia.

And the Russians collected a stiff sum for the lost plane. 

Russians compound their losses. Invariably. Only when no money is forthcoming do they go for a fight. 

sinbad2's picture

Money is the key to Erdogans heart, personally and nationally. There was a lot of trade between Russia and Turkey, but shooting down the plane damaged that trade.

Now suppose Erdogan didn't know in advance about the shooting down of the Russian plane, what if it was an American plot, using tame Turkish assets, just like MH17.

When the US tried to kill Erdogan, that was the straw that broke the camels back.

everlearner's picture

Sadly, nobody trusts the US anymore either...

And if hellary wins, THERE WILL BE WAR and we're ALL screwed - War against Russia will end the world.

 

We need TRUMP!!!

garcam123's picture

Hitlery is of the opinion the population reduction is environmentally friendly, no matter how achived.  If she's banging some young buck or is still hooked up with her dark, mysterias muff down in the shelters, to "preserve the race", I don't want to be here anyway!

So you win desolation bitch.  some history......if anyone is around to read it.

Kirk2NCC1701's picture

Nor should you/we trust Erdo.

Does Putin still have 10 fingers?

blue51's picture

Heh...Putin likes rings. Super Bowl Rings. Erdo should check for his wedding ring ? Kidding
http://www.cnn.com/2013/06/16/world/europe/russia-putin-ring/index.html

blue51's picture

It now looks like Turkeys latest incursion into Syria , for a so-called safe-zone, was to help the Russ/ Syrian side . No more US / "Kurd " corridor land grab in the north . Maybe.

Motasaurus's picture

I said that at the time. There was no way Turkey rolled tanks into Syria without Russian approval. It was, IMO, specifically to break the supply chain of weapons the US was running through Kurdistan to Al Nusra in Aleppo. 

And the US couldn't complain too loudly since Turkey is NATO. 

HowdyDoody's picture

Lets see. Turkey was flooded with jihadists just raring to go on jihad. If they were kept in Turkey, Turkey would suffer terror attacks. It couldn't tell the US to go to blazes, for the same reason - the CIA would run FF attacks until the Turks gave in. The obvious solution is send the takfiris into Syria where they can be killed either in intra-group fighting (ISIS vs FSA etc) or by the Russians and allies. The big hits on the jihadist financing as a result of Russian strikes on the oil looting system has dampened further recruitment so the jihadist flow is now largely out into Syria. It also gave the Turks an excuse to stomp on the US plan to have a Kurdish enclave all along the Turkish-Syrian border. Turkey saw that as a threat to its national security - Russia would have no problem with that providing its interest were not harmed. There is no doubt that later on, the US would run Kurds against Turks because that's what they do.

Let's see what happens once Aleppo is released. A mass of hardened fighters trained in close urban combat will suddenly be released for use elsewhere - Raqqa, Deir ez Zor, etc.

 

MaxThrust's picture

"I still don't trust Erdogan"

I Doubt Putin does either but it make good sense to do business with him.

Geopolitics is difficult when you are not a Ziocon.

USofAzzDownWeGo's picture

hmmmmmmmm................. interesting........ very

IridiumRebel's picture

THERE WILL BE WAR.

knukles's picture

They are really skating too damned close to the edge

swmnguy's picture

Erdogan just won't stay bought, will he.  No doubt he doesn't fool Putin a bit.

rejected's picture

There's friendship,,, then there's diplomatic convenience.

swmnguy's picture

Correct.  For the same reasons, Russia keeps boisterously agreeing to each new cease-fire the US proposes.  Russia knows the US won't allow any cease-fire of any kind, but as long as Russia keeps accommodating, the US has to isolate itself more and more to keep pursuing their policy.

Putin, Lavrov and the rest are professional politicians and diplomats.  They're well-educated in their fields.  They're not dilettantes like Kerry.  They understand the disadvantage Russia has in raw power, so they factor that in.  They know the tortured history of Russian-Turkish relations and they're not expecting one thing from Erdogan.  Actually, they're using Erdogan like the red cape in front of the US Bull.

Erdogan might be able to get knotheaded Turkish nationalists to think he's artfully playing the US off against Russia to Turkish advantage, but he's at an incredibly high risk of overplaying his hand.

Blankone's picture

Some of the terms of the ceasefires have allowed ISIS to safely withdraw and of course once safely away they regroup and prepare to attack again from a better direction.  The Syrians who had family/friend die to get the advantage only to have Putin give it away might care for Putin's generousity.

But then, that is exactly the same thing Putin has done to the EUke's, Twice.

explosivo's picture

What choice does erdogaj have? Us tried to coup his ass and NATO is a broke joke. Might as well do business with Russia and put some hard assets in the ground that Russia has incentive to defend.

Volkodav's picture

care to guess how many Turks think more of Russian President than their own?

 

 

ParkAveFlasher's picture

Wouldn't it be nice if we had a president who

1) wasn't such a piker that he needed everyone to love him all the time

and

2) didn't believe that diplomacy starts with murder and then progresses to dialogue?

 

MCDirtMigger's picture

Great job Barry, Hitlery, Horseface.

sixsigma cygnusatratus's picture

"...will carry Russian natural gas to Turkey under the Black Sea, and on to Greece and Europe...adding that Russia also actively planned to expand its hydrocarbon exports eastward to China, Japan and India."

Will Turkey, Europe, China, Japan and India be paying Russia in U.S. dollars? I don't think so. Great job Obama & Hillary.    Maybe we can borrow some money from Iran if we need it.

11b40's picture

Tell me again why Russia, or Turkey for that matter, needs the U.S at all?  Seems to me that Erdogan would be much better off pivoting to the East instead of the West.  We were always isolated geographically, but now becoming isolated from more and more of the world.  The big bully who is proving to be full of hot air, throwing our weight around and making enemies wherever we go.  The question is why have we become such a sorry-assed nation of scoundrels?

Freddie's picture

The pipelines and Silk Road (Chinese and Russian railroad links from Western Russia-Pacific to Europe) will bring great wealth to Russia and China.  The pipelines are mostly in place.  The rail is moving along.  This all totally bypasses US Naval power. 

Life of Illusion's picture

 

 

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