Install

Get the latest updates as we post them — right on your browser

Today's paper. Last Updated: 02/10/2012

South Stream Gets Assent From Turkey

Reuters

Turkey has agreed “in principle” to allow the South Stream gas pipeline to pass through its territorial waters, Yury Ushakov, deputy head of the government staff, said Wednesday, ahead of a visit by Prime Minister Vladimir Putin to Turkey.

Putin’s trip follows a signing ceremony in Ankara last month for transit agreements for the rival Nabucco gas pipeline, a European Union-backed project designed to counter Russia’s strong influence on European energy supplies.

“An agreement has been reached in principle to start construction work,” Yury Ushakov, deputy head of government staff, told a news briefing. He said the Turkish government will also give permission to begin a feasibility study “within days.”

A Turkish government source who declined to be identified confirmed that Turkey will agree to allow the South Stream gas pipeline to pass through its territorial waters.

Ushakov said a protocol on cooperation in the gas industry, due to be signed by Putin and Turkish Prime Minister Tayyip Erdogan on Thursday in Ankara, would also set a date for the start of construction work.

Russia, which supplies a quarter of Europe’s natural gas, wants to accelerate construction of gas supply routes to bypass Ukraine and other ex-Soviet states after arguing with Kiev over transit payments several times in recent years.

The agreement would mark a new victory for Russia in its fight to undermine the construction of the Nabucco pipeline. Had Turkey rejected the South Stream project, Russia would have been forced to go through Ukraine’s territorial waters.

Ushakov said the agreement does not mention any gas marketing rights for Turkey — a thorny issue in Turkey’s previous negotiations with Russia over gas transit to Europe, as well as in talks on the Nabucco project.

Ushakov said Putin and Erdogan have developed “a personal chemistry” that helps them deal with “the most difficult issues.”

Ankara is also looking for Russian oil that would fill up a planned government-backed oil pipeline that is expected to travel from the Black Sea coastal town of Samsun to the Mediterranean oil hub of Ceyhan.

Ushakov said the two sides will “express readiness to start a realization” of the project and agree to create a working group. He said Russia made some concessions on the oil pipeline issue in exchange for Turkish concessions on South Stream. “We made a compromise of sorts,” he said.

“They made concessions on South Stream. We made some concessions on the Samsun-Ceyhan pipeline. The concessions are that we need to carefully study this project.”


Also in Business

Putin Has Plethora of Business Ideas

President of state-controlled bank VTB Andrei Kostin on Thursday called for business to support the government ahead of next month's presidential election, hinting that entrepreneurs' participation in opposition protests could be hazardous to their health.

VTB Buyback Details Finalized

State-controlled bank VTB will buy back its stock from retail investors at the 2007 issue price of 13.6 kopeks per share over the next two months in a move aimed at preserving the reputation of the country's second-largest lender.

Agricultural Levies to Be Harmonized

After joining the World Trade Organization, Russia will have to start taxing some agricultural products that are now exempt.

Aeroflot Countering Bribery Allegations

Aeroflot said it will file a countersuit for slander and defamation against a U.S. tour company that has accused the airline of bribery and extortion.

Q&A: Yury Luzhkov Says He's a Completely Free Man

Immediately after Yury Luzhkov was dismissed from office, his friend and predecessor Gavriil Popov asked him to be dean of the International University in Moscow.

Ex-Cop Runs Bogus Drug Plant at Home

Investigators have uncovered a counterfeit drug factory, along with 20 million rubles ($670,000) worth of bogus pills, at the dacha of a former first deputy head of the Moscow metro police.




Discussion
The Moscow Times welcomes your comments and invites you to discuss topics with other readers. Your comment will be posted automatically to enable a live discussion. If you aren't familiar with our comments policy, you can read it here.

If you're a registered user, you can start typing your comment below. If not, take a moment to sign up. and then return to the article.

If your comment doesn't appear, contact us by using our web form.

Comments

Comments via Facebook

print


Comments

This article has no comments.

Be the first to leave a comment





Most Read