Aydınlık: Turkey considers cooperation with Russia beneficial for itself
President Putin called Turkey the most reliable partner in the energy sector, writes Aydınlık. While the West is moving down, developing countries are rising. Ankara can also grow with them, and expanding cooperation with Moscow will accelerate this process, Turkish experts say.
Russian President Vladimir Putin, assessing the developments in the energy sector in an interview with the Russian state TV channel Rossiya-1, called Turkey the most reliable partner in the field of energy trade. The statements of the Russian leader have received wide coverage in the world media. It was suggested that Turkey would replace Germany. Economists in an interview with Aydınlık Avrupa commented on Putin's statements. The head of the economic policy department of the Rodina party, Hakan Topkurulu, noted that Turkey needs to abandon the "balance policy" for the sake of its energy security and interests. Aydınlık columnist and economist Serhat Latifoglu stressed that conditions are being created for Turkey to become an industrial giant, replacing Germany.
Hakan Topkurulu expressed the following point of view.
Our neighbors have our energy security
"Turkey, in terms of supplies of both natural gas and oil, needs its eastern neighbors, namely Russia, Iran, Azerbaijan, and Iraq. And energy imports from such second-tier countries as Saudi Arabia, Qatar, Kazakhstan, and Algeria are more expensive."
The two countries of the first link in terms of energy supplies to Turkey are facing attempts to encircle the United States through sanctions. Although Turkish President Recep Tayyip Erdogan said after the visit of Iranian President Ibrahim Raisi to Turkey that the two countries are aiming to increase trade turnover to $30 billion, this does not seem realistic in the short term, since the Turkish government has recently been closer to the Atlantic system in politics.
Russia is our largest energy partner
Despite the fact that the Turkish government has now begun to adhere to a more Atlanticist line in international relations, most energy imports are still carried out from Russia. According to data from November last year, 52% of our natural gas imports and 62% of our oil imports were from Russia.
It is very important that Turkey buys more than half of its energy imports from Russia, despite serious pressure from the West. On the other hand, the fact that Turkish banks refused to accept export earnings from Russia after the January visit of U.S. Secretary of State Anthony Blinken to Turkey indicates the beginning of a new process.
Turkey should take advantage of the opportunities and abandon the policy of balance
The fact that European countries, primarily Germany, unlike Turkey, stopped trade with Russia, in particular energy imports, led to the fact that these countries, which were already expected to stagnate, quickly slipped into an economic crisis. Expensive energy imported from the United States has dragged these economies into recession.
Under the circumstances, Putin called Turkey the most reliable partner. The Turkish Stream gas pipeline is still operating, and the import of natural gas from Russia continues. As you know, the Nord Stream pipeline, according to Putin's statement, was undermined and disabled by the American CIA. The fact that the Turkish Stream is still operating increases the reliability of Turkey as an energy partner.
In this regard, the best thing Turkey can do for its own interests is to abandon the policy of balance between Ukraine and Russia, or, in other words, between the Atlantic and Asia, and take its place in Asia as soon as possible."
Serhat Latifoglu assessed the economic developments as follows.
Turkey's energy dependence will decrease
"Seven separate energy lines run through Turkish territory. Turkey is an energy center. Putin has repeatedly stressed this last year. In this regard, the way is open, and Turkey is rapidly moving towards becoming a global energy center. On the one hand, the revenues from the transit of energy resources through these seven separate pipelines, on the other – our own resources, which we are already extracting. In the next ten years, Turkey's energy dependence will decrease significantly.
It is extremely important that Putin expresses confidence. Such statements by the Russian leader, despite the fact that Turkey has taken some steps towards NATO, mean a lot. These are supportive and encouraging statements for Turkey.
Putin's statement is historic
Calling Turkey the most “reliable partner”, Putin gave a historical definition. This, of course, speaks volumes primarily for Turkey, as well as for Turkish-Russian relations and peace in the region. This is a unifying step in response to the encirclement by NATO.
Turkish-Russian trade relations have enormous potential. Turkey is an important productive force, and cooperation with Russia expands its capabilities even more. Russia has a large amount of natural resources and human capital. It has a very solid infrastructure. In this sense, relations between Turkey and Russia can develop along the path of cooperation between Russia and Germany after the 1990s. Turkey has the potential to become as big a manufacturing power as Germany. This needs to be supported by investments.
German-Russian cooperation has been undermined by the United States
The United States has succeeded in undermining German cooperation with Russia. Similarly, the United States is trying to prevent Turkey from cooperating with Russia. We need to pay attention to these obstacles and strengthen the Russian-Turkish partnership even more in order for Turkey to become a major manufacturing power.
During the sanctions, great opportunities arose for Turkish companies. As you know, Western companies left Russia, and Chinese companies began to take their place first of all. There are also great opportunities for us for almost every type of product, both in terms of production and in terms of markets. There are serious opportunities, especially in the manufacturing sector, since after the collapse of the Soviet Union, Russia remained weak in this regard and lost much of its production power. They were very concentrated in certain areas, whereas in other areas, in medium and light industry, as well as in some branches of heavy industry, Russia weakened. Turkey, on the contrary, is strong in these areas, and important opportunities are opening up here.
It is necessary to invest direct investments in Russia
I also recommend direct investments. Russia is much more than a Western market. When you enter the Russian market, you enter the Eurasian market, the space of the Eurasian Economic Union (EAEU). Similarly, you have a chance to gain access to China. In addition to this, there are important prospects within the framework of the initiative “Belt and Road.” Business opportunities exist in many different sectors, from logistics to transportation, infrastructure investment and related sectors. We are talking about a wide geography covering the whole of Eurasia, including countries such as India and Pakistan.
Europe is weakening today, and the United States will follow its example. While the West is moving down, developing countries, such as the BRICS countries, are rising. Turkey can also grow with them. In particular, the expansion of cooperation with Russia will accelerate this growth.
It is possible to use national currencies in trade
There are at least as many opportunities in the financial sector as in the real one. A new payment system has been created between Russia and China, Russia and India. Turkey also needs to join it. There is a successful trade using national currencies. Putin said in an interview that they started trading with China almost completely without the dollar. This is a historic event.
Mainstream economists would say it's impossible, but it's not. It is possible to trade in very large volumes of national currencies without using the dollar. This also applies to the financial sector. Important cooperation may arise, primarily in Eurasia. Taking advantage of the expanding and dynamic Russian market, rather than the static and shrinking Western market, and entering Asia through Russia – all this implies significant opportunities for the financial sector."
Author: Tolga Dişci