Statement for the press and answers to media questions following Russia-Turkey talks
Vladimir Putin and Recep Tayyip Erdogan gave a news conference in the Kremlin on the results of the Turkish President’s visit to Russia.
April 8, 2019
19:45
The Kremlin, Moscow
News conference following Russian-Turkish talks.
President of Russia Vladimir Putin: Mr President, my friend, ladies and gentlemen,
It has been our pleasure to welcome the President of the Republic of Turkey in Moscow. We maintain close regular contacts, and today we held another High-Level Cooperation Council meeting. During the meeting, we had limited attendance talks with the participation of the heads of the main ministries, departments and major companies of the two countries.
Mr Erdogan and I also met with representatives of the Russian and Turkish business communities.
During the talks, Mr Erdogan and I discussed in detail the full range of bilateral cooperation issues. Naturally, we paid special attention to trade and investment ties that have recently become much more dynamic and extensive.
In 2018, trade increased by 16 percent to reach almost $26 billion. Mutual investment was substantial, reaching $20 billion.
The Mixed Intergovernmental Commission is playing a big role in organising our economic cooperation. The Russian-Turkish Business Council is working actively. It helps develop direct contacts between entrepreneurs of the two countries, including those representing small and medium-size businesses.
The Russian Direct Investment Fund and the Turkey Wealth Fund facilitate the implementation of new joint projects. They have just signed an agreement on creating a $1 billion investment platform. I believe with such investment capital they will be able to raise at least $5 billion for various projects.
Our energy cooperation is strategic in nature. Rosatom is building Turkey’s first nuclear plant, Akkuyu – four energy units with a total capacity of 4,800 megawatts. The first unit is to be put into service in 2023 – the centenary of the Republic of Turkey.
The construction of TurkStream is proceeding as scheduled. The offshore section was docked with the onshore section on the coast of Turkey, and Russian gas deliveries to Turkish consumers along this route will begin before the year is out.
In the future, after TurkStream’s capacity is expanded and the second branch is built, gas will be transity to Europe as well.
Importantly, both these projects – the Akkuyu nuclear plant and TurkStream – meet the highest environmental and technical standards and will be essential to ensuring regional and European energy security.
There are good opportunities for deepening cooperation in the metallurgical industry, the automotive industry, agriculture, as well as innovation-driven and high-tech sectors. We discussed this in detail today with business representatives, as I have already mentioned, and learned about their initiatives.
We discussed Russian-Turkish cooperation in the defence sector, in particular, the contract for supplying S-400 Triumph anti-aircraft missile systems to Turkey. We discussed other current and promising defence cooperation projects as well.
Of course, we touched upon our cultural and civil society ties. The Russian-Turkish Public Forum does a good job in this area. Rectors of Russian and Turkish universities met in Ankara in February. Turkish journalists came to Moscow as part of an exchange programme between news agencies. Russian reporters, in turn, will go to Turkey this summer.
A high level of tourist exchanges is typical of Russian-Turkish relations. Turkey is becoming increasingly popular with Russian tourists, who visit not only Turkish resorts, but numerous historical and cultural landmarks as well. Last year, Russia, with six million tourists, again ranked first in the number foreign tourists visiting the Republic of Turkey.
In turn, we appreciate the Turkish authorities’ focus on the safety and convenience of Russian tourists, and we will consistently work on easing mutual visa regulations.
In part, the issue of exempting professional drivers from entry visas will be resolved in the near future.
Ties in science, education, the arts and tourism have always helped strengthen the atmosphere of trust and understanding between our countries. I would like to note in this context that President Erdogan and I attach great importance to the Cross Year of Culture and Tourism of Russia and Turkey, which will open today with a performance of the Turkish opera “Troya” at the Bolshoi Theatre in Moscow.
Discussing major international issues, we certainly devoted much attention to developments in Syria. Let me emphasise that Russia and Turkey will continue their effective cooperation in the framework of the trilateral Astana format with Iran’s participation.
Now that the main terrorist forces have been routed, it is important to concentrate on the final stabilisation of the situation and on promoting the political settlement process in line with UN Security Council Resolution 2254. In this context, Mr Erdogan and I agreed to do everything we can, in coordination with the Syrian Government, the opposition and the UN, to facilitate the launch of the Constitutional Committee.
We also discussed the situation in the Idlib de-escalation zone and prospects for the comprehensive implementation of the Sochi memorandum. I hope our joint efforts will help achieve normalisation in and around the de-escalation zone and eventually neutralise this terrorist hotbed. Importantly, we are guided by the necessity of preserving the sovereignty, independence and territorial integrity of Syria. The division of the country into zones of influence is unacceptable.
Humanitarian assistance for Syria’s post-conflict recovery is a primary goal. I am referring to the construction and repair of essential infrastructure, housing, hospitals, schools as well as water and electricity supply facilities. It is important that the entire international community should take part in these efforts. Only together can we create the necessary conditions for the return of Syrian refugees and temporarily displaced persons to their homes.
In conclusion, I would like to say that the current meeting of the Cooperation Council and our bilateral talks were highly successful. I am convinced that today’s agreements will help further develop Russian-Turkish cooperation in all areas.
I would like to thank our friend Mr Erdogan and all our Turkish colleagues for working with us.
Thank you very much.
Question (retranslated): Mr President, Mr Putin,
A meeting was held today with an emphasis mostly on the economy. As we know, trade relations are developing in favour of Russia, when we speak about $26 billion. You said that the objective was to reach the $100 billion mark.
What can be done? What kind of roadmap? Will the roadmap take into account payments in national currencies?
On February 6, Mr Putin issued an executive order that liberalised visas. Will all citizens of Turkey enjoy this or not?
Vladimir Putin: If we speak about the trade balance, it may indeed be in favour of Russia. But this does not mean that all the trade relations are working out in Russia’s favour. This is absolutely not true.
We certainly should work for well-balanced trade relations. Today, too, if you think that all our talks were so rosy, that we were just singing praise to each other and talking about achievements alone… No, this is not so.
But since you asked such a pointed question, I will answer it in more detail. It was a business meeting today, a specific, business-like, working meeting.
For example, we were disputing the fees imposed on our iron and steel industry. For us, our Turkish partners have raised the rate by 2–2.5 percent, while reducing it by 1.3 percent for some other countries. We understand what it is all about; we know the gist of the matter. I am just saying, for your sake, that all is not so rosy. Of course, our Turkish partners are fighting for their interests, and we – for ours.
As for the energy carriers mentioned by Mr Erdogan, they are formed by the market, not by Gazprom. Such are the market prices; they are not imposed by a Gazprom directive.
There are questions and there are problems in this regard as well. Our Turkish friends are insisting on certain aspects, while Gazprom, out of commercial considerations, is suggesting different solutions. But these solutions will be found anyway. We will be looking for them and we will find them, because we set great store by the Turkish market and relations with our Turkish partners and friends.
However, I want to tell you about the most important aspect. It does not just have to do with the price, although it is a very important parameter; it has to do with the stability of Russian gas deliveries. Turkey has signed many gas delivery contracts, and far from everyone fulfils their contractual obligations. However, Russia unfailingly meets its obligations in terms of the volumes and prices, and acts in line with its long-term contracts, disregarding the ongoing price indicators. This creates fundamental conditions for Turkey’s economic development because the business community understands its long-term prospects and is confident of the deliveries.
Moreover, Russia delivers additional energy carriers to the Turkish market in autumn and winter at the request of the Turkish government because Turkey’s other partners are unable to meet their obligations, and we do this on a regular basis. At the same time, we realise that trade should be more balanced, and we have a certain potential in this area. We discussed this matter today.
Work also continues on the construction industry market. In the past few years, Turkish companies have implemented projects worth $70 billion in Russia. Just think about these statistics. Many facilities were built during preparations for the Sochi Olympics and the 2018 FIFA World Cup, and these construction projects continue. Today, we have discussed road construction and other projects with Turkish business representatives.
There are excellent prospects in the metallurgical industry and chemistry, the fertiliser sector and road transport, including both haulage and vehicle production. I am not even talking about military-technical cooperation. This involves high-tech production. We can launch joint research and development projects and jointly manufacture high-tech military equipment.
Therefore, it would be inappropriate to use stereotypes here and say whether this benefits Russia or not. This benefits the people of Turkey and the people of Russia, and we will work on a well-balanced approach.
There was also a question about abolishing visas. As I said, we have reached an agreement, and we will now make a decision on drivers of large-capacity lorries. We have practically agreed that all holders of Turkish business passports will be covered by a visa-free regime. According to Turkish regulations, Turkey has three times more people in this category than Russia.
Regarding the visa-free regime in general, this issue is linked with overall regional security, including the final resolution of the Syrian problem. Our security services should jointly draft certain parameters of their work. This work is underway.
Question: I have a question for both leaders. In recent months, you have met very often by diplomatic standards and we have heard that you discussed the Idlib situation at each meeting. Judging by what you said earlier, you discussed Idlib today again.
Does this mean that you have not managed to fulfil the Sochi agreements on Idlib? If so, what is the problem? Is this one of the problems that can prevent political settlement in Syria on a par with the US recognition of Israel’s sovereignty over the Golan Heights?
Vladimir Putin: As for the Golan Heights recognition as part of Israel, you should be aware of Russia’s position: it was set forth in the relevant statement by the Foreign Ministry. That decision runs counter to the relevant UN Security Council resolutions.
The Idlib problem is acute. Indeed, we have been unable to reach the parameters that we agreed upon in Sochi so far but I believe that this problem can be resolved. Our defence ministers met and discussed this problem just recently.
Essentially, we are to start joint patrolling, or patrolling on both sides, at any rate. We have not yet established a monitoring centre but I am sure we will do so.
Yes, progress in this area has not been not as fast as we would like, but still progress is in place. I have already said in my remarks that all terrorist centres must be eradicated, destroyed, and we will press for it.
We will have to resolve the Idlib zone problem in order to create conditions for a peace process. We can only do it jointly and we will move forward along this line.
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Question (retranslated): During today’s talks, you stressed that the two states’ cooperation on the Syrian issue was very important. What steps do you plan to take during the political transition period?
Vladimir Putin: A full-fledged Syrian political process can begin only after the establishment of the Constitutional Committee. Its line-up is being coordinated with the UN, the UN Secretary General’s Special Representative, to be more exact. Both Russia and Turkey are now working actively on this.
Question: I have a question for both presidents, if I may. In the past few years, we have witnessed a rapid development of Russian-Turkish relations. Do you believe the current foundation and good prospects for future development are enough to counter the attempts of third countries to influence Russian-Turkish cooperation agreements, including such projects as TurkStream and S-400 deliveries?
Vladimir Putin: We are working on this. Relations between our countries are developing very actively, fruitfully and with good results. By the way, this concerns all aspects. We can see progress in the economic sphere and in regional security; we continue to work jointly and to post good results despite all the difficulties.
We are working on major energy projects and expanding relations in other areas, including agriculture. Turkey has recently increased its agricultural produce deliveries to the Russian market several times over. There are many other aspects as well.
Is it possible to say that we have done our best to guarantee our economic sovereignty? No, we have not accomplished enough so far. That is why the President of Turkey insisted today that we use national currencies in our payments and settlements more actively.
There are other matters of mutual interest. It goes without saying that the implementation of all these plans will benefit the development of our economic ties. I am confident that this will have a positive impact on the social sector in our countries.
Meeting of High-Level Cooperation Council between Russia and Turkey
April 8, 2019
16:45
The Kremlin, Moscow
Vladimir Putin and Recep Tayyip Erdogan chaired the eighth meeting of the High-Level Russian-Turkish Cooperation Council.
The discussion covered various aspects of Russian-Turkish cooperation, including energy, as well as regional and international issues.
Earlier that day, the two leaders held a restricted meeting to consider priority issues of developing bilateral relations.
* * *
The eighth meeting of the High-Level Cooperation Council between the Russian Federation and the Republic of Turkey was co-chaired by Vladimir Putin and Recep Tayyip Erdogan.
Beginning of the High-Level Cooperation Council meeting between the Russian Federation and the Republic of Turkey
President of Russia Vladimir Putin: Mr President, colleagues and friends,
I am very happy to welcome all of you at the eighth meeting of the Russian-Turkish High-Level Cooperation Council. Mr President and I have just discussed, at the limited attendance meeting and then one-on-one, the priority issues of developing Russian-Turkish relations. We agreed to continue developing our cooperation as an advanced multilateral partnership.
Now I suggest discussing in the same businesslike and constructive spirit with the participation of the government members and business representatives specific areas of cooperation and the implementation of major joint projects, and mapping out guidelines for the further expansion of mutually beneficial contacts.
The current Cooperation Council meeting was preceded by serious interdepartmental and corporate preparations. A host of meetings at all levels were held. Heads of key ministries and departments of the two countries coordinated their positions in the framework of the special mechanisms of political, economic and cultural cooperation that were established at the Cooperation Council.
In particular, the joint strategic planning group members discussed the situation in Syria at a meeting in Antalya. As guarantors of the Astana process, Russia and Turkey continue making energetic, coordinated efforts for the long-term normalisation of the situation in that country. We are coordinating our efforts in the context of stepping up the intra-Syrian political process, particularly with an eye towards forming a constitutional committee as soon as possible.
A regular meeting of the mixed intergovernmental commission took place. It does much to deepen economic ties and boost mutual trade and investment.
Last year, bilateral trade grew by almost 16 percent to over $25 billion. The volume of mutual investment is nearing $20 billion.
I believe that cancelling existing trade restrictions and diversifying the range of products could help expand trade. Launching new joint projects in manufacturing, metallurgy, agriculture and the high-tech sector will promote investment cooperation.
Notably, Russian-Turkish energy cooperation has become truly strategic. Russia is the largest natural gas supplier to Turkey. Last year, 24 billion cubic metres were exported. This covers almost half of the country's needs.
A new gas pipeline, TurkStream, will significantly boost the supply of Russian gas to Turkish consumers when it becomes operational. The deep-water section and Turkey’s coastal section of the pipeline were line up the other day, marking the culmination of a major phase of the construction process.
Next, the construction of the receiving terminal on Turkey’s Black Sea coast has to be completed, so that TurkStream becomes operational before the end of the year, as agreed.
See also
Russian-Turkish talks
April 8, 2019
The construction of the Akkuyu nuclear power plant in Turkey is another key energy project. The first unit is to launch in 2023, to coincide with the 100th anniversary of the Republic of Turkey. At this stage, there is need for bringing in additional funding and executing appropriate agreements with potential Turkish investors, who are available.
Our countries have major goals in strengthening defence cooperation. First of all, this concerns completing the implementation of the contract for the supply of S400 Triumph anti-aircraft missile systems to Turkey. Also on the agenda are other promising projects related to supplying modern Russian military products to the Republic of Turkey.
The priority seems to be the development of bilateral humanitarian cooperation. The Russian-Turkish Public Forum is actively involved in this area. I am confident that the expansion of cultural exchanges, as well as contacts in education, science and tourism, will be spurred on by the Cross Year of Culture and Tourism of Russia and Turkey, which opens today at a ceremony at the Bolshoi Theatre.
Colleagues, I would like to thank you for your attention, and I am pleased now to give the floor to the President of Turkey. Then we will hear reports from the co-chairs of the joint strategic planning group, the intergovernmental commission and the Public Forum.
Thank you.
Please, Mr President, you have the floor.
President of Turkey Recep Tayyip Erdogan (retranslated): Mr President, my dear friend, members of the Russian delegation,
Please accept my warmest greetings.
I am very happy to be in Moscow to attend the eighth meeting of the High-Level Russian-Turkish Cooperation Council. Thank you for your kind invitation and genuine hospitality.
My friend Mr Putin and I have met repeatedly over the year that has passed since the previous meeting of the Council. Our ministers and other authorised persons also maintained close contact.
Together we have broken ground on the Akkuyu nuclear power plant, and completed construction of the offshore section of the TurkStream gas pipeline. Together we set a new record, having received six million Russian tourists in our country last year.
Our business leaders continue contributing to Russia, and now a large number of our businessmen are in Russia. Our Turkish firm Esta has built a plant for the German automobile company [Mercedes-Benz], which was opened by my dear friend Vladimir five days ago.
This year, we mark the Year of Culture and Tourism; the official opening will take place at the Bolshoi Theatre.
We have had the opportunity to discuss bilateral issues, both regional and international, in a one-on-one meeting, while our ministers talked with their colleagues. Now we must give a general assessment of this day together.
Our major target is to reach the $100 billion mark [in trade]. At the moment, we are only at 26. Therefore, we will make every effort to attain this goal strategically, economically and trade-wise – that is, on all tracks.
I sincerely wish that our meeting benefits both our states.
Thank you for your attention.
Meeting with Russian and Turkish business representatives
Vladimir Putin and Recep Tayyip Erdogan met in the Kremlin with leading members of the Russian and Turkish business communities.
April 8, 2019
17:45
The Kremlin, Moscow
Meeting with members of the Russian and Turkish business communities.
President of Russia Vladimir Putin: Mr President, colleagues,
I am pleased to have the opportunity, together with our friend Mr Erdogan, to meet again with leading members of Russian and Turkish business communities.
Just now, at a meeting of the High-Level Cooperation Council, we reviewed in detail current issues relating to relations between Russia and Turkey, including, of course, the dynamic economic cooperation between our countries.
I would like to note that Russia and Turkey are key partners in trade and investment. Last year, bilateral trade increased by 16 percent, reaching $25.5 billion.
We have achieved good results in agriculture. In 2018, trade in this sector was up 7 percent, reaching $3 billion.
Mutual investment stands at about $20 billion.
Today, the Russian Direct Investment Fund will sign an agreement with the Turkish sovereign wealth fund on creating a joint investment platform of $1 billion to be invested in promising sectors of the two countries’ economies.
Russia appreciates that Turkish investors are taking an interest in our market. In recent years, Turkish companies have discovered business opportunities in many regions of Russia, including Vladimir, Penza and Kaluga regions and Krasnodar and Stavropol territories.
There is also potential to develop cooperation with the Republic of Crimea. Vacant niches are being quickly filled there, including by foreign investors.
See also
Russian-Turkish talks
April 8, 2019
Meeting of High-Level Cooperation Council between Russia and Turkey
April 8, 2019
Probably, Turkish companies have invested the bulk of the capital – about $2 billion – in the economy of Tatarstan, primarily at the Alabuga Special Economic Zone, along with the participation of the holding companies Hayat and Coskunoz and the Sisecam Group. Glass, plastics and household chemical manufacturing plants have been established, which are large even by European standards.
Russia and Turkey maintain close cooperation in energy. Flagship projects include the TurkStream pipeline and the Akkuyu Nuclear Power Plant. These projects are being carried out in full conformity with the endorsed plans, and I am confident that both will be put into operation on schedule.
Russian companies like Lukoil and Rosneft have earned a good reputation in the Turkish market. Power Machines is taking part in modernising Turkish hydroelectric power stations. United Engine Corporation is spending quite a bit of money and effort to ensure the reliable operation of the Turkish gas transit infrastructure.
In turn, Turkish builders are active in the Russian market. They have fulfilled about 2,000 contracts with a total value of some $70 billion.
Turkish companies helped build the facilities for the 2014 Olympics in Sochi and the 2018 FIFA World Cup.
The business circles of the two countries have a lot of potential in high-tech, pharmaceuticals, agricultural and transport equipment manufacturing, ship and aircraft construction, as well as the development and launching of space vehicles.
I would like to emphasise that we in Russia are and will be doing everything necessary for foreign companies, including Turkish firms to feel as comfortable and stable in the Russian market as possible, without being subjected to excessive administrative burdens.
Russia is already 31st in the ease of doing business rankings by the World Bank. We moved up several dozen positions in just five years.
All macroeconomic indicators retain positive dynamics in Russia. Last year our GDP increased by 2.3 percent while industrial production growth went up by almost 3 percent. All this allows foreign companies to work steadily and to make long-term plans in Russia.
Hundreds of billions of dollars will be invested in critical economic and social sectors as part of our national programmes. Once implemented, they will open major prospects for foreign, particularly Turkish, businesses.
It is in our interest to create the necessary conditions for your work, and it is in your interest to implement these projects and make a profit from doing so. We will do our best to support you.
The companies you represent have considerable hands-on experience in implementing major joint projects, and, I believe, are interested in building up trade and investment ties.
Therefore, I propose having a detailed and candid discussion of the issues that are of concern to the Turkish and Russian business communities. Of course, it is important for us to hear what you have to say about additional steps that the government should take in order to boost business contacts even further.
I would also like to take this opportunity to invite business people from Turkey, who are always widely represented at the St Petersburg Economic Forum, to take an active part in it this year as well. The forum will be held in St Petersburg on June 6–8.
Thank you for your time, and I am pleased to give the floor to the President of the Republic of Turkey.
President of Turkey Recep Tayyip Erdogan (retranslated): Dear friend, President Putin, ministers and representatives of the Turkish-Russian business forum,
Greetings from the bottom of my heart.
As you are aware, Mr Putin and I co-chaired the 8th meeting of the High-Level Cooperation Council today, and I am very pleased to have the opportunity to be here with you now.
I would like our meeting to be effective and useful. I want to thank you for your hospitality on my own behalf and on behalf of all our country’s representatives.
Expanding our dialogue with Russia has been very beneficial for us. Ever since the 1990s, economic and trade relations have become the driver behind Russia-Turkey relations. Today, we have discussed trade, economic and cultural relations, as well as our contacts in all other areas at the delegation level.
In addition, Mr Putin and I have been considering the idea of working together with the business community for a long time now. There is such an opportunity today. This is our way of showing support for the business community.
About 1,300 representatives of our business community are here, strengthening our ties. We will be working together with all our agencies to resolve any problems (first identify them, and then deal with them).
Russia is our third largest trade partner. We have reached $26 billion in mutual trade, but of course, this figure is too small. We are trading in finished products, pharmaceuticals, cosmetics, mechanical engineering products – all of those are well represented. But even in these industries, the level of Russian imports into our country is very low.
My dear friend and I have already set a target benchmark of $100 billion, and so we need to find new approaches. Today we talked about this. All of our ministries have already been given the appropriate instructions to increase trade with Russia.
First, we have transport and visa issues. Work is certainly underway on these tracks. We expect that Turkish firms will soon enjoy the terms now provided to third-country firms.
Turkish builders have been establishing a firm presence here since the 1990s. They have implemented as many as 1,961 projects worth $73 billion. Our construction industry plays a major role in the Russian economy. Then there is investment in the Russian economy. Here we expect the Russian media to provide wider support.
In the same way, Russia has invested $10 billion in our country –in petrochemical and other advanced technologies. All this seriously influences the Turkish economy.
We are ready to provide preferential treatment options for Russian businesses. We are not treating your firms as foreign or Russian investors, but regard them as our own, our local firms.
Energy cooperation is among the most important of economic processes. The Akkuyu Nuclear Power Plant, and the TurkStream and Blue Stream pipelines are strategic items in our long-term plans. Our target by the end of the year is to finish the onshore section of the TurkStream.
It would also be good to convert financial settlements between us to national currencies as soon as possible so we can be protected against foreign exchange market fraud.
We are ready to address issues of providing the necessary benefits, so all we want now is to hear about your problems and to exchange information.
Once again, I would like to thank Mr President and greet everyone with all my heart.
Vladimir Putin: Thank you, Mr President.
