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Turkey and Russia have signed a deal that would enable Russian company Atomstroyexport to build a nuclear power plant in Turkeys south. The $20 billion deal envisages the completion of the plant within seven years, putting Turkey among nations that utilize nuclear energy. During Russian President Medvedevs visit to Ankara, the two countries also sign agreements that could lead to billions of dollars in bilateral investments.
The day Russian President Dmitry Medvedev came to Ankara on a historic visit, Turkey and its Black Sea neighbor signed a landmark deal to build a nuclear power plant on Turkish soil.
Russian company Atomstroyexport signed an agreement to build a power plant with four nuclear reactors on Turkeys southern coast at a cost of as much as $20 billion after more than a year of negotiations, Bloomberg reported Wednesday.
Prime Minister Recep Tayyip Erdoğan told reporters that the construction of the plant in Akkuyu, Mersin, will take seven years.
This will be the first case in which Russia not only builds a power plant, as we have in Iran and India, but will also own it, Sergei Kiriyenko, head of Russian state nuclear holding company Rosatom, told reporters in Ankara.
Atomstroyexport, Russias reactor builder, will own 100 percent of the project, and may later sell as much as 49 percent to investors, Kiriyenko said.
Turkish investors are interested. Were also holding talks with European investors, he said, but declined to name potential buyers.
Russian Energy Minister Sergei Shmatko said in February 2009 that a group of companies led by Atomstroyexport had bid for the Turkish power plant contract. Turkish authorities had delayed awarding the contract since the September 2008 tender after Russia had submitted the only bid.
Currently, a total of 438 nuclear power plants are operative in 30 countries, while 42 are being built, according to data from the International Atomic Energy Agency, or IAEA.
For Turkey, which is just starting to develop nuclear energy, this is a smart move, since they dont have to pay anything up front, just provide the site, Bloomberg quoted Kiriyenko as saying. Russia will bear all the costs and recoup them through guaranteed electricity sales at a fixed price, he said.
Strengthening economic ties
Medvedev also said the two countries signed agreements that would lead to more than $25 billion in investments.
The Russian leader said Moscow wishes to expand enery exports across Turkey. Russia plans to expand gas pipelines under the Black Sea to boost deliveries to Europe and other countries he said.
The major projects we have worked on and will continue to work on are Blue Stream-2 and South Stream, Bloomberg quoted Medvedev as saying. We will actively develop the Samsun-Ceyhan oil pipeline, with the possible construction of a refinery and joint sales of oil products.
Russias economic clout is increasing globally, and it ranked at number six in an International Monetary Fund study for 2009, with over $2.1 trillion in annual gross domestic product. Russia, the eighth most populous nation on earth with nearly 145 million people, is the worlds biggest country geographically, spanning a vast area of 17 million square kilometers.
Russias exports are mainly dependent on crude oil and natural gas, but it also exports minerals, fertilizers and agricultural products.
Turkey ranks as Russias fourth biggest export destination after the Netherlands, Italy and Germany, but it is not in the list of top 10 exporters to Russia, ranking only 14th, Anatolia news agency reported. The trade balance between the two countries is heavily in favor of Russia because Turkey imports huge quantities of natural gas from its northern regional neighbor.
According to data from the Turkish Statistics Institute, or TurkStat, the Turkish trade deficit stood at over $16 billion in the January-March period. Nearly 38 percent, or $6 billion, stems from trade with Russia. In the first quarter, Turkey exported $1.55 billion worth of goods to Russia, while its imports totaled $7.6 billion in the same period.
Rapidly improving relations
The industrialization drive of the 20th century saw Turkeys and Russias development complementing each other, while the Soviet Unions glasnost policy of the 1980s was beneficial to Turkey in the economic sense, with a key natural gas sale agreement coming into effect between the two countries in 1987. The deal called for 70 percent of Turkeys payments for the natural gas to be made with Turkish goods and services, thus allowing many Turkish companies to rapidly enter the Soviet market.
As the Soviet Union dissolved in 1991, Turkish companies were able to build upon their previous links in the vast Russian market, with many Turkish firms, including Enka, Koç, Zorlu, Efes and Şişecam beginning to produced in the country.
Today, Russia ranks number one for Turkish contractors. Between 2003 and 2009, Turkish firms completed nearly 1,000 projects in the country in deals valued at roughly $20 billion, Anatolia news agency reported.
Nonetheless, Russia still needs more foreign investment, which was already at below-potential levels before the global financial crisis struck. Last year, foreign direct investment to Russia declined by a massive 40 percent compared to 2008, meaning the economy is likely to warm toward Turkish businesspeople, especially with Wednesdays historic decision to remove visa requirements.
Short URL: Turkey, Russia engage in nuclear waltz | TRDEFENCE
The day Russian President Dmitry Medvedev came to Ankara on a historic visit, Turkey and its Black Sea neighbor signed a landmark deal to build a nuclear power plant on Turkish soil.
Russian company Atomstroyexport signed an agreement to build a power plant with four nuclear reactors on Turkeys southern coast at a cost of as much as $20 billion after more than a year of negotiations, Bloomberg reported Wednesday.
Prime Minister Recep Tayyip Erdoğan told reporters that the construction of the plant in Akkuyu, Mersin, will take seven years.
This will be the first case in which Russia not only builds a power plant, as we have in Iran and India, but will also own it, Sergei Kiriyenko, head of Russian state nuclear holding company Rosatom, told reporters in Ankara.
Atomstroyexport, Russias reactor builder, will own 100 percent of the project, and may later sell as much as 49 percent to investors, Kiriyenko said.
Turkish investors are interested. Were also holding talks with European investors, he said, but declined to name potential buyers.
Russian Energy Minister Sergei Shmatko said in February 2009 that a group of companies led by Atomstroyexport had bid for the Turkish power plant contract. Turkish authorities had delayed awarding the contract since the September 2008 tender after Russia had submitted the only bid.
Currently, a total of 438 nuclear power plants are operative in 30 countries, while 42 are being built, according to data from the International Atomic Energy Agency, or IAEA.
For Turkey, which is just starting to develop nuclear energy, this is a smart move, since they dont have to pay anything up front, just provide the site, Bloomberg quoted Kiriyenko as saying. Russia will bear all the costs and recoup them through guaranteed electricity sales at a fixed price, he said.
Strengthening economic ties
Medvedev also said the two countries signed agreements that would lead to more than $25 billion in investments.
The Russian leader said Moscow wishes to expand enery exports across Turkey. Russia plans to expand gas pipelines under the Black Sea to boost deliveries to Europe and other countries he said.
The major projects we have worked on and will continue to work on are Blue Stream-2 and South Stream, Bloomberg quoted Medvedev as saying. We will actively develop the Samsun-Ceyhan oil pipeline, with the possible construction of a refinery and joint sales of oil products.
Russias economic clout is increasing globally, and it ranked at number six in an International Monetary Fund study for 2009, with over $2.1 trillion in annual gross domestic product. Russia, the eighth most populous nation on earth with nearly 145 million people, is the worlds biggest country geographically, spanning a vast area of 17 million square kilometers.
Russias exports are mainly dependent on crude oil and natural gas, but it also exports minerals, fertilizers and agricultural products.
Turkey ranks as Russias fourth biggest export destination after the Netherlands, Italy and Germany, but it is not in the list of top 10 exporters to Russia, ranking only 14th, Anatolia news agency reported. The trade balance between the two countries is heavily in favor of Russia because Turkey imports huge quantities of natural gas from its northern regional neighbor.
According to data from the Turkish Statistics Institute, or TurkStat, the Turkish trade deficit stood at over $16 billion in the January-March period. Nearly 38 percent, or $6 billion, stems from trade with Russia. In the first quarter, Turkey exported $1.55 billion worth of goods to Russia, while its imports totaled $7.6 billion in the same period.
Rapidly improving relations
The industrialization drive of the 20th century saw Turkeys and Russias development complementing each other, while the Soviet Unions glasnost policy of the 1980s was beneficial to Turkey in the economic sense, with a key natural gas sale agreement coming into effect between the two countries in 1987. The deal called for 70 percent of Turkeys payments for the natural gas to be made with Turkish goods and services, thus allowing many Turkish companies to rapidly enter the Soviet market.
As the Soviet Union dissolved in 1991, Turkish companies were able to build upon their previous links in the vast Russian market, with many Turkish firms, including Enka, Koç, Zorlu, Efes and Şişecam beginning to produced in the country.
Today, Russia ranks number one for Turkish contractors. Between 2003 and 2009, Turkish firms completed nearly 1,000 projects in the country in deals valued at roughly $20 billion, Anatolia news agency reported.
Nonetheless, Russia still needs more foreign investment, which was already at below-potential levels before the global financial crisis struck. Last year, foreign direct investment to Russia declined by a massive 40 percent compared to 2008, meaning the economy is likely to warm toward Turkish businesspeople, especially with Wednesdays historic decision to remove visa requirements.
Short URL: Turkey, Russia engage in nuclear waltz | TRDEFENCE
That's increadible amount of money for both country !!!
