Minister of Trade of Turkey: ‘There will be new cooperation development agreements of Turkey and Tatarstan’

'Embargo on Turkish production in Russia harmed both the Turkish and Russian people'

'Russia is a very important partner for us. A gradual development of relations based on mutual respect and mutual benefit with Russia, who is a key player in regional cooperation with Turkey, is continued. The relations of our countries entered stagnation because of the tragic incident in November 2015. However, President Erdoğan and Russia's President Putin took the initiative and overcame this stagnation. Our leaders have had three meetings in recent times. This fact gives hope. During the International Energy Congress, our President and President Putin had negotiations, which strengthens the ties between the countries.

A coup attempt took place on 15 July during which our people expressed a civil opposition. These people resisted bullets, stood in front of the tanks and hindered the coup attempt from staging. The Russian President Vladimir Putin expressed his condolences and his sympathy right after the rebel. It was an important moment in strengthening the Russian-Turkish relationships. Together with the people, we support the revival of the economy. We witnessed the development of the tie – on 9 August 2016 in Saint Petersburg the President of Turkey Recep Tayyip Erdoğan and President of Russia Vladimir Putin had a high-level meeting. It was a very encouraging step from the economic perspective.

Due to the Turkish people, we saved the democracy, saved the economy. All stock markets continued their work, money transfers were carried out without delay and obstacles immediately after the coup attempt. All the enterprises continued their work and production. Our people returned to their normal life on 16 July.

As you know, Russia imposed bans on exports of vegetables and fruits. It harmed both the Turkish and Russian people. Normalisation of these ties is in both countries' interests. Undoubtedly, both countries came to a dead end after the incident with the Russian jet in November 2015. Now the countries are planning to increase the commodity turnover to $100bn. We see possibilities to raise the bar to this level. The cooperation between the two countries gives an opportunity to export goods to third countries. Our Ministry of Economy signed different agreements, created conditions for the development of common funds for work in the third countries.

'As you know, Russia imposed bans on exports of vegetables and fruits. It harmed both the Turkish and Russian people.' Photo: bbc.com

It is enough to act on the basis of mutual benefit, interests of the region. It is necessary to develop and improve these relations. Our relations pay the way for that. We adopted a facilitated customs procedure on 18 September 2008. A joint committee on customs issues was created in 2015. It enables to deliver e-data between customs administrations of Turkey and Russia. There was stagnation here too after 24 November 2015. But we will certainly recover it. The joint committee on customs issues will work. We will have a possibility to solve problems in a more efficient way.

There was a question about a quota on international carriages. Has this problem been solved? There was told about a visa-free entrance for entrepreneurs.

A visa-free entrance between the countries is under discussion. We will come back to the state we had before the November 2015. We will return to it very soon. As for trucks, we will return to the previous state in the short run.

What does your ministry think about the sanctions against Crimea that other countries imposed? Crimea is a close territory to Turkey. Are Turkish goods delivered there? Will they be supplied there? How can you assess the exchange of goods and the customs regarding Crimea?

Our approach concerning Crimea is known. As a rule, our relations with Russia are at a good level. We would like to maintain the same position we occupied before the incident with the Russian plane.

'The leaders of Turkey and Russia are ambitious people'

Turkey is Tatarstan's key partner in terms of the volume of investments, which has already reached $2bn, and commodity turnover. How do you estimate the development of economic ties with Tatarstan, especially developmet of import of goods made by Tatarstan enterprises to Turkey?

Tatarstan is a republic we pay great attention to. We put enormous efforts to develop our commercial and economic ties. We import goods of Tatarstan with pleasure. There are bilateral agreements. There also be new agreements. The Ministry of Economy is working on it. I am sure the signed agreement will be clear very soon. Customs duties between the two countries will also be reviewed in order to pave the way for the development of commercial and economic ties.

You have said it is planned to increase the commodity turnover between the countries to $100bn. It is a huge sum. Is only power engineering meant? Or are there other spheres too? What are these spheres?

The leaders of Turkey and Russia are ambitious people. They have ambitious plans, and we are glad about that. Power engineering is the key issue of cooperation between our countries. But there are many other spheres. Tourism, health and mining can be an area for new relations. Our businesspeople of Turkey and Russia can work in third countries. It gives new perspectives. Even in space exploration. New areas will be definitely attracted for cooperation.

What do you mean by export to third countries?

There is such an opportunity in construction of oil refinery, tourism, medical tourism, health. We can work together by offering services to citizens from third countries. This and many other projects can be realised together. Of course, commercial companies express their initiative themselves, while the country creates necessary conditions.

'Depending on the normalization of relations with Russian, we will normalize and broaden the ties with the regions of Northern Caucasus.' Photo: paradise-journal.ru

As for the commercial relations between Turkey and Northern Caucasus. This region's level did not have the same level that Tatarstan had. But there are several projects, including the Chechnya Republic, Ingushetia before the incident with the plane. Turkish companies were restoring the whole Chechnya republic. What is your vision of development of relations with Northern Caucasus regions?

Depending on possibilities, we are trying to improve our relations in terms of the development of infrastructure and commerce with Northern Caucasus regions. But it will be done together with the development of common relations with Russia. We need to be realistic. We will precipitate customs procedures, create favourable conditions for businesspeople who will express their desire to invest in a business in Northern Caucasus. Depending on the normalisation of relations with Russia, we will normalise and improve the ties with the regions of Northern Caucasus.

'The ban on export to Russia did not affect the domestic market'

Is there already any agreement to return Turkish tomatoes to Russia?

Turkish tomatoes are about to appear in the Russian market soon. Importing companies did a corresponding job. You will have them in the short run for a reasonable price.

What can you say about oil and gas agreements? Or is not it outside the range of your Ministry?

In general, the energy congress is dedicated to this topic. I have not met the Oil and Gas Minister after that yet. But we see a positive development.

Did the opening of the Russian market affect the prices for tomatoes inside Turkey? Is it true? Will the opening of the Russian market influence the prices inside the country?

There have not been any price fluctuations since 24 November 2015 when Russia imposed an embargo. I think it won't affect the domestic market. When the Russian market closed, we looked for and found new markets where we sent our goods to. The ban on export to Russia did not affect the domestic market. Now the change of the direction of Turkish vegetables won't influence the prices in the domestic market.

'Power engineering is the key issue of cooperation between our countries. But there are many other spheres. Tourism, health can be an area for new relations.' Photo: ntv.ru

What does the Turkish export consist of?

The European Union takes the first place where we export 49% of our goods. Iraq takes the second position. Great Britain is on the third place if we don't consider it as a part of the EU. Russia occupies the fourth place. We export the greatest part of goods to Germany among the EU member states.

What does Turkey import from Russia?

As you know, natural gas. Wheat takes an important position — $1,1m. Non-ferrous metals, rare metals, equipment and machines tools.