ANKARA (AA) - The bilateral trade volume between Turkey and Russia is expected to reach 10 billion U.S. dollars by the end of this year, sources told A.A correspondent on Sunday.
Russian President Vladimir Putin will arrive in Turkey upon invitation of Turkish President Ahmet Necdet Sezer later today (Sunday).
Putin had to cancel the visit he was scheduled to pay to Turkey in September 2004 due to the terrorist act staged in North Ossetia.
Prior to Putin's visit, sources said that the natural gas agreement signed in 1984, and the provision of the agreement that 70 percent of the natural gas bought by Turkey from Russia will be paid by Turkish goods and services had an important role in improvement of Turkish-Russian relations.
-BILATERAL TRADE-
Turkey exported goods worth of 1.6 billion U.S. dollars in 2003, while this figure was recorded as 1.5 billion in the first seven months of 2004.
Turkey's imports from Russia was 5.4 billion U.S. dollars last year, while Russia exported goods worth of 2.7 billion U.S. dollars to Turkey in the first seven months of this year.
In the meantime, bilateral trade volume, which was 6.8 billion U.S. dollars last year, is expected to reach 10 billion by the end of this year.
Direct investments of Turkey in Russia exceeds 1 billion U.S. dollars. Turkey is mainly making investments in areas such as shopping malls, food and beverages, textile, banking, telecommunication, glass and machinery in Russia.
Enka-Holding - business centers, Ramenka (Koc-Enka) - retail trade, Anadolu Group (Efes) - beer industry, Netas (Rontelekom) - telecommunication, Zorlu Holding (Vestel) - television manufacture, Turkish Glass Factories (Ruscam) - glass manufacture, TOBB-TIM - trade center, Finansbank, Garantibank, Denizbank, Yapi Kredi Bankasi, Ziraat Bankasi - banking are the main investments of Turkish companies in Russia.
Turkish entrepreneurs are mainly active in construction area in Russia. Turkish contracting companies have undertaken 785 projects, worth of 13.2 billion U.S. dollars, in Russia so far.
-NATURAL GAS AGREEMENT-
Economic relations between Turkey and Russian Federation are based on the trade agreement signed on October 8th, 1937 and the trade and economic cooperation agreement signed on February 25th, 1991.
Under the natural gas agreement signed on April 17th, 1984, Turkey started to purchase natural gas from former Soviet Union for 25 years, starting from 1987. And, the former Soviet Union agreed to use 70 percent of the income it obtains from this agreement to buy goods and services from Turkey.
There are other agreements like agreements on prevention of double taxation, encouragement of investments and energy cooperation protocol between two countries.
(BRC)
2004-12-05