While Putin’s visit was bustling in Ankara on December 1, representatives of the Turkish business world in Russia met with the economy ministers Nihat Zeybekçi and Aleksey Ulyukayev at breakfast with the initiative of DEIK and expressed their problems. The Russian minister carefully noted the issues conveyed to him in concrete cases and pledged further efforts for a solution.

This meeting, organized by the Foreign Economic Relations Board (DEIK) was an important opportunity to convey the problems to one of the highest authorities first hand, although it does not stand out in the intensity of the trip.

A total of 21 businesspeople, including DEİK President Ömer Cihad Vardan, Vice President of DEİK / Turkish-Russian Business Council Cihan Candemir, Vice President İzzet Ekmekçibaşı, and DEİK members, together with Zorlu Holding Board Chairman Ahmet Nazif Zorlu, Anadolu Beverage Group Vice President Hüseyin Akın, Şişecam Vice Chairman and General Manager Prof. Dr. Ahmet Kırman, Head of Energy Business Council Süreyya Yücel Özden, DTİK / Eurasia Regional Committee Chairman Ali Galip Savaşır, International Technical Consultancy Council President Demir İnözü, Vice President of Turkey Contractors Union Burak Talu, Vice President of Tourism Investors Association Mustafa Keten and Chairman of the Executive Board of International Transporters Association Fatih Şener attended the meeting held in Ankara Rixos Hotel.

According to the information obtained, the meeting developed as follows:

Speaking at the meeting, Minister of Economy Nihat Zeybekci met with his Russian colleague almost every two days stating that they kept the pulse of the business relations between the two countries closely, that they have the same feelings and thoughts to remove the obstacles in front of mutual trade, that although the two countries have no restrictions in free trade with Russia, there were restrictions on both sides due to cooperation with the European Customs Union and Russia’s membership of the Customs Union with Kazakhstan and Belarus

Russian Economic Development Minister Aleksey Ulyukayev said that, in order to remove the obstacles of the commercial and economic relations between the two countries, firstly logistics, transportation and customs operations, then finance operations should be simplified, areas such as state-sponsored investment projects and wider use of local currencies, Turkey and Russia’s joint investment projects in third countries, especially the effectiveness and expertise in the construction and contracting firms from Turkey should be put on the table.

Ulyukayev, by mentioning the Turkish companies operating in the Special Economic Zones of Lipetsk and Alabuga (Tatarstan) of the Russian Federation, invited Turkish businessmen to do business in the Priority Regions in Development (TOR), which was decided to be established in the country.

Ulyukayev also said that despite the decrease in oil prices, new big projects will be started in Russia. In this context, for example, they want to see Turkish firms in highway construction projects. He added that they want to see not only the big firms coming from abroad but also SMEs. He gave information about the support for these companies, such as tax exemption, speeding up custom clearence, simplifying the registration procedure and keeping it out of strict control.

Then the problems were listened. Businesspeople bureaucratic difficulties, the proposal for the very urgent establishment of a direct RoRo line between Russia and Turkey in the Black Sea, insufficient determination of 9 thousand quotas for Turkish vehicles according to 22 thousand transports in 2011, non-payment of credits of Turkish contractors involved in construction projects under the Sochi Winter Olympics, benefit of Turkey from the special quota system applied to imported goods in the food sector of the Russian Federation, the necessity of regulating bureaucratic infrastructure for the promotion of investment in Russia, the price competition difficulties due to the reference price application applied at the customs, the importance of encouraging and extending the use of Russian Ruble and Turkish Lira in trade between Russia and Turkey, the rise of currency risk from using foreign currencies in trade between two countries, the prevention of efficient trade and other problems were mentioned.

Russian Economic Development Minister Aleksey Ulyukayev replied that the problem of credits experienced in Sochi projects should be investigated separately per case, UND’s request to increase the number of pass documents will be examined separately, in most cases it is the Foreign Investments High Advisory Board chaired by minister himself where they apply to solve the problems experienced by the companies, and that because this unit does business at the federal level, sometimes a solution should be sought at the local level.

Ulyukayev also said that there are already exemptions for imports of agricultural products from Turkey, for example there is higher taxation on products brought from Iran, but they acknowledge that speeding up plays an important role in customs clearance, necessary legal arrangements to facilitate land allocation in tourism investments were made this year, foreign workers / experts employment quotes could be increased and that they wish that other troubles to be delivered in written form to their Ministries.

IMPORTANT STATEMENTS FROM ZEYBEKCI

Economy Minister Nihat Zeybekci, assessed Turkey-Russia relations to RS FM, according to Russian President Vladimir Putin’s decisions taken in Ankara visit. Emphasizing that a different and new period has started between the two countries, Zeybekci said that deals with Russia on the issues of “free trade”, “use of national currencies”, “establishment of mutual funds”, “transport quotas” and “accreditation certificates” are on the agenda.
“There is a new term opportunity”
Describing the arrival of Russian President Putin with 10 ministers to Ankara and the agreements between the two countries, especially energy and trade, as “the new period with Russia”, Minister of Economy Nihat Zeybekci continued as follows:
“We are in a different and new era in Russia’s relations with Turkey. If there is an economic partnership ground between countries in the world where mutual benefits meet at the maximum level and this economic partnership ground is solid enough, then these relations are reliable and sustainable. Currently between Russia and Turkey there is a new era of opportunity to maximize the level of mutual economic relations. It should be based on a permanent economic partnership, not temporary and instant solutions, so you can build other things on it. That’s why I see this as an opportunity.”

“Collaboration reveals different things”

Emphasizing that almost everything that Russia doesn’t have has Turkey and almost everything that Turkey doesn’t have has Russia, Zeybekçi said, “When these two come together, very different thing come up. Whether in Eurasia, across Asia, or in the Middle East, the Gulf, North Africa, the Balkan or anywhere else these two can act together and can do many great things. Russia’s and Turkey’s inner potentials are also important.”

Here are the issues of the agreement between the two countries

Stating that the free trade agreement was mentioned between the two countries for the first time, Minister Zeybekci also gave the following information about the agreements made:
FREE TRADE AGREEMENT: This is the word that was pronounced fort he first time. There is also a free trade agreement in services and investments, plus a free trade agreement in areas such as agriculture, public procurement and metal groups, namely iron, steel, copper, aluminum, which are in the scope of the Eurasian Customs Union. This is something to continue under two separate titles: negotiations with Russia and the Eurasian Customs Union. This will provide us a lot. This means removing all trade barriers between the two countries. To trade freely in the products that are subject to a free trade agreement, to reset the customs, to remove all quotas and obstacles is something that will be provided again.

ESTABLISHMENT OF COMMON FUND: Beside this, the establishment of a joint fund between Russia and Turkey was something to be discussed for the first time. With this fund, a financing source will be established to be used in two countries, plus in third countries, for the work to be done by Russian-Turkish companies.
USING THE NATIONAL CURRENCIES: Another thing is the use of national currencies between the two countries. In other words, the use of the Turkish lira and the Russian ruble as a means of payment in the exchange of goods between the two countries. Nobody has any objection to this, it just needs to be formulated in the field of banking. In other words, the central banks of the two countries should work on this, determine the banks related to this and authorize them.

TRANSPORTATION QUOTAS: There are problems with transportation quotas. Work on the resolution of these has been started. Russia and Turkey are coming together in Istanbul on December 8. It is not at the level of ministers but at the level of undersecretaries, deputy undersecretaries. We expect quotas to be cancelled and mutual discussions. This was called a negotiable issue for both parties. This is currently under negotiations. And there is the issue of accreditations, there is also a task of the two countries recognizing each other’s certification.

TürkRus Magazine, 3 December 2014