Insights into Turkish Domestic and International Politics during December 2011

Key Points:

• The TSK mistakenly bombs unarmed Kurdish smugglers near the Iraqi border, adding yet another incident that sets back Turkish-Kurdish relations and possibly fueling further violence.
• Military, economic and political ties are severed between France and NATO ally Turkey following the National Assembly’s vote to move an Armenian genocide bill forward.
• Turkey’s Central Bank sells off over $1 billion in dollars to combat rising inflation, though by month’s end the rate had surpassed 10%.
• Azerbaijan and Turkey agree to a new gas transport and supply deal for the Shah Deniz field, upsetting some in Brussels who feel the new pipeline could undermine the time consuming progress for NABUCCO. READ MORE

• EGF Editorial  |  Published on EGF: 21.01.2012  |  External Relations
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Issue 10: November-December 2011

A Snapshot of Key Developments in the External Relations of the Russian Gas Sector
Key points:

• Gazprom hasn’t given up on its attempts to break into South-East Asian gas markets. Its proposal for a potential trans-Korean pipeline has found support in both North and South Korea. However, North Korea’s change in leadership casts a shadow of doubt over the situation
• Gazprom’s purchase of the remaining 50 percent share in Beltransgaz brought a sigh of relief to European consumers, with transit disputes and Belarusian debts for Russian gas seemingly laid to rest. The purchase is one of several measures designed to bring Russia and Belarus closer together, and demonstrate to Ukraine the potential benefits of selling its gas transportation system to Gazprom
• Nord Stream was launched with great fanfare. The launch has a substantial impact on the current transit situation, with Ukraine looking like the loser of the piece as its transit volumes are increasingly likely to fall
• Gazprom intensified negotiations with Kiev over the possible sale of Ukraine’s gas transit system. Given the sale of Beltransgaz to Gazprom and the announcement that South Stream will go ahead as planned, there is a fair chance that Kiev will give up shares in its gas transport system
• The Turkish national gas pipelines operator, Botaş has refused to renew its 26-year contract to purchase 6 billion cubic metres (bcm) of Russian gas annually, which expired on the 31st of December 2011. Gazprom’s subsequent attempts to circumvent the national supplier have failed: The Turkish Ministry of Energy has refused applications by 26 companies for licences to import Russian gas
• PGNiG has filed an arbitration case against Gazprom for lower gas prices and greater spot-price element in contracts. Even if the Polish company ultimately succeeds in its aim, the process could drag on for months
• Gazprom plans to pay record dividends, estimated to be 200bn Roubles. However, shareholders should not expect such generosity from Gazprom next year: The size of Gazprom’s declared investment programme precludes similar profits next year.

• EGF Editorial  |  Published on EGF: 19.01.2012  |  Energy
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EGF Information Partner, Instituto Italiano Di Studi Strategici held its first Strategic Forum, "Arab Spring: Emerging Implication" on 13 Dec 2011 in Rome. Click here to read the Summary Report of this event. READ MORE

• EGF Editorial  |  Published on EGF: 02.01.2012  |  Security
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Following the earthquake on October 23, 2011, a second powerful tremor struck eastern Turkey on November 9, killing 40 people including a Japanese rescue worker and two Turkish journalists who were covering the aftermath of the October quake.
The strong quake came on top of a severe cold snap that left much of the province of Van covered in snow, as refugees in the stricken city of Ecris continued to live out of tents. READ MORE

• EGF Editorial  |  Published on EGF: 30.12.2011  |  External Relations
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ISSUE #38
11/07/2011
The visit by the International Monetary Fund (IMF) has yielded no significant result. On November 4, 2011, Max Alier, the IMF Resident Representative in Ukraine, announced that the fund has decided to take a pause in negotiations with Ukraine “to enable some additional technical work to be carried out.” “Policy discussions are expected to resume in the near future,” he noted. READ MORE

• Gorshenin Weekly  |  Published on EGF: 23.11.2011  |  External Relations
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ISSUE #40
11/21/2011
On 17 November 2011, the Supreme Council of Ukraine adopted a new draft law on electing MPs. As many as 366 lawmakers voted in favour of the bill, with 226 votes being the required minimum for its adoption. Both representatives of the majority and the opposition participated in the vote. READ MORE

• Gorshenin Weekly  |  Published on EGF: 23.11.2011  |  External Relations
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ISSUE #39
11/14/2011
On 14 November 2011, a temporary special commission for drawing up a new electoral law continued its work. The commission was set up on 3 November 2011. It is noteworthy that it has not achieved any results in its first week of work. The main reason can be attributed to the disagreements regarding the key provisions of the electoral draft law which arise among the MPs representing both the majority and the opposition. READ MORE

• Gorshenin Weekly  |  Published on EGF: 23.11.2011  |  External Relations
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Executive Summary
On Monday, May 16, 2011, The European Geopolitical Forum staged a roundtable discussion on the “Changing Dynamics of the Wider Black Sea in Regional Security and External Relations” at the Brussels School of International Studies, University of Kent. The roundtable featured key international speakers: Dr. Andrej Kreutz (Canada), renowned international relations specialist and author of the recent book, “Russia in the Middle East: Friend or Foe?”; and Igor Muradyan (Armenia), an acclaimed public commentator on the geopolitics and geo-economics of the Black Sea-Caucasus-Caspian area. The roundtable discussion also drew participation of officials from the Turkish Embassy in Belgium, NATO International Staff Political Affairs and Security Policy Division (IS PASP), the Mission of Ukraine to European Union, the Permanent Mission of the Russian Federation to NATO, the Energy Charter Secretariat, TUSIAD, the Armenian Federation of Europe, the Centre for East European and Asian Studies (Romania) and several other interested stakeholders. READ MORE

• EGF Editorial  |  Published on EGF: 13.11.2011  |  Security
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Issue 9: October 2011

A Snapshot of Key Developments in the External Relations of the Russian Gas Sector
Key points:

• In a somewhat surprising development for Gazprom, Turkish state-owned gas pipeline operator, Botaş, has declined to extend its contract for 6 billion cubic metres (bcm) of gas per year. The move is seen by some as an attempt by Ankara to obtain gas price discounts.
• The Polish state-owned energy company, PGNiG, has joined its European counterparts in pressing for lower gas prices from Gazprom. Warsaw wants to change the gas price formula and tie it to spot gas market prices.
• Another recent, unpleasant surprise for Gazprom was the launch of an investigation into its European partners carried out by the European Commission (EC). Officially, the EC investigation concerns the potential violation of antimonopoly legislation, although some commentators see the investigation as an attempt to strengthen the position of European consumers in their negotiations with the Russian gas giant.
• Belarus has agreed terms with Gazprom for the sale of the remaining 50 percent stake in Beltransgaz. In return, Belarus President, Alexander Lukashenko, is demanding guarantees of transit through the Belarusian pipeline network and a reduction in gas import prices to the level of internal Russian prices.
• Ukraine President, Viktor Yanukovich’s attempt to destroy his political rival, Yulia Timoshenko, is playing into Gazprom’s hands. As Brussels toughens its stance towards Kiev, Ukraine is forced to be more amenable in its negotiations with Russia, especially those over the future of Ukraine’s Gas Transit System (GTS)
• Prime Minister Vladimir Putin’s visit to China failed to produce a breakthrough in negotiations over the Altai gas pipeline and potential Russian gas deliveries to China. The price of gas exports via the Altai pipeline remains the main stumbling block, as Gazprom is currently seeking other ways of exporting gas to China, namely via the Sakhalin-Khabarovsk-Vladivostok pipeline.

• EGF Editorial  |  Published on EGF: 13.11.2011  |  Energy
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Insights into Turkish Domestic and International Politics during October 2011
Key Points:

• Turkey’s economy continues to flourish in comparison with other developed economies on its European periphery. The country gained over a million jobs and clocked an 11 percent growth rate in the first quarter of 2011 while its GDP grew by 8.8 percent.
• Germany’s Foreign Minister, Guido Westerwelle, leant his support to the Turkish accession bid to the EU, saying that the EU should be “fair to Turkey in the negotiation process.”
• Ankara continues its condemnation of Syrian violence against opposition and activist members, and according to a number of reports, is now hosting a group of former Syrian soldiers called the Free Syrian Army.
• A large earthquake in the Van province has exacerbated Kurdish-Turkish relations with claims of bias being leveled at the government for the manner of its response to the disaster in the mainly Kurdish region.
• Turkish Security Forces (TSK) continue their assault on PKK strongholds in Iraq after a devastating attack in mid-October that left 24 TSK soldiers dead. On October 28, police arrested a number of pro-Kurdish BDP Party members in and around Istanbul, including member of the intra-party constitutional commission, Buşra Ersanli.
• Azerbaijan and Turkey finally conclude a natural gas supply agreement following two years of negotiations, while BOTAS informs Gazprom that it will not renew a key existing gas supply contract with Russia.

• EGF Editorial  |  Published on EGF: 13.11.2011  |  Energy
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