OREANDA-NEWS. December 28, 2011. Transcript of the beginning of the meeting:  Vladimir Putin: Mr Minister, friends, I am glad to see you in Moscow. Let me welcome you and speak to the conclusion of our extensive collaboration in the development of strategic cooperation between Turkey and Russia in the energy sector.

Two years ago, Prime Minister Recep Erdogan and I began this dialogue and outlined the areas of our cooperation. This cooperation includes the delivery of hydrocarbons – oil, gas, and oil products – to Turkey. It also includes cooperation in power engineering and nuclear power industries. With your help, Mr Minister, and with the help of the government of Turkey and Prime Minister Recep Erdogan, we have achieved much headway in these areas.

Power engineering is not the only sphere of our cooperation, though it is a highly important one. Russia and Turkey are actively developing our relations in high-tech areas, science, commerce, agriculture, transportation and, certainly, the construction business.

I am pleased to note that our energy talks, which have been fairly strained and difficult, have yielded positive results. I would like to thank you, Mr Minister, and our Turkish friends for this joint work. As always happens in such cases, the final agreement has come about as a result of mutually acceptable and mutually beneficial compromise.

We have agreed on long-term contracts for the delivery of gas to Turkey until 2021 and 2025. I would especially like to thank the Turkish government for its decision to give its final authorisation to Gazprom to build the South Stream gas pipeline system on the Black Sea bed in Turkey’s exclusive economic zone. This truly is a pan-European project. We are also grateful to the European Commission for its support of this project. We know that the EC has been supporting different infrastructure projects, including the South Stream. Participating in this project as shareholders are Russia’s Gazprom, Italy’s ENI, Electricite de France, and BASF of Germany. A total of seven countries are directly involved in the project.

These countries are Russia, Turkey, in whose exclusive economic zone the pipeline will be built, and five European and EU states: four EU members (Bulgaria, Hungary, Slovenia and Austria), and Serbia.

In the situation where Europe is not in the best economic shape, this is a very good message for all of us, a message that will certainly improve the energy component, revive the energy sector in that part of Europe, and will stabilise energy supplies to the European markets. Turkey’s role here will be very important. I would not like our negotiations today, the exchange of instruments, and the signing of contracts, to represent something final. I would like them to be just one stage in the development of our relations. Mr Minister, you understand what I'm talking about. You have the material at your fingertips; you have been negotiating energy cooperation with the Russian colleagues. For my part, I would like to say that the Russian government will do its best to support these initiatives. Today’s event is certainly a good New Year present to all of us. Please extend my best wishes to the prime minister and the president of Turkey. Thank you.

Taner Yildiz (via interpreter): I thank the esteemed prime minister for this opportunity. I would like to convey our prime minister’s gratitude, respect and congratulations. He also wished me to convey his certitude that the recent elections will make an important contribution to stability in Russia.

You summed up the energy dialogue between Russia and Turkey splendidly. We held a very constructive dialogue in this area, particularly with my dear friend Mr Sechin (Deputy Prime Minister Igor Sechin) and with the entire team – Mr Miller (Head of Gazprom Alexei Miller) and others. The protocol that you and our prime minister signed in 2009 is an order that we have been carrying out. Thus, we have now completed the process.

We have brought our strategic cooperation to a new level, and we must continue expanding our cooperation. I hope we will promote our relations in the future within the framework of the goals that our prime minister has set.

Let me thank you once again for your warm reception and convey to you the words of respect from our leaders.

Vladimir Putin: Thank you.

Taner Yildiz: I would like to present you with the authorisation for the construction of the South Stream pipeline.

Vladimir Putin: Thank you. I would like to say in this regard that we have accomplished everything we had agreed upon with the Prime Minister of Turkey. I want to thank you and to emphasise that we have become convinced once again that Turkey is a reliable partner.

Taner Yildiz: My prime minister emphatically asked me to convey this to you and to make the presentation.

Vladimir Putin: Thank you.