FX.co ★ Turkish and Russian Parliaments OK joint pipeline project

The Russian government is keen to speed up ratification of the Turkish Stream agreement. Announced by Russia’s President Vladimir Putin over two years ago, the large-scale joint project went through ups and downs and was eventually signed by Russia’s and Turkey’s leaders on October 10, 2016 in Istanbul. In late 2016, the agreement was approved unanimously by Turkish deputies, encouraged by reconciliation between Moscow and Ankara. The Russian Parliament promptly followed their overseas colleagues.

Indeed, any project is instantly ratified in a country under an authoritarian regime. Deputies in puppet parliaments do not dare to vote against a proposal backed by a political leader. As for Turkish Stream, both parliaments voted as a pure formality. The lower house of Russia’s Parliament greenlighted the project on January 20 without going into discussions. The Federation Council gave their consent on February 1. Afterward, Russia’s President endorsed the ratified agreement on gas pipeline construction jointly with Turkey. The bill gives both parties full liberty in construction. Their participation is set out as follows: the project provides an efficient legal framework, including tax and customs regulations, aimed at design, construction, and utilization of the pipeline.

In other words, both parties confirmed their participation in the strategic project for their benefit. The total worth of the pipeline is estimated at EUR 11.4 billion. Turkish Stream will enable Russia to fulfil its commitment on gas supplies to the EU after 2019.