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Azerbaijan’s participation in G20 summit is very important for Turkey, Turkish Deputy Prime Minister Ali Babacan told Trend.

He added that Baku will make its contribution to this structure.

Azerbaijan is of special importance for Turkey, since the two countries are bound by the common history and culture, Babacan said.

Babacan reminded that Azerbaijan’s finance minister also participated in the previous event within G20.

“Azerbaijan will take part in other events to be held within G20 and B20 as well.”
Commenting on Turkey’s chairmanship in G20, Babacan said that currently, G20 is one of the most important economic and financial platforms in the world.

During the chairmanship of Turkey in G20, Ankara wants G20 countries to show interest in the countries which are not included in this structure, he said.

The Group of Twenty (G20) is a leading forum for discussion of global economic and financial cooperation. The G20 includes the 20 largest national economies - Argentina, Australia, Brazil, Britain, Germany, India, Indonesia, Italy, Canada, China, Mexico, Russia, Saudi Arabia, the US, Turkey, France, South Korea, Republic of South Africa, Japan and the EU.

About 85 percent of the global GDP accounts for these countries.

Russia chaired the G20 in 2013 and in 2014 it was replaced by Australia. This year Turkey is chairing the G20.

Dollar rate appreciation not to affect energy projects in Turkey

The dollar rate appreciation will not affect energy projects being implemented in Turkey, Ali Babacan said.

He said that the energy projects, being implemented by Turkey, are long-term ones.
"The daily fluctuations of the dollar rate in Turkey do not pose a risk to the energy projects," Babacan said.

He said that as it is known, the dollar rate appreciation versus all currencies, including the euro, has been recently observed in connection with the monetary policy of the US Central Bank.

"The currency rate depreciation versus dollar is being observed not only in Turkey but also in a number of developing countries," Babacan said.

He also said that the fluctuations was observed in Turkey previously, but market stabilized every time. Babacan said that Turkey expects that the national currency rate will be stable in the future.

The national currency of Turkey renewed its historical minimum, reaching 2.6862 liras per $1 on March 6, 2015.

The process of strengthening the lira (by 9.4 percent) in 2014 continued until September of that year. The exchange rate of the national currency started cheapening in the subsequent months. [The dollar exchange rate in Turkey increased by 7.4 percent by late 2014].

During the latest meeting Apr.22, Turkish Central Bank didn’t change the discount rate and kept it at 7.5 percent.

Turkmenistan and Northern Iraq can be gas suppliers through TANAP

Turkmenistan and Northern Iraq can be gas suppliers through the Trans-Anatolian gas pipeline, he added.

Regarding the future potential of TANAP, Turkmenistan can also supply gas via this pipeline if an agreement is reached, Babacan said.

Babacan said that gas from Northern Iraq, as well as from other sources can also be supplied via TANAP in the future.

TANAP is one of the priority projects in ensuring Europe’s energy security, the deputy prime minister said, adding that a number of European countries are also interested in this project and negotiations will be held with them in the future.

“Turkey is confident that the number of countries willing to get gas via TANAP will increase,” said Babacan.

He added that Turkey highly appreciates this project and hopes that the pipeline will be commissioned soon.

TANAP is an energy project that links Azerbaijan and Turkey alongside with other projects, and it is important not only for Azerbaijan, Georgia and Turkey, but also for Europe, Babacan said.

TANAP envisages the transportation of gas of Azerbaijan’s Shah Deniz field from the Georgian-Turkish border to the western borders of Turkey.

TANAP’s initial capacity is expected to reach 16 billion cubic meters of gas per year. Around six billion cubic meters of this gas will be delivered to Turkey and the rest of the volume to Europe.

Turkey will get gas in 2018. The gas will be supplied to Europe in early 2020 after the Trans Adriatic Pipeline (TAP) is constructed.

BP and the TANAP consortium signed March 13 a shareholder agreement, according to which BP will become one of the shareholders of TANAP. The agreement is one of the main documents for BP’s ownership of a stake in the TANAP project.

Following the completion of a legal implementation procedure, TANAP’s shareholders list will be as follows: SOCAR – 58 percent, Botas – 30 percent and BP – 12 percent.

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