Free Trial
EURIBOR OPTIONS

Call ladder strip

EURIBOR OPTIONS

Call ladder closing

POLAND

Consumer Confidence Falls To New Record Low

NOK

Broader base buying post rate decision

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Concern Over Potential Energy Deal As Putin And Erdogan Meet In Sochi

SECURITY

Turkish President Recep Erdogan is set to meet his Russia counterpart Vladimir Putin in Sochi, Russia today. The second meeting between the two, following a trilateral meeting with Iranian President Ebrahim Raisi in Tehran last month.

  • The meeting comes at the conclusion of a successful first week of the Turkish brokered grain corridor in the Black Sea, but concerns are mounting within NATO over the nature of the closer relationship between Turkey and Russia.
  • The Washington Post has reported that Moscow seeks to deepen economic ties with Istanbul as a means to circumvent sanctions.
  • WaPo: A Russian proposal "shared with The Washington Post by Ukrainian intelligence, calls for Erdogan’s government to permit Russia to buy stakes in Turkish oil refineries, oil terminals and reservoirs — a move that economists say could help disguise the origin of its exports after the European Union’s oil embargo kicks in fully next year."
  • WaPo: "Russia also is requesting that several state-owned Turkish banks allow correspondent accounts for Russia’s biggest banks, which economists and sanctions experts say would be a flagrant breach of Western sanctions, and that Russian industrial producers be allowed to operate out of free economic zones in Turkey."
  • There is also the question of Erdogan's planned military operation in Norther Syria which is opposed by Russia, Iran, and NATO. Erdogan will be seeking the green light for this operation and may consider a 'quid pro quo' for Russia's blessing.
  • Another complicating factor is this weeks flare up in Nagorno-Karabakh. In 2020 Erdogan was seen as scoring a victory over Putin in the South Caucasian conflict by sponsoring Azerbaijan's military victory over Russian-backed Armenia.
  • There has been some speculation that Russia will request the purchase drones or drone technology from Erdogan but this is unlikely and has been ruled out by the manufacturer of the Turkish Bayraktar drones used by the Ukrainian military.
306 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Turkish President Recep Erdogan is set to meet his Russia counterpart Vladimir Putin in Sochi, Russia today. The second meeting between the two, following a trilateral meeting with Iranian President Ebrahim Raisi in Tehran last month.

  • The meeting comes at the conclusion of a successful first week of the Turkish brokered grain corridor in the Black Sea, but concerns are mounting within NATO over the nature of the closer relationship between Turkey and Russia.
  • The Washington Post has reported that Moscow seeks to deepen economic ties with Istanbul as a means to circumvent sanctions.
  • WaPo: A Russian proposal "shared with The Washington Post by Ukrainian intelligence, calls for Erdogan’s government to permit Russia to buy stakes in Turkish oil refineries, oil terminals and reservoirs — a move that economists say could help disguise the origin of its exports after the European Union’s oil embargo kicks in fully next year."
  • WaPo: "Russia also is requesting that several state-owned Turkish banks allow correspondent accounts for Russia’s biggest banks, which economists and sanctions experts say would be a flagrant breach of Western sanctions, and that Russian industrial producers be allowed to operate out of free economic zones in Turkey."
  • There is also the question of Erdogan's planned military operation in Norther Syria which is opposed by Russia, Iran, and NATO. Erdogan will be seeking the green light for this operation and may consider a 'quid pro quo' for Russia's blessing.
  • Another complicating factor is this weeks flare up in Nagorno-Karabakh. In 2020 Erdogan was seen as scoring a victory over Putin in the South Caucasian conflict by sponsoring Azerbaijan's military victory over Russian-backed Armenia.
  • There has been some speculation that Russia will request the purchase drones or drone technology from Erdogan but this is unlikely and has been ruled out by the manufacturer of the Turkish Bayraktar drones used by the Ukrainian military.