In today’s world, decisions on energy are made not only on economic terms but, unfortunately, geopolitics also plays a major role. In this sense, Turkey's agreement with Iran to transport some 30 billion cubic metres of Iranian and Turkmen natural gas westward to Europe, while it makes good business sense for Turkey, Iran and the EU, may prompt a retaliatory response from the United States and Russia who oppose the deal for different reasons.
Washington wants to isolate Tehran over the controversy surrounding Iran's nuclear programme and its alleged role in destabilising Iraq. The US does not want Turkey to work alongside Russia or Iran. They would rather have Turkey work with Azerbaijan on the Shakh Deniz field or concentrate on purchasing its gas needs from Iraq.
Moscow, for its part, would like Turkey to boost its role in Russia's Blue Stream II pipeline project and is against Ankara’s deal with Tehran which would feed Iranian gas to the EU-backed 3,300-kilometre pipeline project, known as Nabucco, a project to pump Caspian gas to Europe via Turkey, Bulgaria, Hungary and Austria, bypassing Russia.
The European Commission was careful in its reaction on the Iran-Turkey deal. “That is the Russian and the American opinion. We would like to have as much information as possible to make a good analysis before making any comment because it is a delicate issue,” European Commission spokesman for energy, Ferran Tarradellas Espuny, told New Europe on July 18.
The spokesman reiterated earlier remarks that the EU is looking for Iranian gas to feed into Nabucco but he stressed “if the geopolitical circumstances allow it. We want to have good relations with everybody and certainly with Iran, which has the second largest resources of gas and it is near the European Union.”
The Iran-Turkey deal may help wean the EU from its dependence on Russia for natural gas and at the same time boost Turkey’s role as a transit country for energy supplies to the 27-nation bloc, improving European and Turkish relationships.
“Russia is already the largest exporter of natural gas to Europe and I think it would be wise for Turkey to cut a deal with the Iranians,” Fadel Gheit, an oil analyst at Oppenheimer and Co. in New York told New Europe on July 18.
Recent developments between Russia’s Gazprom and Italy’s Eni to build the South Stream pipeline have sped up the Iranian-Turkish talks. Turkish Prime Minister Recep Tayyip Erdogan has already rejected US criticism, saying Ankara is looking after its own interests.
“The relationship between US and Turkey will be obviously negatively impacted with the continuous interference in the internal affairs of all these countries,” Gheit said. “I would not be surprised at all if the US would underwrite development projects in Turkey to persuade the government to drop negotiations with Iran.” But the Turkish diplomat said was more optimistic. “I’m not thinking like this ... This deal is in the benefit of all countries. We cannot refuse it. Gas is indispensable.”
A window of opportunity for Turkey has opened, but a risky one at that. “Turkey took a very bold step by making this deal with Iran,” former Greek Energy Minister Eleftherios Verivakis told New Europe on July 17.
Meanwhile, Moscow said Russian-Turkish relations will not be strained by the deal. But it cautioned Ankara that it could reduce the importance of Turkey's role in the Blue Stream II project. It also warned Turkey that any major event inside Iran, such as a US attack against the country, could cause Ankara to lose USD six billion.
According to media reports, the balance in the internal White House debate over Iran has shifted back in favour of military action before US President George W Bush leaves office in 18 months. Vice President Dick Cheney, who has long favoured upping the threat of military action against Iran, called for this administration to resolve the Iran situation now. As Gheit pointedly said, “I hope this does not involve bombing them because the only language this administration knows is the language of military action which has been disastrous for all.”
Washington wants to isolate Tehran over the controversy surrounding Iran's nuclear programme and its alleged role in destabilising Iraq. The US does not want Turkey to work alongside Russia or Iran. They would rather have Turkey work with Azerbaijan on the Shakh Deniz field or concentrate on purchasing its gas needs from Iraq.
Moscow, for its part, would like Turkey to boost its role in Russia's Blue Stream II pipeline project and is against Ankara’s deal with Tehran which would feed Iranian gas to the EU-backed 3,300-kilometre pipeline project, known as Nabucco, a project to pump Caspian gas to Europe via Turkey, Bulgaria, Hungary and Austria, bypassing Russia.
The European Commission was careful in its reaction on the Iran-Turkey deal. “That is the Russian and the American opinion. We would like to have as much information as possible to make a good analysis before making any comment because it is a delicate issue,” European Commission spokesman for energy, Ferran Tarradellas Espuny, told New Europe on July 18.
The spokesman reiterated earlier remarks that the EU is looking for Iranian gas to feed into Nabucco but he stressed “if the geopolitical circumstances allow it. We want to have good relations with everybody and certainly with Iran, which has the second largest resources of gas and it is near the European Union.”
The Iran-Turkey deal may help wean the EU from its dependence on Russia for natural gas and at the same time boost Turkey’s role as a transit country for energy supplies to the 27-nation bloc, improving European and Turkish relationships.
“Russia is already the largest exporter of natural gas to Europe and I think it would be wise for Turkey to cut a deal with the Iranians,” Fadel Gheit, an oil analyst at Oppenheimer and Co. in New York told New Europe on July 18.
Recent developments between Russia’s Gazprom and Italy’s Eni to build the South Stream pipeline have sped up the Iranian-Turkish talks. Turkish Prime Minister Recep Tayyip Erdogan has already rejected US criticism, saying Ankara is looking after its own interests.
“The relationship between US and Turkey will be obviously negatively impacted with the continuous interference in the internal affairs of all these countries,” Gheit said. “I would not be surprised at all if the US would underwrite development projects in Turkey to persuade the government to drop negotiations with Iran.” But the Turkish diplomat said was more optimistic. “I’m not thinking like this ... This deal is in the benefit of all countries. We cannot refuse it. Gas is indispensable.”
A window of opportunity for Turkey has opened, but a risky one at that. “Turkey took a very bold step by making this deal with Iran,” former Greek Energy Minister Eleftherios Verivakis told New Europe on July 17.
Meanwhile, Moscow said Russian-Turkish relations will not be strained by the deal. But it cautioned Ankara that it could reduce the importance of Turkey's role in the Blue Stream II project. It also warned Turkey that any major event inside Iran, such as a US attack against the country, could cause Ankara to lose USD six billion.According to media reports, the balance in the internal White House debate over Iran has shifted back in favour of military action before US President George W Bush leaves office in 18 months. Vice President Dick Cheney, who has long favoured upping the threat of military action against Iran, called for this administration to resolve the Iran situation now. As Gheit pointedly said, “I hope this does not involve bombing them because the only language this administration knows is the language of military action which has been disastrous for all.”
Via: New Europe
