TURKEY: PUTIN TELLS ERDOGAN NOT TO LINK ARMENIAN

C O N F I D E N T I A L SECTION 01 OF 02 ANKARA 000737 SIPDIS DEPARTMENT ALSO FOR EUR/SE, EUR/CARC, EUR/RUS E.O. 12958: DECL: 05/22/2029 TAGS: ENRG PREL RS TU SUBJECT: TURKEY: PUTIN TELLS ERDOGAN NOT TO LINK ARMENIAN RAPPROCHEMENT WITH NAGORNO-KARABAKH REF: ANKARA 289 Classified By: POL Counselor Daniel O'Grady, for reasons 1.4 (b,d) ¶1. (C) Summary: PM Erdogan and Russian Prime Minister Putin discussed bilateral economic relations and regional issues during their three-hour meeting May 16 in Sochi, Russia. Trade dominated the conversation. Erdogan and Putin agreed to explore expanding bilateral energy relations, including continuation of a 1986 gas agreement and pushing forward with development of Blue Stream II. During the short period dedicated to regional issues, Putin encouraged Turkey to play a constructive role in resolving the territorial dispute between Armenia and Azerbaijan, adding that Turkey should not link Nagorno-Karabakh to Ankara's rapprochement with Yerevan. The two leaders will continue their conversation during Putin's pending visit to Turkey in June in connection with the Joint Economic Commission meeting. End Summary. ¶2. (C) The meeting between Erdogan and Putin was the leaders' eighth since 2004, according to MFA Russia Desk Officer Ayca Osafoglu. Erdogan's visit, she noted, was the first since his trip to Moscow during the August Georgia crisis. Osafoglu characterized Turkish relations with Russia as "perfect," with no significant bilateral political problems. The relationship has grown dynamically over the last decade, driven primarily by trade. Accordingly, economic issues dominated the leaders' discussion. Russian Embassy Political Officer Konstantin Ryzhak told us Erdogan and Putin dedicated one hour to trade during their tete-a-tete. The leaders also touched briefly on regional issues before joining the larger delegation for lunch. Erdogan later told the press that Turkey and Russia both have responsibilities in the region including Nagorno-Karabakh, the Middle East, and Cyprus. -------------- Bilateral Economic Relations -------------- ¶3. (C) The economic discussion focused primarily on energy. Ryzhak reported that Erdogan told Putin he was pleased with the bilateral relationship on gas and called Russia a "reliable partner." Putin agreed to establish a bilateral commission to discuss the possibility of a second Blue Stream pipeline. During a joint press conference, Putin said that construction of Blue Stream II is a priority for both countries. The leaders agreed to explore talks on extending the 1986 gas agreement set to expire in 2012. Regarding the Russian company Atomstroyexport's bid to build a nuclear power plant in Turkey (the sole bid received for the project),Erdogan assured Putin that the Turkish courts would soon issue a decision and that the GOT would make its announcement shortly afterward. ¶4. (C) Osafoglu and Ryzhak both told us that PM Erdogan pushed Putin hard to resolve ongoing procedural disputes regarding customs and trucking. Erdogan urged the GOR to rescind its policy on inspecting all Turkish goods, especially perishable agricultural products, entering Russia and to adopt for Turkey standards similar to those applied to other neighbors. Putin reportedly agreed to look into the issue, but cautioned that both sides have much to address before it can be resolved. He added that as the relationship is expanding fast, growing pains are to be expected. In addition, Putin reiterated his previous offer for Turkish construction firms to bid on Sochi Olympic infrastructure contracts. -------------- Armenia/Azerbaijan -------------- ¶5. (C) Osafoglu reported the two leaders briefly discussed Armenian-Azeri relations. Erdogan told Putin that Turkey would support any solution agreed upon by Baku and Yerevan. Erdogan noted, however, that the Minsk Group has talked for 17 years with few tangible results. Putin underscored that Armenia and Azerbaijan must find their own solution without outside influence. Putin remarked that he had wished the Prague Meeting of the Minsk Group had been more productive and that he hoped the St. Petersburg Meeting would have more fruitful results. Ryzhak added that Putin warned Erdogan not ANKARA 00000737 002 OF 002 to link Turkey/Armenia rapprochement to resolving Nagorno-Karabakh. The two Prime Ministers agreed to expand bilateral consultations within the UNSC and Putin praised Turkey's leadership in the Middle East. Contrary to Erdogan's statement to the press, Osafoglu and Ryzhak both told us that Cyprus was not raised during the meeting. Visit Ankara's Classified Web Site at http://www.intelink.sgov.gov/wiki/Portal:Turk ey JEFFREY