Tag: TOBB

  • New Iranian firms in Turkey stir front company worries for Ankara

    New Iranian firms in Turkey stir front company worries for Ankara

    An unexpected number of Iranian-financed firms set up shop in Turkey in January, a development likely to cause discomfort in Ankara as Iran looks to develop a network of middlemen in Turkey and elsewhere to sidestep crushing international sanctions meant to halt its nuclear program Today`s Zaman reported.

    Ankara_111209

    There were 28 Iranian-funded foreign companies established in Turkey in January, which ranked just behind German investors, according to a report released by the Turkish Union of Chambers and Commodity Exchanges (TOBB) on Friday.

    The development continues a trend of an unprecedented number of Iranian-funded firms opening their doors in Turkey since international sanctions against Iran began in earnest two years ago. A previous TOBB report published in September 2012 stated that 651 Iranian-funded foreign companies were established in Turkey in the first nine months of 2012 and a total of 2,140 companies funded by Iran in 2011, other TOBB data show. This was a 40 percent rise over 2010.

    In turn, the trend has caused Ankara worry that potentially illegal activities by those Iranian companies will risk an unwanted confrontation between Ankara and its Western allies over US and EU-imposed sanctions, as well as several UN Security Council resolutions. Many of those firms, which are predominately listed as power generation, electronics and communications companies, are suspected by the US and EU of helping the country procure supplies under embargo.

    It isn’t the only way that Iran has made Turkey its ally against sanctions, though the US this month moved to block another Turkish lifeline to Iran, the “gold for gas” trade which saw Turkey export gold to Iran in exchange for Iranian natural gas and petrol. The trade saw Turkey export around $6.5 billion in gold to Iran in 2012, a more than tenfold increase over the year before.

    But while Turkey has traditionally been defiant about its right to continue that trade, arguing that Iran supplies 30 percent of its daily natural gas supply and it is too large a quantity to fully replace with imports from elsewhere, Ankara is likely to bow to pressure on a new US measure to block sales of precious metals to Iran. The new measure targets Halkbank, which has been used as an intermediary to convert the lira Tehran receives in gas sales into gold accounts. According to Reuters, Iranian couriers are then believed to withdraw gold from those accounts and ship the gold to Iran.

    But while highly visible intermediaries like Halkbank can be targeted, the smaller front firms looking to sneak goods and merchandise under the embargo may be much harder to stop. Previous reports by Today’s Zaman have shown that those companies use a number of poorly regulated intermediaries like Iraq and Pakistan to re-route merchandise from Turkey, or use the porous Esendere border crossing in Yüksekova in the southeastern Turkish province of Hakkari.

    The TOBB statistics provided by new Iranian firms entering Turkey also suggest that illegal actions may be afoot. A TOBB report in January last year saw 63 Iranian companies register in the month, versus just 36 German companies. Given that Germany’s trade with Turkey is over twice as high for that year, it suggests that many of those companies may indeed be fronts.

    Last January’s numbers also suggest that the overall number of Iranian firms registering in Turkey declined over the year, a trend Former Justice and Development Party (AKP) Mardin deputy Cüneyt Yüksel told Today’s Zaman was likely the result of declining confidence and capital among non-front Iranian firms, expecially in the tourism sector.

    Nationalist Movement Party (MHP) Antalya Deputy Mehmet Gunal meanwhile told Today’s Zaman that Turkey and Iran have different views on the Syrian issue, a difference which could also be a contributor to the decline in the number of Iranian businesses.

    Even if Turkey does crack down on suspicious Iranian firms, there are still likely ways Tehran will be able to ship parts critical for its nuclear program through its borders. This weekend a report by nuclear watchdog, the Institute for Science and International Security, reported that Tehran has used China as a conduit for specialized magnets needed to develop nuclear weapons.

    In July of last year Washington took its most notable step to stop front companies from supplying Iran, releasing a list of ships and banks that it said were helping Tehran acquire a nuclear weapon. The US and the EU have worked to freeze financial transactions and to fine companies knowingly doing business with fronts for Iran.

    via New Iranian firms in Turkey stir front company worries for Ankara – Trend.Az.

  • Number of Iranian-funded companies in Turkey tops list once again

    Number of Iranian-funded companies in Turkey tops list once again

    The number of Iranian-funded foreign companies in Turkey rose for the fifth consecutive month this year, according to the Turkish Union of Chambers and Commodity Exchanges (TOBB).

    turkey iran2d

    A report issued by TOBB stated that 27 percent of foreign companies that were established in Turkey in May were Iranian-funded.

    The report, which provides statistics of companies that were set up and closed down in May 2012, stated that 86 companies — out of the 320 that were established with foreign partners last month — are Iranian-funded. The report also stated that 431 Iranian-funded foreign companies had been established in Turkey in the first five months of the year. The next two foreign investors on the list were Germans, with 152 companies established this year, and Russians, with 85.

    The Iranian firms in Turkey are mainly in the electricity, electronics, communications and construction sectors. According to the registry list for companies provided by the Istanbul Chamber of Commerce (ITO), more than half of the Iranian-funded companies in Turkey — 1,200 to be exact — are located in Istanbul. Currently, 25 percent of all foreign companies are based in Istanbul.

    TOBB previously announced that 590 foreign companies had been financed by Iran in 2011, which was an increase of 41 percent compared to the previous year. This puts Iran on the top of the list of new foreign companies established in 2011, not only based on nominal figures but percentage-wise as well. As of Dec. 31, 2011, the number of companies funded by Iran totaled 2,140, with a quarter established in the last year alone.

    TOBB also reported that Iran had topped the list in January with 63 new companies. However, this is not commensurate with the trade volume Iran maintains with Turkey. As of last year, trade volume between the two countries amounted to $16 billion, mostly from Iranian natural gas and oil proceeds. Turkey imports some 30 percent of its oil needs, or 200,000 barrels per day, from Iran, which represents over 7 percent of Iranian oil exports. Iran also meets a third of Turkey’s natural gas demand.

    In contrast, Germany, Turkey’s largest commercial partner with $37 billion in non-energy trade, only established 36 companies in January.

    “Some of these [Iranian] companies were established to procure goods and merchandise for the Iranian economy in clear violation of the sanctions. They use smugglers to get the merchandise across the border to Iran,” a former senior executive of a Turkish company that has a multi-million dollar investment in Iran said.

    via Number of Iranian-funded companies in Turkey tops list once again – Tehran Times.

  • Turkey’s leading civil society organizations join forces against PKK

    Turkey’s leading civil society organizations join forces against PKK

    TOBB’s Rifat Hisarcıklıoğlu (C) calls for unity against PKK attacks. AA photo
    TOBB’s Rifat Hisarcıklıoğlu (C) calls for unity against PKK attacks. AA photo

    A major rally is being planned for Istanbul on Oct. 30, with organizers aiming to bring together 1 million people to march against escalating acts of terrorism in the wake of bloody attacks last week, according to an announcement by 24 nongovernmental organizations. The group includes some of the country’s most influential business circles and trade chambers and represents a broad swath of society.

    “We will hold a great march in Istanbul on Oct. 30 under the leadership of professional organizations, confederations of trade unions and associations with the support of our political parties. We will only raise our flag with its crescent and star, the symbol of our unity and integrity,” Rifat Hisarcıklıoğlu, president of the Union of Chambers and Commodity Exchanges of Turkey (TOBB) said at a press conference yesterday.

    The country’s civil society, mainly the professional organizations and business circles, have been mobilized after the outlawed Kurdistan Workers’ Party (PKK ) killed 24 troops in Çukurca province of Hakkari on Iraqi border in a move to show public resistance to terrorism.

    Hisarcıklıoğlu said they have established the “Platform for a Call for Unity” with 24 organizations but that the venue was open for anyone who wanted to take part in the initiative. Along with TOBB, which has more than 1.5 million members, prominent business organization the Turkish Industry and Business Association (TÜSİAD), the Workers’ Union Confederation (Türk-İş), the Bars Union (TBB) and the Turkish Exporters Assembly (TİM) have joined the platform. Leaders of these organizations visited President Abdullah Gül, Prime Minister Recep Tayyip Erdoğan and all opposition parties on Oct.21 to share their plans to hold the rally.

    “We saw that all political leaders in Turkey shares similar sensibilities against terrorism despite daily political disputes. Their common ground is our unity, integrity and fraternity. This is promising,” Hisarcıklıoğlu said. “We invite those who have the same feelings as us to this great march. We will walk altogether despite these dirty games. We invite everyone because it won’t happen without you.”

    It was not yet clear if leaders of the political parties would also take part in the march, but the platform intends to invite all of them. However, no party banners or flags can be raised during the march, the platform states. Details of the march will be announced this week.

    Despite wide representation, the Confederation of Revolutionary Trade Unions (DİSK), the Confederation of Public Sector Trade Unions (KESK) and the Turkish Engineers’ and Architects’ Chambers (TMMOB), known to be critical of the ruling Justice and Development Party (AKP), have not joined the platform.

    Hisarcıklıoğlu said they have not excluded anyone. “We have invited all societal organizations and our invitation is still valid. We want to march arm in arm with everyone,” he said. Reportedly, KESK and DİSK officials are set to discuss joining the platform.

    Change in plans

    The platform has changed its initial plan to hold simultaneous marches in the country’s seven regions after President Gül convinced them that such an initiative could face provocations in some regions, Turkish media reported.

    “We have no such fear. We are engaged in this in the name of 74 million people,” Hisarcıklıoğlu said, adding that they will act together in every part of the country when required. Another reason for holding only one march is to concentrate the density and public attention on one march only so that its influence can be multiplied, the Daily News has learned.

    via Turkey’s leading civil society organizations join forces against PKK – Hurriyet Daily News.

  • Turkey Seeks Closer Energy Partnership and LNG Contract with Qatar

    Turkey Seeks Closer Energy Partnership and LNG Contract with Qatar

    Turkey Seeks Closer Energy Partnership and LNG Contract with Qatar

    Publication: Eurasia Daily Monitor Volume: 6 Issue: 158
    August 18, 2009
    By: Saban Kardas
    The Emir of Qatar, Sheikh Hamad bin Khalifa al-Thani, paid a two day visit to Turkey on August 17-18, as the guest of Turkish President Abdullah Gul. They both signed several agreements aimed at improving bilateral relations, including promoting closer cooperation on energy issues.

    On August 17, Gul and al-Thani met in Istanbul. The Turkish and Qatari delegations held working meetings during the day, discussing regional issues as well as bilateral cooperation. The first bilateral agreement signed involved a protocol concerning regulating labor issues between the two countries. The second agreement was inked between Turkish Radio and Television Corporation and Qatar’s State Television to enhance broadcasting cooperation. The parties also signed a memorandum of understanding on waiving visa requirements for their citizens (Cihan, August 17).

    During the press briefing, Gul emphasized that the high-level delegation accompanying al-Thani indicated the importance that Qatar attaches to Turkey. He noted that economic cooperation was the most important aspect of bilateral ties and highlighted Qatar’s help in facilitating Turkey’s relations with other members of the Gulf Cooperation Council. Gul also referred to Qatar’s constructive role in regional affairs and praised his counterpart’s efforts to mediate over regional problems. He reiterated that Turkey and Qatar held similar positions on many issues, and that they had worked together to promote regional peace. Al-Thani also highlighted their growing bilateral ties and expressed his determination to further develop this relationship. Moreover, he acknowledged Turkey’s role in regional policies, and his gratitude toward Ankara for its position on the Palestinian issue (www.tcbb.gov.tr, August 17).

    The annual trade volume between both countries remains low at $1.5 billion. However, Qatar is an important destination for Turkish contractors and its companies have undertaken multi-billion dollar projects there. Realizing the great potential created by Qatar’s infrastructure investments and its expanding economy, the Turkish private sector wants to further penetrate this market. The Istanbul Chamber of Commerce (ITO) recently announced that as part of their “Gulf Expansion” project, they will hold a major Turkish export fair in Qatar in September (Hurriyet Daily News, July 26). Turkey is also eager to attract investments from Qatar to boost its own economic development, as part of its broader attempt to turn the country into a major destination for Persian Gulf capital (EDM, February 5).

    Reflecting these interests, on the second day of his trip Gul and al-Thani attended a working breakfast of the Turkish-Qatar Business Council, hosted by Turkey’s Union of Chambers and Commodity Exchanges (TOBB) and the Foreign Economic Relations Board (DEIK). Gul and the AKP government have proven instrumental in developing closer ties with Qatar and have promoted the flow of Qatari capital in Turkey, thanks partly to their personal ties. However, some of these business transactions were the subject of domestic political discussions. The joint-ventures between Qatari firms and businessmen close to the Turkish government continue to be a major source of criticism (Milliyet, May 1, 2008).

    The parties announced that they will set up a Turkey-Qatar Joint Energy Working Group. Gul said that they discussed the feasibility of gas pipelines, storage facilities and refineries, as well as meeting Turkey’s liquefied natural gas (LNG) needs. Gul invited Qatar to invest in the storage facilities in Turkey’s Mediterranean port of Ceyhan, which is the terminus of the Baku-Tbilisi-Ceyhan pipeline and the planned Samsun-Ceyhan pipeline. Ankara has actively promoted Ceyhan as a global energy terminal, and al-Thani responded to this offer with great enthusiasm (Vatan, August 18).

    Al-Thani also added that he hopes to see a “pipeline” running from Qatar to Turkey, and that the feasibility work on that project will continue. It was unclear, however, whether it would be a natural gas or crude pipeline, and what route it would follow.

    Prior to the visit, Turkish Energy and Natural Resources Minister Taner Yildiz had publicized the “natural gas” dimension of the bilateral meeting. Yildiz said that talks were underway with Qatar concerning importing LNG. Yildiz noted that his contacts with Qatar are part of a broader Turkish effort to diversify its energy suppliers and supply routes. He said that if the parties could reach a consensus, Turkey might import around 4 billion cubic meters (bcm) of LNG annually from Qatar (Anadolu Ajansi, August 16). He also added that he hoped to sign a declaration on LNG imports during the visit of the Qatari delegation, yet following the meetings no official announcement was made to that effect.

    Qatar is believed to possess the third largest gas reserves in the world, behind Russia and Iran. It is also a leading supplier of LNG and Turkey wants to develop cooperation with Qatar in natural gas projects. In July Qatar was represented during the signing ceremony of the E.U.-backed Nabucco pipeline and Prime Minister Recep Tayyip Erdogan maintained that Nabucco might tap into Qatar’s gas in the future (EDM, July 14).

    Ankara has attempted to import Qatari LNG for its domestic needs for some time. During Gul’s February 2008 and Erdogan’s April 2008 visits to Qatar, energy was an important item on their agendas. They raised the issue of LNG imports, and the negotiations on this have continued since (Hurriyet, February 5, 2008; ANKA, April 15, 2008).

    As a country heavily dependent on importing natural gas, Turkey meets its needs primarily through pipelines from Russia, Iran and Azerbaijan. It also has contracts with Algeria and Nigeria to import 4 bcm and 1.2 bcm of LNG annually, respectively. However, during the heavier winters, or when there are supply disruptions caused by the problems mainly encountered with Iran, Turkey is forced to buy LNG on spot markets. Since it lacks major natural gas storage facilities, such seasonal fluctuations result in the payment of higher sums for energy bills (Radikal, August 17). Therefore, Ankara is considering expanding the country’s storage capacity and importing larger amounts of LNG through long-term contracts, which might help it avoid such problems in the future.

    https://jamestown.org/program/turkey-seeks-closer-energy-partnership-and-lng-contract-with-qatar/