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FACTDROP: Russia. could be the glue between Turkey and Greece through non-dollar trade


Russia. could be the glue between Turkey and Greece through non-dollar trade

Πηγή: The Examiner 
Feb 9 2015

As Russia continues to bring economy after economy into a new bi-lateral trading paradigm, the Eurasian power could soon pull off a massive coup, and one that has kept the nations of Greece and Turkey at odds with one another since the end of World War II until recent times.

On Feb. 9, Hakan Ates, the CEO of Turkey’s DenizBank, announced that Turkey is currently working with Russia on the establishment of a currency swap line that would allow each nation to trade directly with one another using each other's currencies, and outside the dollar which is quickly becoming more and more isolated from international trade. This swap line would be in addition to a Russo-Turk agreement that is in place to build a Turk-Stream pipelinethat will bypass Ukraine and start bringing in oil and natural gas to Europe through a Southern route.

And while new agreements between Russia and Turkey move forward at lightening speed, the ongoing financial crisis in Greece, coupled with Russia's willingness to intervene monetarily in the Eurozone country, could be the catalyst that opens the door for a new dawn of joint integration between two longstanding adversaries, and create an economic solution that would benefit both Greece and Turkey through the Eurasian Economic Union.

(Russia and Turkey are working towards trade payments in national currencies, according to the president and CEO of Turkey’s DenizBank, Hakan Ates.

“We are ready to do everything to facilitate the transition to payments in national currencies. Such a transition is possible but our central banks have to make this decision. We’re already working in this direction but haven’t reached direct agreements so far. We have to make it happen,” Ates said on Sunday.

DenizBank is almost entirely owned by Russia’s Sberbank, which has been under Western sanctions since last summer.

Trade between Russia and Turkey reached $32.7 billion in 2014, making Turkey Russia’s eighth biggest trading partner, while Russia is Turkey’s second-largest trading partner, after the European Union. - ) Russia Today

The key to a end of the decades long struggle between Greece and Turkey could be the jointly controlled island of Cyprus, and its functionality as a banking center between Europe and the Middle East. And just as recent as yesterday, Cyprus forged an agreement with Russia to allow military bases to be built on the island, which places them squarely in position of being able to negotiate economic treaties with both nations that might soon include oil production in the contested Aegean Sea.

Many financial analysts, including former Federal Reserve Chairman Alan Greenspan, believe that Greece will opt to leave the Euro and Eurozone, and begin a new financial system outside the Euro currency. And with the Southern European nation having plenty of resource reserves that only need capital and support to turn them into revenue generating commodities, having Russian influence over Turkey in a new trade agreement will allow any remaining Greek hatreds to dissipate should they eventually sign on board using the Eurasian Economic Union model as their platform.

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