Moscow and Ankara bury their differences to set up $1bn Russian Turkish investment fund

Russian Turkish investment fund: With Russian President Putin due to meet with his Turkish counterpart Recep Erodgan at the World Energy Congress in Istanbul today,  Moscow and Ankara took another  significant step towards restoring normal relations between their two countries yesterday when they formally ratified plans to set up a $1bn joint investment fund which will be used to develop bilateral projects in the tourist, energy, agriculture and transport sectors. Heads of agreement were signed in Istanbul by Turkey’s Minister for the Economy Nihat Zeybekci and his Russian counterpart Alexey Ulyukayev, with the fund expected to swing into action by the end of next year.
The establishment of the fund and Putin’s presence in Istanbul would appear to signal the end of a turbulent chapter in relations between the two countries which began with the shooting down of a Russian jet over the Turkish border in November last year, prompting Moscow to place an embargo  on the  import of Turkish fruit and vegetables, poultry and salt and to help bring the Turkish tourist industry to its knees by slapping a ban on the sale of chartered flights to its holiday resorts. It also prohibited Turkish firms from working on construction projects in Russia without special exemption and suspended work on the Turkish Stream gas pipeline project along the bed of the Black Sea, across mainland Turkey and on to Europe, thereby depriving Ankara of as much as $1bn a year in transit fees.
Although the situation in Syria is almost certainly bound to dominate today’s discussions between the two Presidents, the Turkish Stream project has been back on the agenda since it was reported that Russian intelligence tip-offs helped Erdogan nip this July’s abortive military coup in the bud. The two leaders are also expected to discuss the  construction of Turkey’s first nuclear power station at Akkuyu, which Erdogan sees central to his  country’s drive for greater energy self-sufficiency. Putin has already lifted the ban on chartered holidays after Erdogan apologised for the jet incident, and in August, Russian Prime Minister Dmitry Medvedev announced that Russia would be gradually lifting restrictions on the import  of certain Turkish goods, including fruit and vegetables. 
Source: aa