Russia says no trade discrimination against Turks

Tue Sep 2, 2008 10:09am EDT

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By Thomas Grove

ISTANBUL, Sept 2 (Reuters) - Russia rejected Turkish charges on Tuesday that it was discriminating against Turks in a customs dispute which has hit trade relations between Ankara and its largest trading partner.

Turkish exporters began suffering delays last week at Russian border crossings, apparently punishment for Ankara allowing two U.S. ships to pass through the Bosphorus Strait to provide aid to Georgia after Moscow's military action there.

"There is no discrimination against Turks. Concrete approaches were assessed and our customs administration proposed a simplified customs system," Russian Foreign Minster Sergei Lavrov told a news conference in Istanbul.

Russia is Turkey's largest trade partner, with $38 billion in mutual trade seen for this year, and a Turkish business group said Turkish exporters could lose $3 billion if the dispute is not ended soon.

Moscow also supplies two thirds of Ankara's natural gas needs, and has been angered by what it calls a NATO build-up in the Black Sea, accessed via the Turkish-controlled Strait.

Speaking after talks with his Turkish counterpart Ali Babacan, Lavrov said Russian customs authorities were working to simplify their customs system.

"Our customs administration will hold talks on this soon and the problem will be solved," Lavrov added.

Russia says long inspections of trucks from Turkey are due to a new customs law, but analysts say Moscow may be flexing its economic muscle to put pressure on Ankara.

"We discussed problems resulting from delays at Russian customs. We believe this problem will be overcome," Babacan said, pledging Turkey's help to restore calm in the Caucasus.

"Achieving peace and stability in the Caucasus is of vital importance for Turkey," Babacan said, adding the the two countries discussed Turkey's proposal for a cooperation platform bringing together countries in the Caucasus.

Turkey, a close U.S. ally which aspires to join the European Union, has been forced to walk a fine line between its loyalties to NATO and its large financial and energy interests in Russia.

The international community has condemned Russia's campaign in Georgia and its subsequent recognition of Georgian breakaway regions South Ossetia and Abkhazia as independent states.

Turkey has refrained from strong condemnations of Russia. (Writing by Daren Butler)



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