President of Turkey, Recep Tayyip Erdogan sees trade with Iran hitting the $30 billion mark “soon” as the two regional powers are shoring up relations on multiple fronts.
ECO-IEST: President of Turkey, Recep Tayyip Erdogan sees trade with Iran hitting the $30 billion mark "soon” as the two regional powers are shoring up relations on multiple fronts.
"With the large-scale planning which is underway, we will soon reach the sum of $30 billion in trade transactions between the two countries,” the Turkish leader told Iran’s First Vice President Es’haq Jahangiri in Istanbul Friday night, the state news agency IRNA reported.
Iran's First Vice President Es'haq Jahangiri traveled to Turkey to attend a summit of Developing-8 countries, where the two countries’ central banks also formally agreed to trade in their local currencies.
'Using the two countries' national currencies in trading, following up round-the-clock work at the border stations, activating the private sectors more and facilitating banking and commerce cooperation can help the two sides achieve their economic goals,' Jahangiri stressed.
He added that Iran and Turkey will hold a meeting of the joint economic commission in the near future to follow up their economic goals.
'Iran is ready to supply energy for Turkey,' said Jahangiri, expressing Iran's readiness to increase its oil and gas exports to its neighboring country.
Turkish Prime Minister Binali Yildirim said trading with local currencies would help improve economic ties through making dealings easier and increasing their volume and diversity.
Hundreds of trucks bringing in diesel from Iran line up on a road as they head to the eastern province of Van in Turkey, Nov. 30, 2005.
Turkey is the biggest purchaser of Iran’s natural gas and a major Iranian oil importer. Erdogan said on Friday his country is interested in buying more oil from the Islamic Republic.
According to Turkey’s Energy Market Regulatory statistics, the country imported 225,800 barrels per day of oil from Iran on average between January and April.
Iran is also Turkey's second-biggest supplier of natural gas after Russia and sells about 10 billion cubic meters a year of gas under a 25-year supply deal.
Earlier this month, President Hassan Rouhani said during a joint news conference with Erdogan in Tehran that Iran would pump more natural gas to Turkey as part of the Islamic Republic’s plans to expand economic ties with its neighbor.
The Turkish president said the two countries needed to remove obstacles and use their joint potentials, experiences and capacities to improve their cooperation.
Jahangiri called for an expedited implementation of the agreement to use local currencies in bilateral trade and for the countries’ border terminals to offer 24-hour service, besides activating their private sectors and facilitating banking and customs processes.
"Iran and Turkey, as the two great countries of the region, have vast capabilities and capacities that should be used to develop and consolidate their relations,” he said.
Turkey and Iran were quick to fly food and other commodities and then agreed on a land route to export goods to Qatar after the tiny country came under an economic blockade of Saudi Arabia, Bahrain and the United Arab Emirates in June.
D-8 Summit in Istanbul ended with Erdogan's speech on Friday 20 October 2017 and later D-8 Organization and Islamic Development Bank signed an MoU.
The D-8 Organization for Economic Cooperation, also known as Developing-8, is an organization for development co-operation among Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, and Turkey.