Cyprus Split 'still too Wide for Quick Solution': Ambassador

Mithat Rende served as Turkey’s Ambassador and Permanent Representative of Turkey to the OECD between 2013 and March 2016, during which time he was elected as Chairman of the OECD Executive Committee.

He has played a leading role in shaping Turkish energy and environmental policies for many years. He served as director-general for multilateral economic affairs, including energy and the environment, at Turkey’s foreign ministry,where he negotiated various energy-related agreements. He also served as Turkey’s Chief Climate Change Negotiator from 2009 to 2013.

Ambassador Rende, what are your views on recent major gas discoveries in the eastern Mediterranean and their potential impact on the region?

The eastern Mediterranean has seen quite a few world-class gas discoveries over the last few years: Tamar, Leviathan, Aphrodite and Zohr. Their development should provide an opportunity for regional cooperation and the foundation for lasting peace and prosperity in the region. Gas may encourage the eastern Mediterranean countries to narrow their differences and share the benefits.

But there are many challenges to overcome before we get to that point. Recent gas discoveries have added new anxieties to an already volatile region.

The wider region is fraught with complex political situations, unresolved conflicts and regulatory challenges. The geology of the eastern Mediterranean and the depth of these gas discoveries make exploration and exploitation both challenging and expensive. Additionally, access to energy markets through both viable and affordable infrastructure is another challenge facing the region.

What could be Turkey’s role in this?

Turkey can be both a major market and a transit country for eastern Mediterranean gas. Its strategic geographic location puts it at the centre of gas trading in the wider region. About half the global oil and gas consumption by the EU, and beyond, is west of Turkey and about 70% of proven global oil and gas reserves is to the east. The Southern Gas Corridor, including the trans-Anatolia Pipeline (Tanap), which is the most important component, is being constructed through Turkey.

Turkey is one of the largest and fastest growing energy markets. Turkey imports 98% of its gas and its energy demand is growing by some 4%-5%/year. Supply security is an overriding issue for Turkey. This makes Turkey the most viable, profitable and sustainable energy market in the region, ideal for eastern Mediterranean gas exports, but also from there to Europe.

You referred to complex political situations and conflicts. One of these is maritime delineation and agreements over exclusive economic zones are another. How do you see Turkey’s role in these, especially with regards to Cyprus?

Turkey has no claim in the maritime areas in the south of Cyprus, including the areas where the Greek Cypriots started drilling activities. But Turkish Cypriots have equal and inherent rights over the resources of the whole continental shelf of the island. However, it is important to recall that in relation to those blocks declared by the Greek Cypriots that overlap with the Turkish continental shelf, Turkey has made it quite clear that it will not permit any drilling activities.

Turkey’s view is that the two peoples of the island should jointly decide on how to use the offshore oil and gas resources. Greek Cypriots should respect that.

This brings us to the difficult Cyprus problem. Negotiations to settle this are progressing but a lot still needs to be done. What are your views?

There is now a positive climate on the island. The two sides have entered into a stage of intensified negotiations that appear to be result-orientated and not just process-orientated. All parties should place sincere efforts to achieve a settlement in the interest of the two peoples. However, at this stage positions are still not sufficiently close enough.

In a broader perspective a comprehensive settlement will certainly contribute to eliminating instabilities in the region. Turkey is committed to a lasting settlement.

How can this be achieved?

Where there is a will, there is a way. If there is political will on the part of all relevant parties then a settlement could be possible in the near future. Cyprus needs a federal system that respects the fundamental EU principles and the bi-zonal and bi-communal nature of the federation as stated in the joint declaration of 2014.

This is a case of creating a partnership between the co-owners of the island, including the just sharing of resources.

Finally, over many years you have had a leading role in shaping Turkey’s energy policies. What are Turkey’s plans?

Turkey is not an energy-abundant country but we gained a significant place through our energy strategy and through the energy security measures we have been taking and are continuing to take. We want to make our energy basket more efficient. In order to do this, we want to diversify and utilize the most suitable energy resources, including the commissioning of nuclear power plants as soon as possible.

We also want to have a better sustainable energy mix by increasing our renewable energy capacity along with hydraulic, wind and solar energy. We are also aiming to increase energy productivity and become a low carbon economy in due course.

Turkey has emerged as an important energy player and its role in the global energy market has been growing, as it is not only a transit country but also a major energy consumer and has the potential to become an energy hub with its exceptional geographical location, major energy infrastructure and sound energy diplomacy.

Thank you very much, Ambassador

Dr Charles Ellinas, @CharlesEllinas

Nonresident Senior Fellow – Eurasian Energy Futures Initiative – Atlantic Council