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NO. 43 JULY 2021            Introduction

Canal Istanbul:
Turkey’s Controversial Megaproject
Its Likely Impacts on the Montreux Convention and Regional Stability
Tuba Eldem

On June 26, the Turkish government began constructing the first bridge over Canal
Istanbul, the huge waterway project designed to run parallel to the Bosporus Strait.
Ankara has presented the megaproject as a strategic move that will turn Turkey into
a logistics base and grant it geo-political leverage over both regional and internation-
al trade and transportation routes. However, Turkey’s political opposition considers
Canal Istanbul to be a rent-seeking project designed to attract international – prob-
ably Chinese and Arab – investment in the hope of reviving Turkey’s deteriorating
economy. The Canal may also affect the Montreux Convention, the decades old treaty
that governs the Turkish Straits. Given the rivalry between the US and Russia, ques-
tions around the Montreux Convention will add another point of contention, increase
tensions and may also present serious consequences for Turkey.

On April 5, Turkish police detained 10, and    presence of non-littoral states’ warships
summoned four, of the 104 retired admirals     in the Black Sea to 21 days. The announce-
who, in an open letter, expressed their con-   ment triggered an immediate reaction from
cerns that Canal Istanbul would jeopardise     Moscow, which labelled the move a “pro-
Ankara’s existing rights over the Turkish      vocative measure”. Although the US ulti-
Straits as granted by the Montreux Con-        mately cancelled the deployment of these
vention. The detainment of the admirals        warships amid rising tensions, this series
coincided with Washington’s notification       of events nevertheless reminded those
that it would deploy two warships to the       watching of both the geo-strategic impor-
Black Sea amid Russia’s military build-up      tance of the Turkish Straits and the critical
along Ukraine’s borders. On April 9, Tur-      role of the Montreux Convention in Black
key’s Foreign Ministry announced that the      Sea regional security.
two US warships would pass to the Black
Sea and remain there until May 4. Wash-
ington’s notice adhered to the Montreux
Convention, which requires 15 days’
advance notice to be given and limits the
The Turkish Straits as a                           from Russia, Ukraine and Kazakhstan pass
                 Critical Maritime Chokepoint                       through the Turkish Straits. Rapid and con-
                                                                    tinued growth in exports from the Black
                 The Bosporus and the Dardanelles, collec-          Sea region is expected to increase depend-
                 tively known as the Turkish Straits, connect       ence on the Turkish Straits, particularly
                 the Black Sea to the Mediterranean. They           when it comes to wheat. The Turkish Straits
                 are among the most critical maritime choke-        are considered a highly critical waterway
                 points worldwide. As major strategic water-        not only because of the volume of trade that
                 ways, the channels are home to natural             passes through them each year, but also be-
                 maritime traffic congestion and carry              cause no alternative maritime routes exist.
                 significant geo-economic and geo-strategic
                 importance. Given that 90 percent of world
                 trade is carried out via the sea, blocking         Canal Istanbul: A Controversial
                 such chokepoints, even temporarily, could          Megaproject Dividing the Nation
                 lead to substantial spikes in the costs of
                 traded goods as distances, sailing periods         Canal Istanbul, announced in 2011 by
                 and shipping costs increase, the impacts           Turkey’s then-Prime Minister Recep Tayyip
                 of which would be felt by exporting and            Erdogan, will be a 45-kilometre-long, 275-
                 importing economies alike. Controlling and         metre-wide and 20.75-metre-deep artificial
                 securing maritime chokepoints, thus, repre-        waterway running in parallel to the Bos-
                 sents an objective for every major geo-            porus, connecting the Black Sea to the Sea
                 strategic player.                                  of Marmara. The Turkish government
                     As noted in a 2017 US Energy Informa-          argues that the estimated $10–20 billion
                 tion Administration report, the Turkish            project will reduce oil tanker traffic
                 Straits, seeing 4 percent of global maritime       through the Bosporus Strait and minimise
                 oil pass through their waters, are one of the      the risks and dangers associated with
                 seven critical chokepoints for the maritime        maritime congestion. Around 43,000 vessels
                 transit of oil. They also occupy an impor-         transit the Turkish Straits each year (more
                 tant geo-political role in the EU’s oil supply     than the Suez Canal and the Panama Canal
                 from Central Asia and the Caucasus. The            combined) and they are less than 700 metres
                 construction of pipelines linking Azer-            wide at their narrowest point. The Bosporus
                 baijan and Kazakhstan to the Black Sea via         is the world’s narrowest strait for interna-
                 Georgia and Russia after the end of the Cold       tional navigation purposes and it is also one
                 War substantially increased the amount             of the busiest. Since the 1950s more than
                 of oil shipped through the Straits, reaching       461 maritime incidents have occurred here,
                 its peak in 2004 at more than 3.4 million          including more serious ones in 1979 and
                 barrels per day. Although the volume of            1994. The government expects that the
                 oil transiting the Turkish Straits fell to 2.4     relatively straight route of the artificial
                 million barrels per day in 2016 as Russia          Canal Istanbul, compared to the sharp
                 shifted its crude oil exports toward the           bends of the Bosporus, will help to prevent
                 Baltic ports, oil traffic through the Straits is   accidents and relieve congestion as tanker
                 expected to increase in step with Kazakh-          traffic would be diverted to the new canal.
                 stan’s growing production.                         Turkey’s Minister of Transport estimates
                     The Turkish Straits were also cited as one     that revenue from tolls would be at least
                 of the eight critical chokepoints of global        one billion dollars annually and could grow
                 food security in a 2017 Chatham House              to five billion dollars when maximum
                 report. One fifth of global wheat exports          capacity is reached.
                 and one sixth of global maize exports pass             However, critics of the project cast doubt
                 through the Turkish Straits, making them           on these claims on several grounds. Envi-
                 the world’s most significant transit point         ronmentalists and the Chamber of Environ-
                 for the grains. 77 percent of wheat exports        mental Engineers argue that the Canal

SWP Comment 43
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2
would imperil Istanbul’s tenuous water           Druzhba and the Baku–Tbilisi–Ceyhan
supply and devastate the surrounding eco-        pipelines) and the use of larger ships that
system, including the natural equilibrium        can carry more cargo. The Union of Cham-
between the Black Sea and the Sea of Mar-        bers of Turkish Engineers and Architects,
mara. The Chamber of Geological Engineers        and the Istanbul Metropolitan Municipality
warns that the Canal will exacerbate ex-         argue that the true driver of the project is
pected damage from the next major earth-         the economic rent that will be generated
quake in the coming decades. Maritime            by new zoning plans and licensing of real-
authorities and marine scientists underline      estate developments on the 36,453 hectares
that 66 percent of the accidents in the Bos-     of land around the Canal.
porus in the last 15 years occurred due to
technical failures, not due the sinuous
geography. They also note that the number        A Real Estate
of accidents has decreased by 39 percent         Development Project?
thanks to a series of measures undertaken
by successive Turkish governments since          The feasibility report prepared by the Minis-
1994. These include the adoption of a traf-      try of Infrastructure and Transport supports
fic separation scheme in 1994, the Maritime      the above claims that real estate zoning
Traffic Regulations for the Turkish Straits      would result in significant revenue, to the
of 1994 (revised in 1998), the radar-based       sum of an estimated $10.5 billion. This is
vessel traffic services system of 2003, and      because Canal Istanbul involves the con-
more recently, the Instructions for the          struction of two new “smart cities” along
Implementation of the Rules Regulating the       its banks that would host at least half a mil-
Turkish Straits Maritime Traffic Scheme of       lion residents and various amenities like a
2018. Captains of freight ships point out        marina, container port, logistics centre, six
that the risk of accidents is expected to be     bridge crossings, two deep subway crossings
even higher in the new canal with its depth      and a conventional railroad crossing that
of only 20.75 metres, especially for tankers     would run to Istanbul’s new airport. The
with a draft of more than 17 metres. They        government expects that the associated
go on to note that rescue operations will be     construction activity alone would provide a
more complicated in the Canal as its width       welcome boost to Turkey’s ailing economy
is only 275 metres. Retired generals and         and help to mitigate unemployment, which
admirals fear that the Canal will negatively     reached 13.4 percent in February 2021
impact the defence of the European part          according to the Turkish Statistical Insti-
of Istanbul, as it will effectively transform    tute. The project is also expected to bring
the city into an island while also isolating     in fresh foreign direct investment (FDI),
Thrace from the rest of Turkey. Economists       especially from Gulf Arab nations, led by
object to the Canal by arguing that the          Qatar. While FDI to Turkey has declined
Turkish economy is not strong enough to          significantly in recent years, the share of
bear the burden of a project of such scale.      revenue from real estate sales to foreigners
They also find the government’s revenue          has increased rapidly. The share of real
estimates to be overly optimistic consider-      estate in net FDI, which was 13 percent in
ing that the number of vessels passing           2007, increased to 54 percent in 2019 and
through the Bosporus has fallen by 43 per-       57 percent in 2020. With foreign currency
cent between 2006 and 2020, from 54,880          reserves in Turkey dwindling and the Turk-
to 38,404 per year. This diminishing traffic     ish lira falling against the US dollar and
can be attributed to decreased oil reserves,     euro, investment in the real estate sector
Russia’s shift to exporting oil via the Baltic   has, thus, become the principal way to
Sea ports, the formation of new passage-         bring in foreign cash and strengthen the
ways in the Arctic Sea, pipelines that allow     economic parameters ahead of future elec-
transit to bypass the Bosporus (such as the      tions.

                                                                                                  SWP Comment 43
                                                                                                        July 2021

                                                                                                               3
Project Finance:                                  Bosporus railway tunnel) and for the Yavuz
                 China’s Trojan Horse?                             Sultan Selim Bridge over the Bosporus in
                                                                   2018. Later in 2019, this time together with
                 Nonetheless, project financing remains in         the Bank of China and the China Develop-
                 limbo. Citing the UN-backed Principles            ment Bank, the ICBC offered $1.7 billion
                 for Responsible Banking, some of Turkey’s         to the Hunutlu coal-based thermal power
                 biggest banks are reluctant to finance the        plant project in Adana province, which was
                 project due to environmental concerns             cited by the Xinhua News Agency in Sep-
                 while also contemplating the inherent risks       tember 2019 as a “flagship project” linking
                 in financing such a large project that could      China’s BRI with Turkey’s pre-planned
                 be thwarted at a later stage. The reluctance      “Middle Corridor”. In 2015, a Chinese state-
                 of some Turkish lenders makes it more             owned consortium acquired a 65 percent
                 likely that state and foreign financing will      share of Istanbul’s Kumport terminal in the
                 take centre stage.                                Ambarli port complex near the Bosporus.
                    On April 30, Minister of Infrastructure        Kumport terminal, the third largest port in
                 and Transport Adil Karaismailoglu declared        Turkey, handles 16 percent of the country’s
                 that financial institutions from the Nether-      container traffic. This investment suggests
                 lands, Belgium, China and Russia were             that China might indeed be interested in
                 interested in the project. As part of its Mari-   financing Canal Istanbul and maritime
                 time Silk Road Initiative, China is reported-     ports in Turkey. According to the Turkish
                 ly showing greatest interest in the tender.       TV channel TGRT, the financing of Canal
                 China seeks to control “maritime choke-           Istanbul was one of the priority items on
                 points” and has undertaken port-related           the agenda during the visit of Chinese
                 cooperation with countries along the Medi-        Foreign Minister Wang Yi to Ankara on
                 terranean and Black Sea. Turkey’s estrange-       March 25.
                 ment from the West following the abortive
                 military coup of July 15, 2016 provided an
                 opportunity for China to improve coopera-         A Geo-strategic Pivot?
                 tive relations with Turkey that had begun
                 back in 2010. In November 2016, Turkey            Maybe more than the environmental and
                 and China signed an agreement on Turkey’s         economic costs, the geo-political implica-
                 inclusion in China’s Belt and Road Initia-        tions of Canal Istanbul have rung alarm
                 tive (BRI), through which Beijing promised        bells both at home and abroad considering
                 to invest $750 million in Turkish infrastruc-     that Ankara has been presenting mixed
                 ture. Since then, the volume of China’s FDI       messages with regards to the Montreux
                 in Turkey has increased more than three-          Convention. On the one hand, President
                 fold.                                             Erdogan seems to consider the Montreux
                    Back in 2018, the press reported that          Convention as disadvantageous to Turkey’s
                 China was willing to invest $65 billion in        regional power aspirations. On December
                 total into the project and could immediate-       18, 2019, he stated that “there is no right
                 ly transfer $30 billion as a deposit. More        given to us in Montreux. Ships come and go
                 recently, the Industrial and Commercial           through the Straits as they wish […] Canal
                 Bank of China (ICBC), the Bank of China,          Istanbul will not be like that. We will have
                 and the Hong Kong-based British bank              a new legal regime when we make this
                 HSBC are cited as potential financiers of the     investment, just as the Suez Canal and
                 project. The ICBC and the Bank of China           others”. Erdogan reiterated in Istanbul on
                 are significant sources of BRI financing in       December 23, 2019 that Canal Istanbul
                 Turkey and in other parts of the world. The       would reveal what Turkey had gained and
                 ICBC acquired a 75.5 percent stake of the         lost due to the Convention. These state-
                 Turkey’s Tekstilbank in 2014 and provided         ments triggered 126 retired ambassadors
                 a $2.7 billion loan for Marmaray (the sub-        to release a joint statement on January 31,

SWP Comment 43
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4
2020, calling for the abandonment of this       How Would the Montreux
project that “could lead to Turkey losing its   Convention be Affected by the
absolute sovereignty over the Bosporus and      Construction of a New Canal?
Dardanelles and the Sea of Marmara” by
opening the Montreux Convention up to           The Montreux Convention of 1936 is a
discussion. Reminding their audience of         multilateral treaty regulating maritime
Russia’s enduring claims to the Straits as      transit through the Bosporus, the Darda-
well as the US’s long-time interest in revis-   nelles and the Sea of Marmara. The con-
ing the Convention, the former ambassa-         struction of a manmade canal would not
dors underlined that Canal Istanbul may         directly affect the rules of Montreux as
end up serving the interests of those states.   international law on the sea separates the
Foreign Minister Mevlut Cavusoglu criti-        regime of straits and those of manmade
cised the joint declaration on February 2,      canals. The implementation of new regu-
2020, decrying it as “a purely politically      lations governing the Canal may, neverthe-
motivated statement” while arguing that         less, raise controversy and thereby open
Canal Istanbul would not put the Montreux       provisions of the Convention to discussion.
Convention at risk as Turkey would not          One possible point of contention could
force any vessel to use the waterway.           arise from the definition of the Turkish
   Discussions on the Montreux Convention       Straits in the preamble of the Montreux
have, however, resurged with the publica-       Convention as a single unit that comprises
tion of an open letter signed by 104 retired    the Dardanelles, the Sea of Marmara and
admirals on April 3, 2021. The letter called    the Bosporus. The proposed canal, however,
on the government to “refrain from any          would only connect the Black Sea and the
kind of action that could make the Mon-         Sea of Marmara, and ships would still need
treux Convention a matter of international      to traverse the Sea of Marmara and the
controversy” and was released shortly after     Dardanelles to access the Aegean Sea. This
Turkey’s withdrawal from the Istanbul Con-      may prompt the following controversies.
vention on March 20. Turkey’s withdrawal            Regarding merchant vessels, Turkey has
from the Istanbul Convention was pushed         no right to ban the passage of merchant
through by presidential decree, triggering      vessels traversing the Bosporus as the Con-
a debate on presidential powers and parlia-     vention affirms the principle of freedom of
mentary oversight. Speaker of the Parlia-       transit and navigation in the Straits without
ment Mustafa Sentop suggested on March          any time limit (Article 1) and guarantees all
24 that, in technical terms, it could be pos-   merchant ships free passage during peace-
sible in principle to withdraw from other       time (Article 2). However, it also enables
international conventions, including the        Turkey to issue “taxes and charges” for
Montreux Convention, by presidential            sanitary control, service of lighthouses, etc.
decree. Ankara lambasted the admirals’ let-     (Article 2 and Annex I). Currently, Turkey
ter as a tacit “coup threat” and launched       collects around $25 thousand for ships
legal proceedings against the retired ad-       carrying a capacity of 100 thousand net
mirals. Commenting on the letter on April       tons. Under the Convention, tax and
5, Erdogan sought to cool the controversy       charges cover round trip passage (valid for
but held his ground: “We have neither an        six months) through the entire waterway
ongoing work nor an intention to pull out       from the Bosporus, the Sea of Marmara and
of the Montreux Convention at present, but      the Dardanelles. It may stir controversy
we’ll not hesitate to review any agreement      if charges would be levied by a new canal,
with a view of securing a better one for our    especially given that pilotage and tug
country if such a need arises in the future”.   service fees that were made compulsory by
                                                Turkey in 1994 were again made optional
                                                in 1998. This reversion is the result of
                                                Russia and other states’ objections to the

                                                                                                 SWP Comment 43
                                                                                                       July 2021

                                                                                                              5
fees at the International Maritime Organi-        naval vessel may pass through the Darda-
                 zation; they saw them as contrary to “uni-        nelles and the Sea of Marmara and visit
                 versally recognized provisions of the Law of      the Port of Istanbul under mutual military
                 the Sea by which no regulations issued by         relations organised by the Turkish General
                 a coastal State may deny, hamper or impair        Staff. As Kurtulus Yucel suggests, such a
                 the rights of freedom of passage through          visit may not be addressed by the Montreux
                 international straits” and also as contrary to    Convention as the warship does not com-
                 “the terms of the Montreux Convention”.           plete the full trip foreseen under Montreux.
                    Regarding the passage of warships, the         This prompts the question: can a military
                 Environmental Impact Assessment report            vessel coming from the Aegean Sea and
                 published by the Ministry of Environment          visiting the Port of Istanbul (or any Turkish
                 and Urbanization in 2020, recommends              port in the Sea of Marmara) enter the Black
                 Turkey either to ban the passage of war-          Sea without providing advanced notice?
                 ships through the new canal or to apply           If such passage were possible, how would
                 the terms of the Convention to it. If Turkey      Turkey control whether warships entering
                 follows the first option, then no problems        or leaving the Black Sea comply with re-
                 will arise. However, if it opts for the second,   strictions related to tonnage, class and
                 then such a regulation is likely to be con-       duration? Thus, it is foreseeable that even
                 tested as the Convention imposes several          if the Canal might not affect the Montreux
                 restrictions on the passage of warships, in       regime directly, the application of the regu-
                 terms of their mode of entry, the duration        lations of the Canal could cause signatory
                 of their stay, their tonnage and their class.     states to argue that Turkey is in violation
                 Article 13 requests Black Sea littoral states     of the Convention, thereby leading to pro-
                 to provide the relevant Turkish authorities       posals for the Convention’s denunciation
                 with at least 8 days’ notice and non-littoral     or amendment.
                 states 15 days’ notice of an intended transit.
                 Article 14 limits the number of non-littoral
                 naval vessels that can pass through the           Scenarios of
                 Straits at any one time to nine. The maxi-        Convention Modification
                 mum aggregate tonnage of all foreign naval
                 forces which may be in the course of transit      Article 28 of the Convention allows any one
                 through the Straits at any one time should        of the signatory states, including Turkey,
                 also not exceed 15,000 tons. Yet, Article 11      Great Britain, France, Italy, Greece, Bulgaria,
                 grants littoral naval ships a greater tonnage     Romania, Russia, Ukraine and Georgia, to
                 allowance on the condition that these             request a demand for its denunciation. If
                 vessels pass through the Straits individually,    this happens, the signatory powers will
                 escorted by no more than two destroyers.          hold a conference to negotiate a new con-
                 Article 18 limits the duration of non-littoral    vention. The Montreux Convention is to
                 naval warships’ stay in the Black Sea to 21       continue in force until two years after such
                 days, and the aggregate tonnage of warships       notice has been given, although the prin-
                 belonging to all non-littoral states present      ciple of freedom of transit and navigation
                 in the Black Sea at any one time cannot           shall last “without limit of time”.
                 exceed 45,000 tons. Annex II of the Con-             Article 29 allows the signatory states to
                 vention prohibits the passage of aircraft         initiate a proposal to amend one or more
                 carriers. If Turkey allows warships to pass       of the provisions following a period of five
                 via the Canal, questions may arise about          years from the date of the entry into force
                 passage permissions as well as tonnage and        of the Convention in 1936. To be valid, any
                 class restrictions.                               request for modifications to Articles 14 or
                    If, on the other hand, Turkey uses its         18, which concern aggregate tonnage and
                 statute for foreign warships visiting Turkish     the number of war vessels in the Straits
                 ports in the Sea of Marmara, a non-littoral       and the Black Sea, must be supported by

SWP Comment 43
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6
another signatory state. In the case of           second is the removal of the 21-day dura-
modifications to any other article, it must       tion limit, which would allow NATO vessels
be supported by at least two other signatory      to maintain a steady presence in the Black
states. Notice for any request for revision       Sea. The third is the tonnage restrictions for
must be given to all parties three months         warships, which were already a point of
prior to the end of the five-year period and      contention between US and Turkish diplo-
should contain details of the proposed            mats during the Russian-Georgian War of
amendments and the reasoning therefor.            2008, when Turkey rejected the transit of
If an agreement on these proposals cannot         the US’s 69,552-ton hospital ship as it
be reached, a conference representing the         exceeded tonnage restrictions. The fourth
signatory states will be held in which deci-      concerns the exclusion of aircraft carriers
sions would be taken by unanimous vote.           from accessing the Black Sea. The fifth
There is an exception to this rule for pro-       might be to limit tonnage of commercial
posed amendments to Articles 14 and 18,           ships, which would increase Russia’s oil
for which a three-quarter majority of the         export costs and slow its access to the
signatory states must be secured. The said,       market.
this majority must include three-quarters             From the perspective of the EU, preserv-
of the signatory Black Sea littoral states, one   ing the status quo is important for its en-
of which must be Turkey. In this context,         ergy and security interests. The EU, which
although Turkey cannot single-handedly            receives a large bulk of its oil via the Bos-
force an amendment to the Convention,             porus, would arguably be concerned about
it has de facto veto power for revisions to       the potential of higher costs of transport
Articles 14 and 18. The existing five-year        due to transit tolls associated with the new
period ends on November 9, 2021, and a            canal. The adverse environmental effects
proposal for amendments must be put forth         of the Canal that could possibly affect the
on August 9, 2021.                                Aegean Sea may also increase tension be-
    If the Montreux Convention is formally        tween Turkey and EU-member Greece. The
challenged, it is likely that any new treaty      EU may use the Barcelona and Bucharest
would involve a group of countries differ-        Conventions as well as the EU Coastal and
ent from the high contracting parties of          Marine Environment Policy as leverage
1936. The US would likely want to be rep-         against the project. From a security perspec-
resented given its interests and obligations      tive, the restrictive provisions of the Mon-
to regional allies. In the face of current and    treux Convention are not a disadvantage for
future Russian naval expansion, it is highly      the EU because Romanian and Bulgarian
likely that Washington would look favour-         naval vessels can pass through the Straits
ably upon revision of the Convention. As a        without restrictions. Yet, in the case of a
matter of fact, in 2009, then-US Ambassa-         threat against their members in the Black
dor to Turkey James Jeffrey proposed break-       Sea, the EU may look favourably upon
ing the Convention to Retired Vice Admiral        revising these restrictive terms of the Con-
Atilla Kiyat, arguing that “nobody can do         vention. In such a scenario, Black Sea
anything when both Turkey and the US              littoral states including Ukraine, Georgia,
wanted it”. The US could, therefore, argu-        Romania and Bulgaria, may also look
ably look favourably upon revising the fol-       favourably upon modifying the Conven-
lowing five rules of the Montreux Conven-         tion. The post-Brexit United Kingdom,
tion to constrain Russia’s room for ma-           which is a party to the Convention, would
noeuvre. The first is standardisation of the      arguably act similarly to the US regarding
notification period to 15 days for all war-       possible revisions or a denunciation.
ships, which would send a signal to Moscow            Russia, however, would be deeply con-
that the international community could            cerned about any attempt to alter the status
slow the deployment of Russian naval              quo as the Convention constrains unwel-
forces entering the Mediterranean Sea. The        come Western presence in the Black Sea

                                                                                                   SWP Comment 43
                                                                                                         July 2021

                                                                                                                7
while also providing Russia an opportu-                       Meral Aksener, as well as Istanbul Mayor
                                 nity to develop an anti-access/area denial                    Ekrem Imamoglu sent strong messages to
                                 (A2/AD) capability. Arguably, the impor-                      the international community and possible
                                 tance of the Turkish Straits for Russia has                   financiers that the guarantees for loans will
                                 increased with the start of the Syrian Civil                  be limited to Erdogan’s tenure. Still, Erdo-
                                 War in 2011. The Turkish Straits provide a                    gan seems to be determined to carry out the
                                 unique connection between Moscow’s naval                      project not only to enhance Turkey’s geo-
                                 bases in Tartus, Syria and in the Black Sea.                  political leverage but also as a matter of
                                 After all, at 134, Russia accounted for 63                    personal prestige. If the project is material-
                                 percent of the total 214 warship passages                     ised, Erdogan will be able to one-up Otto-
© Stiftung Wissenschaft          through the Turkish Straits in 2019. Russia,                  man Sultans, such as Suleiman the Magnifi-
und Politik, 2021                therefore, insists on the application of the                  cent, who had attempted to build such a
All rights reserved              Convention to Canal Istanbul as expressed                     canal but eventually failed due to construc-
                                 by President Putin in a call with Erdogan                     tion challenges. He would also challenge
This Comment reflects
                                 on April 9. In 2019, Russian Ambassador to                    the legacy of Mustafa Kemal Ataturk, who
the author’s views.
                                 Turkey Aleksei Erkhov stated that Moscow                      attained his greatest diplomatic success
The online version of            considers the project an internal matter so                   with the Montreux Convention. Building a
this publication contains        long as it does not change the Montreux                       new canal under full Turkish sovereignty
functioning links to other       regime. Given that Russia is dependent on                     would undermine Russia’s influence while
SWP texts and other relevant
                                 the Turkish Straits to export its wheat, oil                  potentially advancing US and British inter-
sources.
                                 and natural gas, the tolls for using the new                  ests by providing their navies greater pres-
SWP Comments are subject         canal could make it less economical to                        ence in the Black Sea.
to internal peer review, fact-   transport goods, having negative conse-                          For the EU, the project represents a stra-
checking and copy-editing.       quences for the Russian economy. Thus,                        tegic dilemma. On the one hand, the EU
For further information on       Turkey’s “encouragement” of ships using                       could benefit strategically from dealing a
our quality control pro-
                                 the Canal to collect tolls may spark a con-                   blow to Russian influence, but on the other
cedures, please visit the SWP
website: https://www.swp-        testation from Russia. In such a scenario,                    hand, Ankara’s exclusive control of the
berlin.org/en/about-swp/         Russians may insist on limiting Turkey’s                      Canal may be detrimental to Brussels’ long-
quality-management-for-          ability to act unilaterally, yet to what                      term interests as it may result in a more
swp-publications/                degree Russia could succeed will depend                       assertive and autonomous Turkey that does
                                 on whether it can convince other maritime                     not consider European interests. Given the
SWP
Stiftung Wissenschaft und
                                 powers, especially China, to join them.                       geo-strategic implications of the project, the
Politik                                                                                        most prudent course of action for European
German Institute for                                                                           policymakers would be to keep diplomatic
International and                Prospects and Pitfalls                                        channels open with all Turkish stakehold-
Security Affairs                                                                               ers on this issue, as failing to do so would
                                 Given the prevailing uncertainty over the                     mean surrendering the initiative to Erdo-
Ludwigkirchplatz 3–4
10719 Berlin                     source of financing and Turkey’s enduring                     gan’s ambitions alone.
Telephone +49 30 880 07-0        debt crisis, double-digit inflation and
Fax +49 30 880 07-100            weakening domestic support for the gov-
www.swp-berlin.org               erning party, the chances of realising the
swp@swp-berlin.org
                                 project remain low. Unlike previous mega-
ISSN (Print) 1861-1761
                                 projects, it does not enjoy strong public
ISSN (Online) 2747-5107          backing. A recent survey revealed that
doi: 10.18449/2021C43            49 percent of the population opposes the
                                 project, while only 38 percent were in
                                 favour of it. The leaders of Turkey’s main
                                 opposition parties, Kemal Kilicdaroglu and

                                 Dr. Tuba Eldem is a CATS Fellow at the Centre for Applied Turkish Studies (CATS) at SWP.

                                 The Centre for Applied Turkey Studies (CATS) is funded by
                                 Stiftung Mercator and the German Federal Foreign Office.
      SWP Comment 43
      July 2021

      8
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