The Housing Development Administration of Turkey (TOKI) welcomed on Friday Venezuelan president's call to invest in his country.
TOKI chairman Erdogan Bayraktar said the administration could launch initiatives if Turkey's prime minister asked it to undertake projects in Venezuela.
Venezuela's President Hugo Chavez received Turkey's Energy & Natural Resources Minister Taner Yildiz, who was paying a formal visit to that country, and said he wanted to stop by Turkey on his way to China in April.
Chavez had said Venezuela had rich oil reserves, and proposed Turkey to construct dwellings in return for oil.
"We need 2 million dwellings, and we expect to see TOKI in Venezuela urgently," Chavez had said.
Commenting on Chavez's proposal, Bayraktar said, "our regulations enable abroad projects, and we can take part in projects in Venezuela if Mr. Prime Minister asks us to," Bayraktar told reporters.
TOKI to conduct study Venezuela
Turkish Minister of Energy and Natural Resources, Taner Yildiz, said Friday that a representative from the Housing Administration of Turkey (TOKI) will conduct a study in Venezuela on Friday about the construction of new residences in that country.
Speaking at a press conference in Istanbul's Ataturk International Airport, Yildiz said that the government of Venezuela made an offer to Turkey to provide oil in exchange for up to two million new residences.
My visit to Venezuela was very fruitful, Yildiz said.
We discussed the possibility of searching for oil and natural gas in Venezuela. We talked on providing Turkey with cheap oil, Yildiz said.
Venezuelan officials told us that they needed storage facilities. We discussed the possibility of erecting new storage facilities, Yildiz also said.
Trade in return for oil
Turkey implemented a similar system with Russia in natural gas trade. When there was a significant imbalance in Turkey-Russia trade volume due to the natural gas Turkey purchased from Russia, the two countries launched "a special account" system.
Under the system, the natural gas cost was deposited to a special account, and Russia was using that account in paying back Turkish contractors and paying its imports from Turkey. However, the system failed when Russia wanted to use this cash foreign exchange in some other areas.
Turkey's State Minister for foreign trade Zafer Caglayan sometimes proposes trade in return for oil during his visits to foreign countries. The last time he made such a proposal was in Nigeria. Caglayan had offered Nigeria to make investments in energy in return for oil.