Turkey and Russia have agreed to set up a joint oil refinery to market oil products, Russian Energy Minister Sergey Shmatko said Tuesday.

"We have been holding extensive negotiations over this project since last spring and we have agreed to jointly build an oil refinery. Our cooperation and the quick pace of decision making process is really impressive," Shmatko told reporters during an international oil conference in Moscow.

The minister said both Russia and Turkey were "very much excited" about the future gains from the project.

Turkey, Russia and Italy have recently signed a joint statement concerning the construction of an oil pipeline between Turkey's Black Sea coast and its Mediterranean coast.

"We have done a great job in analyzing the long-term oil outlook and we have agreed that the Samsun-Ceyhan oil pipeline would be an attractive alternative route in carrying oil," Shmatko said.

AA