A new gyrokinetic equation is derived for rotating plasmas with large flow velocities on the order of the ion thermal speed. Neoclassical and anomalous transport of particles, energy, and toroidal momentum are systematically formulated from the ensemble-averaged kinetic equation with the gyrokinetic equation. As a conjugate pair of the thermodynamic force and the transport flux, the shear of the toroidal flow, which is caused by the radial electric field shear, and the toroidal viscosity enter both the neoclassical and anomalous entropy production. The interaction between the fluctuations and the sheared toroidal flow is self-consistently described by the gyrokinetic equation containing the flow shear as the thermodynamic force and by the toroidal momentum balance equation including the anomalous viscosity. Effects of the toroidal flow shear on the toroidal ion temperature gradient driven modes are investigated. Linear and quasilinear analyses of the modes show that the toroidal flow shear decreases the growth rates and reduces the anomalous toroidal viscosity.
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