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Russia Sanctions Hurting Turkey

Russia Sanctions Hurting TurkeyRussia Sanctions Hurting Turkey

In Turkey, economists and businesspeople unanimously agree that Russian sanctions will cause an economic slowdown in the country.

Syria’s civil war has split former economic partners Moscow and Ankara, and the latter is projected to dramatically lose tourism, construction, food and clothing export revenue due to Russian sanctions, Sputnik reported.

Moscow’s reaction to Turkey shooting down a Russian Su-24 bomber in Syrian airspace in November gave the world a look at what it feels like to worsen relations with the country and its president, Vladimir Putin.

The incident has resulted in several changes to the relations between the two countries, including a Russian ban on the import of Turkish foodstuffs, such as vegetables, fruit and poultry. Russian tourists were also encouraged not to visit Turkey for the holidays, after charter sales were suspended and a visa regime between the two countries introduced. Beginning January 1, Russians may not hire Turkish citizens and Moscow has banned joint construction projects with Turkish firms.

The Turkish Stream gas pipeline, worth over €11 billion, has been suspended by Russian energy company Gazprom. The action will hurt Turkey, as Russia is Turkey’s principal supplier of natural gas.

Professor of Economics Erhan Aslanoglu predicts that, in the short run, sanctions will have a negative impact on the Turkish economy, and Turkish business could lose up to $11 billion.

Alongside Egypt, Turkey’s vacation resorts have long been ranked among the most attractive destinations for Russian travelers. Over three million Russian vacationers, 10% of Turkey’s annual total, visit the country each year. With this flow drying up, Turkey will lose $3.5 billion annually, and another $4.5 billion through cancelled construction projects, according to Aslanoglu.

 

Financialtribune.com