Is the economic cooperation between Moscow and Ankara being restored?

The 6th meeting of the Russian-Turkish Cooperation Council of the highest level
The 6th meeting of the Russian-Turkish Cooperation Council of the highest level

The decision of the government of Turkey to suspend the issuance of the licenses for the duty-free importation of wheat, corn, sunflower oil and meal from Russia since March 15 has forced the experts to talk about another reduction in the level of the economic interaction between Moscow and Ankara. According to the Deputy of the Faculty of Journalism of the Moscow State Institute of International Relations (U) of the Russian Ministry of Foreign Affairs, the expert of the INFDC, Nigar Masumova, the economies of the both countries have already suffered as a result of the curtailment of the economic cooperation.

"In a very short time, the foreign trade turnover between Russia and Turkey has reached the colossal figures. Prior to the 2008 crisis, it had reached $ 38 billion. In 2000, it was about $ 4.5 billion. Before the last sharp drop of the prices for energy resources, the trade between Russia and Turkey had amounted to about $ 32 billion. The balance of trade between the countries is sharply positive. This is mainly due to the export of energy resources to Turkey. Russia traditionally exports energy resources, oil, gas, various metals, coal to Turkey, and imports ready products from Turkey: textiles, household appliances, machinery, equipment and components. "

According to the expert, several negative factors influenced the dynamics of the bilateral trade: "The world economy is not in a better condition now. The pace of growth of the leading world powers is slowing down. An indelible mark on the economic cooperation was also left by the restrictive measures on the part of Russia in connection with the downed Russian plane. The restrictive measures affected only the agricultural products, and this amounts to 15% of Russia's imports. The agricultural products occupy a small share in Russia's imports, but plays an important role in the Turkish economy. About a quarter of the population of Turkey is employed In this industry. About 9% of the country's GDP amounts to the agriculture. And this sensitive industry suffered first of all.’’

Nigar Masumova

According to Masumova, as a result, the trade turnover for 2016 amounted to about $ 15 billion: "This is despite the fact that the leaders of Turkey constantly remind us that we have a very large potential for the development of the foreign trade and designate a figure of  $100 billion. Of course, this figure is fantastic, but, having designated such a maximum limit, we will be able to achieve the maximum result. "

Touching upon the problem of the investments, the expert reminded that Turkey does not play a primary role in the volume of the foreign direct investment in Russia: ‘’A short-term deterioration of the relations, of course, may negatively affect the investment attractiveness of the Russian Federation. The 6th meeting of the Russian-Turkish Cooperation Council of the highest level showed the intention of the both sides to gradually restore the previous volume of cooperation. Obviously, the situation can drastically change. The prospects for the development of the bilateral investment cooperation have a very promising future. To date, the tourist flow from Russia has decreased by about 2.5 million. But this situation concerns not only Russian tourists. The tourism industry in Turkey has suffered as a whole. A retrospective analysis of the Russian-Turkish economic relations shows only one thing - that Russia and Turkey are the natural partners, and this partnership needs  to be deepened and strengthened.’’

 

3420 views


More Russian news

One killed, 11 wounded in Dagestan after teenager brings grenade to school

One killed, 11 wounded in Dagestan after teenager brings grenade to school

A grenade that killed one teenager and wounded 11 more at a school in Russia’s North Caucasian republic of Dagestan in the settlement of Agvali was brought to school by a schoolboy, a spokesman for the Dagestani Interior Ministry …

Putin: laws must be based on reality

Putin: laws must be based on reality

Russian President Vladimir Putin met with members of the Council of Legislators in the Tauride Palace in St. Petersburg. Putin has endorsed the initiative to continue the fight against corruption, but emphasized …

Why does EU impose sanctions only against Russia?

Why does EU impose sanctions only against Russia?

Ukraine has been constantly avoiding direct dialogue with the self-proclaimed Donetsk and Lugansk People’s Republics, but the European Union impose sanctions over the implementation of the Minsk agreements only against Russia, the …

Kremlin: Russia respects choice of French people

Kremlin: Russia respects choice of French people

Russia is ready to work on building up good relations with France and respects the choice of the French people made during the presidential election, Kremlin Spokesman Dmitry Peskov said. "We support building up …

Isik: Putin and Erdogan may discuss contract on S-400 missile systems

Isik: Putin and Erdogan may discuss contract on S-400 missile systems

Russian President Vladimir Putin and Turkish President Recep Tayyip Erdogan are expected to discuss a contract on buying S-400 missile systems in Sochi on May 3, Turkey’s Defense Minister Fikri …

Moscow holding talks between Lavrov and Mogherini

Moscow holding talks between Lavrov and Mogherini

Russian Foreign Minister Sergey Lavrov is holding talks with the EU High Representative for Foreign Affairs and Security Policy Federica Mogherini in Moscow. The agenda of their talks will include a …

Russia boosts military spending

Russia boosts military spending

Russia became the world's third largest military spender in 2016, the Stockholm International Peace Research Institute (SIPRI) said in a report. Russia's military spending was $69.2 billion in 2016, a 5.9% rise over 2015, the …

Economic optimism prevails in Russia

Economic optimism prevails in Russia

The share of Russians expecting economic stabilization in the near future increased to 32.4% in March, according to the results of the RANEPA survey, the Izvestia newspaper reported. In March 2015, it was expected by 24% of respondents, …

Russian S-500 to engage targets at earth#039s outer layer

Russian S-500 to engage targets at earth's outer layer

Russia's next-generation S-500 air defense system would be able to engage targets at the upper layer of the atmosphere, the chief engineer of defense corporation Almaz-Antey Pavel Sozinov said. He said that …

Tillerson briefs Poroshenko on sanctions imposed on Russia

Tillerson briefs Poroshenko on sanctions imposed on Russia

US Secretary of State Rex Tillerson said in a phone conversation with Ukrainian President Petro Poroshenko that the sanctions imposed on Russia would remain in place, US Department of State acting spokesman …

more Russian news