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.’’

 

3640 views


More Russian news

Best to assume Russia sanctions last forever

Best to assume Russia sanctions last forever

Assuming they stay forever, Wall Street is not worried

At least 137 people injured in Moscow storm

At least 137 people injured in Moscow storm

At least 137 people have been injured in a severe thunderstorm hitting Moscow on Monday afternoon, a source from Moscow’s emergency services said, TASS reports. "As of the moment, 137 injured people have sought medical …

Makhachkala celebrates Azerbaijan#039s Republic Day

Makhachkala celebrates Azerbaijan's Republic Day

Event dedicated to the Republic Day of Azerbaijan was held in Makhachkala's House of Friendship. The event was organized by the House of Friendship and local national-cultural autonomy of Azerbaijanis of Makhachkala. …

Court of Arbitration for Sport rules against appeal of six Russian cross country skiers

Court of Arbitration for Sport rules against appeal of six Russian cross country skiers

The Court of Arbitration for Sport (CAS) ruled on Monday to uphold the provisional suspensions of six Russian cross country skiers rejecting their appeal, the court said in its statement, TASS reports. "The Court of Arbitration for …

Moscow mayor says Monday#039s hurricane in Moscow #039unprecedented#039

Moscow mayor says Monday's hurricane in Moscow 'unprecedented'

The hurricane that struck Moscow City on Monday afternoon was unprecedented, Moscow City mayor Sergei Sobyanin said, TASS reports. "I can't remember within my recollection any other such calamity with the …

Russia ready to restore flights to Egypt if security measures met

Russia ready to restore flights to Egypt if security measures met

Russian Foreign Minister Sergey Lavrov reiterated on Monday that the resumption of direct flights between Russia and Egypt would be possible only when Cairo fully implements security agreements reached after a 2015 tragedy …

Death toll following Moscow thunderstorms rises to 11

Death toll following Moscow thunderstorms rises to 11

The death toll after Monday afternoon’s violent thunderstorms that hammered Moscow has left at least 11 people dead and 50 injured, a spokesman for the capital’s health department said, TASS reports. He said ten hospitals …

 Russia#039s Envoy: NATO strengthening in Europe is Cold War relic

Russia's Envoy: NATO strengthening in Europe is Cold War relic

NATO's strengthening in Europe has provoked a qualitative turn for the worse, the situation looks very dangerous, Russia's Permanent Representative to the alliance Alexander Grushko said during a video conference at …

 Kremlin: Europe and US should tackle their relations by themselves

Kremlin: Europe and US should tackle their relations by themselves

The European Union and the United States should sort out bilateral relations on their own, the matter does not bother Moscow, Kremlin spokesman Dmitry Peskov said, commenting on German Chancellor Angela …

Novak: no subsidy requests from Russian oil companies after extended OPEC deal

Novak: no subsidy requests from Russian oil companies after extended OPEC deal

Russian oil companies have not requested subsidies in connection with the extended Organization of the Petroleum Exporting Countries' (OPEC) agreement to cut production, Russian Energy Minister Alexander Novak said. …

more Russian news