• 17/06/2024 18:49

Trade between Russia and Turkey is declining under the pressure of sanctions

Trade between Turkey and Russia is experiencing disruptions due to Western sanctions. This hits an important supply chain for Moscow. Bloomberg agency reports this.

 Trade between the Russian Federation and Turkey is declining under the pressure of sanctions

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Exporters of machinery, the most benefited from growth in supplies to Russia, could reduce their sales by $1 billion this year due to “vague” and “rapidly growing” sanctions lists, as well as restrictions on goods with potential military use, said the chairman of the Association of Machinery Exporters Kutla Karavelioglu.

This represents a third of last year's sales to Russia, he said, adding that the largest declines were seen in machine tools, pumps and electric motors.

“It seems impossible for any serious manufacturer of industrial equipment to maintain its preliminary interest by Russia in the face of growing pressure on the banking system and supply chains,” Karavelioğlu said.

This is bad news for Turkish companies and the government’s attempts to lower the current account deficit. But this also indicates that US and EU sanctions against Russia are becoming increasingly effective even in non-member countries such as Turkey.

According to preliminary data from the Turkish Ministry of Trade, exports to Russia in the first quarter fell by 33.7% compared to the previous year.

minfin.com.ua

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