Archives for December 2015

Turkey could lose $20 billion over dispute with Russia

The list of embargoed food products includes poultry, tomatoes, cucumbers, onions, oranges, grapes, apples, peaches and other fruit and vegetables.

With the ban on charter flights the Russian government said it will control scheduled flights between Russia and Turkey.

“To ban air charters between Russia and Turkey, expect for special flights for the return of tourists remaining in the country, as well as to take additional measures aimed at ensuring transport (aviation) safety when conducting regular flights with the Turkish republic,” said a government statement.

Russian employers will be prohibited from hiring Turkish nationals starting next year unless they were already employed before December 31 this year.

Russia has also cancelled visa-free travel for Turkish citizens starting January 1, 2016.

Russian businesses boycott Turkey over jet incident

The Kremlin also said it would suspend the work of the joint Russian-Turkish Intergovernmental Commission on Trade and Economic Cooperation.

As was expected, the sanctions do not include freezing the Turkish Stream natural gas pipeline project or the planned construction of the Akkuyu nuclear power station in Turkey.

Russia was Turkey’s third-largest trading partner in the second quarter of the year. Turkey is largely dependent on Russian tourists who make up 10 percent of all visitors coming to the country. In the first nine months of the year 3.3 million Russian holiday makers visited Turkey.

According to the Federation of Turkish hotel owners TUROFED, Ankara could lose as much as $4.5 billion this year from the loss of Russian tourism alone.

Deputies from Turkey’s Republican People’s Party said the country’s overall loss could reach $20 billion.

Last Tuesday, a Russian Su-24 bomber was shot down by Turkish F-16 jet near the Turkish-Syrian border. Ankara claims the plane violated its airspace and did not respond to warnings. Moscow insists no warnings were issued and the airplane was shot down and crashed in Syria.

Article source: https://www.rt.com/business/324121-russia-sanctions-against-turkey/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

“Turkey earned around $6 billion in exports and $7 billion in tourism revenue from Russia. There is also extensive suitcase trade traffic between the two countries. Turkey’s suitcase trade has declined from $8.5 billion in 2013 to $6 billion in 2014. Turkey can lose up to $20 billion, three percent of its annual GDP if the crisis escalates with Russia,” CHP Deputy Osman Budak told Hurriyet Daily News.

The Antalya region, known for its Mediterranean resorts, is going to be hit hard, according to Budak’s fellow CHP members.

Russian businesses boycott Turkey over jet incident

“Some 40,000 Russians live in Antalya and 200,000 Turks in Russia…The crisis between Turkey and Russia must be resolved as soon as possible,” Mustafa Akaydın said.

He added that Antalya would lose $6 billion in tourism and $500 million in agriculture.

According to another CHP Antalya member Devrim Kok, three ships with 750 containers loaded with fruit and vegetables from Antalya, Mersin and the Black Sea ports bound for Russia are being kept waiting in Russia’s Black Sea port of Novorossiysk.

Turkish officials say Ankara will not introduce counter economic sanctions.

“We won’t escalate tensions. We won’t take measures that will not be understood by the Russian people. We are waiting for our fellow Russian citizens to come to Turkey, where they feel at home. We want Russia to reconsider these measures,” said Prime Minister Ahmet Davutoglu, quoted by T24 Turkish media.

On Saturday, Russian President Vladimir Putin approved economic sanctions against Ankara in response to the downing of a Russian warplane by a Turkish F-16 jet in Syria. The measures target the Turkish tourism industry and exports to Russia. They include a ban on Turkish produce, employment of Turkish nationals in Russia, the cancellation of visa-free travel between the countries and a recommendation for Russians not to travel to Turkey.

Article source: https://www.rt.com/business/324106-turkey-russia-embargo-tourism/?utm_source=rss&utm_medium=rss&utm_campaign=RSS