Trade between Turkey and Russia is declining due to sanctions: the automotive market will suffer the most
Kyiv • UNN
Trade between Turkey and Russia has been shrinking due to Western sanctions, and Turkish exporters of engineering products are facing a potential $1 billion drop in sales to Russia this year as sanctions lists are rapidly expanding to target goods that could be used for military purposes.
Trade between Turkey and Russia is halted due to sanctions imposed by Western countries. This affects key supplies for Moscow, according to the United States and the European Union. Written by UNN with reference to Bloomderg.
Details
According to Kutlu Karavelioglu, chairman of the Machine Exporters Association, machine exporters who benefited most from Turkey's increased shipments to Russia in 2023 may face a $1 billion drop in sales there this year due to "ambiguous" and "rapidly expanding" sanctions lists and crackdowns on goods that could potentially be used for military purposes.
It seems that no serious corporate equipment manufacturer can maintain its previous interest in Russia in the face of growing pressure on the banking system and supply chains
This is disappointing news for Turkish companies and the government's attempt to reduce the current account deficit. However, it shows that the US and EU sanctions against Russia are becoming more effective even in foreign jurisdictions, such as NATO member Turkey, which has tried to maintain economic ties with Moscow despite the war.
According to preliminary data from the Turkish Ministry of Trade, exports to Russia decreased by 33.7% in the first quarter compared to the previous year. Companies around the world are facing a huge number of sanctions against Russia. According to data by Castellum.AI, a compliance verification company, the US and its allies have announced nearly 18,000 sanctions as of February, compared to about 2,600 before the invasion.
Recall
Due to Western sanctions and the lack of European components, the Russian company Izhmash - Unmanned Systems was unable to fulfill the state order for the production of the Granat-4 unmanned aerial vehicle.
