14:44 GMT +3 hours26 June 2016
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Turkey Sees Economic Downturn Over Russian Sanctions, Fears to Lose $ 10 Bn

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In Turkey, economists and businesspeople unanimously agree that Russian sanctions will cause an in economic slowdown in the country.

The Syrian civil war has split former economic partners Moscow and Ankara, and the latter is projected to dramatically lose tourism, construction, food and clothing export revenue due to Russian sanctions.

The Russian government's reaction to Turkey shooting down a Russian Su-24 bomber in Syrian airspace in November gave the world a look at what it feels like to worsen relations with the country and its president, Vladimir Putin.

The incident has resulted in several changes to the relations between the two countries, including a Russian ban on the import of Turkish foodstuffs, such as vegetables, fruit and poultry. Russian tourists were also encouraged not to visit Turkey for the holidays, after charter sales were suspended and a visa regime between the two countries introduced. Beginning January 1, Russians may not hire Turkish citizens and Moscow has banned joint construction projects with Turkish firms.

The Turkish Stream gas pipeline, worth over 11 billion euro, has been suspended by Russian energy company Gazprom. The action will hurt Turkey, as Russia is Turkey's principal supplier of natural gas.

Professor of Economics Erhan Aslanoglu predicts that, in the short run, sanctions will have a negative impact on the Turkish economy, and Turkish business could lose up to $11 billion.

Alongside Egypt, Turkey's vacation resorts have long been ranked among the most attractive destinations for Russian travelers. Over three million Russian vacationers, 10 percent of Turkey's annual total, visit the country each year. With this flow drying up, Turkey will lose $3.5 billion annually, and another $4.5 billion through cancelled construction projects, according to Aslanoglu.

Some 55 percent of Turkish gas consumption has traditionally been supplied by Russia.

"If Moscow stops or delays the natural gas flow, that will definitely have a serious impact on the Turkish economy. But I don't expect such a big change," Aslanoglu said.

Businesses are not alone in their grief. Students have expressed concern over the future of relations between Turkey and Russia, countries that have been long considered as having tight cultural ties.

Gaye Kural, a recent graduate, had high hopes of being hired by a Russian company, but now must reconsider her plans.

"Turkey and Russia are like a couple that wants a divorce. And we are their children," stated Cagla Kursun, another student.

"If they break up, then we are going to be miserable. We really hope our presidents will not ignore us," she said.

Russian President Vladimir Putin described the Turkish downing of the Russian warplane as a "stab in the back." He stressed that the Russian aircraft was in no way a threat to Turkey, "an obvious fact," according to Putin.

Related:
Losing Ground: 2015 Proved a 'Lost Year' for Turkey
Turkey Was on 'Wrong Side of History' From Start of Syrian Conflict
Putin Orders to Withdraw From Treaty on Mutual Legal Assistance With Turkey
Turkey Should Get Its Story Straight on Who's to Blame for Su-24 Downing
Tags:
Russian sanctions, economic sanctions, Turkish Stream pipeline, construction, tourism, food ban, Turkey, Russia
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  • iProxy
    good
  • cast235
    I don't believe Russia will end the flow.NOT as long as Turkey pays or make arrangements.

    About the Turkish Stream Russia was saying that Turkey MUST get guarantees from E.U. Or all will stop. Because as soon as Russia tries anything Ukraine goes crying baby over E.U.
    Best Russia does is after 2019, end all transit.PERIOD. Unless Ukraine give a DEEP discount and sign a document that ALL transit gas, is Ukraine's responsibility as soon as it enters Ukraine side. In writing with E.U dirt bags seal and all signatures. Including energy THUGS.
    When E.U see that it will be cutting woods. They will RUN to Russia.. Russia seat back and can impose rules. Like no 3rd energy party THUGGERY. ALL owned by Russia or get somenone else. After many protests. see them with tail between legs hitting the Kremlin doors and waiting in the cold, so Europe see their suffering sharing..
  • Ivan Buckeye
    Anyone suggesting that Russia is weak for not cutting off gas to Turkey are foolish. Foolish to think money is unimportant or throwing away all your leverage with others is good.
  • marcanhalt
    "Turkey and Russia are like a couple that wants a divorce. And we are their children," stated Cagla Kursun, another student. If they break up, then we are going to be miserable. We really hope our presidents will not ignore us," she said."

    I have little sympathy for a pragmatist. It is obvious she did not take, or it was not made available to her, any course in personal (moral) or business ethics. Most European descendants know the value of the family and how it relates to the world at large. It is in the family that we learn the rights and wrongs that give substance to the conscience. The conscience does not tell us what is right or wrong , but only that there is a right and wrong. In her case, she wants, desperately, for someone to make up her world for her. She does not see, either, that the primary reason for any divorce is not a burnt dinner or even the inability to prepare one. The fundamental reason, said by Christ, is that something unclean has entered into the marriage. This is not about one parent staying with the other because of uncleanness just so that the children will not suffer in their upward mobility. There are rules for this and they must be followed. And if her mind is made up based on the Islamitization of Turkey? It is just another reason why that false system of belief must be rejected.
  • Just turn the pipe off and let them sort it out among themselves. The opposition will be much more potent with their demands.
  • IT IS NOT A CIVIL WAR AT ALL, IT IS A WAR AGAINST SYRIA, PLEASE STOP USING THIS SENTENCE..!!! Please get a confirmation regarding your statements from Mr President V. Putin..! Sputnik.. You just don't get is it.. it's really irritating..! Got it..!
  • Ivan Zadorozhny
    Turkey does not make much and its exports are stuck in the 19th century.
  • What, Russian to sit by and get stabbed in the back because of there unholy alliance to west with Syria??? Since Russia went into Syria, it has now exposed Turkeys true nature of being in cahoots with the septics (US) and NATO, especially the oil and arms supply deals with those SUPPORTED terrorist groups. Russia SHOULD disembowel ALL Turkey agreements and ties, NOT JUST SANCTIONS!!! Since there shooting down of SU-24 there has been NO RESPECT to Russia from Turkey, SO I SAY F*CK THEM, F*CK THEM ALL!!!
  • in reply to (Show commentHide comment)
    nshahhsh, Well stated, thank you!!!
  • Jim Mooney
    Ten billion? That's only a small part of the Erdogan Crime Family's skim.
  • Jim Mooney
    The US called Russia a gas station, forgetting its ally Turkey is a whorehouse ;')
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