THE TRADE OBSTACLE WITH RUSSIA IS TRIED TO OVERCOME WITH NEW WAYS.

Date: 2022.04.06

Trade channels, which were blocked due to the war between Turkey and Russia, are getting ready to open up in new ways. DEİK Turkey-Russia Business Council President İzzet Ekmekçibaşı said that the contacts between the two countries to increase mutual guarantees in TL-Ruble trade have intensified, and that Ro-Ro flights to Russia will be increased and new lines will be opened.

Foreign Economic Relations Board (DEIK) Turkey-Russia Business Council Chairman İzzet Ekmekçibaşı shared the trade developments and expectations between Turkey and Russia during the Russia-Ukraine war, which has been going on for about 1.5 months, with the WORLD. Stating that there are great opportunities for Turkey in the Russian market from which Western companies come, Ekmekçibaşı said that China has taken action to fill the gap in the market very quickly with its SMEs, Iran has started to sell goods to the market via the Caspian, therefore Turkish companies should act quickly. expressed.

Noting that they held mutual sectoral meetings as DEİK on this issue, Ekmekçibaşı said, “Companies that will take advantage of the opportunity without opportunism and will work with principles should enter the Russian market. While the Russians have Turkish goods, they do not like Chinese, Indian or Iranian products. We should make good use of this advantage. As DEIK, we are holding talks on how Turkey can fill the shelves in Russia.”

Noting that the United Brands Association and the unions of shopping malls and wholesale markets in Russia have held meetings, Ekmekçibaşı noted that the export of approximately 6 billion dollars to Russia last year could be achieved this year, and there are opportunities to even exceed it.

Opportunity is great in the auto supply industry

Pointing out that there are opportunities for the food and ready-made clothing sectors, especially the automotive supply industry, in the Russian market, Ekmekçibaşı continued: “As DEİK, we identified these sectors and started working. There will be a great demand for the automotive supplier industry in Russia in a short time. Anticipating this, we will hold a webinar next week. Particularly, there will be sector participants from Konya, Bursa and Kayseri. There will also be buyers from Russia. We will have an online meeting about food right after. Our work on ready-made clothing will also continue. Currently, some of the western brands are completely gone, some of them have closed their stores, but they continue to pay their employees. Putin, to this bluff of western brands, 'Come and open until May. Otherwise, you will not be able to enter the market again.” After that, some movements started. Volkswagen even said that it will start production in June. Especially Italian and Germans seem to be returning to the market. However, as of today, the stores there are closed. The winter season is over, but the products in the stores are winter season products. So it is clear that it will not be sold in the new season. Spring summer products should now be in the aisles. We need to hurry and get in before those who have closed their stores come back.”

Touching on the current problems in trade with Russia, Ekmekçibaşı shared some steps taken to overcome these problems. Expressing that the waiting times in road transportation are very long, Ekmekçibaşı said that Ro-Ro services will be increased and the opening of new lines is also on the agenda. Referring to the problems on the financial system, Ekmekçibaşı said that all kinds of foreign currency transfers can be made to banks that are not on the sanction list, since the UN's decision has not yet been issued, and said, "With the decision taken recently, importers in Russia added 2 rubles to the foreign exchange buying rate of the Central Bank. can find. Compared to 10 days ago, the spread between foreign exchange buying and selling was 30 percent. This exchange rate difference was also burdened by the importers. However, now that the cost has decreased, Russian importers can find dollars and make their payments,” he said.

Barter option is also on the table in trade with Russia

DEİK Turkey-Russia Business Council President İzzet Ekmekçibaşı said that trade with Russia was on the agenda with barter and local currencies and said, “Trade with Russia was already done in local currencies, but the rate was very low. In order for the volume to grow here, the two countries should mutually increase the counter-guarantee. Both countries are working on this issue. If a mutual guarantee of 5 billion dollars is given, then we will be able to export 5 billion dollars of goods with TL.” Touching on the barter issue, Ekmekçibaşı said that Turkey was engaged in barter-style trade at the end of the 80s and that there were successful practices, and that studies were also carried out on this option.

Despite the flights, the expectation of Russian tourists is not met

Noting that one of the most important problems in air and sea transportation is insurance, Ekmekçibaşı said, “Some airline companies that have debts and commitments do not want to fly without insurance. There are flights from Turkey, of course not as much as before. Airplane ticket prices have also increased a lot, tickets from 400-500 dollars have increased to 1000 dollars,” he said. Noting that the Russians started to overcome the insurance problem with Russian-made planes, Ekmekçibaşı said, “There are completely Russian-made planes called SS100. Azimuth Airlines, which bought these planes, started flights from 4-5 destinations to Istanbul and Antalya. There are 21 trips per week. Again, Aeroflot will organize flights from Sochi and Moscow to Istanbul and Antalya with domestic planes," he said. Noting that this new development is very important for the Turkish tourism sector, Ekmekçibaşı said, "There will be mobility in tourism in these flights. Summer season is coming. The Russians will come too. However, under the current conditions, those who are better off will come. Last year, 4.7 million Russian tourists came, this year could reach 7 million. However, this year, we will host around 3 million Russian tourists." Source: Dünya Newspaper/Merve Yiğitcan

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