damm1t
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Auto Industry
SAINT PETERSBURG: Authorities in Russia on Friday sounded the alarm over Saint Petersburg-based car manufacturers' struggle to receive Turkish supplies after Moscow imposed economic sanctions on Ankara over the downing of a Russian jet.
"If the situation perseveres, companies will be forced to stop production," Saint Petersburg deputy governor Sergei Movchan said, his press service told AFP.
Vedomosti business daily reported earlier this month that the Renault-Nissan alliance and the top Russian car brand Lada had filed complaints with customs authorities about their inability to receive supplies.
A Lada factory assembling Renault and Nissan vehicles stopped for five hours because it had run out of car door locks, RBK news site reported earlier this month.
Renault declined to comment on the situation while Avtovaz - which is controlled by the French-Japanese group Renault-Nissan -- did not respond to AFP's request for comment.
These supply issues come as Russia's crisis-hit automobile industry has seen sales plummet on the back of economic turmoil in the country caused by falling oil prices and Western sanctions over Ukraine.
Last month, car sales were down 42 percent year-on-year.
Textile Sector
The production of T-shirts carrying anti-Turkish slogans in Russia has been delayed by restrictions on fabric imports from Turkey, local media reported this week.
Designer Yekaterina Dobryakova told RNS that she was unable to start making anti-Turkish T-shirts because trucks carrying Turkish fabrics were being detained at the border
“Got a call from RNS asking me whether I planned to make shirts with anti-Turkish themes,” Dobryakova said on her Facebook page. “I said, sarcastically, that as soon as trucks from Turkey are allowed across the border, I will immediately do so.”
Whilst she insists she “had no plans to make T-shirts with the theme of war”, she claimed that “ The trucks have indeed been stopped, and very soon we won’t be able to sew, because all Russian fabric suppliers are working with Turkey, and we have no domestic alternative.”
Food Industry
Inflation races as Russia's Food Bans Push Up Prices.
The introduction of a ban on food imports from Turkey creates a risk of increased food price inflation caused by rising costs due to a change in import destinations, according to a report of the Central Bank of Russia.
“It’s going to be difficult to get around these new bans,” says Irina Koziy, director of Russia’s online FruitNews agency. “Fifty percent of all tomatoes sold in Russia are from Turkey, and about a third of citrus fruits.”
“There have already been disruptions due to the counter-sanctions against Europe, and we were relying on Turkey to fill the gap. Price increases will be the inevitable consequence of all this.”
Russians have already given up their favorite European products, and the new ban on Turkish foods may result in at least temporary shortages of many common fruits and vegetables, Russia’s Ministry of Economic Development has warned.
The ban on certain food imports from Turkey will lead to an additional increase in Russian food prices of 0.5 to 1.1 percentage points, the Central Bank of Russia said in a report published Friday.
Energy Sector
Russia is about to lose second biggest natural gas buyer in Europe. Turkey already have plan B, C and D which means annual 16 bl. $ of loss for Russian economy.
On Dec. 2, Turkish President Recep Tayyip Erdogan visited Qatar and signed a long-term liquefied natural gas (LNG) purchase agreement. In a similar effort, Turkey's government-owned BOTAS Petroleum Pipeline Corporation announced it will soon ask for bids for a new natural gas pipeline from northern Iraq.
On Dec. 3, Turkish Prime Minister Ahmet Davutoglu went to Azerbaijan to discuss expediting construction of the Trans-Anatolian Natural Gas Pipeline (TANAP), which is to supply 16 billion cubic meters of gas to Turkey and Europe annually starting in 2018.
"But we have to be prepared for the worst possibility. That is why I have instructed the Energy Ministry to work on alternatives,” he said, adding that the ministry will study the possibility of increasing the amount of natural gas and LNG bought from Iran and Azerbaijan, among other options.
Moscow's threat to terminate a huge nuclear power plant project in Turkey would also hurt Russia far more than Turkey if implemented. The project dates back to 2010, when the Russian nuclear power company Rosatom signed a $20 billion contract with the Turks to build four new nuclear reactors in the country. Besides this Turkey have other options to make built its nuclear power plant. France, USA and Japan are awaiting on the doorstep.
Tourism Sector
While Russian tourists made up almost 14.65 percent of Turkey’s visitors last September, this figure dropped to 12.44 percent of total visitors in the same month of 2015.
“So a lot of Russian tour operators and travel agencies will suffer significantly,” Milasevic commented.
“And some Russian tourists are creative and do not want to refuse traveling to their favorite budget destinations,” she added, suggesting that these tourists will travel to Turkey via other countries like Belarus.
The ban is a typical Russian government reaction, explained Andrey Movchan, director of the Economic Policy Program at the Carnegie Endowment for International Peace Center in Moscow, in an interview with Moscow’s independent newspaper, Novaya Gazeta on Dec. 2.
“First, in the face any difficult situation, the government tends to ban something. Then, it may use this crisis to save some foreign exchange for Russia,” Movchan said.
Russian economic affairs commentator Andrei Grunov wrote on Deutsche Welle’s Russian site on Nov.11 that the ban may backfire against Russian interests.
“What’s more, with good pricing, the Turkish tourism industry may still have a chance to make up for fewer Russian tourists next summer, with the help of European holidaymakers.
Europeans who do not want to holiday in Egypt or Tunisia because of the threat of terror may go to Turkey anyway -- they may not prefer Spain because of the higher prices there.”
“Turkey is likely to find tourists from other countries to replace the ones lost from Russia,” Movchan continued. The same would be true of Turkey’s metal imports from Russia, and even for the large gas supplies purchased from the country, Movchan said
Trade between Two
Russia buys $6 billion in goods from Turkey, but it also sells to Turkey $9 billion of goods, apart from natural gas. And sanctioning Turkey will cost Russia 3 more bl. dollars which is difficult to replace for a Russia under sanctions of Europe and the Usa. But it's not the same for Turkey.
SAINT PETERSBURG: Authorities in Russia on Friday sounded the alarm over Saint Petersburg-based car manufacturers' struggle to receive Turkish supplies after Moscow imposed economic sanctions on Ankara over the downing of a Russian jet.
"If the situation perseveres, companies will be forced to stop production," Saint Petersburg deputy governor Sergei Movchan said, his press service told AFP.
Vedomosti business daily reported earlier this month that the Renault-Nissan alliance and the top Russian car brand Lada had filed complaints with customs authorities about their inability to receive supplies.
A Lada factory assembling Renault and Nissan vehicles stopped for five hours because it had run out of car door locks, RBK news site reported earlier this month.
Renault declined to comment on the situation while Avtovaz - which is controlled by the French-Japanese group Renault-Nissan -- did not respond to AFP's request for comment.
These supply issues come as Russia's crisis-hit automobile industry has seen sales plummet on the back of economic turmoil in the country caused by falling oil prices and Western sanctions over Ukraine.
Last month, car sales were down 42 percent year-on-year.
Textile Sector
The production of T-shirts carrying anti-Turkish slogans in Russia has been delayed by restrictions on fabric imports from Turkey, local media reported this week.
Designer Yekaterina Dobryakova told RNS that she was unable to start making anti-Turkish T-shirts because trucks carrying Turkish fabrics were being detained at the border
“Got a call from RNS asking me whether I planned to make shirts with anti-Turkish themes,” Dobryakova said on her Facebook page. “I said, sarcastically, that as soon as trucks from Turkey are allowed across the border, I will immediately do so.”
Whilst she insists she “had no plans to make T-shirts with the theme of war”, she claimed that “ The trucks have indeed been stopped, and very soon we won’t be able to sew, because all Russian fabric suppliers are working with Turkey, and we have no domestic alternative.”
Food Industry
Inflation races as Russia's Food Bans Push Up Prices.
The introduction of a ban on food imports from Turkey creates a risk of increased food price inflation caused by rising costs due to a change in import destinations, according to a report of the Central Bank of Russia.
“It’s going to be difficult to get around these new bans,” says Irina Koziy, director of Russia’s online FruitNews agency. “Fifty percent of all tomatoes sold in Russia are from Turkey, and about a third of citrus fruits.”
“There have already been disruptions due to the counter-sanctions against Europe, and we were relying on Turkey to fill the gap. Price increases will be the inevitable consequence of all this.”
Russians have already given up their favorite European products, and the new ban on Turkish foods may result in at least temporary shortages of many common fruits and vegetables, Russia’s Ministry of Economic Development has warned.
The ban on certain food imports from Turkey will lead to an additional increase in Russian food prices of 0.5 to 1.1 percentage points, the Central Bank of Russia said in a report published Friday.
Energy Sector
Russia is about to lose second biggest natural gas buyer in Europe. Turkey already have plan B, C and D which means annual 16 bl. $ of loss for Russian economy.
On Dec. 2, Turkish President Recep Tayyip Erdogan visited Qatar and signed a long-term liquefied natural gas (LNG) purchase agreement. In a similar effort, Turkey's government-owned BOTAS Petroleum Pipeline Corporation announced it will soon ask for bids for a new natural gas pipeline from northern Iraq.
On Dec. 3, Turkish Prime Minister Ahmet Davutoglu went to Azerbaijan to discuss expediting construction of the Trans-Anatolian Natural Gas Pipeline (TANAP), which is to supply 16 billion cubic meters of gas to Turkey and Europe annually starting in 2018.
"But we have to be prepared for the worst possibility. That is why I have instructed the Energy Ministry to work on alternatives,” he said, adding that the ministry will study the possibility of increasing the amount of natural gas and LNG bought from Iran and Azerbaijan, among other options.
Moscow's threat to terminate a huge nuclear power plant project in Turkey would also hurt Russia far more than Turkey if implemented. The project dates back to 2010, when the Russian nuclear power company Rosatom signed a $20 billion contract with the Turks to build four new nuclear reactors in the country. Besides this Turkey have other options to make built its nuclear power plant. France, USA and Japan are awaiting on the doorstep.
Tourism Sector
While Russian tourists made up almost 14.65 percent of Turkey’s visitors last September, this figure dropped to 12.44 percent of total visitors in the same month of 2015.
“So a lot of Russian tour operators and travel agencies will suffer significantly,” Milasevic commented.
“And some Russian tourists are creative and do not want to refuse traveling to their favorite budget destinations,” she added, suggesting that these tourists will travel to Turkey via other countries like Belarus.
The ban is a typical Russian government reaction, explained Andrey Movchan, director of the Economic Policy Program at the Carnegie Endowment for International Peace Center in Moscow, in an interview with Moscow’s independent newspaper, Novaya Gazeta on Dec. 2.
“First, in the face any difficult situation, the government tends to ban something. Then, it may use this crisis to save some foreign exchange for Russia,” Movchan said.
Russian economic affairs commentator Andrei Grunov wrote on Deutsche Welle’s Russian site on Nov.11 that the ban may backfire against Russian interests.
“What’s more, with good pricing, the Turkish tourism industry may still have a chance to make up for fewer Russian tourists next summer, with the help of European holidaymakers.
Europeans who do not want to holiday in Egypt or Tunisia because of the threat of terror may go to Turkey anyway -- they may not prefer Spain because of the higher prices there.”
“Turkey is likely to find tourists from other countries to replace the ones lost from Russia,” Movchan continued. The same would be true of Turkey’s metal imports from Russia, and even for the large gas supplies purchased from the country, Movchan said
Trade between Two
Russia buys $6 billion in goods from Turkey, but it also sells to Turkey $9 billion of goods, apart from natural gas. And sanctioning Turkey will cost Russia 3 more bl. dollars which is difficult to replace for a Russia under sanctions of Europe and the Usa. But it's not the same for Turkey.
