(Daily Sabah) Russia will restrict its imports of Turkish fruit and vegetables as part of a new group of sanctions following Turkey's downing of a Russian warplane last week. Turkey, on the other hand, is looking for ways to cover its losses of the businessmen and to respond Russia with similar measures. Analysts believe that the situation will pose economic risks to both countries, putting $30 billion in annual trade volume on the line. […]
Despite Russia's swift move to impose sanctions following the event, the Russian economy cannot replace what Turkey exports to the region, according to Stanislav Tkachenko, a professor in the international relations department of St. Petersburg State University, in a statement published in the Russia Direct on Nov. 26.
"The structure of bilateral trade clearly benefits Russia more than Turkey," Tkachenko wrote. "In 2014, Turkey ranked fifth among Russia's partners in terms of exports ($25 billion of mainly natural gas, metals and agricultural products). At the same time, Russia buys products from Turkey that it needs for its economy (machinery, equipment, textiles, building materials, food) that cannot be replaced overnight with Russian substitutes."
The economic cost of severing ties with Turkey could exceed $30 billion, and for some sectors of the Russian economy (energy and metallurgy) it would be a heavy blow, Tkachenko said. "The fragile shoots of economic growth in Russia, after nearly a year of recession, would be torn out of the ground," he added.
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