“You are cordially invited”: Russia is begging for Turkish companies to get involved – with success

Created: 08/19/2022, 05:05

By: Patricia Huber

Western sanctions have left painful gaps in Russian supplies.

Turkey is cleverly exploiting this.

Moscow/Ankara – Because of the Ukraine war, the number of Western companies based in Russia has drastically reduced.

Large companies such as McDonald's, Ikea and H&M have now completely closed down their business there.

The large wave of withdrawals has created a gap – which Turkish companies have apparently discovered for themselves.

Turkey: Business with Russia has grown significantly

Turkey has not imposed sanctions on Russia.

So exports to Russia are allowed and Turkish companies take advantage of that.

Exports from Turkey have increased by 46 percent compared to the previous year, reports the

.

In July alone, they even rose by 75 percent.

The most obvious is the increase in exports of goods to Russia.

The share is now 3.9 percent - which is about as much as exports to Italy or Iraq.

Turkish President Recep Tayyip Erdogan has given his country an economic advantage by waiving sanctions.

Instead of retreating, Turkish companies are using the gaps that have arisen in the country.

According to the Russian state news agency

, around 3,000 of these companies are still active in Russia – there is no question of an end to the business.

The flourishing business with Russia should make Turkish President Erdogan happy.

© picture alliance/dpa/Turkish Presidency

In any case, Russia is receptive to the goods from Turkey.

The Association of Russian Shopping Centers (RCSC) is even campaigning aggressively for Turkish business partners.

Turkish brands are in great demand, especially in the textile sector.

They are "cordially invited" to expand their network in Russia.

Cheating on sanctions: Turkey benefits from parallel imports

Chemicals made up the largest share of exports to Russia.

But groceries, textiles, electronic items and furniture were also increasingly delivered.

In addition, many industries also benefit from so-called parallel imports, as the

explains.

Western products are delivered to Turkey via container ships, reloaded there and transported to Russia.

In this way, the sanctions imposed on third countries can easily be circumvented.

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But Turkey does not position itself clearly on one side in the Ukraine war.

Erdogan maintains close ties with both Ukraine and Russia and sees himself as a mediator between the two parties.

Against the background of the grain crisis, the war opponents signed an agreement with Ankara separately at the end of July in Istanbul, mediated by the United Nations and Turkey.

This should enable grain exports from three Ukrainian ports.