Hitting where it hurts: Russia and Turkey disagree over the impact of sanctions

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Hitting where it hurts: Russia and Turkey disagree over the impact of sanctions



Turkish economy will lose billions of euros – Moscow
Fresh produce, textiles and tourist industry reportedly suffering
Dispute prompted by downing of Su-24 military jet and death of pilot
Turkish president downplays impact of Russian restrictions

PARIS: -- Moscow is warning the array of economic sanctions it has imposed on Turkish goods and services following the downing of one of its military jets will cost Ankara billions of euros in lost revenue.

Fresh produce is reportedly being sourced from other countries, including Syria.

What do consumers say?

On a trip to Istanbul, Russian clothing buyer Liza Krol described the economic outlook between the two countries as “uncertain”.

“It is not clear how things will turn out, or if there will even be any business next year.”

What does the Turkish business community say?

Turkish business associations say it is too early to quantify the financial impact but anecdotally, trade is definitely said to be suffering.

“One of the first things Russia said was: ‘Don’t go to Turkey, don’t buy anything from Turkey.’ And, as a result, the customers who came here stopped coming and have begun to cancel their trips. And that was a significant amount of income. It may be retail sales, but it was significant.” said Giyasettin Eyyupkoca, chairperson of the Laleli Industrialists and Businessmen Association.

What does Turkey say?

Turkish President Recep Tayyip Erdogan has downplayed the impact of sanctions on the Turkish economy.

“Now we see the impact in textiles and those products the Russians say they are not buying. These are very emotional things. Although Russia may buy a one billion dollars worth of imports, Turkey is not a country that will collapse if our exports cease. Who cares whether you buy Turkish products or not? Funds will come through other avenues,” President Erdogan said earlier in December.

Why have relations soured?

In November a Russian Su-24 military plane was downed an air-to-air missile from a Turkish F-16 interceptor near the Turkish-Syrian border.

The pilot was killed.

Ankara says the aircraft was in violation of its airspace, a claim Russia denies.


-- (c) Copyright Euronews 2015-12-15

[Scott]

Troll post removed.

[konying]

Turkish president is not wrong, money will come from illegal oil trade with ISIS, failing to understand tankers will continue to be bombed and if anything intensified.

[mike324]

Of course the country won't collapse, but the livelihoods of businessmen and traders will.

[h90]

Turkish president is not wrong, money will come from illegal oil trade with ISIS, failing to understand tankers will continue to be bombed and if anything intensified.

And more important the money will come to his family.

But an interesting thing now: Oil is getting very cheap. Illegal oil must be cheaper than the legal one. Transportation costs a lot (specially when Putin is shooting at the trucks. That will reduce the profit a lot

(Oil price 30-40 USD in compare to a 60-100 a while ago)

[craigt3365]

Turkish president is not wrong, money will come from illegal oil trade with ISIS, failing to understand tankers will continue to be bombed and if anything intensified.

And more important the money will come to his family.

But an interesting thing now: Oil is getting very cheap. Illegal oil must be cheaper than the legal one. Transportation costs a lot (specially when Putin is shooting at the trucks. That will reduce the profit a lot

(Oil price 30-40 USD in compare to a 60-100 a while ago)

The Turkish president's wealth pales in comparison to Putin's. How do you make that much money as a government employee?

http://www.businessinsider.com/russias-former-largest-foreign-investor-putin-is-worth-200-billion-2015-2

Hedge fund manager Bill Browder, once the largest foreign investor in Russia, estimates Russian President Vladimir Putin's wealth at $200 billion — which would make him by far the richest man in the world.

When asked to estimate his net worth by Fareed Zakaria of CNN, Browder said: "I believe that it is $200 billion.

"After 14 years in power of Russia, and the amount of money that the country has made, and the amount of money that hasn't been spent on schools and roads and hospitals and so on — all that money is in property, Swiss bank accounts, shares, [and] hedge funds managed for Putin and his cronies."

[Harsh Jones]

Turkish president is not wrong, money will come from illegal oil trade with ISIS, failing to understand tankers will continue to be bombed and if anything intensified.

And more important the money will come to his family.

But an interesting thing now: Oil is getting very cheap. Illegal oil must be cheaper than the legal one. Transportation costs a lot (specially when Putin is shooting at the trucks. That will reduce the profit a lot

(Oil price 30-40 USD in compare to a 60-100 a while ago)

The Turkish president's wealth pales in comparison to Putin's. How do you make that much money as a government employee?

http://www.businessinsider.com/russias-former-largest-foreign-investor-putin-is-worth-200-billion-2015-2

Hedge fund manager Bill Browder, once the largest foreign investor in Russia, estimates Russian President Vladimir Putin's wealth at $200 billion — which would make him by far the richest man in the world.

When asked to estimate his net worth by Fareed Zakaria of CNN, Browder said: "I believe that it is $200 billion.

"After 14 years in power of Russia, and the amount of money that the country has made, and the amount of money that hasn't been spent on schools and roads and hospitals and so on — all that money is in property, Swiss bank accounts, shares, [and] hedge funds managed for Putin and his cronies."

Nobody knows the number.

Notice how the standard of living has risen at the same rate that Putin amassed wealth ? Putin cut taxes across the board in Russia and eliminated the countries debt. Taxes in Russia are way lower then they are in the US or any western state. Its not even close. In capitalism, rising tides lift all boats.

[craigt3365]

http://www.therichest.com/rich-list/poorest-list/5-countries-with-the-lowest-standards-of-living/?view=all

More commonly referred to as Russia, The Russian Federation offers one of the overall lowest standards of living in the world. With a population of over 142 million, the people of Russia are not as healthy as they should be. When it comes to health, they scored an extremely low 0.6 out of 10 and their life expectancy at birth is 70 years – which is shockingly low compared to the OECD average of 80 years. Total health spending is also quite low, with only 5.1% of the GDP (Gross Domestic Product) being employed for healthcare, compared to the 9.5% average. While obesity isn’t a significant contributing factor in the Russian’s low life expectancy, they do tend to drink and smoke a lot more than most other countries – factors which, as we all know, can negatively impact health. None of this looks good, but there is a silver lining for the Russians: Only 0.2% of Russians work very long hours, much less than the OECD average of 9%. Less time at the office means more time for family and a better work-life balance.

But they did score more than Turkey! LOL Putin should be happy his wealth increased more than anybody else.

[Harsh Jones]

Of course the country won't collapse, but the livelihoods of businessmen and traders will.

Under proper free trade that is correct. But we are not dealing with proper free trade.

Russia could either buy vegetables from Turkey and export more natural gas. But this forces them into the US treasury market and or the petrodollar market depending on where they are selling the gas.

Instead, they could use the natural gas themselves to heat green houses and grow vegetables themselves. Then they are not forced into either the treasury or petrodollar market. And this also makes them self sufficient.

Russia's march toward self-reliance - CSMonitor.com

www.csmonitor.com/Commentary/.../Russia-s-march-toward-self-relianc...

Dec 4, 2014 - Putin now plans to support entrepreneurs who can supplant foreign goods ...

Putin now plans to support entrepreneurs who can supplant foreign goods or services. Rather than remain dependent on the foreign banking system, he plans a national payment system like that in China.

[Harsh Jones]

http://www.therichest.com/rich-list/poorest-list/5-countries-with-the-lowest-standards-of-living/?view=all

More commonly referred to as Russia, The Russian Federation offers one of the overall lowest standards of living in the world. With a population of over 142 million, the people of Russia are not as healthy as they should be. When it comes to health, they scored an extremely low 0.6 out of 10 and their life expectancy at birth is 70 years – which is shockingly low compared to the OECD average of 80 years. Total health spending is also quite low, with only 5.1% of the GDP (Gross Domestic Product) being employed for healthcare, compared to the 9.5% average. While obesity isn’t a significant contributing factor in the Russian’s low life expectancy, they do tend to drink and smoke a lot more than most other countries – factors which, as we all know, can negatively impact health. None of this looks good, but there is a silver lining for the Russians: Only 0.2% of Russians work very long hours, much less than the OECD average of 9%. Less time at the office means more time for family and a better work-life balance.

But they did score more than Turkey! LOL Putin should be happy his wealth increased more than anybody else.

What you just linked is a click bait site. Gutter journalism would be giving it too much credit.

TheRichest is the world's leading source of shocking and intriguing content surrounding celebrities, money, global events, society, pop culture, sports and much ...

[Ulic]

Putin vs. Erdogan.........Which one is the pot, and which one is the kettle.

[Srikcir]

Trade sanctions by Russia against Turkey is good timing for the EU. Turkey will need to join the EU to continue its exports and the EU will have uninterrupted oil & gas imports via Turkey and Iran fields. The less reliance the EU has on Russian imports the more it can exercise independent foreign policy.

Putin must remember there's two sides to trade bans: imports and exports. Being largely a natural resource exporter, Russia doesn't have a lot of new markets to replace its EU and Turkey customers. And there's plenty of competition to keep Russia from returning. While Putin may think himself as the sun of Russia, he is but a two bit-player on the world stage.

[konying]

Trade sanctions by Russia against Turkey is good timing for the EU. Turkey will need to join the EU to continue its exports and the EU will have uninterrupted oil & gas imports via Turkey and Iran fields. The less reliance the EU has on Russian imports the more it can exercise independent foreign policy.

Putin must remember there's two sides to trade bans: imports and exports. Being largely a natural resource exporter, Russia doesn't have a lot of new markets to replace its EU and Turkey customers. And there's plenty of competition to keep Russia from returning. While Putin may think himself as the sun of Russia, he is but a two bit-player on the world stage.

DO you honestly think Iran will be supplying Turkey? its enemy and Iran will be undercutting Russia its closest ally?

Think again

Germany , France, Italy, just to name a few did a lot of trade and have lost a lot of money due to US led sanctions.

All 3 plus a few more are now looking to lift all as money lost does not benefit anyone involved but one on another continent.

Russia is the biggest importer of luxury cars, that alone should give you some ideas.

If Russian tourists can hurt Turkish or Thai or Egyptian economy, it should tell you 2 things

1. Russian tourist buying power

2. The number of Russians who can afford to travel overseas.

Turkey lost all Israeli tourism, now Russian.

Naturally Turkish clown will keep his head up and spout nonsense, can not possibly expect him to admit he screwed up and his people will be suffering

[Harsh Jones]

Trade sanctions by Russia against Turkey is good timing for the EU. Turkey will need to join the EU to continue its exports and the EU will have uninterrupted oil & gas imports via Turkey and Iran fields. The less reliance the EU has on Russian imports the more it can exercise independent foreign policy.

Putin must remember there's two sides to trade bans: imports and exports. Being largely a natural resource exporter, Russia doesn't have a lot of new markets to replace its EU and Turkey customers. And there's plenty of competition to keep Russia from returning. While Putin may think himself as the sun of Russia, he is but a two bit-player on the world stage.

There is few if any competition for gas that can beat Russian prices.

Europe Seen Paying Twice as Much to Replace Russian Gas

www.bloomberg.com/.../europe-seen-paying-twice-as-much-to-replace-r...

Mar 28, 2014 - Europe's natural gas prices would have to double to lure enough ... not impossible to eliminate Europe's dependence on Russia for gas, but it's ...

And Russia has new markets all over Asia yet to be tapped.

[craigt3365]

Trade sanctions by Russia against Turkey is good timing for the EU. Turkey will need to join the EU to continue its exports and the EU will have uninterrupted oil & gas imports via Turkey and Iran fields. The less reliance the EU has on Russian imports the more it can exercise independent foreign policy.

Putin must remember there's two sides to trade bans: imports and exports. Being largely a natural resource exporter, Russia doesn't have a lot of new markets to replace its EU and Turkey customers. And there's plenty of competition to keep Russia from returning. While Putin may think himself as the sun of Russia, he is but a two bit-player on the world stage.

There is few if any competition for gas that can beat Russian prices.

Europe Seen Paying Twice as Much to Replace Russian Gas

www.bloomberg.com/.../europe-seen-paying-twice-as-much-to-replace-r...

Mar 28, 2014 - Europe's natural gas prices would have to double to lure enough ... not impossible to eliminate Europe's dependence on Russia for gas, but it's ...

And Russia has new markets all over Asia yet to be tapped.

This is what scares Russia. If it goes through, Putin will have lost a major leverage point over Europe. Which would be a good thing. Sick to use things like gas for heating homes in the winter as a political tool.

http://www.middleeasteye.net/columns/us-russia-gas-pipeline-war-syria-could-destabilise-putin-103505758

As Orenstein explained, “in 2009, Qatar proposed to build a pipeline to send its gas northwest via Saudi Arabia, Jordan, and Syria to Turkey… However, Syrian President Bashar al-Assad refused to sign the plan; Russia, which did not want to see its position in European gas markets undermined, put him under intense pressure not to”.

Russia’s Gazprom sells 80 per cent of its gas to Europe. So in 2010, Russia put its weight behind “an alternative Iran-Iraq-Syria pipeline that would pump Iranian gas from the same field out via Syrian ports such as Latakia and under the Mediterranean.” The project would allow Moscow “to control gas imports to Europe from Iran, the Caspian Sea region, and Central Asia.”

- See more at: http://www.middleeasteye.net/columns/us-russia-gas-pipeline-war-syria-could-destabilise-putin-103505758#sthash.NJfZ9iFW.dpuf

[Pakboong]

Like in professional athletics, the best player in the league may not play for your favorite team but, he is still the best player and he may not be the team captain but he most likely commands the highest salary. Team building, using your players, is the goal and worrying about who plays for the other teams in the league is for the most part pointless.