Decline in Turkey-Russia trade: Which sectors were affected the most

According to statistics published by TurkStat on July 31, Turkey's exports of goods to Russia in the first half of 2024 decreased by 28.3% compared to the same period in 2023, falling to 4.16 billion dollars (it was 5.8 billion dollars in the first half of last year). Specifically, in June 2024, Turkey sent 670 million dollars worth of goods to Russia (compared to 784 million dollars the previous month), which represents a 30% decrease compared to June of last year.

Last year, Turkey ranked third in Russia's trade with other countries, with an 8% share. The majority of this trade stems from imports from Russia to Turkey, which consist largely of energy resources. In the first half of 2024, Russia's shipments to Turkey amounted to 22 billion dollars (a 10% decrease compared to the same period in 2023, when it was 24.6 billion dollars). In the January-June 2024 period, more than 70% of this figure (16 billion dollars) was provided by Russia's shipments of mineral fuels (oil, gas, coal).

EXPORTS OF EQUIPMENT AND MECHANICAL DEVICES ARE DOWN

According to TurkStat data, Turkey's exports of equipment and mechanical devices to Russia in the first half of 2024 decreased by 27% to 961 million dollars (it was 1.32 billion dollars in the same period of 2023). Exports of electrical equipment fell by 48% to 205 million dollars (it was 390 million dollars in the same period last year). Turkey's exports of plastics and plastic products to Russia decreased by 28% to 249 million dollars (it was 347 million dollars in the same period last year).

'SANCTION RISKS' ARE THE MAIN CAUSE OF PROBLEMS

Since the beginning of 2024, media reports have frequently mentioned that there have been problems with payments from Russia to Turkey. These problems stem from sanction risks. In late 2023, the US introduced a mechanism to impose sanctions on banks in third countries for interacting with the Russian military-industrial complex. In June 2024, the US expanded the definition of Russia's military-industrial complex to include all companies, organizations, and individuals sanctioned after April 2021.

RBC highlights that these sanctions and the difficulties in payments play a significant role in the decline of trade between Turkey and Russia.

News Source: 12punto