Turkey reduced trade with Russia by a third: what it means for the economy

In February of this year, exports of goods from Turkey to the Russian Federation decreased by a third compared to the same period last year, amounting to USD 670 million. This was reported by Reuters.

Data from the Turkish Ministry of Commerce show that in monetary terms, exports to Russia amounted to $ 1.1 billion in February 2023. Imports of goods from Russia to Turkey also decreased significantly by 36.65%, to $1.3 billion from $2 billion last year.

According to Reuters, the US threat to impose sanctions on financial companies that cooperate with Russia has led to a cooling of trade between Turkey and Russia, disrupting or slowing down some payments for both imported oil and Turkish exports.

However, despite this, cooperation between Ukraine and Turkey in the areas of trade and economy remains active. Trade between the two countries has reached a record $8 billion since the start of the war, with $3 billion in exports.

The signing of a free trade agreement between Ukraine and Turkey on February 3, 2022, opened new prospects for businesses in both countries. The Minister of Economy of Ukraine Yulia Svyrydenko emphasized that Turkey has long been an important trading partner of Ukraine in the region, and cooperation between the countries is mutually beneficial.

Even during the war, Turkish investors continue to implement their projects in Ukraine. A significant portion of Turkish business investments in the Ukrainian market is in the renewable energy and construction sectors, which demonstrates the sustainability and long-term interest of Turkish companies in the development of Ukraine's economy.