Russia to ease sanctions against Turkey

After facing difficulties in many sectors from textile to automotive, from food to construction due to sanctions against Turkey, the Russian government is planning to ease sanctions against Turkish companies.

Russian Kommersant business daily reported on Friday quoting a federal official who said Moscow is preparing to allow some Turkish companies operate inside Russia.

Putin imposed sanctions against Turkey after Turkish F-16 fighter jets shot down a Russian military aircraft for violating Turkish airspace near the Syrian border in November 2015.

The sanctions cover Turkish food products, textiles, tourism, automotive, constriction companies.

But following the sanctions, the Russian economy, which has been facing its worst situation in ten years, forced Moscow to step back.

Many Russian companies in automotive, textile and other sectors began to halt production because of a shortage of raw materials from Turkey.

According to state-run TASS news agency, Russia's federal government will ease sanctions against construction firms in the country set up by Turkish nationals.

“Big contracting companies may be allowed to stay in the Russian Federation provided that they set up joint ventures with Russian partners owning not less than 75% plus one share,” the agency reported citing a government official who talked to Kommersant.

Though the report indicated that easing of anti-Turkey sanctions may concern contracts on construction projects for the 2018 FIFA World Cup, to be held in Russia, but expert says the sanctions returned as boomerang to the Russian economy and forced Putin to step back.

TASS said easing sanctions would be possible after a draft government decree developed by Russia's Economic Development Ministry is signed, which outlines the rules for selecting contracts fulfilled by Turkish subcontracting suppliers in Russia, which are not sanctioned.

On Thursday the ministry published a draft decree, which says sanctions will not cover Turkish companies fulfilling contracts, discharge of which may cause default on internal or external liabilities.

Earlier this week a Russian official said many big companies, including the largest retail savings bank, Sberbank, applied to the government for exemptions allowing them to trade with Turkey.

A month ago, Russian automotive companies have filed similar applications to the Kremlin after halting production due to a lack of Turkish automotive components.

Moreover, in end-2015, the Russian authorities made up a list of companies eligible to employ Turkish nationals, among them big Turkish developers Enka, Renaissance Construction, Ant Yapı.

Source: Yeni Safak