Türkiye-Russia trade expected to decline: Russia’s Ambassador Erkhov
Russian Ambassador to Türkiye, Aleksei V. Erkhov. (AA Photo)
The Russian Ambassador to Türkiye, Aleksei V. Erkhov, has expressed concerns over a decline in trade between the two nations, citing the growing impact of Western sanctions on banking and business operations.
In an interview with the Turkish publication Ekonomim, Erkhov highlighted the challenges Turkish businesses face because of blocked bank transfers and international restrictions.
Western sanctions strain Türkiye-Russia trade relations
Russia’s Ambassador to Türkiye, Aleksei V. Erkhov, emphasized the impact of Western sanctions on bilateral trade between Türkiye and Russia.
Speaking to Ekonomim, Erkhov noted that banking transfers remain largely blocked, with American and European Union measures continuing to create difficulties for both nations’ economic sectors. “By the end of the year, I expect a decline in Türkiye-Russia trade volume,” Erkhov stated.
While we are seeing increased negative pressure from the West in this area, trade continues.American sanctions are working, making our bilateral trade difficult in every possible way. Bank transfers remain largely blocked.
Representatives of the finance ministries of the US and the European Union continue to deliver “nightmares” to the Turkish business community, which is suffering losses.
I think that by the end of the year, Russian-Turkish trade will decrease.
Ambassador of the Russian Federation to the Republic of Türkiye, Aleksei V. Erkhov
Impacts of sanctions on banking and trade
Ambassador Erkhov detailed the adverse effects of sanctions, highlighting blocked financial transactions and disrupted supply chains.
He noted that these measures not only affect Russian entities but also create significant challenges for Turkish businesses engaged in bilateral trade. Despite the obstacles, trade activities persist, though under mounting strain from external pressures.
Akkuyu Nuclear Power Plant and delays in equipment delivery
Addressing the Akkuyu Nuclear Power Plant (NPP) project, Erkhov pointed to delays caused by sanctions, such as halted equipment deliveries from German suppliers.
He affirmed ongoing collaboration between Russian and Turkish experts to manage the project timeline effectively.
The construction of complex engineering and construction facilities, such as nuclear power plants, requires strict adherence to many high-tech operations, the precise sequence of which is determined by IAEA requirements, numerous regulations, instructions and directives.
In this matter, special attention is paid to the observance of work schedules and their sequence, as they are closely interconnected.
However, not everything is so simple here: as the Turkish public is well aware, anti-Russian sanctions have effectively prevented the delivery to the construction site of equipment ordered from the German company Siemens, which is crucial for the implementation of the project, in particular the gas-insulated switchgear. They had to order it elsewhere. This naturally affected the pace of construction.
It is precisely for this reason that the commissioning dates for all four power units need to be clarified, and experts from both sides are currently working on this.
Ambassador of the Russian Federation to the Republic of Türkiye, Aleksei V. Erkhov
Future of Türkiye-Russia economic cooperation
When asked about the future of Türkiye-Russia economic ties, Erkhov highlighted ongoing discussions regarding the Sinop Nuclear Power Plant project, underscoring Russia’s readiness to participate.
While progress continues in some areas, economic pressures and sanctions remain significant barriers to further cooperation.
We make no secret of our readiness to take part in the realization of the nuclear power plant construction project in Sinop.
Our decisive advantages in this regard are the possession of reliable and well-functioning technologies, as well as the experience of interaction with Turkish builders already gained during the implementation of the Akkuyu project.
The choice of partner country, of course, remains with the Turkish side.
Ambassador of the Russian Federation to the Republic of Türkiye, Aleksei V. Erkhov
Tourism sector resilient despite economic challenges
Touching on tourism, Erkhov acknowledged recent improvements in the sector, stating that Russian tourists continue to visit Türkiye in large numbers.
“This year, 5.5 million Russian tourists visited Türkiye in the first nine months, and we expect to surpass last year’s figure of 6.3 million,” he remarked. However, he warned that economic challenges and price fluctuations could influence tourism trends in the coming years.
When the cost of a trip to Türkiye becomes “beyond the means” of a particular Russian family, they turn to other markets and choose to spend their vacation elsewhere. Because Türkiye has competitors like Egypt, Tunisia and the UAE, not to mention the Far East. Therefore, in the last few years, there have been cases where Turkish hoteliers have reasonably assessed the situation and corrected their exaggerated demands. In short, the market is working.
I was recently in the south; hotels were full, including Russian tourists, so they have agreed on the price. That’s a good thing, and as usual, Russia is by far the biggest tourist destination.
Ambassador of the Russian Federation to the Republic of Türkiye, Aleksei V. Erkhov
“By the way, how will payment be made? Our ‘MIR’ payment cards are not working. Sometimes there are alternative systems, sometimes not.” Erkhov added.
