icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm
30 Jul, 2022 14:07

Turkey’s exports to Russia jump amid sanctions

Deliveries soared by nearly 50% year-on-year in June
Turkey’s exports to Russia jump amid sanctions

Turkish exports to Russia jumped in June, as the traditional foodstuffs were joined by increased shipments of machinery and equipment, the Turkish Institute of Statistics reported on Friday.

According to the report, exports to Russia jumped 46% year-on-year to $791 million last month, putting the country well on its way to becoming Russia’s fifth largest supplier of goods, up from tenth place in 2021. Ukraine-related Western sanctions caused Moscow to import less from countries recognized as “unfriendly,” thus sending Turkey ahead of Italy, Poland, Japan, the Netherlands, France, and the US. China, Belarus, Germany and Kazakhstan were Russia’s largest suppliers in May, and analysts predict these nations will retain their positions in the near future.

Shipments of Turkish fruits, such as peaches and cherries, to Russia rose sharply in June. Turkish suppliers sent $168 million worth of fruits and nuts to Russia last month, 33% more than in June 2021 ($113 million) and twice as much as in May 2022 ($72 million).

However, Russia also imported a substantially larger amount of Turkish machinery, equipment and electronic components in June, versus the previous months. Deliveries of equipment and mechanical devices jumped from $73 million in May to $102 million in June, electric machinery and equipment climbed from $28 to $32 million, automobiles and components from $25 to $34 million, and plastic products from $34 to $48 million.

Overall, Turkish shipments to Russia were the highest in a single month since at least the beginning of 2010, according to the UN trade database Comtrade.

Meanwhile, for the first half of 2022, Russia was on the receiving end of only 2.3% (or $2.9 billion) of Turkey’s total exports ($125.9 billion), as shipments were more focused on the US and EU. However, over the same period, Russia became the leading source of Turkish imports, with the figure reaching $27.7 billion (16% of the country’s total imports). Oil and gas accounted for more than 60% of that total.

Bilateral trade may further increase in scope and volume, as the two countries are reportedly discussing switching to settling trade in Turkey’s currency, the lira. This would allow Moscow to use the currency when purchasing goods and services from local suppliers, thus avoiding the sanctioned US dollar and euro, analysts say.

For more stories on economy & finance visit RT's business section