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Turkey-Russia trade halt may make imports low-priced in Azerbaijan market

02 September 2008 09:03 (UTC +04:00)

Watchers see the mounting row as a result of the differences observed in foreign policies of the two countries.
The trade row has raised questions about whether Russia is trying to punish Turkey for allowing U.S. warships carrying aid to Georgia to pass through the Bosporus to the Black Sea.
Turkeyâ€™s Deputy Prime Minister Cemil Cicek expressed hope on Monday that trade problems between Turkey and Russia would be solved during Russian Foreign Minister Sergei Lavrovâ€™s scheduled visit to Turkey.
Trade volume between Turkey and Russia was estimated to reach 38 billion U.S. dollars at the end of 2008. Turkish investments in Russia is around 5 billion dollars, while Turkish contractors have undertaken Russian construction projects worth over 25 billion dollars.
Last year, Turkish exports to Russia reached 4.7 billion U.S. dollars, mostly automobiles, citrus fruits, tomatoes, synthetic thread, textiles and jewelry. Turkey imported mostly oil, natural gas and mineral oil from Russia worth 23.5 billion U.S. dollars.
Vugar Bayramov, Chairman of the Center for Economic and Social Development (CESD) in Baku, believes the trade row between Russia and Turkey is not going to have any undesirable impact on Azerbaijanâ€™s domestic market.
He argued that businessmen will feel the pain of the commercial row and Azerbaijan is likely to emerge as an alternative for the Turkish exports.
According to him, this would lead to the reduction of selling prices of imports in Azerbaijan in this event.
Meanwhile, Economic expert Zahid Mammadov argued that the commercial tension between Russia and Turkey will unquestionably have massive influence on the domestic markets of the both countries, especially Turkey.
The exchange of commodities has exceeded $28 billion between Russia and Turkey and Russians account for 70% of tourist flow to Turkey.
He added that Azerbaijanâ€™s market will not be seriously harmed by this row. According to him, diplomatic negotiations are the only key to this problem.