A MEMO FROM THE TURKEY’S 2000s ECONOMY : THE CRISIS OF SUKHOI SU-24M BETWEEN TURKEY

AND RUSSIA

Sukhoi Su-24M type aircraft belonging to the Russian Federation Air Force carried out a border
violation on 24 November 2015 and was shot down by Turkish jets. I want to talk briefly about
Turkey's economy from the effects of this event.

After this event; Turkey waited for an official apology by Russia , but this expectation did not
materialize. In the following period , Russia has applied some sanctions against Turkey in economic
relations . First, it is useful to browse through the import and export relations between Turkey and
Russia. Turkey's exports to Russia in 2014, recorded as $ 6,057,946.26 in 2015 this number was
recorded as $ 3,679,739.24. Among the sanctions of Russia; restrictions on imports of Turkish
products, Turkish citizens restrictions on the hiring of Russian companies, the cancellation of the
package of Russian tourists on vacation in Turkey, the Turks located sanctions such as the suspension
of visa-free entry to Russia. This crisis had a great impact especially in the tourism sector. According
to data from the Ministry of Tourism Turkey in January-October of that year it was between 3.5
million Russian tourists visited Turkey. After the Aircraft crisis, the Kremlin's instructions to Turkey
annulled and booking charter flights had been canceled. TUI that from the world's largest tour
organizers, announced that the Turkey package tour bookings decreased by 40 percent. According to
TUIK, Turkey's tourism income in 2015 decreased by 8.3 percent compared to the previous year was
31.5 billion dollars. Of course, there were other reasons for this decline, such as the terrorist acts of
those years.

Embargoes on Turkish export products constituted another dimension of the crisis. Turkey has been
one of the countries benefiting most from the food embargo Russia to Europe apply.Indeed Turkey
increased its share in the Russian market by 19 percent in 2014, due to increasing exports of fresh
products such as fruits and vegetables. However, Russian Deputy Prime Minister Arkadiy Dvorkoviç
after developments, the scope of sanctions against Turkey said it would limit the fruit and vegetable
imports from this country. Russian Agriculture Minister Aleksandar Tkaçev instead of agricultural
products from Turkey 'within a week' warned the new can be added. Tkaçev said they could buy
agricultural products from many countries like South Africa and Iran instead of Turkey.

The energy issue was another issue that caused unease in Turkey. Russian Economy Minister Alexei
Ulyukayev said from sanctions against Turkey ,Turkish Stream gas pipeline project and the Akkuyu
nuclear power plant may be affected. In Russia-Turkey relations in the energy sector was of critical
importance. Because as well as the joint energy projects, with 55 percent of the natural gas
consumed in Turkey, it was taking 30 percent of the oil from Russia. However, even though the
Turkish Movement and the Akkuyu project at risk, no Russian natural gas to Turkey or was authorized
to make a statement on the oil shipments could be restricted.

Relations with Russia, leading to alleviate the sanctions times has entered the stage of normalization
of Turkey's apology wills. As a result, Russian President Vladimir Putin and President of Turkey Recep
Tayyip Erdogan, until 2023, the trade volume between the two countries had set as a goal the
removal of 100 billion dollars in 2014, but recent developments then $ 100 billion target of 'no longer
a dream' comments began to be made. Of course, there were positive or negative developments
afterwards. We will see together whether the target will be realized until 2023.

Question 1: Do you think this goal will be realized?

Question 2: Can you give other examples from the recent past similar to this example?
SAFİYE ÖZÇİMEN

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