Turkey is Russia’s Trade Gateway

Turkey is Russia's Trade Gateway
Turkey is Russia's Trade Gateway

Nowadays, Turkey is Russia’s Trade Gateway. Turkey turned into the transit hub of this country. The goods that will go to Russia from every parts of the world, especially the EU and the Far East, are brought to Turkey first, the container is changed, and sent to Russia. The goods that will go to many parts of the world from Russia, especially the EU and the Far East, are brought to Turkey first, and the container is changed and sent to these counties. “Warehouses in Turkey are overflowing with the Russian transit goods,” according to logisticians.

In Russia, which is facing US and EU embargoes due to the war with Russia’s invasion of Ukraine, the government’s decision to allow parallel imports as of March has turned Turkey into a “transit hub” for this country. Cargoes from different countries of the world are unloaded at various ports of Turkey after the embargo screening. The goods are transferred to the ships going to Russia through the reexport process without being nationalized. The same way is adopted for goods coming from Russia. The same method is used for road transport in border areas.

Logistical sources who provide information say that some Russian companies have opened representative offices in Turkey and are going to company partnerships in order to realize the parallel imports. Russian Minister of Economic Development Maksim Reshetnikov announced that the total volume of products brought into the country under parallel imports is approaching $ 4 billion. They also add “Nowadays; Turkey is Russia’s Trade Gateway”.

Russians get citizenship and establish a company in Turkey

Representatives of the logistics sector who spoke said that Russian investors who have established companies in Turkey mainly make parallel imports. According to the information provided, Russian business people buy real estate in Turkey to get citizenship and establish a local company. Thus, it sends the products it imports from countries such as the Far East or the EU to Russia through its company in Turkey. Since the global container giants of the EU have stopped their flights to Russia, Turkish container companies that have a line to Russia by sea carry out these shipments. We can note that there is a signifcant increase in transit loads to Russia by sea but as well as by land, air, and rail. Confirming that Turkey is Russia’s Trade Gateway.

Turkey is Russia’s Trade Gateway: Warehouses overflowed with Russian goods.

The density of warehouses draws attention due to the arrival of transit cargoes to Russia in Turkey. According to the statements, the warehouses in Mersin are full to the brim due to the cargo coming from worldwide and to transfer to Russia. On the one hand, they sent these cargoes to Russia with the ships of Turkish shipowners, and on the other hand, many Russian trucks come to Turkey to transport these goods as nowadays, Turkey is Russia’s Trade Gateway.

Turkey is Russia’s Trade Gateway:

The goods that will go to Russia from many parts of the world, especially the EU and the Far East come to Turkey first, change the container, and go to Russia.

International companies withdrawing from Russia are turning their routes to Turkey

International companies that suspended their activities in Russia due to the Russian-Ukrainian war or sought safe and stable addresses in the region after withdrawing from this market examined the investment environment in Turkey.

Following the Covid-19 outbreak, international companies, that the Russian-Ukrainian war also affect, turned their routes to Turkey, seen as the “safe Harbor of the region” and “trade base.” Turkey is Russia’s Trade Gateway, particularly for U.S. companies, which rank second in international capital investments in Turkey, focused on mutual visits to cooperate by seeing the investment opportunities in the country on the spot.

The Covid-19 pandemic brought about a change in the investment policies of countries and companies. Many companies have started shifting their investments in the Far East to countries including Turkey, considering the reasons such as investment opportunities, energy prices, transportation fees, and labor environment. The outbreak of the Russian-Ukrainian war during the period when the epidemic’s effects began to decrease led to a change in investment plans. The world’s leading companies supporting the sanctions imposed on Russia by many countries and organizations, have either suspended their activities in Russia or left this market and started to look for alternatives.

Despite their withdrawal from Russia, international companies looking for a safe and stable address where they will coordinate their operations and investments in the region have begun to turn their business environment to Turkey, considering the business environment.

Is Russian-Western trade returning through Turkey?

Turkey is Russia’s Trade Gateway. The eyes of the whole world are on Russian-Turkish relations. The sanctions the West imposes after the invasion of Ukraine aime at isolating Russia from the world economic system. These sanctions do not include Turkey despite being a NATO member, but it did not stand in their face either. We can observe that the West does not say anything about this mediator role of Turkey since it needs Russian gas and Russian-Ukrainian grain in this process. This mediation was most recently embodied in the issue of the “Grain Corridor”.

After the talks in Iran, Putin and Erdogan met in Sochi. From this meeting, they made decisions to increase trade and conduct trade in local currencies. The existence of concerns about the piercing of sanctions imposed on Russia through Turkey this week also appeared in many sources in the international media. Even a news report, claimed that goods for exportation from Italy to Russia passed through Turkey. First of all, Italy exports to Turkey and Turkey exports the same goods to Russia through Turkey. They do the same from Russia to Italia, for which Turkey is Russia’s Trade Gateway. Thus, Russia buys and sells goods without violating sanctions.

Leaders set the goal of increasing the volume of foreign trade between Russia and Turkey to 100 billion dollars. Our trade volume with Russia is about 35 billion dollars in 2021. Of this, 29 billion dollars are imports, the rest is exports.

Turkey is Russia's Trade Gateway

The formula of Turkey in trade with Russia

The world imposed very harsh economic sanctions on Russia after the war since which Turkey is Russia’s Trade Gateway. This situation pushed the companies that trade with Russia to other searches. According to exporters, some western companies export to and import from the region through Turkey.

Turkey is Russia’s Trade Gateway: some western companies export to Russia and import from Russia through Turkey.

The embargoes imposed on Russia have made trade through Turkey more important. Ambargo will inevitably force Russia to expand procurement frameworks to keep its business going. The most important country related to these is Turkey. Companies in need with suppliers in Russia The number of demands from Turkey is increasing, and serious demands are coming

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