Russian sanctions against Turkey fuelled inflation in Russia - experts

Source : 112 Ukraine

Fruit, vegetables, tourism services will become more expensive
17:48, 1 December 2015

The sanctions imposed by Russia against Turkey will inevitably lead to higher inflation. Prices will rise for tourism services, as well as vegetables and fruits, - say economists of ‘Alfa-Bank’, reported  RBK-Russia.

"Turkey's share in overall Russian import is only 2%, but in some segments, especially in the segment of the seasonal food, it is especially high," - noted in the review, prepared by experts.

Economists refer to the data of the Center of development of the National Research University ‘Higher School of Economics’, according to which total amount of Turkey’s share is accounted up to 20% of Russian imports of fruit and vegetables.

The most significant is the share of Turkish tomatoes and grapes - up to 41% of import of these products to Russia. Economists believe that the effect of inflation will be especially feelable in winter, when state producers have much less opportunity to replace the import.

"Taking into consideration possible restrictions on non-food import, including textiles and clothing, restrictions on Turkish import could add 1.5 p.p. to inflation," - noted experts in the review. Turkey's share in import of clothing is accounted at 12%.

Earlier, on November 28, Russian President Vladimir Putin signed a decree on imposing sanctions against Turkey.

As a result of the Su-24incident, Moscow has imposed restrictive measures against Ankara. The General Staff of Russia stopped contacts with Turkey on military line, and to Russian tour operators was prohibited  the sale of trip tickets to Turkey. Also Russia may abandon a number of joint projects with Turkey because of this incident. The Head of The Ministry of Economic Development and Trade Ulyukayev said that Russia may stop air connection with Turkey. 

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