Turkish Economy Risks Losing $9 Billion over Russia Crisis: Deputy PM

Tuesday, 8 December 2015

Turkish Economy Risks Losing $9 Billion over Russia Crisis: Deputy PM

Tensions with Russia could cost Turkey's economy nine billion dollars in the worst case scenario of "zero relations", Turkish Deputy Prime Minister said Monday.

Moscow has imposed a series of economic sanctions against Ankara after Turkish fighter jets shot down a Russian jet on the Syrian border on November 24, sparking the biggest crisis between the two countries since the Cold War.

"In the worst-case scenario, which is zero relations with Russia, we are talking about a loss of nine billion dollars (8.3 billion euros)," Mehmet Simsek, the deputy prime minister in charge of the economy, told private NTV television.

The current tension is likely shave 0.3 to 0.4 percent off Turkey's GDP, Simsek added.

Russia's sanctions include a ban on the import of some Turkish foods and a halt on sales of holiday packages, a major blow to Turkish tourism.

Simsek said that the number of Russian tourists visiting Turkey and construction contracts with Russian companies had also significantly reduced.

"There are 603,000 fewer (Russian) tourists," he said.

"We have always seen Russia as an important partner and have no intention to escalate the tensions any further," he said.

"But if Russia continues to maintain this attitude.... all kinds of dissuasive measures will be taken," he warned.