Slovakia wants debate on sanctions

After the extension of the sanctions against Europe, debate within the Union has not yet been wrapped up. Slovakia wants to enter into discussions in the coming months. On the other hand, the relationship between Russia and Turkey is improving. According to the Kremlin, the Russian sector does not need to worry about the loss of market share when the borders open for Turkish products. Arminian traders do fear they will lose market share, Azerbaijani exporters have more confidence in the future.

During Slovakia’s EU chairmanship, the country wants to enter into discussions about the sanctions against Russia, according to the Slovakian ambassador in Russia. Although the sanctions were extended until January 2017 last week, there will be room for debate in Europe. The EU is slowly splitting up into groups of supporters and opponents of the sanctions, and Slovakia is part of the latter. During the next six months Slovakia is taking over chairmanship of the EU.

If, in the near future, Russia opens the borders to Turkish products, it will not be disadvantageous to Russian companies that benefited from the sanctions, according to Russian authorities. Companies profited from the Turkish absence in large cities such as St Petersburg and Moscow. Next month, intensive talks with Turkey will occur to improve the relationship, and to possibly lift the measures. Last week Putin announced the lifting of the travel ban to Turkey. Turkish media report that the Russian border will open in the coming weeks. These reports have not yet been confirmed by the Kremlin. 

The improvements in the relationship between Turkey and Russia are leading to fears among Armenian traders. The sanctions against Turkey were agreeable to Armenian exporters, because Turkey was the largest supplier of tomatoes to Russia. Since the boycott, Armenian exporters managed to increase their market share on the tomato market.

Traders in Azerbaijan expect the renewed relationship between Turkey and Russia will not be negative to trade. Azerbaijan also managed to increase the share on the Russian market after the boycott. According to the Azerbaijani government trade is increasing anyway, because products are improving. As with Armenia, Azerbaijan managed to sharply increase, among other things, the export of tomatoes.

During the first half of this year, Turkish export decreased by almost four per cent to 70.6 billion dollar, according to figures published by the Turkish export organisation. The fruit and vegetable sector is one of the sectors that saw a sharp decrease in export value. Russia was the largest export market for this sector, with a share of 39 per cent in volume and 42 per cent in value. During the first five months of this year, export plummeted to 113,000 tonnes, while a year previously 530,000 tonnes were exported in that same period.