Russia decided to impose sanctions on four sectors of the Turkish economy. This is actually the response to the decision of Turkey to shoot down the Russian bomber.
As Sott.net reports, Russian lawmaker Alexei Pushkov revealed that tourism will be badly damaged. Annually, Turkey earned $3.5-4 billion on Russian tourists, which accounts for 12-18 percent of its overall tourist industry,” he said.
Second, Turkish companies doing business in Russia will also be affected. According to Pushkov, last year their overall income was estimated 50 billion rubles ($750 million).
Third, Turkish companies exporting their products to Russia will sustain losses.
“Taking into account the fact that over in recent years trade between Russia and Turkey reached $30 billion, there will be a serious problem for Turkish business. Turkish companies would have to look for other markets, and not all of them will succeed,” Pushkov underscored.
Finally, Russia would deal an overall blow to the entire Turkish budget because incomes from exports and tourism will decrease, he said.
On Saturday, Russian President Vladimir Putin signed a Decree “On Measures to Guarantee National Security in the Russian Federation and Protect Russian Citizens Against Criminal and Other Illegal Actions, and on Special Economic Measures Against the Turkish Republic.”
According to the document, Russian companies are not allowed to hire Turkish citizens starting January 1, 2016. The visa-free regime between the countries will be partially suspended after January 1, 2016.
Moreover, Russia will restrict import of certain Turkish goods except for the goods imported for personal use to an extent permitted by law of the Eurasian Economic Union (EEU). Russian travel agencies will have to stop selling tours to Turkey, according to the Kremlin. The directive is part of a decree that aims to boost Russia’s national security. Charter air transportation between Russia and Turkey will also be banned.