Russia imposes economic sanctions against Turkey
Russian President Vladimir Putin has signed a decree imposing a package of economic sanctions against Turkey (NATO member) following its downing of a Russian Su-24 bomber in Syria. The measures include banning several Turkish organizations and the import of certain goods.
Economic sanctions imposed against Turkey covers :-
Under the decree, the import of certain products originating from Turkey will be temporarily banned or restricted and a number of Turkish organizations operating in Russia will also be restricted.
Employers in Russia will be prohibited from hiring Turkish nationals for work starting January 1, 2016. However ban will touch upon only new workers, and employees who already officially hired as of December 31, 2015 will not fall subject to the sanctions. Charter flights from Russia to Turkey have been banned and tour firms have been told not to sell any holiday packages to Turkey
Effect of economic sanctions on Turkish economy:-
Turkey is one of Russia's leading trade partners and the economies of the two countries are intimately integrated so Russian economic sanctions imposed against Turkey would have a devastating effect on the Turkish economy :-
- As Russa has banned tour firms from selling tour packages to Turkey following which Turkey would suffer from the lack of Russian tourists, who bring in about $6.5-billion a year.
- Turkish companies are heavily invested in Russia, particularly in the construction industry. In addition, trade, investment and employment will all be affected by sanctions.
Background of the sanction :-
The cooling of relations between the two countries was prompted by the downing of a Russian Su-24 bomber jet by a Turkish F-16 fighter at the Syrian border. As the plane was hit and went down in Syria, the two pilots ejected, but only one pilot was later rescued by the Russian forces another pilot was killed, with a rebel Turkmen brigade claiming they shot him to death while he was still parachuting.
Turkey claimed that Russian jet was shot down after it had crossed into its airspace and ignored several warnings to change course. However, Russia has furiously denied the claims and demanded an apology from Turkey.