Russian capital flow to Turkey peaks in 2022

Russian capital flow to Turkey peaks in 2022
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According to data from TOBB the number of newly established companies with Russian capital in Turkey quadrupled in the first eight months

The number of newly established companies with Russian capital  in Turkey this year quadrupled compared to last year as Western sanctions on Russia due to war on Ukraine corners the Russian businessmen to do business elsewhere in Europe. 

According to data compiled by the Dunya newspaper from the statistics of TOBB (The Union of Chambers and Commodity Exchanges of Turkey,) 729 new Russian companies were established in Turkey during the first eight months of 2022 making Russia the second country in the list of new companies doing business in Turkey. Last year, this number was 177.

In the January-August 2022 period, 86 thousand 560 new companies were launched in Turkey, with over 14 thousand with foreign capital, Dunya said.

The total capital of the 729 companies with Russian capital amounted to 360 million TL, while the share of foreign capital in these companies was 320.5 million TL.

The US and the EU have been increasingly warning Turkey against the risks of being covered by the sanctions imposed by the West on Russia, as Turkey excludes itself from those sanctions. 

Earlier this month, key EU commissioner Mairead McGuinness visited Turkey and met with top Turkish ministers who steer the Turkish economy and informed them about the eighth package of sanctions against Russia, just one day after the package was adopted by the bloc. 

President Tayyip Erdogan's steps to further develop economic and commercial relations with Russia, and the record increase in the trade volume between the two countries raises Brussels' concerns.

The 2022 EU-Turkey Enlargement Report this week said that, if Turkey does not implement the EU's sanctions against Russia, it could cause problems in the Customs Union.

It was pointed out that the EU-Turkey Customs Union allows the free movement of goods, including products that can be used for military purposes, and that Turkey's non-participation in the EU's sanctions against Russia risks weakening the sanctions.