Erdogan takes step to improve ties with Russia

By bne IntelliNews June 14, 2016

Turkey’s President Recep Tayyip Erdogan has sent a letter to his Russian counterpart Vladimir Putin, in what may be an attempt to start rebuilding bridges between Ankara and Moscow.  

The letter – on the occasion of Russia's national holiday, celebrated on June 12 – marks the first contact the two leaders have had after relations between Ankara and Moscow hit a low following the downing of a Russian bomber by a Turkish jet near the Syrian border last year. 

Following the incident, Russia has imposed a raft of economic sanctions against Ankara. Moscow demands a formal apology and a compensation. But Ankara still refuses to apologise for shooting down the plane.

However, in his letter Erdogan said: “I hope that the relations between Russia and Turkey reach the level they deserve,” the Hurriyet Daily News reported on June 14. This could be a sign that Ankara is willing to mend ties with Russia as the crisis in relations is badly hurting the Turkish economy, especially the vital tourism industry.

On June 14, Turkey’s EU Minister Omer Celik reiterated Turkey’s position during a visit to the Slovakian capital Bratislava. Celik said that Turkish air forces was not aware that the jet was Russian before downing it, and this was done in line with international engagement rules. The minister also called for the repair of relations with Russia and said that there exist close ties between Turkey and Russia, Bloomberg reported. 

Turkey's exports to Russia plunged by 63.4% y/y and 27.4% m/m to stand at just $116mn in May, data from the Turkish Exporters’ Assembly (TIM) showed on June 1. Only 31,000 Russian tourists visited Turkey in April, a significant 79% decline from a year ago. Turkey needs more exports and tourism revenues to plug its wide current account deficit.

“In the end the key is what does Putin want? Is he willing to accept some kind of normalisation in the relationship which stops short of a formal apology, and perhaps compensation paid by Turkey?” asks Tim Ash at Nomura. “I think the latter is just possible, although the former is still difficult to imagine. In the end, I don't think Putin is going to make it easy for Turkey at this stage, given he views his intervention in Syria, and the pain imparted by Russian sanctions on Turkey as giving him leverage over the West in the bigger geopolitical battle being played out,” Ash said in an emailed comment.

Related Articles

Erdogan, Putin discuss deepening strategic relationship

Turkish President Recep Tayyip Erdogan and Russian leader Vladimir Putin on May 27 confirmed in a telephone call “the aspiration for further development of the strategic partnership,” the Kremlin ... more

EU to fund feasibility study on Slovakia’s proposed Eastring gas link to Balkans

The EU has agreed to help fund a feasibility study on the Eastring pipeline project, which would link Slovakia to the Balkan markets, Slovak transmission system operator Eustream announced on May 26. ... more

Opec prolong output cuts by nine months

Opec member countries reached an agreement to cap oil output for another nine months until March 2018, Bloomberg and the Financial Times reported on May 25, citing unnamed sources close to the ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Dismiss