We can replace our declining foreign trade with the West with the Russian market

I believe that the deep-rooted history of our country's relations with the Russian Federation makes it easier for the two countries to walk together in the fields of economy and foreign policy today. Turkey's orientation towards a multilateral and multilateral foreign policy after the Johnson letter of 1964 during the Cold War period played a role in rapidly developing Turkish-Russian friendship and increasing cooperation between the two countries, especially in the fields of trade and investment. Today, I believe that the Russian geo-economy, which stands out as an alternative route to the Western world, offers us new opportunities. I believe that we can maximize the potential of trade cooperation between us in line with the expectations and growth targets of the Turkish economy, taking into account the special conditions of this great power.

The geopolitical risks we are facing these days and the global recession indicators tell us that economies around the world tend to shrink. On the other hand, producer and consumer prices continue to rise globally. While increases in global energy, food and agricultural commodity prices are feeding negative supply, I, like many others, do not expect this situation to improve in the near term. 

Traditionally, we export more than half of our exports to European countries. The Western world is our most important export gateway. In the last quarter of 2021, the government's export-oriented policy, which was activated with the adjustments in foreign exchange prices, gave a noticeable impetus to our exports. Thus, despite the ongoing Russia-Ukraine war, the Turkish economy was able to realize strong growth in the first half of this year. I find this very valuable as it shows the high potential of our economy. 

However, in the second half of the year, the recession in the Western world proved to be a negative factor in reducing foreign demand for Turkish goods. Despite this negative finding, I consider the current increase in employment and the ongoing economic growth to be very important for the welfare and wealth of our country's people. Undoubtedly, tourism revenues for 2022 exceed our expectations and give us all hope. However, if we cannot maintain the upward trend in exports that was achieved in the first half of the year, I believe that tourism revenues alone will not be sufficient for the current account balance. Our government recognized the need to support the manufacturing sector financially in a timely manner and started to take the necessary steps with the Monetization Strategy. I find it positive that the Central Bank has reduced its policy interest rate by 1.5 points in order to reduce financing costs. I support the determination to adopt a mechanism that encourages the strengthened Turkish lira in all policy instruments related to the economy in the coming period. I believe that the upward trend in foreign exchange reserves will continue and that this strategy will bring macroeconomic and financial stability to our country.

In support of these positive steps taken by the economic administration, I believe that Turkey should implement a strategy that emphasizes the Russian market as an alternative to the Western world, whose economies are contracting due to the recession, no later than the first quarter of 2023. We are developing new projects in many areas with Russia, with whom we are developing our bilateral relations on the basis of "partnership-friendship". I find the Turkish Stream natural gas pipeline and Akkuyu Nuclear Power Plant projects very important, especially in the field of energy. I believe that this strong cooperation in the field of investment should be enriched in areas such as mining, informatics, renewable energy, petrochemicals, pharmaceuticals and nuclear medicine.

Erdogan and Putin had set the target of increasing the trade volume between the two countries to 100 billion dollars, but we are still far behind this target. Russia ships energy products (natural gas, oil and partly coal) to our country. This year the volume of energy trade doubled compared to last year, which is a positive development in favor of Russia. However, this has led to a deterioration in the trade balance between us. In order to overcome this asymmetric situation that Turkey faces in its trade with Russia, I think that Turkey should focus on diversifying its trade with Russia, and focus on new areas of cooperation. More than 3,000 Turkish companies operate in Russia in various fields and invest in the Russian economy. I think there is a need for more of our companies to integrate themselves into the Russian economy. Thus, Turkish business people can easily sell ships, machinery and transportation equipment, durable household appliances, furniture, freezers, electrical transformers, construction materials, processed agricultural products, ready-made clothing, electronic and electrical appliances, IT, pharmaceuticals and cosmetics to the Russian market.

We should not be misled by our relatively small export figures in the face of our energy-heavy imports from Russia. I read the fact that the two countries have together achieved a 50% increase in trade volume this year as a deepening of economic cooperation between us. 

In the meantime, I find the decision that Turkey will be able to pay a part of the natural gas imported from Russia in rubles important. If we start trading in national currencies in 2023, if not now, I think that the trade between the two countries will be further paved the way and with the momentum to be gained in the potential areas I have suggested, the Russian-Turkish trade volume can easily reach the 100 billion target.