Azerbaijan to emerge as potential market after Russia

04 Sep '08

2 min read

In response to the restriction imposed on Turkish goods by Russia, Turkey has started carrying out extra border inspections of Russian goods from September 1.

Experts believe that this move is largely a result of growing difference in foreign policies of the two countries. However, Mr Cemil Cicek, Deputy Prime Minister of Turkey, seemed hopeful that the trade conflicts between the two countries would be resolved during the scheduled visit of Russian Foreign Minister, Sergei Lavrov.

Bilateral trade volume between Turkey and Russia is estimated to touch US $38 billion by the end of this year. While Turkish investment in Russia is around $5 billion, Russian construction projects taken up by Turkey are worth more than $25 billion.

Even last year, Turkish exports to Russia reached $4.7 billion with goods including synthetic thread, textiles and jewelry. On the other hand, Turkey imported goods worth $23.5 billion.

While some experts believe that trade row between Russia and Turkey would not have any severe impact on the domestic market of Azerbaijan, other are of the opinion that commercial tension between Russia and Turkey will unquestionably have massive influence on the domestic markets of the both countries, especially Turkey.

With regard to Azerbaijan, it is believed that the conflict between the two nations is likely to help it become an alternative for Turkish exports which in turn would bring down the prices of goods imported by Azerbaijan.

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