Russian sanctions 'could hit Turkey's GDP by up to 0.7%'

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By Euronews
Russian sanctions 'could hit Turkey's GDP by up to 0.7%'

Russian sanctions against Turkey could have substantial impact “if they persist over the next year and are fully applied”.

So says a report by the European Bank for Reconstruction and Development, which estimates Turkey’s GDP growth may be reduced by between 0.3 and 0.7 percent.

Energy is the main pressure point; Russia is Turkey’s number one supplier, providing more than half of its natural gas.

The Black Sea pipeline Turkish Stream has been shelved; talks are suspended and construction called off.

The EBRD estimates that while the impact on Russia is “likely to be limited”, some Turkish companies and regions are likely to be hit hard.

It’s thought that tourism firms relying on revenue from Russian visitors and the exporters of banned foodstuffs will be affected disproportionately.

Moscow took action after Turkey downed a Russian fighter jet on the Syrian border.