Normalization with Russia to Bring $700 Million to Turkish Construction Sector

Normalization with Russia to Bring USD 700 Million to Turkish Construction Sector

Noting that delayed orders have begun to be resubmitted following improved bilateral relations between Russia and Turkey, Serdar Urfalılar, Chair of the İMMİB Construction Committee, stated: "Our sector's exports were USD 710 million in 2014. If this positive process continues, we believe we will reach this figure again in the short term." Serdar Urfalılar, Chair of the Istanbul Mining and Metals Exporters Associations' Building Materials Committee, noted that the improvement in bilateral relations between Russia and Turkey will have a positive impact on the country's trade and particularly on the construction sector. Noting that delayed orders have begun to return with improving relations, Serdar Urfalılar said: "Due to the problems between the two countries, sector exports declined to USD 73 million in the first six months of the year. Our exports to Russia as a sector were USD 800 million in 2013 and USD 710 million in 2014. If this positive process continues, we believe we will reach the 2014 figures again in the short term." Highlighting that Russia is one of the sector's largest markets, Urfalılar stated: "Russia imported USD 7.2 billion in building materials in 2015 and USD 12.5 billion in 2014.

The highest items in Russia's imports are steel, aluminum and construction accessories, categories where Turkey ranks first. With our improving relations, we aim to secure a larger share of Russia's building materials imports."

Rıdvan Mertöz, Chair of the Istanbul Iron and Non-Ferrous Metals Exporters Association, noted in his assessment that a rapid improvement in Turkish-Russian relations will have a positive impact of USD 4.5-5 billion annually on the Turkish economy. Rıdvan Mertöz continued: "Our primary objective as the iron and non-ferrous metals sector will be to increase sector exports falling within our union's scope in line with our improving bilateral relations. In this context, to compensate for the 45-50 percent loss we sustained in volume and value terms during the first half of 2015 and 2016, we need to prioritize raising export figures for aluminum, copper and building materials sectors. We participate in Mosbuild and Batimat trade fairs in Moscow, Russia, which have long been influential in building materials and fasteners sectors. We believe that with our improving relations, these and similar fairs will see increased activity in the region. Additionally, we are currently implementing a Turkish Trade Center project through which active promotion of Turkish products will be conducted in the region."