The withdrawal of Western companies from Russia due to the existing sanctions targeting the country has created a void that Turkish enterprises can fill. According to a Russian official, numerous opportunities are available across various areas, including production, technology, trade and infrastructure.
Alexey Valkov, director of the St. Petersburg International Economic Forum (SPIEF), emphasized the importance of developing relations with Türkiye in Russia’s foreign policy. He highlighted the success of companies entering the Russian and Turkish markets, demonstrating the significant potential for economic ties between the two countries.
Valkov stated that the time is ripe for Turkish companies to enter the Russian market.
Valkov made these remarks during an event held in Istanbul on Tuesday, where he met with representatives from Turkish business circles and the press ahead of the upcoming SPIEF, often referred to as the "Russian Davos." The event will take place for the 26th time this year, from June 14-17.
Valkov noted that 33 Turkish companies set up shop in Russia last year and invited Turkish companies to participate in the forum and become strategic partners.
"Now is the time to network, develop mutually beneficial collaboration and build sustainable relationships with potential business partners. SPIEF awaits you with its vast experience in creating the conditions for getting to know each other and then making profitable deals," he said.
Murad Bayar, CEO of IC Holding, also spoke at the meeting, stating that Russia is an essential and permanent market for his company.
Bayar highlighted the group’s long-standing relationship with Russia, exemplified by their role as the main contractor of the Akkuyu Nuclear Power Plant (NPP). In addition, he mentioned ongoing talks for infrastructure investments in the region.
The Akkuyu NPP, initiated as a significant Russia-Türkiye project through an intergovernmental agreement, is Türkiye’s first nuclear plant and recently received its first nuclear fuel.
While the economic cooperation between Russia and Türkiye has primarily revolved around the energy sector, with Russia being Türkiye’s leading supplier of natural gas and projects such as Akkuyu or TurkStream, which carries Russian gas to Türkiye and further Europe, participants at the event noted that Russia is now open to cooperation and business relations in all sectors.
Valkov highlighted Istanbul’s growing importance as a central hub for Russian citizens, enabling them to access global markets.
He acknowledged that energy and infrastructure companies were previously prioritized in cooperation and business relations but expressed readiness to diversify cooperation and involve Turkish companies in every segment of the Russian economy.
After Russia started what it called a "special military operation" in Ukraine on Feb. 24, 2022, numerous sectors and countries imposed sanctions or suspended operations to exert pressure on the Russian economy.
Many companies ceased operations, deliveries, investments or partnerships in Russia. According to Brand Finance data, except for some Chinese firms, top global brands have been inactive in the Russian market due to the conflict with Ukraine. Among the top 25 brands were 12 U.S. brands, followed by seven Chinese brands, three German brands and one each from South Korea, Japan and the U.K.
Trading with local currencies
Meanwhile, responding to a question, Valkov commented on trade between Russia and Türkiye using national currencies.
He regarded trading in national currencies, independent of exchange rates, as a strategically correct move and anticipated that the Russian and Turkish governments would soon arrange the necessary tools for this purpose.
The issue was discussed during a phone call between President Recep Tayyip Erdoğan and his Russian counterpart, Vladimir Putin.
Turkish trade officials had also voiced concerns about currency disputes causing problems in customs-related goods delivery.
Global platform
The previous year I witnessed SPIEF hosting a gathering of over 14,000 business, media and government representatives from more than 130 countries. Notably, the negotiations led to the signing of agreements totaling 5.6 trillion rubles ($70 billion).
SPIEF stands out as a renowned global platform dedicated to shaping a new world, facilitating unparalleled opportunities for dialogue and fostering trade relations each year. In addition, it catalyzes business development both within Russia and internationally, enabling participants to expand their networks, attract potential investors, garner attention from prominent media outlets and establish partnerships.
SPIEF 2023 will feature engaging events such as panel discussions, roundtables, thematic business breakfasts, televised debates, bilateral business dialogues with foreign partners and meetings with representatives from BRICS (Brazil, Russia, India, China and South Africa), the Shanghai Cooperation Organisation (SCO), the Eurasian Economic Union and the Association of Southeast Asian Nations (ASEAN). This year, the United Arab Emirates (UAE) will be the honored guest country. Furthermore, alongside the opening and closing days of SPIEF, various industry and thematic events are scheduled, including the Russian Small and Medium Enterprises Forum, the Russian Pharmaceutical Forum for Ensuring Pharmaceutical Safety, Arctic-related activities and the Creative Business Forum International Youth Economic Forum.