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Russia- Turkey Economic Cooperation- Concerns for Europe

Russia- Turkey Economic Cooperation- Relevance for UPSC Exam

  • GS Paper 2: International Relations- Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

Russia- Turkey Economic Cooperation- Concerns for Europe_3.1


Russia- Turkey Economic Cooperation in News

  • Recently, Russia and Turkey agreed to enhance economic cooperation at a meeting held in the city of Sochi, Russia.
  • The US sanctioned Turkey in 2020 under its Countering American Adversaries Through Sanctions Act (CAATSA), for purchasing the S-400 air defence missile system from Moscow.
    • India has also purchased this system but got an exception from the imposition of CAATSA by the US government.

Impact of Russia Ukraine War on Indian Economy


Russia- Turkey Economic Cooperation Agreement

  • Russia-Turkey had touched upon gas exports to Turkey. Turkey also agreed to partially pay for them in Russian currency, the ruble.
  • According to a Bloomberg report, five Turkish banks have adopted Russia’s Mir payments system for payment in rubles.
  • They also agreed to “meet one another’s expectations on the economy and energy”.
  • Other areas of cooperation mentioned in a Joint Press Statement released afterwards were transportation, commerce, agriculture, industry, finance, tourism and construction.



Associated Concerns of the European Countries

  • Russia-Ukraine War: It is concerning for Europe, especially at a time when the West has sought to reduce the scope of its economic relations with Russia over the ongoing war in Ukraine.
  • Financial System: Another source of concern could be Russia’s Mir payment system which has been adopted by 5 Turkish banks.
    • With Visa and Mastercard suspending their operations in Russia since the invasion of Ukraine, Russian tourists in Turkey can now use their Mir card, effectively circumventing some Western sanctions.
  • Member of NATO: Closeness between Russia and Turkey raises concerns for NATO countries of which Turkey is a member.
    • This is a serious concern, especially when Russia’s relationship with the Western and European countries is going through its low due to Russia-Ukraine war.
    • It also holds the key to allowing Sweden and Finland admission into NATO, which the alliance might be eager to do given the events in Ukraine.
  • Turkey’s Importance for Europe: On the whole, Turkey is an important partner with the West and taking action against it could lead to a new range of issues cropping up for the West. For Example-
    • Turkey’s instrumental role in dealing with the Syrian refugee crisis.
    • Turkey hosted around 3.7 million Syrians as part of a deal with the EU, and “helped to stem the flow of migrants to Europe.

S-400 Triumf Missile System

S-400 Triumf Missile System

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