Which Turkish construction companies in Russia will continue to work?

Business

The tragic event in the Syrian sky, whichoccurred on November 24, 2015, dramatically influenced the relationship between Russia and Turkey. This has affected virtually all areas: political, trade and economic, tourism and construction. The latter is especially acute, because today Turkish construction companies in Russia own a lot of construction projects that require completion. What decision did the authorities take?

Su-24

On the morning of November 24, 2015, the RussianThe Su-24 bomber, returning to the base from a combat mission, was shot down by Turkish fighters on the Turkish-Syrian border. The history of this case begins in June 2012. Then the Syrian anti-aircraft defended a Turkish F-4 fighter. In response, the rules for the use of armed force were revised and a decision was taken to intercept objects (sea, air, land) moving towards the Turkish border and violating it.

Regarding the case with the Russian Su-24 TurkishThe party claimed that there was a violation of the air border. However, the international investigation did not confirm this version. In addition, the catapulted navigator of the Russian bomber - Oleg Peshkov - was fired and killed during the landing. Victims also became members of the Russian rescue operation, which was directed to help the second navigator - Konstantin Murakhtin. All these violations were the reason for the deterioration of Russian-Turkish relations.

Effects

The tragic incident pulled a lot ofconsequences. In particular, sanctions measures were taken, touching on food, textile Turkish products. Since January 1, 2016, charter flights, tourist connections and hiring of workers from Turkey have been banned. Special damage to inter-economic relations brought the restriction of the activities of Turkish organizations on the territory of the Russian Federation for the provision of services and the performance of certain types of work. First of all, this affected the construction sector.

Turkish construction companies in russia list

White list

As early as November 2015, just afterincident with the Su-24, State Duma deputy Vadim Soloviev was asked to liquidate the Turkish construction companies in Russia. And already from the beginning of 2016 this proposal has only partially started to be realized.

Immediately from the services of Turkish developers to refuseit is unprofitable for Russia itself. Therefore, the government prepared a "white list". He clearly decides which Turkish construction companies will remain in Russia and will continue to work contrary to sanctions. This move was justified by the simple implementation of contractual terms. Only after the completion of the construction of certain facilities and the timing of contracts with Turkish developers will the sanctions against them take effect, and they will leave the Russian market. The contracts with them will not be concluded any more. An example of such temporary "privileges" are unique projects (for example, preparations for the 2018 World Cup), which Turkish construction companies in Russia should implement.

The list was as follows:Enka, Esta Construction, Ant Yapi, Renaissance, Odak, etc. The new resolution allowed the companies to continue operating in 2016, but limited the number of workers from Turkey. These are large Turkish construction companies in Russia, whose sales for a couple of quarters of the normal operating regime bring hundreds of millions of dollars. Other firms that have concluded contracts after the release of the resolution, are forced to leave the Russian market.

Business move

Certainly, the new state of affairs did not suitTurkish construction companies in Russia, the list created negative prospects for most of them. Million-dollar income, received from the Russian market, is dominant for most of them. Therefore, some Turkish construction companies in Russia, which despite the sanctions want to continue working, resorted to legal tricks. They began re-registration of business on Russian citizens, legal entities that are not connected with Turkey. Thus, they automatically continue to have legal activities in the Russian construction market.

Investment projects

Sanctions against Turkish construction companies inRussia has a reversal, a negative side for the state itself. Prior to the entry into force of the resolution, major investment projects were approved, the interruption of which today can cause losses, primarily to the Russian state budget and companies. Such projects include the construction of the Akkuyu nuclear power plant and the gas pipeline, known as the Turkish Stream. And if there were no hopes for the gas pipeline, then the cancellation of the Akkuyu construction project, with a multi-billion dollar profit in the future, was a significant loss for Rosatom.

large Turkish construction companies in Russia

Forecasts

If Turkish construction companies in Russiacompletely leave the market, this will not create an economic disaster. And although 70% of housing facilities in Moscow today belong to Turkish companies, and the state budget itself receives a considerable income, within two or three years the market adapts, and the loss of developers will be replenished. The strategic policy of gradual ousting of Turkish companies also contributes to positive prospects.

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