Western sanctions boost Turkish metals sector

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Western sanctions boost Turkish metals sector

ISTANBUL Reuters -- Western sanctions have given the Turkish metals sector a chance to serve as a warehouse and bridge the head of an industry group, citing increased interest from Russian companies and EU companies seeking to sell to Russia via Turkey.

Since Russia began a special military operation in Ukraine, the West, including Britain and the European Union, has imposed sanctions on Russian elites, banks and strategic industries.

Cetin Tecdelioglu, head of Istanbul Ferrous and Non-Ferrous Metals Exporters' Association IDDMIB said Russian demand had increased for Turkish products it could no longer source from European companies and Turkish companies. European businesses had been interested in supplying Russia via Turkey.

Russia can't buy from Germany, Italy, and France, but they are buying from us. He told reporters on Friday that a lot of EU companies are planning to sell their products to Russia via Turkey.

He said that it was an historic opportunity for Turkish companies because they want to use Turkey as a warehouse and bridge, while Russia wants supply from Turkey.

He did not name the companies involved, nor specify how many, but he said they produced copper, aluminium, kitchenware and machinery.

In the first seven months of 2022, Turkey's ferrous and non-ferrous exports totaled 8.9 billion lira $495.58 million, according to IDDMIB data, a rise of 33% from a year ago. They made up for 6.2% of Turkey's exports.

Turkey's ferrous and non-ferrous metal exports to Russia increased by 26% year-on-year to $170 million by August 8, according to the data.

The rift between Moscow and the West over Russia's invasion of Ukraine has resulted in concerns about a possible cut-off of Russian gas to Europe, which could cause the shut down of some European industrial production.

That could be another opportunity for Turkish exporters of metal products, according to Tecdelioglu.

Turkey has criticised Russia's invasion, sent armed drones to Ukraine and tried to facilitate peace talks between the sides. It has not backed Western sanctions on Moscow and wants to maintain close trade, energy and tourism ties.

Relations between the West and China have worsened after U.S. House Speaker Nancy Pelosi has been posted on: www.reuters.com. Tecdelioglu said last week that Turkey could be another potential chance of disrupting previous trade ties because of the com world taiwan-says chinese-planes-carry out-attack simulation-exercise - 2022 -- 08 - 06 visit to Taiwan.

He said that we are receiving signals of some opportunities.

Turkey has not commented publicly on Pelosi's visit, but has modified its language on Uyghur Muslims who form a significant minority in Turkey over the past few years.

Turkey's President Tayyip Erdogan told his Chinese counterpart Xi Jinping last year that the Uyghur Muslims live in peace as equal citizens of China, but he said Turkey respects China's national sovereignty.