"Russia is the one of the largest market for Turkish exports. The main item of exports to Russia is textiles, which has decreased due to this political turmoil. Although textiles were not formally included in the list, shipments of Turkish textiles have been blocked at the Russian border since November. A few shipments that manage to make it past the Federal Customs Service of Russia undergo long inspections that result in significant delivery delays."

The unhealthy relationship between Turkey and Russia may have a deep impact on Turkish economy. Recent reports indicate that Russia had mounted sanctions against a number of Turkish industries mainly agriculture and tourism, but the Russian distributors and national suppliers expect this sanction to place a ban on textile and apparels as well, which is one of the major sectors for the Turkish economy (World Textile Information Network-WTIN).

Border controls tough for Turkish exports

Russia is the one of the largest market for Turkish exports. The main item of exports to Russia is textiles, which has decreased due to this political turmoil. Although textiles were not formally included in the list, shipments of Turkish textiles have been blocked at the Russian border since November. A few shipments that manage to make it past the Federal Customs Service of Russia undergo long inspections that result in significant delivery delays.

As per data, at the end of Q3 of 2015, Turkey's share in Russian imports was 11 per cent for fabrics made from chemical fibers and threads; more than 40 per cent for warp-knit fabrics; and about 25 per cent for yarns made from synthetic and artificial fibers. Finished products make up the majority of Turkish textile imports to Russia, while raw materials amount to roughly 30 per cent of the total import volume.

Experts say that Russian textile manufacturers still don't have the capacities to substitute for Turkish imports. Though, Russia will be the main short term loser on account of its ban on imports of some Turkish items. In the longer term, Turkey will lose a valuable export market in Russia, a leading destination for Turkish products.

Opportunities for Southeast Asian countries

The ongoing crisis in Russian clothing sector has created opportunities for Southeast Asian exporters. Man-Made Fiber Textiles has been witnessing a negative growth in the four segments namely – Yarn, Fabrics, Made-ups and Fiber. Some feel this is a good opportunity for many to enhance their exports to Russia. The Synthetic and Rayon Textiles Export Promotion (SRTEP) council in India is thinking of mounting a joint textile delegation to Russia.

Executive Director, Vanil Kumar reveals, “We may also explore the possibility of mounting a Joint Business Delegation to enhance MMF Textile Trade with Russia in the wake of the emerging situation. As a prelude, members who are interested to join may contact the council to help advance preparation for contacting the embassy. Already, hundred companies have registered.”