Russia Takes Aim at Turkish Economy Amid Fighter-Jet Spat
26 November 2015 - 3:13PM
Dow Jones News
By James Marson and Andrey Ostroukh in Moscow and Dion Nissenbaum in Istanbul
Turkey's president on Thursday rebuffed Russian leader Vladimir
Putin's request for an apology over the shootdown of a Russian
warplane, as Moscow took aim at Turkey's economy, ordering tougher
checks on its food imports.
Russia has reacted with fury to the incident and vowed to
retaliate by clamping down on trade and business ties. As Russia
ramped up its criticism, Turkish President Recep Tayyip Erdogan
dismissed Mr. Putin's demands that Ankara apologize or offer
compensation to Russia.
"I think if there is a party that needs to apologize, it is not
us," Mr. Erdogan said in an interview on CNN International. "Those
who violated our airspace are the ones who need to apologize.
Turkish and U.S. officials said the Turkish pilots warned the
Russian planes 10 times in five minutes that they were approaching
Turkey's airspace and that the requests to shift course went
unanswered. The Turkish military later released recordings of the
warnings.
But Mr. Putin repeated Russia's position that the aircraft was
in Syrian airspace when it was downed, and insisted that Turkey had
broken international law.
Turkey's leadership was "intentionally pushing Russian-Turkish
relations to a dead end," he said at a meeting with foreign
ambassadors, according to the Interfax news agency. "We have heard
neither apologies from the high military and political level in
Turkey, nor about compensating the damage, nor a promise to punish
criminals for the offense committed."
So far, Russia's only action had been to ship one of its
most-advanced air-defense systems to its air base in Syria. But on
Thursday, Agriculture Minister Alexander Tkachyov ordered tighter
control on agricultural products from Turkey, including additional
checks at the border and at production sites, saying some Turkish
products don't meet Russian standards.
A Kremlin spokesman said the agriculture ministry's move wasn't
an embargo.
"But due to increased danger and various extremist developments,
naturally, additional checks are being made," Dmitry Peskov said.
"It's completely natural, especially given the unpredictable
actions in the case of the Republic of Turkey."
Russia's introduction of tougher inspections on foodstuffs
frequently coincides with heightened tensions with the country
affected, including a ban on wine from Georgia from 2006 and
restrictions on various Ukrainian products in the last two years.
Russia banned European food products last year in response to
Western sanctions over Moscow's interventions in Ukraine.
The Russian Agriculture Ministry said in a statement that it
analyzed Turkish food imports after consumers and industry
associations raised the issues. The ministry found that 15% of
Turkish agricultural products didn't meet Russian standards, he
said.
There have been 40 cases since the start of the year where
officials found traces of harmful and prohibited substances in
animal products, and excessive amounts of pesticides and nitrates
have been found in fruit and vegetables, he said.
Russia's consumer watchdog has already withdrawn more than 800
kilograms (1,800 pounds) of Turkish foodstuff from stores across
Russia, the Interfax news agency reported.
Russia could suffer an increase in inflation, already running
around 15%, as Turkey is among the top suppliers of fruit and
vegetables to Russia with a share of the market between 15% and
20%, Nomura bank said. Russian Deputy Finance Minister Maxim
Oreshkin said he didn't see "radical risks" for the ruble and
inflation from worsening relations between Russia and Turkey,
Interfax reported.
Russia's imports from Turkey as well as from other countries has
already shrunk substantially as the ruble lost more than 40% of its
value against the dollar over the past year.
According to Russia's customs service, imports from Turkey,
which accounts for 4.6% of Russia's international trade turnover,
fell by 38.5% in the first nine months of this year.
Write to Andrey Ostroukh at andrey.ostroukh@wsj.com and James
Marson at james.marson@wsj.com
(END) Dow Jones Newswires
November 26, 2015 09:58 ET (14:58 GMT)
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