RUSSIA: Moscow Bans Turkish Tourism Companies

The restrictions mark the latest phase in a bitter spat between the two countries, following Turkey’s decision to shoot down a Russian warplane in its air space.

Russia announced a fresh wave of economic sanctions against Turkey on Wednesday, banning a host of Turkish companies from operating there.

The new restrictions, which will prohibit Turkish construction and tourism firms from doing business in Russia, mark the latest phase in a bitter spat between the two countries, following Turkey’s decision to shoot down a Russian warplane that flitted through its air space in late November.

The ban, which comes into force on January 1, is not expected to affect business activities for which a contract has already been signed. As Russia prepares to host the FIFA World Cup in 2018, several Turkish companies have been hired to help build stadiums.

These firms will be allowed to complete their work, Russia’s economics minister, Alexei Ulyukayev, said earlier this month.

Russia and Turkey have been at loggerheads since late September, following Moscow’s decision to launch air strikes in support of the Syrian president, Bashar al-Assad. Ankara is a key backer of the armed rebellion that opposes him.

On November 24, Turkey shot down a Russian Sukhoi Su-24M fighter bomber that it said had crossed the Syrian border into Turkish airspace despite repeated warnings. Vladmir Putin, the Russian president, denied that claim, branding the incident a “stab in the back”.

Moscow is now punishing its one-time ally with a series of economic sanctions: the visa-free regime with Turkey was canceled, all charter flights from Russia to Turkey were banned, food imports from Turkey were restricted and Russian companies were forbidden from hiring new Turkish employees.

The row has spilled over into harassment of Turks on Russian soil. In late November, the Turkish Embassy in Moscow was attacked by a mob, and ordinary Turkish citizens living in Russia have reported intimidation.

Economists say the sanctions are likely to affect Turkey’s already faltering economy, reducing GDP in 2016 by between 0.3 and 0.6 percentage points.