BOFIT Viikkokatsaus / BOFIT Weekly 2017/14

In mid-March, Turkey ceased allowing duty-free imports of certain food items from Russia. Wheat and corn imports from Russia were the most affected items. The new 130 % import tariff on them is assessed to have stopped their imports. Turkey is one of Russia's largest export markets for wheat and corn, with Russian exports last year valued at roughly $550 million. Relative to Russian exports overall, however, the value of wheat and corn exports to Turkey is miniscule.

Russia still has import bans in place for several Turkish foods, mostly fruits and vegetables. The import bans were imposed at the beginning of 2016 after the Turks shot down a Russian fighter plane in November 2015. After the countries resolved the matter last summer, Russia promised to gradually lift its sanctions. So far, only some of the food import bans have been lifted. Russia last year imported about $350 million in these food products previously subject to the ban. The value of food imports still subject to bans was estimated to be about $550 million in 2015. Moreover, Rosselkhoznadzor, Russia's federal food safety agency last year forbid importation of several other Turkish-grown plants under its veterinary and phytosanitary regulations. The agency has noted that lifting of bans on these plants is not even under consideration.