FUAT – Turkish businessmen find opportunities amid Russian crisis

Turkish businessmen find opportunities amid Russian crisisThe Russian Turkish Businessmenand#39s Association (RUTID) recently held a meeting in the Russian capital of Moscow to discuss possible solutions to the current crisis plaguing Russia, vowing to remain resilient and to benefit from opportunities amid the countryand#39s economic uncertainties.The Turkish businessmen expect the crisis in Russia to continue for the first half of 2015.

After existing stock is sold, new products will hit the shelves at higher prices. Producers will witness a decrease in sales amid the rising prices.

The effect of the real economy resulting from the impact on commodity markets will be able to be foreseen by March, according to the businessmenand#39s expectations. They also expect the dollar to average around 55-60 rubles, and foresee a year in which they can seize certain opportunities.

Throughout this period there are two aantages for Turkish firms. The first aantage is the ability to remain flexible to structural changes, which will enable the firms to evaluate opportunities during the crisis period.

The second major aantage will be the flight of competitor firms from the market. Western firms doing business in Russia are concerned about the measures Russia will have to take as a result of being under Western sanctions.

This will enable Turkish companies to create new opportunities and emerge from the crisis with gains.Russia is presently undergoing three crises, says Colinand#39s Russia General Manager nder n.

andldquoThere is the currency crisis, the economic crisis and the political crisis with Ukraine, the EU and the US. We donand#39t think that the currency issues are long term [the ruble] will return to a more stable condition.

The economic crisis, on the other hand, could last two or even three or four years, so as companies we will have to adapt. On the other hand, the political element of the crisis has no impact,andrdquo said n, speaking to Todayand#39s Zaman.

n did note that there have been concerns comin from the Turkish businessmen in light of the aforementioned crises. andldquoThirty percent of them are saying andlsquoLetand#39s get out, letand#39s not buy this or that, letand#39s close our stores and factories, letand#39s decrease production,andrdquo among other types of negative reactions.

But we Turks have lived through inflation and devaluation in Turkey. As such, Turks have an aantage in this sense.

Our sectorial competitors are all European and American, so we have a psychological aantage since they are feeling the risks of the sanctions,andrdquo said n.andldquoIt is possible that opportunities will come out of these crises,andrdquo said RUTID President Esat SarI.

andldquoWe are a group that earns fast profits and moves quickly. But before making any moves we need to see what happens in March.

In Russia, short-term business is finished. At the very least, investment plans with five-year targets need to be made.

Moving forward on long-term plans with well-thought-out targets will be useful. We are here permanently,andrdquo SarI told Todayand#39s Zaman.

SOURCE: Today’s Zaman