Does The Opportunity For Leather Enterprises Come When Western Enterprises Withdraw From The Russian Market?

Turkey is prepared to invest in various business sectors in Russia after some Western companies leave Russia because of sanctions, a member of the Turkish exporters' Union (T exporters M) said, the Russian satellite news agency reported Monday.

According to the report, a member of the Turkish exporters' Union, who spoke on condition of anonymity, pointed out that the withdrawal of foreign companies from Russia has created a great opportunity for Turkish companies.

"for example, Ikea decided to withdraw from Russia. The Turkish household furniture manufacturer, as its main supplier, can fill the gap left by its departure from the industry. " He also pointed out that the possibility of leather and food companies entering the Russian market will increase, and these companies may have great potential in Russia.

According to sources, Turkish companies from various industries are "watching the situation closely", waiting for the uncertainty to dissipate in order to start investing in Russia. He believes that if Western sanctions drag on, "in the long run, Turkish entrepreneurs will find a way to enter the Russian market."

"if Russia asks for a variety of products, then Turkey will be able to meet everything Russia needs and it will fill the gap left by the withdrawal of foreign companies." He said.

From January to April 2020, Turkish leather goods exports to Russia fell by 28.4% compared with the same period in 2019, to US $43.5 million, according to the Turkish Ministry of Trade.

Among them, exports to Russia fell 68.2% in April compared with the same period in 2019, with exports totaling US $2.5 million.
In addition, from January to April 2020, Turkey's exports of leather goods to the international market decreased by 19.2% compared with the same period in 2019, with an export value of 469.4 million. It accounts for only 0.9% of Turkey's total exports.

Between April 2019 and April 2020, Turkish leather goods exports totaled more than US $1.5 billion.