Despite Russian President Vladimir Putin’s economic sanctions against Turkey, Russian companies are not leaving the country, as many large companies requested exemption from the sanction list.
According to first Deputy economic development Minister Alexei Likhachev, Russia’s largest retail savings bank, Sberbank, and several large companies have approached the government with a request to include them on the list of exemptions from Russian sanctions against Turkey.
“Many Russian companies are applying, including Sberbank, with the request of a possible exclusion from Russian counter-measures,” the deputy minister said.
The statement shows the desperation of the Russian economy, which has been facing its worst situation in past 13 years between Western sanctions and low oil prices.
While Russia declared its sanction package against Turkey following its downing of a SU-24 fighter jet, experts mulled the sanctions could boomerang for worsening the Russian economy.
According to TASS news agency, Likhachev said earlier that the Economic Development Ministry would submit a list of future contracts to the government for their exemption from Russia’s counter-measures as stipulated by the Russian president’s decree.
The exemptions will deal with security and issues related to the impossibility of substituting particular services, as well as issues related to fulfillment of budget obligations and international commitments. The Russian Economic Development Ministry will also take into account requests of Russian regions, the first deputy economy minister said.
Media reports said that, auto manufacturers in St. Petersburg were facing difficulties due to a lack of Turkish automotive components. The government of St. Petersburg asked the Federal government to allow automotive components from Turkey; the shortage affects many major Russian automakers outside St. Petersburg.
Some textile manufacturers are facing same problem, as many companies from other sectors have reportedly halted production due to sanctions against Turkish goods.