The US sanctions against Turkey and the depreciation of the Turkish Lira (TRY) will reflect on Serbia because the announced Turkish investments are now uncertain, said editor of Ekonometar magazine, Radojka Nikolic.
The agreed export of beef from Serbia to Turkey is also questionable now, as is the construction of the Belgrade-Sarajevo motorway.
Nikolic believes that the sanctions will be felt by all the countries that have any connection with the Turkish economy and predicts that the crisis will last for a considerable amount of time.
“Every open economy is vulnerable, as is the Turkish economy, which has been growing over the past decades. But, as usual, economic development has political consequences,” Nikolic noted and added: “Thanks to the mix of politics and economy, the US opted to introduce these sanctions for several reasons.”
Want to open a company in Serbia? Click here!
Some of the reasons, according to her, are the fact that (Turkish President Recep Tayyip) Erdogan became “more powerful” and that Turkey “interfered with the US interest zone” – energy sources.
“First of all, Erdogan became more powerful and he became an authoritative leader.” From the economic point of view, Turkey has been interfering with energy sources, which are in the United States’ zone of interest. In June, Turkey officially launched the Trans-Anatolian Natural Gas Pipeline (TANAP) with prospects of connecting this pipeline with the Trans-Atlantic Pipeline, which all added to the US deciding in favour of the sanctions,” she underlined.
According to Nikolic, it is hard for anyone to predict how will the Turkish Lira behave in the upcoming period.
“But this always happens when sanctions are imposed. The same thing happened with Russia, which lasted until the economy was re-organized and found some other channels of doing business,” Nikolic said.
Speaking about Turkish investments in Serbia, Nikolic says that Serbia can be quite affected by the US sanctions against Turkey.
“We can be affected since Turkey has already made close to 100 million euro worth of investments here. Although, Turkey is not one of the largest investors here, but if we consider free trade agreements, and economic projections and announced investments, they can all suffer because of the US sanctions and the fluctuating Turkish currency”, Nikolic addes.
Turkey has agreed to participate in funding of the construction of the Belgrade-Sarajevo motorway. There is also the new beef export quota for Serbia which is now set at 5,000 tonnes, and agreed export of cooking oil and other food products.
This post is also available in: Italiano