Western sanctions imposed on Russia after the Kremlin invasion of Ukraine, including banks excluded from SWIFT system as well as the subsequent depreciation of the ruble, continue to affect purchases power of the Russians and the companies that lead business with the country. This includes the Turkish ready-to-wear sector, which is already Pain in Ukrainian markets as businesses shut down.
while 267 stores and 180 sales points of a total of 24 Turkish ready-to-wear brands in Ukraine already shut down and dealt a blow to the sector, some 32 brands operating in Russia is monitoring developments regarding their 655 stores and 2,556 sales points.
Industry representatives told Turkish business daily Dünya that due to cancellations and postponements of the shipment their loss has already reaches 150 to 200 millions dollars (2 to 2.7 billion TL) only in Ukraine.
According to official data, the sector made exports worth 173 millions dollars and 287 millions dollars to Russia and Ukraine, respectively, last year. However, a grand number of exports to these countries were also carries out in “Shuttle bus trade”, which allowed the export figure in question to reach 750 millions of dollars in Ukraine, and exceed one billion dollars in Russia.
The sector, which participated in fairs held in both countries last month and made great business connections – before Russia invaded Ukraine – had the goal of increasing official exports to Russia of 287 millions dollars to $1 billion.
Companies most affected in Turkey will be the one in The Laleli and Osmanbey districts are both important centers of garments and garments and carry out the majority of foreign sales to both countries.
Seref Fayat, head of The union of Chambers and stock exchanges of Turkey (TOBB) Readymade Clothing and Apparel Sector Assembly, said cancellations and postponements in exports to Ukraine amounted to between 150 and 200 millions of dollars.
“The shipment Ukraine has stopped, there is a worried wait in Russia too. Since most of the trade is carried out via Shuttle tradethose are not subject to fast trades,” he said. also noted.
Mustafa Gültepe, head of the Istanbul Garment Exporters Association (IHKIB), however, said it would have problems with Russia is cut off from SWIFT system and that local currencies can be used taking all kinds of risks in the trade it will continue.
Gürkan Tekin, President of the Mediterranean Association of Ready-to-Wear and Apparel Exporters (AKIB), said the trucks are currently pending at related countries’ borders.
“The first sector to be the least affected problem is ready-made Clothes. Therefore, the industry is badly affected right now. The insurance is common most in the EU region. So there will be a serious impact. Currently, exports are at a standstill,” he said.
Gıyaseddin Eyyupkoca, President of the Laleli Industrialists and Businessmen Association (LASIAD) said it estimated cancellations and postponements even exceeded 200 millions of dollars.
“This also affected production. There are cancellations of orders even from Poland because the country shares a border with Ukraine. Half of the market in Laleli is in danger,” he said.
Osmanbey Textile Business People’s Association (OTIAD) President Eda Arpacı said that after the military operation launched by Russia in Ukraine, they took away out a study to determine the types of problems Osmanbey could face regarding orders, shipments and collections, saying: “In accordance with the information we received, there are order cancellations in both countries. Goods cannot be shipped to Ukraine. Shipments can be made in Russia, but they are pending.
“In this uncertain environment, our priority is to create peace environment without harming the people. Only then can we determine the extent of the damage,” he said.
Russia is the country with the highest number of Turkish brands with 655 stores. In Ukraine there are 267 stores of 24 brands. United Brands Association (BMD), the umbrella organization of marks operating 922 stores in two countrieshas been set hold a meeting Tuesday on fate of the stores in the region.