ISTANBUL President Tayyip Erdogan mentioned on Wednesday that Turkey did not want any escalation following it shot down a Russian warplane close to the Syrian border, saying it had just acted to defend its own security and the “rights of our brothers” in Syria.
But whilst neither side has shown any interest in a military escalation, Russia has produced clear it will exact financial revenge by means of trade and tourism. Prime Minister Dmitry Medvedev mentioned on Wednesday that essential joint projects could be canceled and Turkish firms could drop Russian market place share.
The downing of the jet on Tuesday was 1 of the most serious publicly acknowledged clashes between a NATO member and Russia for half a century, and additional complicated international efforts to battle Islamic State militants in Syria.
Russian President Vladimir Putin said the plane was attacked when it was 1 km (.62 miles) inside Syria and warned of “severe consequences” for what he described as a stab in the back administered by “the accomplices of terrorists”.
U.S. President Barack Obama and French President Francois Hollande, looking for to forge a broader alliance against Islamic State soon after attacks in Paris this month, pressed Russia to concentrate on the jihadist group and urged Moscow and Ankara not to let the scenario escalate.
Speaking at a company event in Istanbul, Erdogan mentioned the Russian jet had been fired at while in Turkish airspace but had crashed inside Syria, though he stated parts of it landed in Turkey and injured two Turkish citizens.
“We have no intention of escalating this incident. We are only defending our personal security and the rights of our brothers,” Erdogan mentioned, adding Turkey’s policy in Syria would not modify.
“We will continue our humanitarian efforts on each sides of the (Syrian) border. We are determined to take all required measures to prevent a new wave of immigration.”
Turkey has been angered by Russian air strikes in Syria targeting Turkmens near its border, who are Syrians of Turkish descent. It had repeatedly warned Russia more than airspace violations because October and last week summoned the Russian ambassador to protest against the bombing of Turkmen villages.
Putin has stated Russian planes had in no way threatened Turkey, but had merely been carrying out their duty to fight Islamic State militants inside Syria.
Erdogan dismissed that version of events.
“It has been stated that they had been there to fight Daesh,” he said of Russian air strikes, and utilizing an Arabic acronym for Islamic State.
“First of all, the Daesh terrorist organization does not have a presence in this area of Latakia and the north where Turkmens are primarily based. Let’s not fool ourselves.”
He stated Turkey had made a “massive effort” to stop an incident like the downing of the Russian aircraft, but that the limits of its patience had been tested.
Putin on Wednesday accused Turkey’s political leaders of encouraging the “Islamisation” of Turkish society, some thing he described as a deeper dilemma than the downing of the jet.
German Chancellor Angela Merkel stated the downing of the jet had complex efforts to uncover a political solution in Syria and said everything needed to be completed to stay away from an escalation.
“Of course every country has a right to defend its territory but on the other hand we know how tense the circumstance is in Syria and in the surrounding area,” she told parliament, adding she had asked Turkish Prime Minister Ahmet Davutoglu to “do every little thing to de-escalate the predicament”.
Enhanced tensions could have significant financial and political repercussions which are in neither Moscow nor Ankara’s interests, analysts warned. But each Putin and Erdogan are robust-willed leaders ill-disposed to being challenged.
“If Erdogan becomes involved a cycle of violence, FDI (foreign direct investment), tourism, and relations with the EU and U.S. will all be in jeopardy,” danger analysis firm Eurasia Group mentioned in a note.
“Our bet is that the episode will not escalate … National interest will possibly prevail over emotion, but provided the players, that is not a sure bet.”
Turkey imports practically all of its energy from Russia, like 60 percent of its gas and 35 % of its oil. Russia’s state Atomic Power Corporation (Rosatom) is due to create Turkey’s 1st nuclear power station, a $ 20 billion project, even though plans are on the table for a gas pipeline from Russia known as TurkStream.
Turkish constructing and beverage organizations also have substantial interests in Russia.
Shares in Enka Insaat (ENKAI.IS), which has building projects in Russia and two energy plants in Turkey utilizing Russian gas, fell for a second day on Wednesday. Brewer Anadolu Efes (AEFES.IS), which has six breweries in Russia and controls about 14 % of the market place, also saw its shares fall on Tuesday.
Russians are second only to Germans in terms of the numbers going to Turkey, bringing in an estimated $ four billion a year in tourism revenues. But Russian Foreign Minister Sergei Lavrov on Tuesday advised them not to go to and 1 of Russia’s biggest tour operators to the nation stated it would temporarily suspend sales of trips.
“Erdogan is a tough character, and fairly emotional, and if Russia pushes also far in terms of retaliatory action, I consider there will inevitably be a counter reaction from Turkey (like) tit-for-tat trade sanctions, maybe extending to factors like the Russia nuclear deal,” said Nomura strategist Timothy Ash.
“But I believe there is also a clear understanding that any such action is damaging for each sides, and unwelcome. The ball is in Russia’s court now,” he wrote in a note.
(Additional reporting by Can Sezer and Ayla Jean Yackley in Istanbul Maria Kiselyova in Moscow Paul Carrel and Madeline Chambers in Berlin Writing by Nick Tattersall Editing by Pravin Char)
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