VoxTalks Economics S7 Ep58: Trading around geopolitics
Dec 13, 2024
The discussion dives into how Turkish exporters are capitalizing on reduced competition after international sanctions on Russia. It reveals how businesses navigate the complex landscape of logistics and payment amidst geopolitical tensions. The podcast examines the switch from using the dollar to the Turkish lira for trade invoicing, highlighting the nuanced market dynamics. Additionally, it explores the risks and reputation challenges faced by firms engaging with Russia, illustrating the intricate balancing act in 'trading around geopolitics'.
AI Snips
Chapters
Transcript
Episode notes
Russia's Disconnection from SWIFT
- Many banks operating in Russia were cut off from the SWIFT system after the invasion of Ukraine.
- This effectively disconnected them from Western payment systems.
Risks and Opportunities for Turkish Exporters
- Turkish exporters faced risks and opportunities when trading with Russia after the sanctions.
- Market opportunities arose from reduced competition, while risks included non-payment and reputational damage.
Increase in Turkish Exports to Russia
- Turkish exports to Russia increased by about 30% after the sanctions, excluding re-exports.
- This increase was mainly for goods under EU sanctions where the EU previously held a large market share.