photo: Sebastian Herrmann/unsplash.com/Turkey's Overnight Stop on Transit of Sanctioned Goods to Russia Causes Chaos in Logistics Industry
Russian logistics companies are scrambling to find alternative routes after Turkey halted overnight the transit of sanctioned goods through its territory to Russia. The move by Turkish customs authorities means that goods from the United States, Canada, and European Union countries, including Belarus, can no longer be moved to Russia. While no official statement has been issued by the Turkish government, customs officials are citing a government decree to justify the move. The sudden halt in transit has caught logistics firms off guard, with some noting that there was no prior notice given to the affected companies.
The harsh sanctions imposed on trade with Russia were the result of the Federation's full-scale invasion of Ukraine last February. Throughout the year, countries around the world approved numerous sanctions packages, stating their desire to minimise ties with Russia and their unwillingness to have anything to do with the terrorist country.
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According to reports, logistics workers are not expecting an official statement from Turkey, as it would clearly admit the country's involvement in the supply of sanctioned products to Russia over the past year. Valeriya Savenkova, sales director at Transasia Logistics, said that although the goods are not lost, it is necessary to bypass the Turkish side and find alternative routes. However, logistics company bosses fear that the search for alternative routes will lead to higher logistics costs, which will ultimately impact consumers.
Andrei Solovyov, CEO of Sota Logistic, noted that Washington's pressure will only intensify, and transportation prices will rise as a result. There is also a possibility that the United Arab Emirates could follow Turkey's lead, as the country has come under pressure over electronics shipments to Russia. Western officials have reportedly visited Abu Dhabi to press UAE officials on the broad scope of their trade sanctions.
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The sudden halt in transit through Turkey has caught logistics companies off guard, with many scrambling to find alternative routes. The move also underscores the complicated nature of international trade, with various countries imposing sanctions and trade restrictions on one another. As logistics firms search for alternative routes, consumers may ultimately be impacted by higher logistics costs. Meanwhile, the situation in Turkey is a reminder that trade sanctions can have far-reaching effects and lead to unintended consequences.