The Russia-Ukraine war is in the spotlight again this week. As part of Turkey’s efforts to mediate between Russia and Ukraine, President Recep Tayyip Erdogan talked over the phone with his Russian counterpart Vladimir Putin to discuss bilateral relations and the Russia-Ukraine conflict. Erdogan told Putin that Turkey is ready to make all kinds of contributions to resolve the conflict with peaceful methods as soon as possible. Erdogan also reiterated his call on an urgent ceasefire and stated that Turkey, which continuously holds talks with Ukraine and other countries, will continue its efforts for comprehensive negotiations and results.
Apart from the humanitarian and political dimension of the Russia-Ukraine conflict, there is also an economic cost. Agriculture, metal, and energy prices are increasing around the world. Historic highs have been seen in the prices of some products and this shock has added to the prices, which were already high before the war. As Russia and Ukraine are also important coal suppliers for Turkey, coal prices also jumped. Many companies have halted imports from the region. Coal and metal exporters are seeking alternative markets. The potentially long duration of the war poses a large risk.
We don’t have a busy agenda in terms of data this week. The Construction Cost Index and the Balance of Payment statistics will be announced during the week.
Construction costs rose by 68% last year. The majority of the surge was observed in the last three months of 2021. The jump in the labor index will add to the rise in the material index for the January data that will be released on Thursday.
The balance of payment figures for January will be another important data to be released on Friday morning, when we will see a higher current account deficit figure than hoped for.
DAILY AGENDA
The Ministry of Treasury and Finance will release the Treasury cash realization figures for February (5.30 pm).
IN OUR MAGAZINE THIS WEEK
>> On the cover: Tevfik Cagatay Secilmis, EMEA Region Marketing Director of the 260-year old industrial yarn company Coats, is on our cover this week. Undertaking 40% of the total production volume in the EMEA region, Coats Turkey is developing solutions to increase the competitiveness of Turkish textile companies in a globalized trade and supply environment. “We produce yarn and zippers from Bursa for the world. Opening the EMEA innovation center in the same complex with this factory was a strategic decision,” Secilmis said. You can read the details on pages 8-9.
>> Professor Ilter Turan examines ‘the unintended consequences of Putin’s intervention’ on page 10.
>> Q&A: Dr. Hasan Huseyin Erdogan, Chairman of the Board of Directors of the Coal Producers Association of Turkey (KOMURDER) and General Manager and Chairman of the Board of Directors of the General Directorate of Turkish Coal Enterprises (TKI). P. 11.
>> Chief Economist Gunduz Findikcioglu: The grand chessboard, mark 2. You can read the details on pages 12-13.
>> Our Foreign Policy Columnist Zeynep Gurcanli looks into ‘the impact of the Ukrainian war on the global economy’ and Turkey on page 14.
