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Existing contracts with Turkish companies to be completed — Russian ministry

However, the new ones will not be concluded, Russion Minister of Construction, Housing and Utilities Mikhail Men says

© Artyom Korotayev/ITAR-TASS

IVANOVO, December 30. /TASS/. Existing contracts with Turkish companies in the construction market will be completed, but the new ones will not be concluded, Russion Minister of Construction, Housing and Utilities Mikhail Men said Wednesday.

"Existing contracts with Turkish companies will be completed, but in the future we are not expecting to see them in our market," the Minister said. He noted that extension of contracts is only possible with 53 companies previously indicated by the government. The Minister said that these companies are working on unique projects, including the stadiums for the 2018 FIFA World Cup in Russia.

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Turkey hopes to recover relations with Russia — PM

The Russian government earlier has approved a list of certain types of activities banned starting from January 1, 2016, for the organizations under the jurisdiction of Turkey, as well as organizations controlled by Turkish citizens and (or) organizations under the jurisdiction of Turkey.

According to the press service of the Russian Government, the list includes construction of buildings, engineering structures and specialized construction work; activities in the field of architecture and design and engineering, technical testing, research and analysis; activities of travel agencies and other service providers in the tourism sector; activity of hotels and other places of temporary residence; services and services for state and municipal needs; wood processing.

"The list does not apply to contracts that entered into force prior to the effective date of approving resolution on of the list, for the duration of such contracts," the Government said.

The press service added that the document was submitted to the Government pursuant to the decree of the Russian President from November 28, 2015. The Russian President Vladimir Putin signed a decree on measures to ensure Russia’s national security and to protect its citizens from criminal and other illegal activities and to impose special economic measures against Turkey. Russia suspends employment of Turkish workers starting from January 1, 2016, imposes bans or restrictions on imports of certain goods and tightens control over activities of Turkish haulage companies. In line with the decree, the Russian tour agencies and tour operators are also instructed to suspend selling tours to Turkey and the government is ordered to impose a ban on chartered flights between the two countries.

The Government regulation prescribes a number of ministries to monitor the implementation of the presidential decree. The Russian Central Bank was also encouraged to join.

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According to the Presidential decree, not only Turkish companies, but also the companies controlled by Turkish citizens fall under the sanctions of the Russian Federation - ban on working in the territory of Russia.

At the same time, Putin instructed to define the list of contracts that are not subject to these sanctions. This includes both the direct contracts with Turkish companies, and companies controlled by Turkish citizens.

On December 24, Prime Minister Dmitry Medvedev has approved the list of 53 companies and their clients which are not banned from employing Turkish residents from the start of 2016.

"The list includes 53 companies and organizations, located in the republics of Bashkortostan, Crimea, Tatarstan, the regions of Kransnodar, Vladimir, Kaluga, Moscow, Nizhni Novgorod, Samara, Tyumen, the cities of Moscow, St. Petersburg, Yamalo-Nenets autonomous district," - according to the statement.

These are companies working in construction, car making industry, production of construction materials, plastic pipes and fittings, plumbing equipment, flooring.

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Turkey Trade & Cooperation Sanctions

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