Textile and leather goods manufacturers in Istanbul’s garment district is affected of Russia invasion of Ukraine.
Customers in Moscow and Kyiv canceled 200 millions of dollars in orders in the past week, say industry officials.
The loss of trade adds to the stumps, with officials believing that more over $1 billion is directly at risk to the textile industry alone if the conflict in Ukraine continues.
Mustafa Senocak, head of the Istanbul Leather and Leather Products Exporters Association, said the orders for “hundreds of thousands of pairs of shoes and thousands of leather jackets” have been cancelled.
“Some Russians say they can pay with the former ruble exchange rate. Otherwise, they cannot make payments,” he said.
Russia and Ukraine represented for more over $1 billion in Turkish exports of leather shoes, jackets and finished and unfinished garments last yearand nearly three times so much in the official”suitcase trade” centered in Istanbul, officials say.
The decline in export earnings could add in Turkish current account deficit, which is widening following the invasion of Ukraine last week due to soaring energy prices and a hit to tourism this year.
After a raft of orders and contracts with Kyiv and Moscow in February, “we face cancellations… worth about 200 millions dollars to date (for industry),” said Şeref Fayat, head of clothing manufacturer TOBB Assembly of garment and apparel industry. “It could exceed $1 billion if this situation continues.”
Turkish trade with Belarus, Moldova and Romania have also cooled due to uncertainty, industry officials told Reuters. Some Polish customers asked to suspend orders, while some Russians asked to make payments according to on exchange rate before invasion and the collapse of the rouble.
Turkey’s garment, textile and leather exports totaled 718 millions dollars to Russia in 2021 and 308 millions dollars to Ukraine, data shows.
The estimated $3 billion”suitcase trade”- in which small merchants from Russia, Ukraine and others former Soviet states buy goods in Istanbul, pack ’em up in empty the suitcases and resell them back home – at also took a hit.
“We have had already started manufacturing for the new season – but now we have all stopped,” said Gıyasettin Eyyüpkoca, head of the association of Industrialists and business people of Laleli, the district of Istanbul in the center of the suitcase trade.
Russians and Ukrainians drive half of Laleli’s annual trade volume, Eyyüpkoca said. “I had the same Ukrainian trading partner for years and an open account with him. How can I now ask him to pay me money whereas it is struggling stay alive?”
Textile and leather goods manufacturers in Istanbul’s garment district is affected of Russia invasion of Ukraine.
Customers in Moscow and Kyiv canceled 200 millions of dollars in orders in the past week, say industry officials.
The loss of trade adds to the stumps, with officials believing that more over $1 billion is directly at risk to the textile industry alone if the conflict in Ukraine continues.
Mustafa Senocak, head of the Istanbul Leather and Leather Products Exporters Association, said the orders for “hundreds of thousands of pairs of shoes and thousands of leather jackets” have been cancelled.
“Some Russians say they can pay with the former ruble exchange rate. Otherwise, they cannot make payments,” he said.
Russia and Ukraine represented for more over $1 billion in Turkish exports of leather shoes, jackets and finished and unfinished garments last yearand nearly three times so much in the official”suitcase trade” centered in Istanbul, officials say.
The decline in export earnings could add in Turkish current account deficit, which is widening following the invasion of Ukraine last week due to soaring energy prices and a hit to tourism this year.
After a raft of orders and contracts with Kyiv and Moscow in February, “we face cancellations… worth about 200 millions dollars to date (for industry),” said Şeref Fayat, head of clothing manufacturer TOBB Assembly of garment and apparel industry. “It could exceed $1 billion if this situation continues.”
Turkish trade with Belarus, Moldova and Romania have also cooled due to uncertainty, industry officials told Reuters. Some Polish customers asked to suspend orders, while some Russians asked to make payments according to on exchange rate before invasion and the collapse of the rouble.
Turkey’s garment, textile and leather exports totaled 718 millions dollars to Russia in 2021 and 308 millions dollars to Ukraine, data shows.
The estimated $3 billion”suitcase trade”- in which small merchants from Russia, Ukraine and others former Soviet states buy goods in Istanbul, pack ’em up in empty the suitcases and resell them back home – at also took a hit.
“We have had already started manufacturing for the new season – but now we have all stopped,” said Gıyasettin Eyyüpkoca, head of the association of Industrialists and business people of Laleli, the district of Istanbul in the center of the suitcase trade.
Russians and Ukrainians drive half of Laleli’s annual trade volume, Eyyüpkoca said. “I had the same Ukrainian trading partner for years and an open account with him. How can I now ask him to pay me money whereas it is struggling stay alive?”