In February 2022 foreign direct investment in Turkey totaled only $464 million, but their value increased significantly month by month because of the war in Ukraine.
According to her publication Handelsblattinstead of the cheap but uncertain delivery of goods from one end of the Earth to the other, the question is now short distances.
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And as many Turkish companies realized early on – already from the beginning of the pandemic – their potential to increase transactions, they established new branches.
Instead of going into lockdown due to Covid-19, they looked for gaps in global supply chains and filled them with Turkish products.
A similar tactic was followed in the midst of the turmoil caused to the world economy by the war in Europe. It is a fact, after all, that Turkey’s exports have been steadily increasing over the past two years, even though inflation has made business difficult.
The role of Germany
In this context, as the newspaper points out, German companies are hoping for new transactions with Turkey, whose ports are becoming increasingly important on the Black Sea.
The “Middle Corridor” of the New Silk Road, which connects China to Europe by rail, via Kazakhstan, the Caspian Sea, Azerbaijan and Georgia, also leads to Turkey.
Besides, the Turkish government – together with the Chinese – has invested a lot in the “Middle Corridor”. In 2016, it completed the 31-kilometer Marmaray Tunnel south of Istanbul, which connects Asia and Europe by rail, and in total over the past 20 years, Turkey has built 1,085 kilometers of new railway lines.
In the same period, more than 6,400 kilometers of old railway lines were renewed.
The country’s plan envisages within a decade all ports and all airports in the country to be connected by rail. According to the financial paper, Ankara is taking advantage of this expanding network and is benefiting from both Russia’s war in Ukraine and its aftermath, as well as China’s supply chain problems.
Along with it, German logistics companies also benefit, for which the country located at the “door” of the EU becomes very important for the supply of goods.
However, if there are gas shortages in Europe this winter, political pressure from Brussels on Recep Tayyip Erdogan to join countries that have imposed sanctions on Moscow may increase. “And then German businesses in the country will have to think carefully about how profitable it is to operate there.”
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