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Turkey wants to create free trade area with Ukraine

Ukraine Business

Turkey wants to create free trade area with Ukraine

23 April 2010

Turkey already major contributor of foreign direct investment in Ukraine

KYIV, Apr. 23, 2010 (UBO/Ukrainian News) — Turkey wants to create a free trade area with Ukraine, Turkish Ambassador Ahmet Bulent Meric told the Den newspaper.

He added that the economies of Ukraine and Turkey are already interactive. Turkey obtains raw materials from Ukraine, uses them in its industry and sells the products on to different markets, including markets of the European Union. Among current Turkish imports from Ukraine are raw products, chemicals, iron, and steel.

Meric is sure that the creation of such area would boost business relations between the two countries.

He said that despite negative impact of the financial crunch on the turnover between the countries, bilateral trade is being revived at the moment. Turkey had hoped to boost trade with Ukraine to $8 billion in 2009 after a very good year in 2008. The goal was missed in 2009, but Turkish officials say the $8 billion threshold in trade could be reached in 2010

Ukrainian and Turkish officials have called for acceleration of cooperation in energy, transport and scientific-technical sectors, as well as in the sector of investment co-operation. Turkey is already an investor of upwards of $2 billion in Ukraine and Turkish interests own Ukraine’s third largest mobile telephone operator, life:), which was the only operator to increase subscribers during 2009.

With prices for accommodations in Crimea skyrocketing, Turkey has also become an increasingly popular destination for tourists from Ukraine and many Ukrainians have also established second homes in Turkey. Tour operators say they can offer a week’s accommodation at a three-star hotel complex in Turkey, including round trip airfare, for a lower price than a similar accommodation in Crimea.