With the continuation of the conflict between Russia and Ukraine, the merchants on the textile and leather export street in Istanbul, Turkey, have also been greatly impacted. As their main customers are from Russia and Ukraine, within a week of the outbreak of the conflict between Russia and Ukraine, merchants from Russia and Ukraine cancelled orders of about US $200 million (about 1.3 billion yuan), and some small-scale businesses are facing the crisis of bankruptcy.
Ali, who has been engaged in leather export trade for nearly 20 years, has recently fallen into the biggest dilemma since his employment. Because more than 60% of his customers come from Russia and Ukraine, the business of the small store has plummeted since the outbreak of the conflict between Russia and Ukraine.
Ali, owner of leather shop in Istanbul, Turkey: in the past, we could sell at least 150 leather jackets a week. Now we can sell at most 10 leather jackets a week, sometimes only 5 leather jackets.
Ali said that their business with Ukraine has completely stalled. Orders from Russian customers have also encountered serious logistics problems due to the situation in Russia and Ukraine. Since the outbreak of the conflict between Russia and Ukraine, the number of tourists from the two countries has decreased sharply, resulting in poor individual business.
Because it is located in the prime location of textile and leather street, the monthly rent of Ali's store is about 13000 yuan. But at present, business is so bleak. Ali said he doesn't know how long he can support it. Ali's dilemma is only a microcosm of nearly 7000 shops in the street.
Larelli district is a famous textile and leather street in Istanbul. Its products are mainly exported to Russia, Ukraine and Eastern European countries. Before the outbreak of the conflict between Russia and Ukraine, the annual trade volume between larelli district and Russia was close to 700 million to 800 million US dollars, about 4.4 billion to 5 billion yuan. The annual trade volume with Ukraine also reached US $100 million to US $140 million, about 600 million to 900 million yuan.
Reporter Chen Huihui: after one day's visit, we found that the trade between businesses in this street and Ukraine is basically at a complete standstill. However, with the continuous promotion of local currency settlement methods for trade between Turkey and Russia, the trade between many local businesses and Russia is gradually recovering.
As early as October 2019, Turkey and Russia signed a free trade agreement, allowing the two countries to trade in local currency.
Yastin eyupkocha, head of the industrial and Commercial Association of rarelli District, Istanbul, Turkey: at present, the Russian Ruble can enter Turkey through the Turkish bank. There is no problem. In addition, the exchange rate of the Russian ruble is now stabilizing.
Although there are some positive signs in the trade with Russia, eupkocha said that the trade volume is much lower than before. Moreover, the current Russian Ukrainian crisis continues, and the regional situation is full of various uncertainties. Businessmen are worried. They don't know when the Russian Ukrainian conflict will end and when the former prosperity of the textile and leather Street will reappear.
