UPDATE3: Russia bans Turkish produce imports, wants prices not to rise

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MOSCOW, Dec 1 (PRIME) -- Russian Prime Minister Dmitry Medvedev has banned imports of Turkish fruit and vegetables, including citruses, from 2016 and ordered the Industry and Trade and the Agriculture ministries to ensure that prices do not rise as a result, the government said in a statement Tuesday.

The sanctions will come in force after the ruling’s publication in an official gazette and will be lifted only by President Vladimir Putin’s decree.

Medvedev also banned all charter flights between the two countries from Tuesday, excluding flights that will carry Russians back home, and ordered the Transport Ministry to toughen security in regular air communications with Turkey. The Federal Service for Consumer Rights Protection and Human Welfare Oversight is to ensure that tour operators comply with the regulation to stop sales of new tours to the country.

Previously, Reuters reported that the Russian government may freeze talks on the Turkish Stream natural gas pipeline with Ankara, but a government source told PRIME that Medvedev has approved a full list of anti-Turkey sanctions. Sergei Kupryianov, an official representative for gas giant Gazprom, declined to comment.

The State Duma, the parliament’s lower house, also rejected an idea submitted by one of the deputies to order its committees work on freezing construction of the Akkuyu nuclear power plant in Turkey. Yury Lipatov, one of the deputies, said the situation is under control of state nuclear power corporation Rosatom and the company asked the government not to interfere in the issue.

The Russian government has also ordered to suspend operation of a Russia–Turkey commission for trade and economic cooperation. Russia will suspend talks over and agreement for investments and trade in services and an agreement on a joint investment fund with Ankara.

Russia’s Transport Ministry is ordered to decrease the number of permissions granted to Turkish companies for bilateral car transportation to 2,000 for 2016 from an average 8,000 permissions per year and void permissions for 2016 if necessary.

Job permissions for Turkish workers in Russia were also banned, but the Economic Development Ministry has to prepare a list of companies that will be excluded from the ban and a list of works and services which Turkish companies are prohibited to do in Russia until December 10.

Economic Development Minister Alexei Ulyukayev told reporters that risks of higher inflation depend on the speed with which banned food will be replaced. “This task is not an easy one, but it is within our powers,” Ulyukayev said, adding that the ministry is working on it.

The Economic Development and Foreign ministries may suggest adjustments to terms of sanctions based on Turkey’s actions, Medvedev’s ruling read.

Industry and Trade Minister Denis Manturov said the ministry is unlikely to propose restrictions on imports of products of the Turkish light industry as it may do more harm than good.

“We are closely studying the issue. As of today…certain categories of supplies of light industry products, especially speaking about raw materials, we will not impose such measures now, I think. It is beneficial for us as regards receiving cheap but quality raw materials. But we are continuing to study other types of goods and will submit corresponding suggestions,” he said.

“We should act with great caution and not hurt ourselves,” he said.

The U.S. wants Russia to lift its trade restrictions against Turkey, a high-ranking U.S. Department of State’s official told reporters. “We would like to see an end of measures that inflict collateral damage – trade embargoes and such,” the official said.

On November 28, President Vladimir Putin has signed a decree to ensure national security and introduce special economic measures against Turkey in response to a recent jet shootdown.

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