UPDATE: PM: Russian govt to work out economic retaliation for Turkey

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MOSCOW, Nov 26 (PRIME) -- Russian Prime Minister Dmitry Medvedev has ordered the government and ministries to work out economic and humanitarian retaliation against Turkey’s unfriendly act as soon as possible, Medvedev said at a government meeting Thursday.

On Tuesday, Russia’s Sukhoi Su-24 bomber was shot down by an air-to-air Turkish missile and crashed in Syria. Russian President Vladimir Putin said it was “a stab in the back” from “accomplices of terrorists” and promised serious consequences in relations between Moscow and Ankara.

“I would like to tell you about the economic measures (for Turkey). We have discussed this issue with the president yesterday in Yekaterinburg. As a result, the government has been ordered to work out a system of retaliation measures in the economic and humanitarian spheres for the act of aggression. The decision will be based on the law on special measures adopted on December 30, 2006,” he said.

The measures may include suspension or termination of Turkish investment projects and talks on preferences for the country’s services and investments, suspension of programs for economic cooperation and restrictions in financial and trading spheres, prohibition of operation of Turkish companies in Russia, and restrictions of food supplies, Medvedev said. It may also cover customs duties and restrictions on financial operations, he added.

All measures should have no time limit, their terms should depend on development of relations with Turkey and an international situation, he said.

Economic Development Minister Alexei Ulyukayev said that all possible measures will comply with regulations of the World Trade Organization (WTO). The regulations stipulate that such sanctions are possible in case of a threat to national security, he said.

Russian retaliatory measures may also concern construction of the Turkish Stream gas pipeline and the Akkuyu nuclear plant, as both projects fall within the scope of the law on special measures, Ulyukayev said.

Russia may impose restrictions on both regular and charter flights to Turkey, Ulyukayev said. The Transport Ministry will submit its proposals on restrictive measures in its sphere to the government on Friday, Minister Maxim Sokolov said, but declined to comment on whether the ministry will propose a ban on air travel between the countries.

Ulyukayev also said that Russia may suspend work on establishment of a joint investment fund with Turkey, as well as preparation of an agreement on free trade and investments, and implementation of a 5-year program of economic and research and technology cooperation.

Oleg Safonov, Director of the Federal Agency for Tourism, said that the countries’ tourism cooperation is likely to be suspended as well. The agency earlier asked national tour operators to halt selling package tours to Turkey.

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