Republic of Turkey-The Russian Federation foreign trade: Russian market and Southern Russia business potential research

Russian Federation (RF), Black Sea neighbour of Turkey, is the leading country among the most strategically important ones; as a result of historical, political, and commercial relations between the two. According to Russian statistics of 2012, while Russia is in the first place of Turkey's trade partners with $ 26.6 billion exports to Turkey and it is ranking the 4th with $ 6.6 billion imports from Turkey to the country. Succession in political relations with Russia redounds to the improvment of the trade relations between the partners, developping each passing day. Turkey's limited natural resources oblige it to import oil and natural gas products from Russia in increasing demands which inevitably enlarges the foreign trade deficit of Turkey. Even though the shuttle trade which continues for a long time between the partners tends to decrease, the country still has an important place in Turkey's exports. Participation of Russiato the World Trade Organization (WTO) in August 2012 has been one of the biggest steps in liberalization on world trade. With the participation of Russia, WTO will represent very high rate of the world trade. With the accession of Russia, WTO criterias for international trade are expected to be effective on Russia's trade, lower tariffs, less restrictions on import and export and subsequently a more transparent, open and predictable trading process for the companies trading with Russia are expected. Besides giving information about the key economic data of Russia, its trade with Turkey, leading sectors, and its largest 200 companies, the purpose of this study is to give information about foreign trade oriented companies in Southern Russia and to do the groundwork for companies of the both countries to have healthier communication and cooperation. It also aims being closely acquainted with Russia by analyzing historical, political and economic relations between Russia and Turkey while portraying the history, socio-cultural and geographical structure, and political and legal framework of the country. The fieldwork of business potential in Southern Russia aims guiding those who trade or want to trade with Russia by analyzing current status with its problems and proposing concrete results. The suggestions about the advantages and disadvantages of it and the difficulties in trading with Russia are portrayed through the results of a survey that was carried with 33 companies. Finally it also aims at contributing to Turkish exporters in their exports to Russia and to other countries by giving suggestions on increasing their current market shares and eliminating the recent problems in trade while analyzing Russian market, and giving information about the supports given to Turkish exporters by Republic of Turkey Ministry of Economy and Small and Medium-Sized Enterprises Development and Support Administration (KOSGEB).