Laleli sales to Russia quadruples amid Western sanctions

Nerdun Hacıoğlu - ISTANBUL

Sales from the Laleli, which is one of Istanbul’s textile products and apparel retail centers, to Russia have quadrupled since May amid the economic sanctions imposed on Russia due to the war in Ukraine.

Visitors from Russia, where Western countries are increasing their economic sanctions day by day due to the war against Ukraine, come to the Laleli market in Istanbul’s Fatih district to buy goods and bring them back to their countries in, what is known as “suitcase trade.”

While sales to Russia have quadrupled since May, Russian broadcaster REN-TV, which reminds of a similar period 30 years ago in its “Laleli 2.0” program, which it has aired recently, emphasized that the second era of suitcase trade has begun.

Underlining that Türkiye is the number one destination for suitcase trade, the broadcaster said that as the sanctions imposed on Russia increased and many western companies halted their activities in the country, the trade with Türkiye became one of the most common occupations.

Unlike the pre-2000 period, most of the customers now wholesale, according to REN-TV, while a certain number of them make a profit up to 300 percent by selling the products they buy from Türkiye retail.

The suitcase trade between Russia and Türkiye, which has been revived in recent months, dates back to 1995. The trade, which started right after the collapse of the Soviet Union, was one of the building blocks after the radical change in the Russian economy 30 years ago, with nearly 10 million people shuttled between Istanbul and Moscow, including Kremlin spokesman Dmitry Peskov.

In May, the Russian government determined the list of goods that individuals and companies can bring duty-free from third countries under the name of “parallel imports,” including many products from clothing to auto spare parts.

The Russian economy has been deeply damaged by sanctions and the exit of international business since the country invaded Ukraine, according to a report prepared by Yale University business experts and economists.

Russia is believed to have defaulted on a debt for the first time since 1998, after a series of measures taken against its financial institutions.