‘If war ends, apparel exports to Russia may rise to $1 billion’

MOSCOW

Türkiye’s apparel exports to Russia may increase to $1 billion if the war between Russia and Ukraine ends, according to a representative of the industry.

Exports to Russia had stood at around $700 million before the conflict broke out, said Mustafa Paşahan, vice chair of the Istanbul Apparel Exporters' Association (IHKIB), who was in Moscow this week to attend trade fairs in Moscow along with tens of Turkish companies.

If the war ends, exports to Russia, which dropped 42 percent last year, could increase to $1 billion, according to Paşahan.

Some 138 companies from Turkish attended the Collection Premier Moscow (CPM) and Child & Junior Fashion (CJF) fairs.

Not only Russian but also companies from other countries showed great interest in Turkish products at the fairs, which could help increase exports, Paşahan said.

He, however, complained that Turkish companies compete with companies from countries, like India, Egypt and China, in an unfair environment.

“The minimum wage cost to companies around $650-700 in 2022. Now, it is around $1,500. This figure is as low as $200 in the countries we are competing with,” Paşahan said.

Costs have grown 100 percent but the increase in the FX rate remained low, he added.

“Currently, we are [Turkish products] 50 percent more expensive compared our competitor and 15 percent compared to EU countries,” Paşahan noted.

It may take up to three years for the Turkish apparel industry to compensate for those losses, “even if everything goes well,” he said.