How Putin Helped Erdogan: What Bloomberg Reports

Russian President Vladimir Putin has supported his Turkish counterpart, Recep Tayyip Erdogan, at a crucial moment for Ankara, reports Bloomberg.

“Putin’s support will be beneficial for Erdogan, as there is less than a year before Turkey's presidential elections, and Ankara needs to stabilize its economy,” the publication noted.

According to the article, the agreements reached by the presidents in Sochi regarding the transition to partial payment for Russian gas in rubles will stabilize the lira's exchange rate and prevent a new wave of price increases in the country. “This comes after Turkey's gold and currency reserves have already increased thanks to the transfer of funds from Russia's state corporation Rosatom to its Turkish sister company, Akkuyu Nuclear, for the construction of a nuclear power plant on the Mediterranean coast.”

Moreover, as highlighted by the publication, Ankara will not join the U.S. and European sanctions against Moscow. “Erdogan wants to deepen economic ties with Russia without completely severing ties with traditional NATO allies,” Bloomberg stated.

As reported by RIA Novosti, last week Vladimir Putin and Recep Tayyip Erdogan held talks in Sochi. They reaffirmed their commitment to strengthening bilateral cooperation and agreed that gas supplies from Russia to Turkey would be partially paid in rubles.

On November 23, the decline of the Turkish lira was the most significant in the last 20 years, reaching a record exchange rate of 18.4 lira to the dollar on December 20, compared to 7.4 lira a year earlier.