After Russia after invaded Ukraine, 45 countries imposed sanctions. Turkiye was among those that did not. Have Turkiye’s exporters filled the gap created by the reduction in exports from other sources? If so, how do they manage the reputational and operational risks in trading with Russia? Giancarlo Corsetti, Banu Demir and Beata Javorcik have used firm-level data to discover whether Turkiye’s firms have been “Trading around geopolitics”. They tell Tim Phillips why imposing trade sanctions can be like “squeezing a balloon”.
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