It is reported that Turkish construction companies in Russia have slowed operations after being hit by the current global financial turbulence, leaving 20,000 Turkish workers without jobs in the past two months.
Affected badly by the crisis, the construction sector in Russia has plunged. Investments have been either interrupted or canceled, and most construction projects have been delayed, leaving investors with no choice but to cut expenditures. Turkish construction companies in Russia have had difficulty getting paid as problems emerge in the country, and they have also suspended operations. Turkish construction companies mostly work with the private sector in Russia because the state gives priority to local companies when launching construction projects.
Turkish companies in Russia undertake the construction of certain building projects such as shopping malls, factories and neighborhoods.
Mr Erdal Eren president of Turkish Constructors" Union said that Turkish companies were having difficulty in Russia, where construction projects are on the verge of ceasing. He added that "Everybody is waiting for a recovery. Many Russian investors say they cannot continue their projects and ask our construction companies, who they work with, to slow down operations. Recently, one construction project turned out to be delayed for one year. This urges companies to dismiss employees. They have no other choice."
According to data released recently by the Turkish Constructors" Union, the worth of construction jobs that Turkish construction firms have undertaken around the world reached USD 19.5 billion by the end of 2007. The biggest share went to Libya, where Turkish construction companies carried out projects worth USD 4.5 billion. Russia followed with USD 3.6 billion.