Russia, Turkey Mull Trade Preferences for Some Sectors

Russia and Turkey may give preferential treatment to some sectors of their economies, the Russian Minister for Economic Development Alexei Ulyukayev has said.

ITAR-TASS quoted Ulyukayev as saying after talks with Turkish Economy Minister Nihat Zeybekci on Tuesday that ""this could be a comprehensive agreement on a free trade zone, or separate sectoral preferential treatment, for example for agricultural products".

Turkey and the EU are linked by a customs union accord and Russia is a member of a customs union with Belarus and Kazakhstan "but both agreements allow for the setting up of free trade zones with third countries," Ulyukayev said.

According to the Russian minister, a sectoral agreement looks most likely as it is easier to coordinate.

Last Month Moscow imposed a one-year ban on imports of meat, fish, fruit, vegetables and dairy products from the EU, the US,  Australia, Canada and Norway in response to Western sanctions against Russia over the Ukraine crisis.

Also on Tuesday, Ulyukayev told Russia 24 TV station that Turkey has shown interest in investing into projects in a special economic zone, to be set up in Crimea.

Such zone should be established for a term of 25 to 50 years, Crimean Prime Minister  Sergei Aksyonov has said.

Aksyonov told Russia's official newspaper Rossiiskaya Gazeta earlier this month that the special economic zone will offer considerable benefits to investors such as lower profit and value added taxes and zero import value added tax in agriculture, industry, tourism and construction sectors.