The Impact of the Russia–Ukraine War on the Turkish Economy (2022–2024)

Introduction: The Russia-Ukraine war has reshaped the geopolitical and geoeconomic landscape of Eurasia with far-reaching implications for regional actors with strong economic interdependencies. Among these actors, Turkey enjoys a unique strategic position due to its extensive trade, energy, and financial ties with both Russia and Ukraine, as well as its active diplomatic role as a mediator. The outbreak of the conflict has exposed Turkey to significant economic vulnerabilities, including currency depreciation, rising energy and grain prices, and pressures on key sectors such as tourism. At the same time, the crisis created new opportunities for Ankara to increase its economic connectivity, expand its transit and energy roles, and strengthen its geopolitical position. These developments highlight the need to systematically examine how Turkey manages wartime challenges while exploiting emerging opportunities. This study addresses this gap by analyzing Turkey’s multidimensional economic response through the lens of economic diplomacy over the period 2022-2024.
Research question: What opportunities and challenges has the Russia-Ukraine war created for the Turkish economy, and how has the country managed the economic consequences of this crisis?
Research hypothesis: Turkey's balanced and pragmatic response to the Ukraine war enabled the country to mitigate initial economic shocks, including currency depreciation and rising energy and grain costs, and to turn some of these challenges into economic and geopolitical opportunities.
Methodology: This study adopts an approach that combines quantitative and qualitative analyses within a descriptive-analytical framework to examine Turkey's economic response to the Russia-Ukraine war. The analysis is rooted in the conceptual framework of economic diplomacy, which views economic instruments as strategic foreign policy tools to protect and advance national interests. Turkey’s response to the crisis is assessed as a structured process of mobilizing trade, energy, and financial mechanisms to mitigate risks and exploit emerging opportunities. The study systematically analyzes secondary data, including trade statistics, energy flows, investment patterns, and tourism indicators for the period 2022–2024. The assessment is guided by three analytical pillars: access to global markets, attraction of foreign capital and resources, and enhancement of geopolitical and geoeconomic positioning. These pillars organize empirical evidence, including Turkey’s mediation in the Black Sea Grain Corridor, the expansion of its transit function, and an increase in Russian capital and tourist flows, highlighting the country’s strategic maneuvering in a complex geopolitical context.
Results and discussion: Analysis of Turkey’s economic performance from 2022 to 2024 shows that, despite severe shocks from the Russia-Ukraine war, Ankara has effectively mitigated these pressures and turned many of them into strategic advantages through balanced, pragmatic, and diplomacy-centered policies. Initially, Turkey’s interdependence with Russia and Ukraine increased its vulnerability to external disruptions. Rising global energy and grain prices, coupled with a sharp depreciation of the Turkish lira, pushed inflation above 85 percent by late 2022. National energy import costs nearly doubled compared to pre-war levels, indicating vulnerability to global price fluctuations. However, Turkey’s measured foreign policy allowed rapid adjustment. Bilateral trade with Russia remained stable, rising to a record $68 billion in 2022, driven by the diversion of Russian trade flows due to Western sanctions. This strengthened Turkey’s role in re-exports, energy transit, and logistics, while access to discounted Russian oil and coal supported domestic refineries and eased energy pressures.
The war also increased the importance of Turkey’s geoenergy. Initiatives to transform Turkey into a regional gas hub, along with expanding LNG capacity and new pipeline projects, have strengthened Ankara’s position in Europe’s reshaped energy landscape. In agriculture, although dependence on Russian and Ukrainian wheat initially raised concerns, participation in the Black Sea Grain Initiative has stabilized domestic markets and provided essential supplies. Tourism has recovered rapidly, as a surge in Russian and Ukrainian visitors offset a decline in arrivals from Europe, bringing in a record $46 billion in revenue in 2022. At the same time, Russian capital inflows through real estate, joint ventures, and financial transactions have eased pressure on foreign exchange reserves and stimulated investment in construction, petrochemicals, steel, and logistics.
Regionally, the conflict accelerated strategic infrastructure projects, including the Middle Corridor and the Baku-Tbilisi-Kars railway, and strengthened Turkey’s East-West transit role. Diplomatically, Ankara’s mediation efforts, as seen in the Istanbul talks and management of the Grain Corridor, enhanced the country’s international standing and highlighted the strategic value of economic diplomacy. Overall, the findings suggest that Turkey has effectively transformed wartime pressures into sustainable economic and geostrategic gains through adaptive policymaking and multidimensional economic diplomacy.
Conclusion: The Russia-Ukraine war created a strategic opportunity for Turkey to strengthen its regional and international position by effectively utilizing its economic, energy, and diplomatic capacities. The findings of this study show that Turkey’s response to the crisis was not purely security-based, but rather reflected a pragmatic and structured approach based on economic diplomacy. This strategy enabled Turkey to reduce the pressures arising from the crisis while simultaneously exploiting emerging opportunities. Turkey consolidated its role as a regional transit hub by facilitating Ukrainian grain exports, managing alternative transit routes for Russian energy and goods, and expanding re-export activities to third countries. In addition, relatively low-cost energy imports from Russia, coupled with increased foreign investment and tourism from Russia and Ukraine, helped to bolster foreign exchange reserves, ease domestic economic pressures, and diversify Turkey’s external economic relations.
At the geopolitical and geoeconomic levels, Turkey’s mediation efforts in the Ukraine crisis, its participation in the Black Sea Grain Initiative, and its continued investment in energy and transportation infrastructure have elevated its position in Eurasian energy and economic networks. Extensive cooperation with Central Asian and South Caucasus countries further demonstrates Turkey’s effective use of geopolitical leverage to increase economic influence. Overall, by integrating soft power tools with hard power assets, Turkey has developed an economically oriented hybrid power, turning crisis-related challenges into strategic opportunities.