Deteriorating trade relations between Russia and Turkey, impacts on Russia

Russia has imposed economic sanctions on Turkey, for shooting down its jet bomber plane last week. For Russia, this would largely impact its food inflation. The country might see a drop in the deceleration, being seen for last 8 months.

This also might have implications for the country's monetary policy. Russian growth could be effected by the losses of sales in Turkish markets, for example possible cancellation of the building of nuclear energy facility in Turkey.

"With the increased financial market uncertainty, due to various factors including lower global oil prices, we now forecast that the Bank of Russia (CBR) will remain on hold at its December rate setting meeting and begin cutting its key rate only in Q1 16", says Barclays in a research note. 

A slowdown in construction in Russia may take place to the extent that activities of Turkish construction firms in Russia are constrained.