Russian sanctions to weigh on Turkish growth prospects and delay CBR cuts

As expected, Russia imposed economic sanctions on Turkey for shooting down its warplane on November 24, 2015.  Turkey's income from Russia on trade related basis is c. 2% of its GDO, with Russia limiting exposure to Turkey, excluding energy exports.

Russian sanctions imposed on Turkey might have a bigger negative impact on the country's growth prospects than that of Russia. The food  sanctions will likely drive food prices higher in Russia. 

"This, in conjunction with lower oil prices and RUB weakness, causes us to revise our Russia rate call: we now expect the CBR to remain on hold in December", says Barclays in a research note.  
President Putin signs a decree on economic sanctions against Turkey for: a ban on specified Turkish imports, mostly to food, Turkish specified business operations in Russia, hiring of Turkish nationals from 1 January 2016, suspension of visa-free travel for Turkish citizens to Russia from 1 January 2016, except those with residential permits and diplomats.

Alos, there is ban on tourist firms from selling package holidays to Turkey, ban charter flights between Russia and Turkey, increasing safety measures at ports and airports for Turkish goods and airline travel.