Companies that will suffer from deterioration in Russian-Turkish relations

The losses of Russian and Turkish companies could be huge if relations between the two countries worsen. Russia was the biggest importer of raw materials and products to Turkey in 2014, surpassing China with import of $ 25 billion, according to data compiled by Bloomberg. Over 12% of tourists in Turkey are Russians, which ranks them second only to Germany.

After Russian plane downed on Syrian border on Tuesday, Russian President Vladimir Putin said that this incident would have "serious consequences." The lira and the ruble fell immediately.

Analysts believe that from the deterioration of Russian-Turkish relations may suffer some major companies.

Bloomberg is pointing the following Russian and Turkish companies that have much to lose if ties between the two nations worsen.

Gazprom PJSC

Turkey is Russia’s second-biggest market for gas exports, and relies on Gazprom to meet half of its gas needs. Russia plans a gas link to Turkey that would divert some exports away from Ukraine. Those discussions may end if tensions escalate between the two countries, said VadimBit-Avragim, a money manager at Kapital Asset Management LLC in Moscow.

Rosneft, Lukoil

Russia’s key oil exporters including Rosneft OJSC,Lukoil PJSC and Gazprom Neft PJSC may see the prices of Urals crude blend rise from from recent lows. The face-off “has the potential to disrupt Russian oil supplies via the Bosporus and Dardanelles Straits,” Ehsan Ul-Haq, a senior analyst at KBC Energy Economics, said by e-mail.

Magnitogorsk Iron & Steel OJSC

The Russian steelmaker has invested more than $2billion in a Turkish plant since 2007. The unit, which opened in 2011, can produce as much as 2.3 million metric tons of steel products per year. MMK, as the Russian company is known, has been considering the sale of the asset sinceat least 2012, but hasn’t reached a deal.

Turkish Airlines

The company became the biggest foreign carrier serving Russia in September and has increased flights to the country by more than 16percent in 2015 as international rivals cut services, according to a Bloomberg Intelligence analysis. It expects to carry more than 1 million passengers on Russian routes this year, and is considering an increase in the number of daily flights to Moscow and the addition of six destinations.

Sberbank PJSC

The lender’s Turkish unit Denizbank, which it acquired from Belgium’s Dexia SA in 2012, posted a 21 percent drop in third-quarter profit. Sberbank in July reiterated a plan to continue its international presence and said Denizbank has been demonstrating “significant” financial growth.

Yandex NV

The Russian Internet search provider has a 5 percents share in Turkey’s search market.

Anadolu Efes

Anadolu Efes Biracilik & Malt Sanayii AS acquiredSABMiller’s Eastern European operations including Russia in 2011 in return fora 24 percent stake sold to SABMiller. Russia accounts for 15 percent of AnadoluEfes’s operations, according to Vedat Mizrahi, the head of research at Istanbul-based brokerage Unlu & Co.

Enka Insaat

Russia accounts for 3 percent of the builder’s order backlog and at least 25 percent of its valuation, Mizrahi said. The company also operates two power plants in Turkey’s north using Russian gas.

Arcelik

Turkey’s biggest home-appliances maker has a production plant and a marketing unit in Russia operating since 2006, according to its website. It got 12.2percent of its total sales from Eastern European markets including Russia in the first nine months of this year.