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Global Economy

Erdogan is turning off electricity for companies – the German economy is also affected

    Due to supply bottlenecks, the Turkish government is turning off the energy for at least three days for the country’s companies. Many companies are shocked. The German economy is also concerned.

Due to a supply bottleneck from the gas supplier Iran, the Turkish government is cutting the electricity and gas lines for the country’s companies. Companies that still purchase gas face criminal consequences, as the “Handelsblatt” reported on Monday.

According to the report, Turkey recently covered around 16 percent of its energy requirements from Iran. According to Iranian information, unusually low temperatures have increased their own gas consumption so much that less can be exported.

Turkey cuts electricity and gas lines – enormous consequences for the economy

Many companies were apparently unprepared for the sudden announcement. “I don’t know if I should even send my workers to the factory this week,” a company representative was quoted as saying. The manager of a German plant said that he could not switch off his blast furnaces from now on. “That would mean millions in damage.” Penalties have to be accepted.

The Turkish car manufacturer Tofas has already announced that it will completely interrupt production for three days, writes the Handelsblatt. Renault wants to completely interrupt its Clio production in the country for two weeks from Monday – in addition to the gas supply, computer chips were also missing. The president of the Turkish automotive association OSD, Haydar Yenigün, spoke of “completely unforeseeable developments”. These would hit production and exports hard in January.

German companies are also affected

In view of the development, the German economy is concerned about the supply chains related to the country. Thilo Pahl, Managing Director of the Istanbul Chamber of Commerce, told the newspaper that the impact of the energy cut on manufacturing companies would be significant. “The tense situation in the supply chains would continue to worsen.”

Turkey has been struggling for a long time with an economic crisis and the rapid depreciation of the national currency, the lira. Only at the turn of the year were electricity prices increased by 50 percent for households and by more than 100 percent for high-consumption companies. Gas also became considerably more expensive. © THE MIRROR

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