Turkey in June 2026: the most important developments in economy
In June 2026, Turkey's economy was shaped by energy deals and by pressure from high borrowing costs. On 1 June Turkey started talks to extend its Russian gas supplies, and the same day the state pipeline company BOTAŞ signed a new deal to import gas from Azerbaijan's Absheron field. Turkey and Bulgaria discussed revising the BOTAŞ deal with a view to a broader energy partnership. On 20 June the European Union demanded that Turkey not supply Russian gas to the bloc. An energy deal between EU states and Turkey over Libya drew scrutiny from Athens. Iraq asked Turkey to extend an oil pipeline agreement by at least a year, and Turkey opposed the extension. On 20 June Turkey announced an $80 billion plan for clean energy and renewable power, and energy prices doubled the country's international investment deficit.
The second theme was finance and business. On 5 June President Erdogan announced a merger of Islamic banks in Turkey. Turkey offered a 20-year tax exemption on foreign profits to attract capital, and Arcelik took full control of Beko Europe. On 30 June Emirates NBD was reported to be in talks to acquire HSBC's Turkish unit, with no financial terms disclosed.
The third theme was strain on the domestic economy. High interest rates, inflation and dollar pressure weighed on the Istanbul stock exchange, and the investment firm Algebris moved to credit default swaps as credit risks rose. The Finance Minister vowed to continue price controls. On 24 June Turkish manufacturers demanded an urgent loan package from the government because of rising borrowing costs. Turkey said it would raise transit fees for the Bosphorus and Dardanelles straits from July, and a new airport opened in Ankara ahead of the NATO summit. On 29 June an economic plan was reported that aims to benefit from the Iran war.
by WorldBrief & Maksim Micheliov | AI-generated summary
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