Now, Russia, Turkey’s second largest trade partner, could execute a number of sanctions in response to the downed jet. For instance, a Russian lawmaker has suggested a ban on flights to Turkey and one of Russia’s biggest tour operators announced suspended sales packages to turkey.

Meanwhile, Turkey is reshuffling its government to potentially implement greater economic reforms. Former Finance Minister Mehmet Simsek was appointed deputy prime minister and will steer the economic committee.

“The cabinet announcement was pretty much market-neutral and a continuation of the status quo,” Kerem Baykal, a fund manager at AK Portfoy, told Bloomberg. “Although Babacan is out, the inclusion of Simsek is positive. We now have to see how reform friendly the administration is going to be and how it’s going to address Turkey’s vulnerabilities.”

iShares MSCI Turkey ETF

For information on Turkey, visit our Turkey category.

Max Chen contributed to this article.

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