Russian companies unexpectedly ran into trouble working with Turkey, which has become one of the biggest hubs for circumventing sanctions and almost doubled supplies to Russia, from fruit and electronics to clothing and auto parts.
From the beginning of January 2024, Turkish banks are blocking all payments from Russia, Kommersant reported. Payments for commercial transactions have practically stopped, and transfers in the two national currencies – pounds and rubles – have also been affected. Some banks have also started canceling already approved transactions, explaining that they are “prohibited goods”.
The payment blockade is practically total and affects all industries: payments from Russia to Turkish chemical companies, auto parts factories, clothing and shoe manufacturers have been stopped.
Difficulties in relations between Turkish and Russian banks began as early as the summer of 2023, but the situation worsened after US President Joe Biden signed an executive order on December 22 allowing foreign banks to be excluded from the US financial system for violating sanctions against Russia . The decree effectively prohibits banks from brokering deals with Russia in all areas except food and medicine. This was also a reason for Chinese banks to stop working with Russia pending further instructions.
In early January, US Secretary of State Anthony Blinken visited Turkey. During his visit, he discussed with Turkish Foreign Minister Hakan Fidan and Turkish President Recep Erdogan sanctions and export controls, as well as possible attempts to circumvent them. At the end of November 2023, Deputy US Treasury Secretary in Charge of Sanctions Control, Wally Adeyemo. According to Bloomberg, he issued a “final warning” to Turkish companies. Several Turkish companies have already been sanctioned by the US for trading with Russia.
On January 16, the Exporters Association of Turkey announced that Turkish companies supplying to Russia have been subject to additional checks by the authorities since December, related to the additional measures introduced by the US to prevent the circumvention of sanctions.
“The problem with the transfers will probably be resolved by the end of the week,” a source from one of Turkey’s state banks optimistically told RIA Novosti. He admits that the difficulties are related to pressure on Turkey to comply with Western sanctions.
In one year, Turkey’s exports to Russia’s neighboring countries of dual-purpose goods have tripled, the Financial Times wrote. In the nine months to 2023, $158 million worth of goods were shipped, while the 2015-2021 average was $28 million per year. We are talking about 45 categories of equipment that are prohibited from being imported into Russia, including microchips, communication equipment, optical sights. According to Turkish customs, the export of such products to Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan and Uzbekistan has risen sharply. But in the statistics of these countries there is no jump in such imports. Therefore, analysts believe that the goods go directly to Russia, although officially the recipients are from other countries. Journalists give an example – Turkey officially exported dual-use goods to Kazakhstan for 66 million dollars, while Kazakhstan reported importing such products for only 6 million dollars.
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2024-01-18 17:53:15
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