Turkish banks reportedly plan to halt transactions with Russia

Russian state news agency TASS has reported that Turkish banks are allegedly planning to cease transactions with Russia and Belarus, transferring all operations to a single bank. The claims, which have yet to receive an official response from Turkish authorities, suggest that Turkish financial institutions are looking to mitigate risks associated with international sanctions.

According to TASS, Turkish banks may halt their dealings with Russian and Belarusian firms and shift these transactions exclusively to Emlak Katılım Bankası. This move comes after allegations surfaced that banks in Türkiye were pressuring companies exporting goods to Russia, with some even blocking transfers and closing accounts.

A source speaking to TASS indicated that Elmak Katilim Bankasi currently handles transactions between the Russian ruble and the Turkish lira. The source claimed, “Almost all Turkish banks want to completely withdraw from transactions with Russia and Belarus. To protect themselves from future issues such as sanctions and restrictions, they are looking to hand over all these operations to Emlak Katılım Bankası.”

The developments follow comments from Aleksei Erkhov, Russia’s Ambassador to Ankara, who recently noted that Turkish banks were increasingly impeding firms involved in exporting goods to Russia. “Cases where Turkish banks are ‘pressuring’ firms involved in goods transfers to Russia have become more frequent,” Erkhov said. “These customers are being actively identified, their transfers blocked, or their accounts entirely closed.”

Amidst ongoing international sanctions against Russia, concerns have been raised about secondary sanctions targeting Turkish institutions that continue to engage in business with Russian entities. In April 2023, the U.S. imposed sanctions on over 120 companies and individuals, including at least four based in Türkiye, for allegedly circumventing sanctions against Russia.