Turkish banks increasing pressure on firms working with Moscow: Russian envoy

Russian Ambassador to Türkiye, Aleksey Yerhov, has voiced concerns about increasing difficulties faced by firms conducting business with Russia.

Speaking at the opening of the new Russian Consulate General building in Antalya, Yerhov highlighted that Turkish banks are placing growing restrictions on companies involved in shipments to Russia.

In addition to our consular duties, we contribute to the development of Russian-Turkish relations under the leadership of the Russian Embassy in Ankara. Over the past year, we have participated in numerous bilateral Russian-Turkish events, the most important of which was undoubtedly the participation of Russian Foreign Minister Sergey Lavrov in the Antalya Diplomatic Forum. Numerous cultural events were organized, including art exhibitions, festive and sports events with the participation of world-famous Russian artists.

Russian Consul General in Antalya Sergey Vetrik

Banking restrictions affecting Russia-Türkiye trade

“Cases where Turkish banks are pressuring firms that transfer goods to Russia have become more frequent,” said Yerhov in an interview with Russian news agency TASS.

“These customers are actively identified, their transfers are blocked, or their accounts are completely closed,” he added.

This issue has persisted since the imposition of Western financial sanctions on Russia following the invasion of Ukraine.

The Kremlin has previously reported that these sanctions have impacted transactions with Turkish banks, leading to disruptions in financial transfers between the two countries.

Recently, Washington has issued a warning to Türkiye, threatening “consequences” if it does not curtail its exports of U.S. military-linked hardware to Russia.

Matthew Axelrod, Assistant Commerce Secretary, recently met with Turkish officials and executives in Ankara and Istanbul.

He emphasized the need for Türkiye to halt the illicit trade of American-origin chips and other parts critical to Russia’s military operations.

We need Turkey to help us stop the illicit flow of US technology to Russia. We need to see progress, and quickly, by Turkish authorities and industry or we will have no choice but to impose consequences on those that evade our export controls.

Matthew Axelrod

Sanctions impact Russian trade

After the onset of sanctions, Russia faced severe difficulties in international payments, particularly with its major trading partners, including Türkiye, China, India and the UAE.

While Türkiye has not formally adopted sanctions against Russia, warnings about secondary sanctions on Turkish banks dealing with Russian entities have caused hesitations in financial dealings.

In February 2023, Russia noted that Turkish banks were tightening their rules for Russian clients, with both countries working toward a mutually acceptable solution.

The pressure on Turkish banks increased following sanctions imposed by the U.S. in April 2023, targeting over 120 entities and individuals, including at least four Türkiye-based firms accused of violating sanctions by continuing business with Russia.

Shift in Russia’s trade landscape

The shift in Russia’s trade partners was also underscored by Vladimir Ivin, Deputy Head of Russia’s Federal Customs Service, who stated at the Eastern Economic Forum (EEF-2024) that Russia’s largest trade turnover is now with China, India and Türkiye.

“Many EU countries have left the list of top trading partners, including the Netherlands, Germany, Greece and Belgium,” Ivin said, highlighting the gradual departure of EU countries from Russia’s trade list following sanctions.