President Recep Tayyip Erdoğan will convene a top-tier economy-focused meeting on Friday with Russian payment system Mir and possible Western sanctions on the agenda, two sources with information on the matter said Thursday.
The meeting with government officials and others will also address agreements with Russia, recent heavy volatility on the Borsa Istanbul Stock Exchange (BIST) and the general economic situation, the sources told Reuters, requesting anonymity.
Two private Turkish banks, DenizBank and Işbank, suspended the use of Mir this week after the United States warned it would target people and entities if they are found helping Moscow skirt financial sanctions.
Washington expanded its sanctions last week to include the head of the entity running the payment system, which is popular with the tens of thousands of Russian tourists who arrived in Türkiye this year.
NATO member Türkiye has close ties with both Moscow and Kyiv, its Black Sea neighbors. It has criticized Moscow’s invasion and provided Ukraine with arms, including drones, which played a significant role in deterring a Russian advance early in the conflict, while refusing to join the West in imposing sanctions on Russia – a stance that has helped its mediation efforts reap results.
Western nations are concerned over increased economic ties between Türkiye and Russia, diplomats say, particularly after several meetings between leaders Erdoğan and Vladimir Putin, including last week in Uzbekistan.
Earlier on Thursday, the head of Russia’s National Card Payments System said Mir bank cards continued to work in Türkiye, despite the two banks suspending them.
Russia’s central bank vowed last week to push ahead with expanding the number of countries that accept its Mir cards.
Last month the U.S. Treasury sent a letter to big Turkish businesses warning they risked penalties if they maintained commercial ties with sanctioned Russians.
Turkish Finance Minister Nureddin Nebati at the time called concerns over the letter "meaningless." In April, he said Russian tourists – critical to Türkiye’s economy – could easily make payments since the Mir system was growing among Türkiye’s banks.
Many Russians have come to Türkiye since the February invasion left them with few other travel options, and sanctions cut off their use of major U.S. credit cards.
Though the two private lenders suspended Mir, it is still operated by state lenders Halkbank, VakifBank and Ziraat.
Earlier this week, a senior U.S. administration official said Washington expects more banks will cut off Mir over sanctions risk and added that the suspension decisions by Işbank and DenizBank made a lot of sense.
Separately, on the Istanbul bourse, bank shares have tumbled sharply since last week after a strong rally since July, prompting the country’s clearinghouse to amend risk parameters to help ease the pressure.