Türkiye’s leading business association on Tuesday confirmed it had received a letter from the U.S. warning of the possible risk of sanctions if companies establish relations with sanctioned Russian entities and individuals.
In a statement, the Turkish Industry and Business Association (TÜSIAD) said it had shared the letter from U.S. Treasury Deputy Secretary Wally Adeyemo with the Turkish Foreign Ministry, Treasury and Finance Ministry and Trade Ministry.
On Saturday, Adeyemo told Turkish Deputy Finance Minister Yunus Elitaş that Russian entities and individuals were attempting to use Türkiye to bypass Western sanctions imposed over Moscow’s invasion of Ukraine. In a phone call, the two also discussed ongoing efforts to implement and enforce the sanctions against Russia, the Treasury Department said in a statement.
In its own readout of the call, the Turkish Finance Ministry said Elitaş had stressed Türkiye’s deep economic and political relations with both Russia and Ukraine but also assured Adeyemo that Ankara would not allow any violation of the sanctions.
“Elitaş confirmed that Türkiye’s position has not changed regarding the current processes and sanctions, but that it would not allow the breaching of sanctions by any institution or person,” the ministry said.
NATO member Türkiye – on good terms with both Moscow and Kyiv – has criticized Russia’s invasion and provided Ukraine with arms, including drones, which played a significant role in deterring a Russian advance early in the conflict. It refused to join the West in imposing sanctions – a stance it says has helped its mediation efforts reap results.
President Recep Tayyip Erdoğan has previously said that Ankara cannot join Western sanctions because of Türkiye’s heavy dependence on Russian oil and natural gas imports.
“Our economy is such that imposing sanctions on Russia would harm Türkiye the most,” Presidential Spokesperson Ibrahim Kalin said in June. “We have taken a clear approach. Right now, the Westerners have accepted this.”
Erdoğan and his Russian counterpart Vladimir Putin met early in August in the Black Sea resort of Sochi and agreed to boost business cooperation. The two countries are set for broader cooperation, especially in energy.
Trade between Türkiye and Russia has been booming since spring as Turkish companies not banned from dealing with Russian counterparts stepped in to fill the void created by European Union businesses leaving Russia after the invasion.
Official data show the value of Turkish exports to Russia between May and July growing by nearly 50% from last year’s figure. Türkiye’s imports of Russian oil are soaring the two sides have agreed to transition to ruble payments for the natural gas exported by the energy giant Gazprom.
The letter’s contents were first reported by The Wall Street Journal this week.
“Any individuals or entities providing material support to U.S.-designated persons are themselves at risk of U.S. sanctions,” Adeyemo wrote.
“Turkish banks cannot expect to establish corresponding relationships with sanctioned Russian banks and retain their corresponding relationships with major global banks as well as access to the U.S. dollar and other major currencies.”
The economic cooperation agreement sealed by Erdoğan and Putin includes a deal for more Turkish banks to start processing Russia’s Mir payments system.
Turkish officials have not formally responded to Adeyemo’s letter.
