Russian-language internet news site, mk-turkey.ru, on February 2, 2024, published an article from that date’s edition of the Turkish e-newspaper, Ekonomim, concerning the problems Turkish businesses are having processing money transfers from Russian counterparts. The head of the Russian-Turkish business council blames this difficulty on the tightening of sanctions on Russia by the West, led by the U.S., which is impeding the pace at which the two countries are able to develop economic relations.

The Russian article follows [Translated by LOC]:

As before, Türkiye is allotting priority attention to the development of trade and economic cooperation with the Russian Federation (RF), in spite of pressure from the United States.

The general director of the Russian-Turkish business council attached to the RF Chamber of Commerce and Industry (TPP), Aleksey Yegarmin, stated this view in an interview with TASS [the official news agency of the Russian Federation].

“At present, mutual settlement problems have arisen with Russian and Turkish businesses. Here it is necessary to be especially reserved when saying that the main line of political-economic interaction of the Turkish authorities has remained as before. Türkiye as before gives priority to its own national interests, and these interests are tightly connected with the development of trade and economic cooperation with the Russian Federation. However, significant restrictions have arisen in light of extreme pressure on Türkiye of unfriendly countries, especially the U.S.,” noted Yegarmin.

Yegarmin clarified that “exactly because of such pressure cash flows based on trade operations are not accepted by Turkish banks and are returned.” He added, “The reason, basically, is this, that banks are put in harsh conditions of choice. Or they work with organizations from Russia, and then they are deprived of the possibility of working with Europe and America, or with Europe, but without Russia. Türkiye was always a trade crossroads, therefore, it’s rather complicated to make a choice.”

Problems with Money Transfers from the RF to Türkiye

On January 15, the Ekonomim [My Economy] newspaper reported that Turkish exporters have come up against the refusals of banks to process money transfers from Russia that are designated for payment of delivery of goods. It was noted that the problem began to take on serious ramifications as of December last year. Then many exporters began to complain that they couldn’t receive payments from Russia in Turkish lira and rubles.

RF Ambassador in Ankara, Aleksey Yerkhov, reported on January 17 that the embassy and trade representation is conducting intensive contacts with the Turkish authorities in connection with the refusal by a series of Turkish banks to recognize the payments of Russian businesses. He says that certain banks refer directly to western sanctions, the decision concerning the tightening of which was made at the end of December last year. The diplomat expressed the hope that as a result of the efforts exerted, finding a solution will happen, which would satisfy both Turkish exporters who are selling goods that do not fall under the sanctions, and their Russian partners.

On January 23, it was reported that the problem of money transfers from the RF to Türkiye has been resolved for a number of local sectors, in particular, those of ready-made clothing, textiles, footwear, and food. Funds have begun to arrive via the Real Estate Participation Bank.

The Ministry of Trade of Türkiye has been connected to resolving the problem with payments, which began to arise with business. At the present time, negotiations are continuing about resolving the problems with transfers for companies of the automobile and machine-building sectors. The Ministry of Trade of Türkiye earlier composed a list of local companies, which have problems with transfers from the RF.

Russian-Turkish Business Council

The Russian-Turkish Business Council was first created in 1988 under the auspices of the Chamber of Trade and Industry of the Soviet Union; now it functions under the auspices of the Chamber of Commerce of the Russian Federation. The goals of the Council are to strengthen and develop business connections as well as trade and economic relations between the Russian Federation and the Republic of Türkiye, to assist in establishing mutually beneficial contacts between Russian and Turkish business circles.

Meeting of the Chamber of Trade and Industry of the Russian Federation with Turkish counterparts. Aleksey Yegarmin, general director of the Russian-Turkish Business Council, is seated on the far right.