Turkey Has Stopped Money Transfers from the Russian Federation

Problems with transferring money from Russia to Turkey, which started in December, are deepening. The transfers were stopped in January, disrupting the export of products from Turkey to Russia.

After the visit of the US Secretary of State Anthony Blinken, exporters could not receive payments from Moscow in Turkish lira and Russian rubles, some banks sent remittances back, and some banks began to reject transactions that they had previously accepted, saying that these were “prohibited goods”.

Almost all transfers have been stopped since January 1, which has caused a significant loss to exporters. For example, exporters in the automotive sector have not been able to receive their transfers since the beginning of the year. Moreover, Turkish shoe manufacturers working with a Russian company that buys most from Turkey have not received any payments from their Russian customers this month. Chemical industry companies, textile manufacturers, ship owners carrying out transportation to Russia, and others have faced similar challenges.

Recent problems with money transfers are related to the expansion of the latest EU sanctions list. For example, even if an exporting company in Turkey sells goods not subject to sanctions, the buyer may be included in the sanctions list, so there will be problems with money transfers. Furthermore, companies that were created by Russians and operate in Turkey are also experiencing difficulties right now.

Last year, Turkey’s exports to Russia increased by 23.2%, from 7 billion 647 million dollars in 2022 to 9 billion 423 million dollars in 2023. The five sectors, which export the most to Moscow, are the chemical industry, mechanical engineering, the automotive industry, fresh fruits and vegetables, and electronics.

This problem is the consequence of the trade of Turkey with Moscow. Owners of Turkish companies must understand that they are punished for their attempt to earn as much as possible by assisting the Kremlin in waging war against Ukraine and killing thousands of innocent civilians.

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