Turkish banks have initiated the closure of Russian corporate accounts in response to the possibility of secondary sanctions from the United States, as reported by the Vedomosti business daily on Thursday. This action follows US President Joe Biden’s signing of an executive order in December, which outlined secondary sanctions on foreign banks suspected of supporting Russia’s conflict in Ukraine.
These warnings prompted Turkish banks to halt processing payments and sever relationships with nearly all Russian counterparts, leading to longer processing times for money transfers and the delayed or returned funds, according to media reports last month. At least two Turkish banks have commenced closing the accounts of a “significant number” of Russian companies and banks following threats of US blacklisting.
Furthermore, two other Turkish banks have begun issuing 30-day closure notices to Russian corporate clients who opened accounts after Moscow’s invasion of Ukraine in 2022, Vedomosti added. Iskander Mirgalimov, an international payments consultant for Russian businesses, highlighted that this primarily affects businesses that utilized Turkey for settlements and deliveries, including oil and gas traders.
Individual clients also encounter stricter restrictions when opening accounts, including the need to maintain a higher balance, Mirgalimov informed Vedomosti. Moscow and Ankara are reportedly in negotiations to find a resolution, according to Alexei Yegarmin, the head of the Russian-Turkish Business Council.
The Kremlin later attributed the situation to “unprecedented, blatant, and aggressive US pressure on Turkey” and confirmed “active” discussions between Moscow and Ankara. However, Turkey’s state banks continue to process payments for non-military-related goods like food and drugs, with transactions conducted in national currencies.
In January, at least two Chinese state banks reportedly increased compliance regarding funding for Russian clients amid US threats of secondary sanctions.
