Turkish state-owned banks began partially making payments from Russia – Kommersant

State-owned banks in Turkey have begun partially making payments from Russia, reports “RIA News” citing a source in the Turkish banking system. Since January, Turkish banks have universally refused to work with Russian ones for fear of falling under secondary US sanctions.

The agency, citing the head of one of the Turkish companies, reported that some Turkish companies today, January 18, began receiving money transfers from the Russian Federation. RIA Novosti’s interlocutor refused to specify which sectors exporters will be able to receive transfers. The resumption of some transfers was confirmed to the agency by the head of one of the Turkish companies that supplies cosmetics and household products to Russia.

For the first time, Turkish exporters were faced with banks’ refusal to carry out transactions from Russia at the end of December. Transfers were either redirected or rejected at the initial stage of the transaction. In January, the problem became widespread in Turkey.

Kommersant’s sources reported that the situation with transfers from the Russian Federation began to become complicated in Turkey back in the summer, and sharply worsened after US President Joe Biden issued a decree on secondary sanctions on December 22 – as a result, Turkish banks broke off correspondent relations with almost all Russian credit institutions.

Earlier today TASS, citing a source in the Turkish Ministry of Trade reportedthat the department intervened in the situation with transfers from Russia. According to the interlocutor of the Russian state agency, the Turkish authorities are counting on resolving the situation as soon as possible.

The US Treasury is also putting pressure on Chinese and Hong Kong banks to comply with their secondary sanctions, sources told Nikkei Asia. It is alleged that the director of the Department for Combating Financial Crimes of the US Treasury, Andrea Gacki, held two meetings with representatives of financial institutions. Russian market participants tell Kommersant that problems have already begun to arise with Chinese banks, but on a much smaller scale than in Turkey.

Read more about the situation in the Kommersant article. “Lyra awakened the evil”.

Erdni Kagaltynov