The Treasury Department has warned Turkish companies and institutions trading with Russia against the risk of American sanctions against them, the main Turkish employers’ organization Tüsiad announced on Tuesday (August 24th).
“A letter signed by US Assistant Secretary of the Treasury Adewale Adeyemo on the risk of sanctions for companies in Turkey in connection with the persons and institutions targeted by the sanctions against Russia, has been transmitted to the Tüsiad“said the employers’ organization in a press release.
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Strengthen energy and economic cooperation
The letter, dated Monday and the content of which was published by the American newspaper Wall Street Journal, warns Turkish companies of a “increased risk“for them face”Russia’s attempts to use” Turkey “to escape punishment“.
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“Turkish companies cannot expect to trade with sanctioned Russian individuals or entities and maintain ties with the United States. (…) Turkish banks cannot expect to have ties with sanctioned Russian banks and retain relationships with global banks, as well as gain access to US dollars“warned the Treasury Department in its letter to the two Turkish employers’ organizations, according to the WSJ.
Russian President Vladimir Putin and his Turkish counterpart Recep Tayyip Erdogan announced an agreement in early August to strengthen energy and economic cooperation, after their meeting in Sochi, Russia. Ankara had also announced partial payment in rubles for Russian gas and an extension of the scope of the Russian Mir payment system in Turkey.
Washington concerns
According to official figures, Turkish exports to Russia between May and July increased by almost 50% compared to last year. US Assistant Treasury Secretary Wally Adeyemo paid a rare visit to Ankara in June to voice Washington’s concerns about Russian oligarchs and companies using ties in Turkey to evade sanctions. While swiftly condemning the Russian offensive, Turkey opted for neutrality between the two countries and did not join Western sanctions against Moscow.
The Turkish authorities have not yet officially reacted to the letter from the Treasury Department. According to analysts, strengthening cooperation with Russia could help Turkey’s struggling economy ahead of the 2023 elections. The Turkish president had justified his policy of not taking part in sanctions against Russia by the strong dependence on the Turkey to Russian oil and gas.
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“Imposing sanctions on Russia would hurt Turkey more than anything“, had for his part declared in June the foreign policy adviser to the Turkish head of state, Ibrahim Kalin. “We have taken a clear approach. Westerners accepted it right now“, he added.
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