Turkish exporters are facing a significant hurdle in cross-border transactions between Turkey and Russia, as reports indicate that Turkish banks are refusing financial transfers from Russia to settle payments for some imported goods, according to the Turkish “Economy” newspaper. This issue, which has escalated since December, has created a critical situation for companies, impacting the flow of funds between the two countries.
The problem emerged when numerous Turkish exporters found themselves unable to access payments from Russia, whether denominated in Turkish lira or Russian ruble. Some private banks either directly returned these transfers or refused them at the initial stage, citing doubts that they were payments for products subject to sanctions.
This issue has led to an actual halt in cross-border financial transfers since the beginning of the year, significantly affecting trade between the two countries.
Turkey’s exports to Russia increased by 23.2%, reaching $9.4 billion in 2023 according to the same newspaper.
Trade volume between Turkey and Russia has been on the rise since the conflict in Ukraine erupted and the sanctions imposed by the European Union and the United States, according to Anadolu Agency. In 2023, Turkish exports to Russia increased by 23.2%, reaching $9.4 billion.
Sectors such as chemicals, machinery, automotive goods, fresh products, and electronics experienced significant growth. However, representatives of these sectors now face challenges in not receiving funds transferred for export shipments or outright rejection of the same. Similar issues have also been reported in the maritime shipping sector.
Economim points out that the issues related to money transfers could be linked to the expansion of Western sanctions and risk mitigation concerns among Turkish banks and intermediaries, aiming to avoid secondary sanctions.
Furthermore, Russian news agency TASS reported increasing difficulties faced by Russian citizens in registering companies in Turkey and opening accounts at local banks there.
In September, during a meeting with his Russian counterpart Vladimir Putin in Russia, Turkish President Recep Tayyip Erdogan stated that the trade volume between the two countries amounted to $62 billion, with aspirations to increase it to $100 billion.
