Turkish Banks Tighten Cooperation With Russian Firms Amid Sanctions Pressure
Reports indicate that Turkish banks have limited cooperation with Russian companies due to fear of sanctions. The publication Kommersant, citing sources from financial markets and foreign trade participants, notes that risk aversion is shaping banking relationships and trade finance across the sector.
Interbank arrangements and payment processing are often halted before contracts are finalized. Some foreign bank subsidiaries operating in Russia are exceptions, but the general trend shows widespread hesitation among Turkish financial institutions. The difficulties intensified gradually and by the end of 2023 spread to most Turkish banks, affecting a broad spectrum of corporate clients and payment channels.
From January 1 onward, remittances from Russian companies to Turkey have largely stalled. Exporters report delays or non-receipt of payments in both lira and rubles, and several banks have even reversed transactions that had already been accepted, citing restrictions linked to prohibited goods. A source within the Turkish banking sector attributed these disruptions to measures enacted by the Office of Foreign Assets Control (OFAC) under the U.S. Treasury, which has led to heightened compliance checks and transactional scrutiny.
Despite these internal frictions, Turkey’s trade with Russia shows signs of resilience in certain sectors. Data for the previous year highlights a notable rise in exports from Turkey to Russia, with growth around 23.2 percent. Key increases came from the chemical industry, automotive components, fruit, and electronics. The Turkish Exporters Assembly (TİM) acknowledged the challenges, while emphasizing that heightened inspections and regulatory scrutiny from authorities contributed to the overall slowdown and added barriers for some shipments.
Earlier reports suggested shifts in Russian savings and deposits held abroad, with expectations of changes in autumn 2023. Those forecasts suggested fluctuations in capital flows, but the broader picture remained unsettled as banks weighed risk and compliance burdens while managing client expectations.
In a related development, the central bank of the Russian Federation had previously raised the key policy rate to a high level, influencing financial market conditions and cross-border flows. This move intensified the need for careful risk assessment among Turkish lenders and Russian counterparties as banks sought to preserve liquidity and minimize exposure to sanction-related volatility. The evolving environment underscores how geopolitical and regulatory factors continue to shape real‑world banking operations and trade finance between Turkey and Russia. (Source attribution: Kommersant reporting based on market and trade sector sources.)