Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

US sanctions Turkish companies for ‘helping Russian war effort’

US sanctions Turkish companies for ‘helping Russian war effort’

The recent US announcement to impose export controls on several Turkish companies for allegedly doing business with Russia has stirred debate on the effectiveness of these sanctions and whether Ankara, with elections looming, should respond in some manner to protect its rising trade relations with Moscow.
This is the first time Washington has sanctioned Turkish companies for allegedly helping Russia evade sanctions. Last year, the Turkish branch of a Russian company, called MMK, which owned two steel facilities, was sanctioned by the US.

The US Commerce Department said on Wednesday it has imposed new export controls on 28 companies based in China, Turkiye and other countries for supplying Russia’s military and defense industries with US-origin items, which it deemed violated America’s sanctions regime.

The sanctioned companies include Azu International, a Turkiye-based electronics firm that was established in March 2022, shortly after the Ukraine invasion, and which allegedly shipped to Russia foreign-origin electronics technology, including computer chips.

Also on the list is Dexias Turkiye, based in Turkiye and headed by Alim Khazishmelovich Firov, which allegedly procured US-origin electronic components as an intermediary for Radioavtomatika, a Russian defense procurement firm.

Since February 2022, there have been more than 400 entities added to the list that intends to restrict “Russia’s ability to sustain, repair and resupply its weaponry,” the US Commerce Department said in February.

“As the Kremlin seeks ways around the expansive multilateral sanctions and export controls imposed on Russia for its war against Ukraine, the United States and our allies and partners will continue to disrupt evasion schemes that support Putin on the battlefield,” said Undersecretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson.

“Today’s action underscores our dedication to implementing the G7 commitment to impose severe costs on third-country actors who support Russia’s war.”

This move also coincides with the latest statement by James O’Brien, head of the US State Department’s Office of Sanctions Coordination, cautioning that Turkiye has pledged to ban the re-export of sanctioned Western goods to help Russia’s war efforts.

Soner Cagaptay, director of the Turkish Research Program at the Washington Institute for Near East Policy, thinks this is just the beginning and tougher US measures against Turkiye firms may follow.

“In the upcoming period, US sanctions will target even harder several companies doing businesses with Russia,” he told Arab News.

“This is the policy of the Biden administration ahead of the elections in the US, that aims to deliver a foreign policy win and it requires these sanctions to really work,” he said.

“So far the US government followed the path of compliance going through companies. Maybe this latest move is doubling down these efforts,” Cagaptay added.

In line with this warning, Turkiye’s government recently provided Turkish companies in the ferrous and non-ferrous metals sector with a list of foreign goods that are prohibited from being sent to Russia. In addition, Ankara has also given verbal guarantees to the European Commission that sanctioned goods will not be transited to Russia from March 1, to comply with Western sanctions.

However, experts have cautioned about the negative impact on Turkiye, a NATO member, and its repercussions for the international community.

According to Cagaptay, the US government is also acting carefully and does not want to interfere with Turkiye’s economic stability and politics in these critical times.

“But this is the tip of iceberg. In the post-elections period, the US would require more stringent demands on Turkish companies to not trade with Russia, and that will definitely have an impact on Turkiye’s trade volume with Russia,” he said.

Russia is still one of Turkiye’s major partners, with trade rising last year when Turkiye was in desperate need of foreign exchange earnings because of the currency crisis.

Trade between Turkiye and Russia has increased since the Ukraine invasion despite Western sanctions, with hundreds of Russian companies having opened branches in Turkiye — a financial haven for Russians — to circumvent sanctions.

Trade volume between the two countries climbed to $68.2 billion last year, while in March, Turkiye’s exports to Russia increased by 285 percent to $1.1 billion.

Sinan Ulgen, director of the Istanbul think tank EDAM, thinks the recently announced US sanctions on these Turkish companies is an indication that the sanctions regime adopted by Washington can also have consequences for a NATO ally like Turkiye.

“But we have to essentially contextualize this measure. All Turkish exports to Russia will not be affected by this measure,” he told Arab News.

“The sanctioned entities have been found in violation of US sanctions for a range of critical technology products. This is indeed the area of concern of US policymakers given that these products are seen to be helping the Russian war effort,” he said.

But at the same time, Ulgen added, this measure demonstrates that there is indeed a concern about the re-export of some critical technology products.

“This is where pressure is likely to be also sustained also on Turkiye, but for this specific range of products,” he said.

According to Ulgen, so far there has been a modus vivendi between Turkish and US authorities on the implementation of sanctions.

“Turkiye has been quite cautious in not crossing some critical red lines set by the sanctions regime,” he said.

“For instance, in the past, when there were clear complaints about the Russian Mir payment system where the Turkish banking system accepted transactions based on Russian credit cards, Turkiye ultimately withdrew from this system,” he said.

“There is a good collaboration between Turkish and US authorities regarding the sanctions and this will continue,” Ulgen added.

“I think both sides would not want to find themselves in a more confrontational environment which would hurt both political relations and also Turkiye’s economic interests,” Ulgen said.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
×