The volume of bilateral trade between Turkey and Russia has seen a rise since the outbreak of the conflict in Ukraine and sanctions imposed by the European Union and the United States. (European)
Turkish exporters are facing a major obstacle in cross-border transactions between Turkey and Russia, with Turkish banks reportedly refusing money transfers coming from Russia to settle payments for some imported goods, according to Turkey's Economist. The problem, which has escalated since December, creates a critical situation for businesses, affecting the flow of money between the two countries.
The problem emerged after many Turkish exporters found themselves unable to access payments from Russia, whether denominated in Turkish lira or Russian rubles, as some private banks either return these transfers directly or reject them at the initial stage, citing suspicions that they are payments for sanctioned products.
This problem has led to a virtual halt in cross-border remittances since the beginning of the year, which has significantly affected trade exchanges between the two countries.
Turkey's exports to Russia increased by 23.2%, reaching $ 9.4 billion in 2023. (Getty Images)
The volume of bilateral trade between Turkey and Russia has been on the rise since the outbreak of the conflict in Ukraine and sanctions imposed by the European Union and the United States, according to Anadolu Agency. In 2023, Turkish exports to Russia rose by 23.2%, reaching $9.4 billion, according to the same newspaper.
Sectors such as chemicals, machinery, automotive goods, fresh produce and electronics saw significant growth. However, representatives of these sectors now face the challenges of non-receipt or total rejection of funds transferred for export shipments. Similar problems have also been reported in the shipping sector.
The Economist notes that problems with money transfers could be related to the expansion of Western sanctions and risk mitigation concerns between Turkish banks and intermediaries, with the aim of avoiding secondary sanctions.
Russia's TASS news agency said Russian citizens were increasingly struggling to register companies in Turkey and open accounts in local banks there.
Last September, Turkish President Recep Tayyip Erdogan said in Russia during a meeting with his Russian counterpart Vladimir Putin that the volume of trade exchange between the two countries amounted to $ 62 billion, and that there was an effort to raise it to the level of $ 100 billion.
Source : Turkish Press