PanamaTimes

Friday, Jul 26, 2024

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.
Comments

Oh ya 1 year ago
So everyone can help the NAZIS in Ukraine but nobody can help Russia who along with the western world help defeat the NAZIS in WWII. I dont know what your family did in WW2 but my grandfather was fighting NAZIS in Italy, now the west wants them to win. We all living in a pucked up world folks

Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
Mexican Drug Lords El Mayo and El Chapo's Son Arrested in Texas
World's Hottest Day Recorded on July 21
Joe Biden Withdraws from 2024 US Presidential Race
A Week of Turmoil: Key Moments in US Politics
Global IT Outage Sparks Major Concerns
Global IT Outage Unveils Digital Vulnerabilities
Secret Service Criticized for Lack of Sniper Protection During Trump Shooting
Colombian Court Annuls Amazon Tribes’ Carbon Credit Deal
Sunita Williams Safe on ISS, to Address Earth on July 10
Biden Affirms Commitment To Presidential Race
Boeing Pleads Guilty Over 737 MAX Crashes
Beryl Storm Hits Texas, Killing 2 and Causing Major Power Outages
2024 Predicted to Be World's Hottest Year
Macron Faces New Political Challenges Despite Election Relief
Florida Man Arrested Over Attempt to Withdraw One Cent
Anger mounts at Biden’s top team after disastrous debate
Bolivian President Luis Arce Denies 'Self-Coup' Allegations
Steve Bannon Begins 4-Month Prison Sentence
Biden Warns of 'Dangerous Precedent' After Supreme Court Immunity Ruling in Trump Case
Elon Musk Accuses Kamala Harris of Misleading Post on Trump's Abortion Stance
Hunter Biden Sues Fox News Over 'Revenge Porn' Allegations
New York Times Editorial Board Urges Biden to Exit Presidential Race
US Supreme Court Overturns Obstruction Charges Against January 6 Rioters
US Voters Prefer Biden's Democracy Approach, Trump's Economy Plan: Report
Attempted Coup in Bolivia: President Urges Public Mobilization
Top-Secret US Underwater Drone 'Manta Ray' Revealed on Google Maps
United States Bans Kaspersky Antivirus
Inside El Salvador’s 40,000 Inmate Mega-Prison
Toyota, Mazda, Honda, and Suzuki have committed fraud; falsified safety test results
El Salvador's Bitcoin Holdings Reach $350 Million
Teens Forming Friendships with AI Chatbots
WhatsApp Rolls Out Major Redesign
Neuralink's First Brain Implant Experiences Issue
Apple Unveils New iPad Pro with M4 Chip, Misleading AI Claims
OpenAI to Announce Google Search Competitor
Apple Apologizes for Controversial iPad Pro Ad Featuring Instrument Destruction
German politician of the AFD party, Marie-Thérèse Kaiser was just convicted & fined $6,000+
Changpeng Zhao Sentenced to Four Months in Jail
Biden Administration to Relax Marijuana Regulations
101-Year-Old Woman Mistaken for a Baby by American Airlines: Comical Mix-Up during Flight Check-in
King Charles and Camilla enjoying the Inuit voice singing performance in Canada.
New Study: Vaping May Lower Fertility in Women Trying to Get Pregnant
U.S. DOJ Seeks Three-Year Sentence for Binance Founder Changpeng Zhao
Headlines - Thursday, 23 April 2024
Illinois Woman Wins $45M Lawsuit Against Johnson & Johnson and Kenvue for Mesothelioma Linked to Baby Powder
Panama's lates news for Friday, April 19
Creative menu of a Pizza restaurant..
You can be a very successful player, but a player with character is another level!
Experience the Future of Dining: My Visit to an AI-Powered Burger Joint
Stabbing rampage terror attack in Sydney, at least four people killed, early reports that a baby was among those stabbed.
×