US and Turkey agree on new sanctions enforcement framework against Russian-affiliated companies

Turkey and the United States have agreed on a new framework for enforcing secondary sanctions aimed at companies cooperating with Russ, reports the Turkish newspaper Hurriyet.

Under the new agreement, US authorities will inform Ankara of any companies suspected of dubious activities and request information concerning these suspicions. Should Turkey conduct an investigation and report the findings to the US, "measures will be taken if necessary," according to the paper.

Previously, Washington implemented secondary sanctions against Turkish firms suspected of conducting business with Russia without notifying Ankara or conducting investigations, a move that has been noted to create "various economic problems."

It was revealed in January that Turkish banks were increasingly refusing to work with Russian counterparts. The situation worsened in the summer of 2023 and escalated sharply after US President Joe Biden issued an order on December 22 imposing secondary sanctions against foreign companies aiding Russia in the war against Ukraine, the Russian newspaper Kommersant reported. Consequently, Turkish banks severed correspondent relations with almost all Russian financial institutions and suspended the processing of their payments.

As a result of Biden's order, even Chinese state banks began to limit their dealings with Russian clients. According to Bloomberg, at least two Chinese banks have decided to reassess their business in Russia, sever ties with sanctioned clients, and stop providing any financial services to the Russian military-industrial complex.

  Turkey, USA, Russia, Sanctions