While the US and the EU are imposing tough financial and commercial penalties on Moscow and restricting their airspace to Russian flights, Turkey is firmly opposed to such actions, believing that they are counterproductive.
As a result, there are rising suspicions that Turkey is assisting Russians in evading sanctions, according to Timothy Ash, an emerging-markets analyst at London-based Bluebay Asset Management.
“There has been some attention paid to re-flagged Russian planes as Turkish planes. Russia and Turkey have a strong commercial and banking ties. A number of Russians have been trying to open new bank accounts in Turkey, apparently to get past some of the challenges they’re having. Concerns have also been expressed that Russian enterprises, who are attempting to sell or trade with Russia, are rebranding themselves as Turkish companies.”
Turkish government authorities were contacted for comment by VOA, but no answer was received at the time of publication.
Ankara insists on upholding its international legal obligations. However, according to Global Source Partners analyst Atilla Yesilada, this isn’t the first time Turkey has been accused of breaking UN sanctions.
“Many individuals believed that Turkey would serve as a surrogate financial hub or conduit for Russia,” says one source “Yesilada expressed herself. “I wouldn’t rule out the possibility that the present regime may try to recreate the Reza Zarrab event, which resulted in the transfer of $40 billion to Iran.”
Reza Zarrab is a Turkish-Iranian businessman who pled guilty to significant counts of breaking Iran sanctions in a New York court in 2017. In addition, a top official of Turkey’s state-owned Halkbank was found guilty. As part of the same inquiry, Halkbank is up for trial.
According to expert Yesilada, Turkish private and public banks are also likely to face scrutiny and heavy fines if they violate Russian sanctions. He warned that circumventing sanctions is extremely dangerous, especially because any penalties may jeopardize Turkey’s ability to borrow on foreign markets.
Reza Zarrab is a Turkish-Iranian businessman who pled guilty to significant counts of breaking Iran sanctions in a New York court in 2017. In addition, a top official of Turkey’s state-owned Halkbank was found guilty. As part of the same inquiry, Halkbank is up for trial.
According to expert Yesilada, Turkish private and public banks are also likely to face scrutiny and heavy fines if they violate Russian sanctions. He warned that circumventing sanctions is extremely dangerous, especially because any penalties may jeopardize Turkey’s ability to borrow on foreign markets.