Turkish banks have begun to refuse to work with Russian banks, Kommersant newspaper reported, citing sources working in the financial market and foreign trade.
According to Kommersant, Turkish banks have ended their correspondent banking relationships with almost all Russian credit institutions and have also stopped payment processing without formally terminating contracts. One source indicated that Turkish banks excluded foreign banks affiliated with them in Russia.
Sources told Kommersant that the situation became more complex in the summer of 2023 and then worsened significantly after December 22, when US President Joe Biden issued an executive order imposing secondary sanctions on foreign companies that help Russia in the war. The order allows US authorities to disconnect foreign banks from the US financial system due to their violation of sanctions imposed on Russia.
On January 16, a source in the Turkish banking sector told TASS that Turkish banks were “in a holding pattern” due to Biden’s order, with the document using broad language that required additional clarification.