Accounts of Russian citizens and companies in Turkey continue to be closed

Turkish banks have tightened their policies – financial institutions have begun to close accounts of companies and have increased requirements for individuals wishing to open a card.

The Kremlin confirmed that the problem really exists, writes Vedomosti publication, citing market participants: Russian businessmen and financial consultants. The newspaper notes:

“At the beginning of the year, Russian businesses already complained about the suspension of payments between Russia and Turkey. Now settlements are still frozen. The policy of local banks changed dramatically after the publication of a decree by US President Joe Biden on December 22, 2023, which gave the US Treasury the authority to punish banks in a simplified manner, violating sanctions against Russia.”

Iskander Mirgalimov, a consultant for Russian business on structuring international payments, who previously oversaw the Turkish department in one of the Russian state banks, said that servicing corporate clients with Russian roots, regardless of the country of registration of the company, is currently suspended. He notes that previously some private and 2-3 state banks were engaged in this, however, they also stopped settlements in the interests of business from the Russian Federation under the threat of being included in the sanctions lists, quotes “European truth”:

“Companies have actually begun to be advised to complete transactions with the bank and close the account. This applies, first of all, to businesses that used Turkey as a transit jurisdiction for payments and supplies, as well as oil and gas traders.”

Turkish banks are also significantly tightening the conditions for opening accounts for individuals. Previously, it was easy and simple – cards were issued to everyone. Now there is a requirement to maintain high deposit balances, Mirgalimov notes. Relations with Turkish banks worsened after Biden’s decree was issued on December 22 – the US Treasury received the authority to block the activities of foreign banks on a broader basis, the publication’s sources note:

“It is enough for a financial institution to at least indirectly participate in a deal to help Russia overcome technological limitations or contribute to its production activity.”

The Kremlin confirmed the existence of a problem. Dmitry Peskov, Putin’s press secretary, said at the briefing:

“Yes, we know, and we are in a state of active dialogue with our Turkish partners and colleagues, discussing these problems.”

Peskov admitted that Turkish banks are blocking payments to Russian companies due to American sanctions.

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