ISTANBUL: Turkey’s finance minister told businesses on Friday they should not be alarmed by the threat of sanctions, which Washington has warned they will follow if they do business with sanctioned Russians.
Nureddin Nebati’s Twitter comments represent the first official response from Ankara the US Treasury sent to Turkish businesses on Monday.
US Deputy Secretary of the Treasury Wally Ademo warned Turkish banks and companies that they would face secondary sanctions if they cooperated with the sanctioned Russians in response to the Kremlin’s invasion of Ukraine.
The value of Turkey’s trade with Russia increased by about 50 percent between May and July.
Nebati said the letter “should not cause concern in our business circles. Turkey is one of the most important political and economic power centers in the world”.
NATO member Turkey – on good terms with both Moscow and Kyiv – has tried to remain neutral in the conflict and has refused to engage in international sanctions.
Turkish President Risp Tayyip Erdogan and Russian equivalent Vladimir Putin agreed to increase economic cooperation at a summit in Black Sea The resort of Sochi earlier this month.
US officials worry that sanctioned Russians are setting up Turkish entities to trade with the outside world.
They are also concerned that European companies are doing the same to circumvent EU sanctions on Russian trade.
Nebati said Turkey is “determined to develop our commercial relations with our neighbors in various sectors – especially tourism – within a framework that is not subject to sanctions.”
Part of the US concern stems from Turkey’s decision to transition to paying the ruble for natural gas imported from the Kremlin-bound giant Gazprom.
Washington is also concerned that Russia is using Turkey to acquire technology, the export of which has been banned by Washington and the European Union.
Data reviewed by the Wall Street Journal shows Russians have opened more than 500 companies in Turkey since the beginning of the year – more than double the number they started last year.
Erdogan has argued that Turkey should remain “neutral” in the conflict because its industries are heavily dependent on Russian energy imports.
Nureddin Nebati’s Twitter comments represent the first official response from Ankara the US Treasury sent to Turkish businesses on Monday.
US Deputy Secretary of the Treasury Wally Ademo warned Turkish banks and companies that they would face secondary sanctions if they cooperated with the sanctioned Russians in response to the Kremlin’s invasion of Ukraine.
The value of Turkey’s trade with Russia increased by about 50 percent between May and July.
Nebati said the letter “should not cause concern in our business circles. Turkey is one of the most important political and economic power centers in the world”.
NATO member Turkey – on good terms with both Moscow and Kyiv – has tried to remain neutral in the conflict and has refused to engage in international sanctions.
Turkish President Risp Tayyip Erdogan and Russian equivalent Vladimir Putin agreed to increase economic cooperation at a summit in Black Sea The resort of Sochi earlier this month.
US officials worry that sanctioned Russians are setting up Turkish entities to trade with the outside world.
They are also concerned that European companies are doing the same to circumvent EU sanctions on Russian trade.
Nebati said Turkey is “determined to develop our commercial relations with our neighbors in various sectors – especially tourism – within a framework that is not subject to sanctions.”
Part of the US concern stems from Turkey’s decision to transition to paying the ruble for natural gas imported from the Kremlin-bound giant Gazprom.
Washington is also concerned that Russia is using Turkey to acquire technology, the export of which has been banned by Washington and the European Union.
Data reviewed by the Wall Street Journal shows Russians have opened more than 500 companies in Turkey since the beginning of the year – more than double the number they started last year.
Erdogan has argued that Turkey should remain “neutral” in the conflict because its industries are heavily dependent on Russian energy imports.