Turkey no longer wants to circumvent Russia sanctions

Istanbul The news is likely to be greeted with relief in the US and European government headquarters: Turkey apparently prohibits the transit of sanctioned goods through its territory to Russia, as confirmed by several Russian managers in the Turkish metropolis of Istanbul and in Russia.

With this step, the government in Ankara is fulfilling an important demand from Western countries shortly before the important elections in May. They had repeatedly criticized that Ankara was undermining Western sanctions against Russia. The government of head of state Erdogan is apparently now swinging in the face of weak polls on the western course – and could thread in return deals with the United States and Europe.

After the start of the Ukraine war, the United States and more than 30 other countries imposed sanctions on Russia. However, Turkey, a member of the western defense alliance NATO, did not take part.

Instead, the country on the Bosphorus had developed into an important hub for the transport of sanctioned goods to Russia in the past year, including so-called “parallel imports” worth billions. This concerns the import of Western brands into Russia for which the license holders do not have permission.

Turkey is the only NATO country that has maintained relatively friendly relations with Russia and has waived sanctions against Moscow since the 2014 Crimean invasion. Head of state Erdogan was primarily concerned with national interests. For example, when he joined the Russian Turkstream pipeline project in 2016. The aim was to deliver Russian natural gas to Europe without going through Ukraine. In addition, Turkey bought S-400 missile systems from Russia in 2020 against opposition from NATO and the United States.

>> Read here: Why some tankers are not allowed through the Bosphorus

Turkey has now become a safe haven for Russia, the only country in Europe that welcomes Russian businessmen and tourists.

Erdogan (l.), Kremlin chief Putin (in September 2022)

The Turkish President met Vladimir Putin several times after the outbreak of the war.

(Photo: IMAGO/ITAR-TASS)

Statistics show that trade between Turkey and Russia has tripled since the Ukraine invasion. The main goods supplied are therefore small household appliances, electronics, food, clothing and spare parts. The monthly transit of goods through Turkey was now between 200 and 400 million US dollars.

Many Russian companies went one step further. For example, Russian airlines whose Boeing aircraft were subject to US sanctions had established subsidiaries in Turkey so that they could continue to fly tourists to the Turkish Riviera. Rumors regularly surfaced that Turkey also tolerated the transit of technology goods that could be used for the Russian military. Despite criticism, Turkish Foreign Minister Mevlut Cavusoglu denied these allegations in February.

Why the Turkish President is switching to the Western course

The government in Washington had repeatedly threatened Ankara that it would impose sanctions on Turkish companies if these sanctions against Russia were circumvented. In one of its sanctions packages against Russia, the EU had also threatened secondary sanctions against companies that circumvent EU requirements. Trade officials from Brussels and Washington traveled to Ankara in the autumn and winter to warn the Turkish government.

>> Read here: How Erdogan uses the NATO dispute in the election campaign

Apparently with success: The news site Middle East Eye recently reported that Havas, the largest provider of airport ground services in Turkey, had warned Russian airlines that the sanctions imposed by Washington could mean that they would no longer offer services to Western-made aircraft in the future to be able to

Russian plane in Istanbul

So far, Russian machines have been allowed to land in Turkey. This could be more difficult now.

(Photo: IMAGO/Xinhua)

Havas said Turkey’s aviation industry had received a warning from the US Department of Commerce. In the letter to the Russian airlines, Havas wrote: “We are conducting a due diligence process to identify risks and implications for our business and stakeholders. As a result, we may not be able to serve some or all of your flights.”

Now the Turkish authorities are going one step further. Several managers report that due to a government directive, Turkish customs authorities have started refusing the transit of certain goods to Russia and Belarus. This occurs when the transit documents contain specific customs codes for items that are on a list of sanctioned goods by the European Union. There has been no formal announcement by the government about a change in transit policy, and official bodies in the Turkish capital do not want to officially comment on a complete blockade.

The Russian newspaper Kommersant previously reported that Russian logistics managers had also been briefed on broader restrictions on the transit of goods from Turkey to Russia and Belarus. “Turkish customs authorities have started to reject transit declarations for goods that are on the EU sanctions list,” the newspaper quoted the sales manager of Russian logistics service provider Novelco as saying.

Accordingly, only the export of goods manufactured in Turkey is permitted. Georgy Vlastopulo, CEO of Optimalog Logistics, told the newspaper that since March 8 the Turkish authorities have banned the delivery of any product to Russia, except for goods made in Turkey.

The import of these goods is not likely to be completely stopped now. But prices for such goods will rise, as the cargo must now clear customs, pay all taxes and duties, and be registered as Turkish before it can be shipped on to Russia.

Cargo ships on the Bosphorus

The important trade route is currently closed.

(Photo: AP)

The step by the Turkish customs authorities had been expected because pressure on Turkey had recently increased, especially from Brussels and Washington. Nevertheless, many political observers are surprised that the administration in Ankara is now giving in. After a devastating earthquake in February, the Turkish economy has been hit. In February alone, the country’s exports fell by ten percent.

Trade with Russia could have cushioned the consequences. But head of state Erdogan seems to have made a different calculation: He needs political support from the West if he wants to win the race for the presidency.

Turkey wants new fighter jets from the US and an expanded tariff agreement from Europe. Both would be good news for Erdogan in the election campaign – but probably not achievable without the abandonment of trade with Russia.

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