"Some Turkish banks are closing accounts linked to Russian enterprises for fear of triggering secondary sanctions from the US," the Institute for the Study of War (IWS) reported, citing Russian state-run newspaper Vedomosti.
Secondary sanctions target businesses that indirectly support the sanctioned state. On December 22, 2023, US President Joe Biden signed an executive order imposing sanctions on foreign financial institutions that contribute to Russia's war effort.
Unnamed Russian business and financial officials told Vedomosti that banks in Turkey are closing several Russian corporate accounts and terminating relationships with customers who switched to Turkish banks after the February 2022 full-scale hack.
The sources said Turkish financial institutions took these measures in response to the threat of US sanctions.
Kremlin spokesman Dmitry Peskov said Turkish banks were closing Russian accounts because of "undisguised and aggressive US pressure on Turkey".
On January 17, IIS reported that Turkish banks had taken measures to protect themselves from secondary sanctions by cutting ties with Russian clients.
Banks in other countries are also reviewing their links to Russian accounts after the December sanctions. On January 16, Bloomberg reported that two state-owned financial institutions in China plan to cut ties with clients linked to the Russian defense industry.
China's economic support has been crucial to Russia's military efforts over the past two years as widespread international sanctions have made Moscow increasingly dependent on Beijing.
Bank of Cyprus also closed its offices in Moscow and St. Petersburg on January 22.
The head of the Russian central bank, Elvira Nabiulina, said on December 25, 2023, that Russia should prepare for "increased pressure from sanctions", including limited access to foreign resources. /BGNES
