Turkish Banks Begin Closing Accounts of Russian Companies

Some Turkish banks have started closing the accounts of Russian companies and tightening requirements for individuals, reports the newspaper "Vedomosti," citing financial advisors and business owners.

"Turkish banks have tightened their policies toward Russian clients. Some financial institutions have begun closing corporate accounts and increased the requirements for individuals who wish to obtain cards," the publication states.

In December, U.S. President Joe Biden signed an order that expands the legal bases for applying anti-Russian sanctions. In particular, this allows for the disconnection from the financial system of banks that support Moscow in circumventing sanctions against its military-industrial complex and blocking the import of Russian-origin goods, including seafood, alcohol, and diamonds, especially if they undergo deep processing in third countries.

According to one source cited by the publication, prior to December, there were "two very active and two semi-active" banks in Turkey working with Russian banks. However, following Biden’s order, the first two financial institutions began closing the accounts of Russian companies for fear of falling under American sanctions. The second two banks, according to the publication’s interlocutor, are severing practical ties mainly with those who started cooperating with them after the outbreak of military operations in Ukraine.