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US Sanctions Threat Disrupts Turkish-Russian Trade, Impacting Energy Payments and Exports - 106 Views

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US Sanctions Threat Disrupts Turkish-Russian Trade, Impacting Energy Payments and Exports

The recent U.S. threat to impose sanctions on financial firms engaging with Russia has created disruptions in Turkish-Russian trade, affecting payments for both imported oil and Turkish exports, as reported by seven sources familiar with the situation.

Although the U.S. executive order issued in December didn’t explicitly target the energy sector, it has complicated payments related to Turkish imports of Russian crude oil and payments for a broader spectrum of Turkish exports, the sources revealed.

While U.S. sanctions are designed to curb Kremlin revenue and disrupt its activities in Ukraine without impeding Russian oil flows to global markets, the resulting payment challenges have affected Turkish-Russian trade, similar to disruptions witnessed in Russian oil supplies to India and complications in deliveries to the United Arab Emirates and China.

Russia stands as Turkey’s primary crude and diesel supplier, providing 8.9 million metric tons of crude and 9.4 million tons of diesel to the NATO member in the 11 months leading up to November. Turkish banks have responded to the emerging challenges by reviewing business relationships and tightening compliance with Russian clients, causing delays in a small number of oil cargoes but not disrupting overall crude supplies.


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