Is Turkey facing sanctions from EU?

Turkish President Recep Tayyip Erdogan Friday held talks by phone with his Russian counterpart, Vladimir Putin, to deepen relations. The talks are seen as likely to add to growing concerns among some of Turkey’s NATO partners over its relationship with Moscow and where its loyalties lie.

 

A press release said the Turkish president reiterated his willingness to work toward a peaceful settlement of the conflict in Ukraine. The conversation came after Erdogan’s three face-to-face meetings with Putin in the past few months.

 

The Turkish leader’s efforts to deepen ties, including his refusal to enforce Western sanctions against Russia, have spurred growing questions about Turkey’s commitment to its Western partners and NATO.

 

But Turkish presidential adviser Mesut Casin, who is also a professor at Istanbul’s Yeditepe University, said such talks are normal between neighbors.

 

“Turkey is a NATO member and will continue to be so and this is very critical for Turkey,” he said. “The NATO alliance is one thing and Turkey’s relation with Russia is something else. They need to be seen as two separate things. Russia is our neighbor and we need maintain good ties. Turkey’s neutrality policy over Ukraine is to the benefit of NATO.”

 

Ankara insists it also maintains close ties with Ukraine, to which it continues to supply military hardware, including drones. Such contacts with Moscow and Kyiv, Erdogan claims, allowed him to successfully assist the United Nations in brokering a deal to enable Russian-blockaded Ukrainian grain to reach world markets. That deal comes up for renewal in November.

 

But Western concerns, especially over deepening Turkish-Russian financial ties, are growing. Under the threat of U.S. secondary sanctions, Turkish banks withdrew from Russia’s Mir payment system last month. Moscow was using the system to circumvent a ban on Russian use of international credit cards. But analysts say Ankara retains leverage over its Western allies, with Turkey’s permission required to allow Sweden and Finland to join NATO. On Thursday, Erdogan renewed his threat Thursday to block Sweden’s bid.

 

 

Asli Aydintasbas, a visiting scholar with the Washington-based Brookings Institution, said the West will need to get used to a more assertive Turkey.

 

WATCH:  Turkey Is Facing Sanctions Again

 

“The dynamics have changed,” she said. “Turkey no longer feels a strong and firm member of the Western camp or NATO alliance. It is still NATO, but obviously also interested in having alternatives. And Turkey is also a whole lot more self-confident than it used to be.”

 

With Turkey geographically close to Russia, Ukraine, and other hotspots like Iran and Syria, observers say Erdogan is aware of his country’s strategic importance and Western allies’ need for its continued cooperation.

 

Macron calls on Erdoğan to combat Russia sanctions evasions

 

French President Emmanuel Macron on Thursday called on his Turkish counterpart Recep Tayyip Erdoğan fight attempts on the evasion of sanctions imposed on Russia over its war in Ukraine, Agence France-Presse (AFP) reported.

 

Speaking on the sidelines of a summit in Prague, the French leader highlighted “the importance of the European sanctions regimes in stopping Russia’s escalation, and called to fight any circumvention strategies” AFP said.

 

Meanwhile, intensifying economic ties between Turkey and Russia is sparking fear among Western states, which are warning of the mounting risk of Ankara facing potential punitive retaliation if it assists Moscow in avoiding sanctions, the Financial Times reported in August.

 

The U.S. government in August warned Turkish businesses against working with Russian sanctioned institutions and individuals, the Wall Street Journal reported, amid increased pressure on the NATO member country over its deepening ties with Russia.

 

Ukraine Counter-Attack Will Have Daunting Consequences for Turkey

 

Yetkin Report:  New EU sanctions on Russia are bad news for Turkish economy

 

Over the weekend, an EU delegation visited Ankara to discuss sanctions violations by Turkish entities and possible remedies, according to the official statement (link here).

 

Sanctions would hamper Turkish exports to Eu, a $115 billion per year business, and may restrict access to credit markets by Turkish banks and corporates which have to roll-over maturing debt of $155 bn in the next 12 months.

Follow our  English language YouTube videos  @ REAL TURKEY:   https://www.youtube.com/channel/UCKpFJB4GFiNkhmpVZQ_d9Rg

And content at Twitter: @AtillaEng

Facebook:  Real Turkey Channel:   https://www.facebook.com/realturkeychannel/

 

 

 

Published By: Atilla Yeşilada

GlobalSource Partners’ Turkey Country Analyst Atilla Yesilada is the country’s leading political analyst and commentator. He is known throughout the finance and political science world for his thorough and outspoken coverage of Turkey’s political and financial developments. In addition to his extensive writing schedule, he is often called upon to provide his political expertise on major radio and television channels. Based in Istanbul, Atilla is co-founder of the information platform Istanbul Analytics and is one of GlobalSource’s local partners in Turkey. In addition to his consulting work and speaking engagements throughout the US, Europe and the Middle East, he writes regular columns for Turkey’s leading financial websites VATAN and www.paraanaliz.com and has contributed to the financial daily Referans and the liberal daily Radikal.