American companies that turned their back on Russia in the wake of the launch of its special military operation in Ukraine are looking for a covert way to continue trading with Moscow via Turkey, Islamist Turkish newspaper, Yeni Safak wrote, citing sources in Turkish business circles.
Many American companies that want to circumvent the sweeping western sanctions imposed against Russia over the Ukraine crisis are approaching Turkish companies and offering to do business in exchange for a commission, the sources are cited as saying.
According to representatives of business circles to whom the publication has spoken over the course of the past months, the number of such proposals coming from American companies has increased.
According to the report, American companies seeking to conduct their business along the Russia-Turkey-Dubai-US route, buying goods from Russia.
"Many international companies headquartered in the United States have mobilized their subsidiaries established in the free-trade zones of Dubai for this business. American companies that make joint trade offers to Turkish companies resort to this method to make up for losses sustained since exiting the Russian market," the publication reported.
The main commodities that American companies want to buy from Russia are reportedly petrochemicals, mineral fuels, precious metals and stones, grains, iron and steel, fertilizers and inorganic chemicals, water products and alcoholic drinks.
When the US and Europe rushed to impose sanctions on Russian companies and wealthy businessmen working in various fields, especially in finance, energy, defense and technology, thousands of western companies found themselves in a difficult situation, the outlet added.
Under pressure from investors and consumers, many western companies were forced to wind down their operations, closing stores in Russia at great cost to their businesses. For some, such as McDonald’s, PepsiCo and Shell, their ties with the country had been nurtured over decades.
The publication recalls that after the start of the special operation in Ukraine on 24 February, Myron Brilliant, executive vice-president and head of the International Affairs Division at the US Chamber of Commerce, visited Turkey in March and met with both politicians and businessmen.
"The US Ambassador to Ankara Jeffry Flake, who assessed the visit, said that 5,000 US companies preparing to leave Russia have listed Turkey as their address. American companies that are trying to take advantage of Turkey's warm relations with Russia also want to benefit from effective logistics capabilities of Turkish companies in the region," the report added.
‘Double-Edged Sword’
The report comes as the US Treasury Department has been raising pressure on NATO ally Turkey after it continued to maintain strong ties with Moscow regardless of western sanctions imposed on Russia.
Deputy Secretary of the Treasury Wally Adeyemo told the American Chamber of Commerce in Turkey that Turkish companies were at risk of US sanctions if they did business with sanctioned Russians, The Wall Street Journal reported on 22 August.
Adeyemo is said to have spoken with his Turkish counterpart, Deputy Finance Minister Yunus Elitas, voicing discontent with what he called Russia’s “use” of Turkey "to evade sanctions put in place by the United States and 30 countries".
Turkish media outlet Daily Sabah quoted the Turkish Industry and Business Association (TÜSIAD) on 24 August as saying that it received a letter from the US warning of the possible risk of restrictions if it established relations with sanctioned Russian entities and individuals.
The Turkish outlet also said that trade between Ankara and Moscow "has been booming since spring", with the value of Turkish exports to Russia between May and July rising by nearly 50 percent since 2021.
Turkish companies had been quick to step in and fill the void created by western businesses that withdrew from Russia after the beginning of the military operation in Ukraine.
In early August, Russian President Vladimir Putin, who has ridiculed the western sanctions as a “double-edged sword", met with his Turkish counterpart Recep Tayyip Erdogan in the Russian resort city of Sochi where they agreed to step up business cooperation. Earlier, the Turkish president explained that imposing sanctions on Russia would harm the Turkish economy, and stressed that Ankara would not jump on the West's anti-Russia sanctions bandwagon as Turkey is dependent on Russia's energy imports.