In a letter sent to TÜSİAD by US Deputy Treasury Secretary Wally Adeyemo, it was reported that he warned Turkish companies not to work with the sanctioned Russians. While TÜSİAD is confirming the letter, business world officials are uneasy.
Turkish Industrialists' and Businessmen's Association (TUSIAD) confirmed the claim that US Deputy Treasury Secretary Wally Adeyemo sent a letter that Turkish companies could be affected by the sanctions against Russia. In a written statement made by TUSIAD yesterday, it was reminded that many countries, especially the USA and the European Union, took sanction decisions after Russia's attack on Ukraine that started on February 24.
In the statement that the letter was sent to the Ministry of Foreign Affairs and the Ministry of Treasury and Finance, the following statements were made: TÜSİAD's letter was also sent to TÜSİAD, stating that the relations may be reflected as a risk of sanctions on companies operating in Turkey. The relevant letter was shared by TÜSİAD with the Ministry of Foreign Affairs, the Ministry of Treasury and Finance and the Ministry of Trade.”
The previous day, the Wall Street Journal (WSJ) reported that US Deputy Treasury Secretary Wally Adeyemo sent a letter to TUSIAD, warning Turkish companies not to work with the sanctioned Russians. The WSJ stated that it consulted Ankara regarding the letter, but the Ministry of Foreign Affairs did not receive a statement on the matter.
"Russia is trying to use Turkey to circumvent Western sanctions"
It is stated that Adeyemo warned that those who do business with Russian institutions and individuals will face sanctions, and in the news, “The Biden administration warned Turkish companies not to work with sanctioned Russians. The U.S. Treasury Department continues to exert pressure on its NATO ally, which has strong ties to Moscow.
It is stated that Adeyemo sent a letter to the American Chamber of Commerce on August 22 and forwarded a similar text to TUSIAD. According to the WSJ, the letter states: “Please note that relations with sanctioned Russian institutions and organizations may expose Turkey's financial institutions and businesses to the risk of sanctions.”
It was announced that Adeyamo, who came to Turkey in June, warned in a phone call with Yunus Elitaş, Deputy Minister of Treasury and Finance, that "Russian institutions and individuals are trying to use Turkey to circumvent the Western sanctions imposed due to the invasion of Ukraine". In the statement made by the US Treasury Department, it was stated that concerns were conveyed about Russia's attempts to circumvent sanctions through Turkey.
"HOPE IT WON'T BE A BIG PROBLEM"
TIM President Mustafa Gultepe:
“We are close to all countries in the world. In terms of Russia, other countries and Turkey, each country has a different place. Every country to which we export foreign trade surplus is important for us. The USA also wrote articles on relations with Russia. I hope the problem doesn't get worse. But in the end, every country has to meet its needs at some point. Turkey is a geography close to that region and has had very good collaborations for a long time. both commercially and politically. We hope it will not be a big problem for Turkey. Currently, we have not received such feedback from any ready-made clothing manufacturer or from a Turkish exporter. Looking forward, the US and EU buy as much oil and gas from Russia as the world, what kind of embargo is that?' I hope those kinds of things don't happen again.
“RELATED RISK IS AT ALL”
Adil Pelister, President of İKMİB:
“Our chemical industry exports to Russia, which ranks 11th in the ranking of the country to which we export the most, amounted to 514.8 million dollars in the January-July 2022 period. There is a 72.75 percent increase in value. Our unit price has also increased by 88.44%. Although the share of our exports to Russia of approximately 515 million dollars in our total exports of the chemical industry is not large, we see that it has a high added value in terms of value increase. If the issue of sanctions comes to the fore, it may cause problems not only for our companies exporting to Russia, but also for our companies doing business with them and even for the financial institutions that finance our exporting companies. Therefore, if a sanction is imposed on financial institutions and banks, it may affect our entire chemical industry. This needs attention. Unfortunately, such a risk exists.
ALL SECTORS SHOULD BE CAREFUL”
Şeref Fayat, Chairman of TOBB Ready-to-Wear and Apparel Sector Assembly:
“The statements of the USA should be taken seriously. TÜSİAD also takes it seriously. Because, as Turkey, we do not want to confront a very important ally of ours. I believe that all sectors will show sensitivity and be cautious. While EU and US companies are doing this, they are making a complaint about Turkey's failure to comply with this. Although it is not a pleasant process, it is necessary to be careful. In this current conjuncture, the USA already understands this from money transfers or other movements.”
“OUR COMPANIES LOSE THE COMPETITIVENESS”
Uğur Dalbeler, Vice President of CIB:
“Especially in Turkey, sanctions will come to our companies that produce construction steel from Russian billet. It started with Canada, other EU countries and the United States could initiate investigations. In such a case, our industry will suffer greatly. In particular, the boycott of Russian products and the prohibition of their use in any product make things more difficult in the domestic market and export. Now, in this case, we cannot buy raw materials and intermediate goods from Russia. We go and buy more expensive from different countries. We produce the product, but we cannot sell it at this time. Because the Russians sell the same product for half the price. We suffer from both sides. The fact that Russia has reduced the prices to Turkey, which is its only market, by half, has a negative effect on the domestic producer. Our companies are losing their competitive power day by day. In the last quarter, orders in the domestic market are sluggish, while exports are sluggish. As of the end of 8 months, our exports decreased by 8.5 percent. We foresee that the exports of the sector will decrease further in the last quarter. There are still difficulties in reaching financing.”
“TRADE WILL FIND A WAY”
TASD President Berke İçten:
“Russia was our most important market before the Ukraine war. It was in the first place, but due to the slowdown in money transfers in the war environment, it regressed a little in exports. It is currently in the second place, but the trade continues even if the money comes a little slow. We see an intense participation in the AYMOD fair, as a result, Italian shoe companies come to our fair to meet with Russian customers. In a sense, it is breaking the embargo. We are cautious. We foresee that the sanctions imposed on Russia will take a long time from the West. Although we are concerned about the future of this market, especially when we follow the energy-related issues, our trade continues at the moment. We consider the embargo issue as a risk, but there is no actual situation at the moment. I foresee that this trade will continue by finding a way.”
DOMESTIC SHIPPING SHIPTORS PERFORM EMBARGO SCAN
Mahmut Işık, General Manager of Medkon Shipping:
“We are very sensitive about not breaking the embargo while transporting transit cargoes to Russia. We look at the documents if the containers are emptied and filled with our containers through companies established in Turkey from Europe or from various countries. We have two lawyers in our company who deal with this issue. In order to avoid any problems, all documents are under their control. When we are sure that the consignor is not under the embargo or the consignee, we transport to Russia. Then we transfer all this information about transportation to P&I company. However, even if there is even the slightest question mark, we definitely do not carry out this transportation.”
“WE HOPE IT DOESN'T TURN INTO ACTION”
Ercan Hardal, Member of the İHKİB Supervisory Board:
“It is a very annoying thing. Let's hope it doesn't turn into action. Russia is an important market for Turkey. During this period, our sales to the country were times two. It's a bit of a balance issue. Unfortunately, politics sometimes reflects on business. Russia is a very important market not only for us, but for all sectors. It's good to be careful. Because recently, we hear that the embargo has been breached through different countries. But if the embargo does happen, it is very difficult to predict how much it will affect us.“
"DOES NOT AFFECT TOURISM DIRECTLY"
Tourism sector Representatives of the tourism sector, whose information we consulted after the letter, stated that the sanctions would not directly add to tourism, tour operators could pay the invoiced sales, and there would be no problem in the flow of money.
Comments
No comment yet.