Turkey’s trade with Russia decreases following pressure from the US

Turkish exports to Russia have taken a significant hit at the beginning of 2024, indicating that the US crackdown on trade with goods used by Moscow in its war in Ukraine is starting to show results. According to Financial Times calculations based on data from the Turkish Statistical Institute, exports from Turkey to Russia dropped by a third in the first three months of this year compared to the same period in 2023, amounting to $2.1 billion.

This decline follows an executive order issued by the Biden administration in late December, giving the Treasury department the authority to impose sanctions on banks dealing with companies linked to Russia’s military-industrial complex. The aim was to disrupt the trade in essential goods like microchips needed by Russian President Vladimir Putin for the war in Ukraine.

Countries like Turkey, which saw a surge in trade of these high-priority battlefield goods since Russia’s invasion of Ukraine, have been urged by the US and its partners to curb such trade. The Kremlin has criticized the US for pressuring banks in Turkey, leading to a decline in exports.

The drop in exports from Turkey to Russia was most notable from December 2023 to February 2024, with a slight recovery in March. The decrease was mainly in mechanical goods, vehicles, and other categories that expanded after Russia’s invasion of Ukraine. Turkey’s exports of these goods fell from $8.8 million in December to $2.2 million in February, showing the impact of the sanctions.

As the US and its allies continue to pressure countries facilitating trade with Russia, the effects are being felt in various sectors. The decline in Turkish-Russian trade coincides with an improvement in Ankara’s relations with Washington, indicating a complex geopolitical landscape that is reshaping trade dynamics.