Warning to US companies: do not violate Russian sanctions through Turkey
The US government has warned companies doing international business to be wary of sanctions against Russia.
In the joint statement and briefing note released by the US Department of Finance, Trade and Justice, it was noted that Turkey is among some potential “transfer points” to be used to avoid sanctions.
The United States has launched a new campaign against countries and individuals that help Russia get rid of Western sanctions. Washington, the United Arab Emirates (UAE) and Turkey trade with Russia through countries like the Kremlin, she said, which have eased sanctions and prepared new measures against the companies, she said.
According to the news reported by the Financial Times, as Turkey and the United Arab Emirates see Russia as weak links in their efforts to isolate Russia both economically and militarily, the US Treasury, Commerce and Justice ministries have begun to work on measures related to this situation.
‘THE ESCAPE OF SANCTIONS WILL BE RESPONSIBLE’
“Those who attempt to support Putin’s war machine by evading our export controls and sanctions will be held accountable,” Matthew Axelrod, the US assistant secretary of commerce for export practices, said in a statement.
Elizabeth Rosenberg, Treasury Undersecretary responsible for terrorist financing and financial crime, also said yesterday that the United Arab Emirates is the “country of attention” for the US.
Rosenberg said UAE companies exported $18 million worth of goods to “US-designated Russian entities” between July and November 2022. Rosenberg noted that some products are “battlefield semiconductor devices.”
WARNING NOTE PREPARED
However, three US ministries have issued a ‘conformity note’ on “the use of third-party intermediaries or transit points to evade sanctions and export controls in Russia and Belarus.”
In the note, it was explained that penalties can be avoided by using front companies for international bank transfers, last-minute changes to shipping instructions, using personal email addresses instead of company email addresses.
TURKEY TRANSFER POINT
The briefing also included a list of “danger signs” that companies need to watch out for to avoid penalties. The note listed China, Armenia, Turkey and Uzbekistan as “transfer points for the illegal diversion of restricted goods to Russia or Belarus.”
Stating that Moscow will continue to seek to overcome the measures, Rosenberg said the US and its allies are waging a broad campaign to crack down on such behavior. “Over the next year, we will try to make sure that our sanctions architecture is effective by finding and removing ways that Russia can evade sanctions,” Rosenberg said.
US AUTHORITY WARNED TURKEY
Separately, Brian Nelson, Under Secretary for Terrorism and Fiscal Intelligence at the US Treasury Department, met with government officials and representatives of the banking sector in Turkey last month and issued warnings.
Stating that Turkish companies and banks may face the risk of sanctions if they do business with Russian institutions on the sanctions list, Nelson stressed that Turkish companies and banks should take more measures to prevent technology transfer transactions that could be used by the Russian military industry.