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Turkey exports military goods to the Russian Federation - FT

Turkey

Exports from Turkey to Russia of goods vital to Russia's military machine have soared this year, raising concerns in the US and its allies that the country is acting as a conduit for critical goods to Russia. He writes about it Financial Times with reference to data analysis of the Trade Data Monitor customs database.

"The growing trade and a corresponding increase in imports of 45 civilian materials used by the Russian military have undermined efforts by the US and Europe to limit Moscow's ability to equip its armed forces, fueling tensions between Ankara and its NATO partners. In a sign that curbing the trade has become a priority in Washington, U.S. Treasury Undersecretary for Counterterrorism and Financial Intelligence Brian Nelson will visit Istanbul and Ankara this week, where he plans to discuss "efforts to prevent, disrupt and investigate trade and financial activities that contribute to Russian efforts in the war against Ukraine." - writes the publication.

This will be Nelson's second visit to Turkey this year, and comes amid indications that some dual-use items the US and its allies consider particularly critical to the war are being transported directly to Russia, even though they are marked as bound for another country

Efforts to end this trade with Russia are complicated by the fact that these goods have both commercial and military uses.

For example, in the first 9 months of 2023, Turkey reported on the export of 45 goods, which the USA identified as "high priority", in the amount of 158 million dollars to Russia and five former Soviet republics, which are suspected of acting as intermediaries for the Russian Federation. This is three times more than in the same period of 2022, when the great war in Ukraine began.

At the same time, the average figure for 2015-2021 was 28 million dollars.

The 45 categories of goods include microchips, communications equipment and other parts such as optical sights, which are subject to export controls by the US, the EU, Japan and the UK. But companies can circumvent these restrictions by using intermediary structures to hide final destinations.

This year, Turkey's import of priority goods from the G7 countries increased by more than 60% compared to the same periods of 2015-2021 and reached almost 500 million dollars.

Turkey, along with the United Arab Emirates, often serves as an intermediate destination for Russian companies trying to use multi-stage import routes to circumvent controls, a European sanctions official explained. He added that this country is especially often used for the purchase of European goods.

Official data from Turkey show a sharp increase in the number of declarations on the export of priority goods to the former Soviet republics — Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan and Uzbekistan, but the statistical authorities of these countries did not record a corresponding increase in imports.

According to US and EU estimates, Russia uses critical goods in its cruise missiles, drones and helicopters.

Washington and its European allies have urged Turkey to take steps to curb trade. The US Treasury Department also addressed the issue this month in the latest round of sanctions against Russia.

Turkey has maintained strong diplomatic and trade ties with Russia, while promising not to help Russia circumvent Western export controls.

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