Growing Sanctions and Export Controls Risks Surrounding Turkey
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Key Takeaways:
- Since the start of the war in Ukraine in February 2022, many Western nations have imposed severe and expanding economic sanctions on Russia. While the United States (“US”), United Kingdom (“UK”), European Union (“EU”), and their allies present a largely united front, one NATO member—Turkey—has drawn significant attention for its reluctant stance on sanctions against Russia.
- Although Turkey has recently taken some measures to restrict Western-sanctioned goods from flowing into Russia, it has resisted pressure to impose its own sanctions, and remains a key trade channel for Moscow. As a consequence, Turkey is finding itself in the sanctions spotlight as Western diplomatic efforts to persuade the Turkish government to align on sanctions measures are increasingly accompanied by enforcement actions taken by the US and its European counterparts.
- In light of the growing emphasis on sanctions and export controls circumvention, the US and its allies are likely to continue to scrutinize countries with close economic ties to Russia, including Turkey. US, EU, and UK companies doing business with Turkish counterparties should consider enhanced due diligence steps to mitigate the risks.