Turkey faces scrutiny as exports to Russia surge, fuelling concerns of sanctions evasion

Turkish exports of essential goods to Russia, crucial for Moscow's military production, have experienced a significant spike in 2023.

This surge has intensified worries about potential sanctions circumvention, with the United States and the European Union actively seeking to curb Russia's access to dual-use goods through third-party nations.

Turkey recorded a staggering €144 million in exports of 45 goods, including microchips marked as "high priority" by the US, to Russia and five "former Soviet countries" suspected of acting as intermediaries for Moscow during the first nine months of 2023.

This figure is three times higher than the same period in the previous year, surpassing the average of €26 million recorded from 2015 to 2021.

The US and the EU have long been working to limit Russia's import of dual-use goods through third-party countries, with concerns specifically raised about companies in states like Kazakhstan, Serbia, and Turkey re-exporting sanctioned products to Russia, thereby supporting its military efforts, particularly in the context of the invasion of Ukraine.

Brian Nelson, the US Treasury undersecretary for terrorism and financial intelligence, is scheduled to visit Turkey this week to discuss measures aimed at preventing financial activities that may aid Russia's war efforts.

Simultaneously, the EU is reportedly preparing a financial package that includes measures to impede Moscow's ability to circumvent sanctions.

Bloomberg reports that 80% of Russia's purchases of "high-priority items" are coming from China and Hong Kong.

While exports from countries like Kazakhstan, Serbia, Turkey, Armenia, Azerbaijan, and Uzbekistan have seen a decline in the second half of 2023 compared to the beginning of the year, they