How Türkiye and Russia Overcome US Sanctions?

According to RIA Novosti on January 2, Turkish political scientist, leading expert of the Ankara-Moscow expert analysis network Engin Ozer said that the use of cryptocurrencies in trade could help Türkiye and Russia overcome US sanctions, which would significantly speed up and simplify economic relations between the countries.

Russian President Vladimir Putin has previously signed a law allowing cross-border payments and exchange transactions in digital currencies within the framework of the regulatory regime (ERR). The law ensures the operation of the ERR mechanism in the field of digital innovations in the financial market. At the same time, the Bank of Russia is assigned the functions of the competent and regulatory body on ERR issues in this area. At the same time, ERR programs are approved by the Central Bank in coordination with Rosfinmonitoring, the Security Service and the Ministry of Finance of Russia.

“One of the main problems hindering the development of trade between Türkiye and Russia is that Turkish banks do not accept money transfers from Russian companies due to the threat of international sanctions. Earlier, the State Duma of the Russian Federation adopted a bill allowing transactions with cryptocurrencies in international trade. Cryptocurrency transfers are faster, the exchange rate spread is smaller, and commissions are significantly lower than when transacting through the traditional SWIFT system. On the other hand, transactions between the two countries through a single cryptocurrency simplify the work. There is no doubt that this law will contribute to the development of Turkish-Russian trade,” – political scientist Ozer said.

Earlier, Russian Ambassador to Türkiye Alexei Erkhov stated that US sanctions were complicating bilateral trade between Russia and Türkiye, with bank transfers still blocked. According to Erkhov, bilateral trade would “sag” by the end of 2024.

During talks between Turkish and Russian leaders on the sidelines of the BRICS summit in Kazan in October 2024, Turkish President Recep Tayyip Erdogan said that relevant agencies of the two countries are working to resolve issues in banking transactions.

Ambassador Erkhov told RIA Novosti that cases of “force” on companies involved in the transit of goods to Russia are becoming more frequent in Turkish banks, while there are also cases of blocking transfers and closing accounts.

Russia has repeatedly said it will face increasing sanctions pressure. Russian President Vladimir Putin has previously noted that the policy of containing and weakening Russia is a long-term Western strategy, and that sanctions have dealt a heavy blow to the entire global economy.

According to Mr. Putin, the main goal of the West is to make the lives of millions of people worse. Western countries themselves have repeatedly said that sanctions are ineffective against Moscow.