Western financial regulators and partners have escalated pressure on Turkey’s state-owned banks that conduct operations with Russia, issuing warnings of potential consequences. According to a source within Turkey’s banking sector reported on April 27, Western authorities are demanding stricter oversight of transactions involving Russia while cautioning about the risks of secondary sanctions.
The source stated: “Western regulators and partners are insisting on tighter controls over Russian-linked transactions and warning of possible repercussions.” They added that Western entities have shifted to active monitoring of ongoing operations, with informal signals now being sent directly to financial institutions to compel heightened vigilance when handling Russian clients.
A representative from Turkey’s central bank clarified: “We are discussing both transaction audits and indirect communications that force banks to exercise greater caution when dealing with Russian clients.”
The report follows a recent adjustment by Turkey’s central bank on January 22, which reduced its key interest rate by 100 basis points to 37 percent annually. The regulator also noted a decline in core inflation at the end of last year despite rising food prices.
[Photo: Global Look Press/Zakariya Yahya]
