A bankrupt merchant goes through old books…
This is precisely the situation with the US policy on the war in Ukraine, where US President Joe Biden’s promises of financial support to Ukraine so that it can continue to fight against Russia have gotten stuck in the US Congress. Moreover, cracks have begun to appear within the European Union, the most “solid” ally on the front line against Russia.
In response, the US administration chose to open the “old books” and turn to a policy of “sanctions”.
AMERICAN OFFICIAL ARRIVING IN TURKEY ISSUES WARNING TO COMPANIES
Brian Nelson, the US Treasury Undersecretary of State for Counterterrorism and Intelligence, visited Turkey in November and held meetings with government officials and private companies. Nelson’s purpose, as he himself explained at the end of the visit, was to warn Turkey about US sanctions against Russia.
In the aftermath of Nelson’s visit, the Americans also adopted a method they had not used before. They publicized Nelson’s speech at a meeting with Turkish private sector representatives in Istanbul. The text of the speech, which contains many warnings, especially about Russia sanctions, was posted on the US Treasury Department website as it was. (https://home.treasury.gov/news/press-releases/jy1963)
The most prominent of Nelson’s warnings concerned the services provided to Russian ships in Turkish ports. Nelson said that the US administration itself was closely monitoring Russian government-owned ships, and that in September and October it was determined that these ships, which are under US sanctions, received services from some ports in Turkey. But he did not elaborate.
RUSSIAN OIL PRICE CAP WARNING
The G-7 countries, including the United States, and the European Union decided last year that Russia’s selling its oil above a certain ceiling price would be considered “grounds for sanctions”. The price cap was set at USD 60 per barrel. Nelson said that some ships using Turkish ports were found to be carrying oil with a selling price above this ceiling price set by the G-7 and the EU. Nelson said that this issue was being closely monitored and warned that Turkish companies providing services to ships carrying oil sold above the ceiling price or buying Russian oil above the price cap would be subject to sanctions not only by the US but also by the G-7 and EU countries.
SANCTIONS CAME DAYS AFTER NELSON’S WARNING
Just days after Nelson’s warning, the US Treasury and State Departments announced sanctions against more than 250 individuals or entities that failed to comply with the Russia sanctions. Among those sanctioned are Turkish companies working in Russia in the manufacturing, shipping, technology or electronics sectors. Noteworthy is the large number of companies and individuals from Pakistan, China and the United Arab Emirates among those subjected to US sanctions.
This is the Russian sanctions side of the story. During his visit to Ankara and Istanbul, Nelson also told Turkish officials that Hamas fundraising operations in Turkey could also be subject to sanctions.
As an official policy, Turkey does not impose sanctions on any country or individual unless a resolution is passed by the UN Security Council. In the case of the US, EU and G-7 countries’ sanctions against Russia, it is impossible to get such a resolution from the UN, given that Russia is a veto-wielding permanent member of the UN Security Council. It is therefore possible to call these sanctions “unilateral” rather than “international”.
But even if they are “unilateral”, they could have a profound impact on Turkey. The Reza Zarrab/Hakan Atilla case in the US over the “unilateral” US sanctions against Iran and the ongoing Halkbank case are obvious examples of that…
