Turkish banks want to stop transactions with Russia

Turkish banks are increasingly looking to halt transactions involving Russia and Belarus, choosing to transfer these dealings to a single local financial institution, according to a source in the Turkish financial consulting sector.

"In light of the current situation, almost all Turkish banks aim to completely withdraw from transactions involving Russia and Belarus. They prefer to leave these transactions to Emlak Katılım Bank in order to safeguard themselves against potential future issues, such as sanctions and restrictions," Caliber.Az quotes the source as saying.

"Due to these risks, many Turkish banks are now returning incoming funds in dollars and euros related to Russian and Belarusian companies and advising clients to use Emlak Katılım for transactions in national currencies."

The focus is on both private and state Turkish banks that lack foreign partners, especially Western ones. Financial institutions with Western involvement have largely ceased operations related to Russia.

The source also highlighted that Emlak Katılım is currently the only bank handling transactions in the Russian ruble/Turkish lira pair.

"Of course, the commission rates for these services are relatively high, around 5-6%, compared to standard rates. However, given the compliance challenges faced by other banks, clients often overlook the commission size," the source added.