Since the beginning of the full-scale invasion, the United States, the European Union, and other Western partners have imposed significant sanctions against Russia. Turkey has become one of the sanction hubs — countries used to circumvent restrictions — and has increased trade with Moscow since the start of the war. According to customs data, Turkey ranks second after China in terms of the supply of components, equipment, and technologies that the Kremlin could use for military purposes.
Recently, meetings took place in Ankara and Istanbul between representatives of the U.S. and Turkey as part of a program aimed at stopping illegal trade and sanctions violations. The U.S. is concerned that Turkey has become a critical center through which Western-made electronics, CNC machines, and other technologies are being smuggled into Russia in violation of export controls and are being used for the production of missiles and drones.
Washington warned Turkey of "consequences" if the country does not limit the export of American dual-use technologies to Russia, which are vital to Moscow's defense industry. This was reported by the Financial Times, citing U.S. Assistant Secretary of Commerce Matthew Axelrod.
"We need Turkey’s cooperation to stop the illegal flow of American technologies to Russia. It is important that Turkish authorities and industry quickly demonstrate progress in this direction. Otherwise, we will be forced to take measures against those who violate our export controls," said Axelrod.
An official from the Department of Commerce reported that Turkey is the second-largest source of high-priority goods from the U.S. exported to Russia, after China. Since the war began, exports from Turkey, as well as through intermediaries such as Azerbaijan and Kazakhstan, have sharply increased. According to Turkish customs data analyzed by the Financial Times, the export volume reached $85 million in the first six months of this year, significantly exceeding $27 million during the same period in 2022.
In February 2024, the ESCU partners and the C4ADS analytical center published a study analyzing the shipment of EU-made CNC machines to Russia through Turkey, focusing on specific cases.
Analysts from the Ukrainian Economic Security Council will continue to insist on increasing pressure and holding manufacturers accountable for actions that facilitate the circumvention of sanctions. To prevent the re-export of military goods critical to the development of Russia's defense industry, EU operators selling such goods to third countries need to implement strict compliance mechanisms to assess the risks of re-export to Russia. To achieve effectiveness, it is necessary to strengthen legal mechanisms and penalties for non-compliance, as well as coordinate cooperation among Western countries.