5 of Turkey’s banks have adopted Russia’s payment system, and Western officials are concerned it could be used to skirt sanctions

  • Five Turkish banks have accepted Russia’s Mir payment system, Turkish President Tayyip Erdogan said.
  • Western officials are concerned that it could be used to impose sanctions against Russia.
  • Although Turkey has condemned Russia’s invasion of Ukraine, it has not imposed sanctions on Russia.

Five Turkish banks have begun using Russia’s Mir payment system, raising concerns that it could be used to enforce sanctions over an invasion of Ukraine. therefore MasterCard And Visa Operations in Russia have been halted, with Mir card payments allowing Russian tourists to pay for their purchases in Turkey.

After meeting Russian President Vladimir Putin in a Turkish resort town, Turkish President Tayyip Erdogan said there were “very serious developments” on adopting a system that would allow Russians in Turkey to pay for their purchases. Anadolu Agency on saturday

Turkey has also agreed to pay for some Russian natural gas in rubles, Erdogan said.

The leader of Turkey met with Putin on Friday Three weeks after they met in Iran. The deepening ties between the two countries have worried Western officials, some of whom are considering punitive action against Turkey, such as asking Turkish companies to cut financing. Financial Times Reported. So far there has been no official discussion of such actions for Turkey, the media outlet added.

Ankara It has condemned Russia’s invasion of Ukraine, but has not sanctioned Russia or closed its airspace to the country, one of Turkey’s top trading partners. And Turkey needs all the financial support it can get.

Turkey’s economy is expected to grow 11% in 2021 from a year earlier, but is beset by rising inflation. 80% in July. The Turkish lira has also lost half its value against the US dollar this year. The Central bank of the country Its foreign exchange has been reduced to support the currency — but the reserve has a $3 billion boost last week After Russia’s state-owned nuclear company Rosatom Some of the money was transferred to a Turkish subsidiary for a construction project, Bloomberg reported.

In June, US Deputy Treasury Secretary Wally Ademo Met Turkish officials and bankers and warned them not to use Russian money as a channel.

Turkey is the top destination for Russian tourists, with 7 million of them visiting in 2019 Nikki.

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