Top U.S. Treasury official to warn UAE, Turkey over sanctions evasion

• Turkey’s refusal to approve Sweden’s and Finland’s NATO bids have irritated Washington.
• Washington will continue to aggressively enforce its sanctions.
• Nelson will discuss the Treasury’s efforts to crack down on Russian efforts to avoid sanctions and export controls.

The U.S. Treasury Department’s top sanctions official on a trip to Turkey and the Middle East next week will warn countries and businesses that they could lose U.S. market access if they do business with entities subject to U.S. curbs as Washington cracks down on Russian attempts to evade sanctions imposed over its war in Ukraine.

From January 29 to February 3, Brian Nelson, undersecretary for terrorism and financial intelligence, will travel to Oman, the United Arab Emirates, and Turkey to meet with government officials, businesses, and financial institutions to reiterate that Washington will continue to aggressively enforce its sanctions.

“Individuals and institutions operating in permissive jurisdictions risk potentially losing access to U.S. markets on account of doing business with sanctioned entities or not conducting appropriate due diligence,” the spokesperson said.

Nelson will discuss the Treasury’s efforts to crack down on Russian efforts to avoid sanctions and export controls imposed as a result of its brutal war against Ukraine, Iran’s destabilizing activity in the region, the risks of illicit finance undermining economic growth, and foreign investment while in the region.

The visit is the latest by a senior Treasury official to Turkey to discuss sanctions, following a series of warnings from Treasury and Commerce Department officials last year as Washington increased pressure on Ankara to ensure the implementation of US sanctions against Russia.

STRAINED RELATIONS

Most recently, Turkey’s refusal to approve Sweden’s and Finland’s NATO bids have irritated Washington, while Ankara is dissatisfied that its request to buy F-16 fighter planes is becoming increasingly dependent on whether the two Nordic nations can join the alliance.

Nelson will travel to Ankara, Turkey’s capital, and Istanbul, the country’s financial center, on February 2-3. According to the spokeswoman, he would warn firms and banks to avoid transactions involving potential dual-use technology transfers that could be exploited by Russia’s military in the future.

Dual-purpose objects can serve both commercial and military purposes.

Since the invasion, which has killed and injured hundreds and destroyed Ukrainian cities, Washington and its allies have slapped three rounds of sanctions against Moscow.

Turkey has denounced Russia’s invasion and has dispatched armed drones to Ukraine. Simultaneously, it rejects Western sanctions on Russia and maintains tight ties with both Moscow and Kyiv, its Black Sea neighbors.

It’s also increased trade and tourism with Russia. Some Turkish corporations have purchased or attempted to purchase Russian assets from Western partners who are withdrawing owing to the sanctions, while others hold huge assets in the nation.

However, Ankara has stated that foreign sanctions will not be ignored in Turkey.

Washington is also concerned about Iranian sanctions evasion.

The US sanctioned famed Turkish businessman Sitki Ayan and his network of companies last month, accusing him of acting as a middleman for oil transactions and money laundering on behalf of Iran’s Revolutionary Guard Corps.

Nelson will observe the country’s “poor sanctions compliance” while in the UAE, according to the spokeswoman.

Washington has imposed a number of penalties on UAE-based corporations for evading Iran-related restrictions, and on Thursday designated a UAE-based aviation firm for its support of Russian mercenary group the Wagner Group, which is fighting in Ukraine.

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