According to Turkish media reports on September 20, local time, on the 19th local time, in order to avoid being involved in financial conflicts between Russia and Western countries, Turkish Industrial Bank and Deniz Bank announced that they would suspend the use of the Russian “Mir” payment system. The “Mir” payment system is a payment clearing system launched by the Central Bank of Russia in 2014, which can be used in many countries and regions outside the country.
After the outbreak of the Russia-Ukraine conflict, Turkey made it clear that it would not participate in the sanctions imposed by Western countries on Russia, and has always maintained normal trade relations with Russia. Previously, a total of 5 Turkish banks used the Russian “Mir” payment system, so Russian tourists can easily pay for consumption while traveling in Turkey. Turkish Treasury and Finance Minister Nabati has said Russian tourists are vital to Turkey’s struggling economy.
At the end of last month, the Turkish Industry and Commerce Association said it had received a warning letter from the U.S. Treasury Department asking Turkish companies not to do business with sanctioned Russian individuals or companies, or risk penalties. Last week, the United States announced the expansion of sanctions against Russia, including the CEO of Russia’s “Mir” payment system.
Turkey’s Istanbul Stock Exchange Banks Index began to tumble last week on fears that so-called secondary sanctions could target Turkish banks or related affected companies. After the two banks announced that they would suspend the use of the “Mir” payment system, the Turkish stock market fell by more than 9%, triggering a circuit breaker mechanism to suspend trading. (Headquarters reporter Chen Huihui)