Two Turkish banks suspend Russia’s Mir payments system after US sanctions

Türkiye’s Deniz Bank and İş Bank said on Monday they had suspended use of Russia’s Mir payments system, following a US crackdown on those accused of helping Moscow avoid sanctions over the war in Ukraine.

These moves come after Washington expanded the scope of its sanctions last week to include the head of the entity that runs the Mir system, which has been visited by tens of thousands of Russian tourists who arrived in Türkiye this year.

The suspension of two of the five Turkish banks that were using the Mir system reflects their efforts to avoid being affected by the financial battle between the West and Russia, as the Turkish government is taking a balanced diplomatic stance.

İş bank, whose shares fell 10% on Monday, said it had halted use of the MIR payments system and was assessing new sanctions imposed by the US Treasury.

İş bank also said he is keen to comply with national and international laws and regulations and business principles.

In response to a request for comment, Deniz Bank said, “We are currently unable to provide the service,” referring to Mir.

The bank had said earlier on Monday that it was “operating in accordance with international sanctions regulations.”

Ankara, a NATO member, opposes Western sanctions against Russia in principle and has close ties to both Moscow and Kiev, its Black Sea neighbors.

Türkiye also condemned the Russian invasion and sent armed drones to Ukraine as part of its diplomatic balance.

However, diplomats say Western countries are increasingly concerned about?

The growing economic relations between Türkiye and Russia, especially after several meetings between Presidents Recep Tayyip Erdogan and Vladimir Putin, including last week in Uzbekistan.

Last month, the US Treasury sent a letter to major Turkish companies warning them of the potential for sanctions if they continued to trade with the sanctioned Russians.

Many Russians went to Türkiye after they had few travel options in the wake of their country’s invasion of Ukraine in February, and sanctions halted their use of US credit cards.

Russia describes its actions in Ukraine as a “special military operation”.

The Mir system is still used by three Turkish state banks.