Turkey Imports $14.3M Worth of Annexed Ukraine Coal, Defying Western Sanctions
In a move defying Western sanctions, Turkey has imported approximately $14.3 million worth of coal from areas of Ukraine that have been annexed by Russia, according to Russian customs data reviewed by Reuters. The data revealed that between February and July of this year, around 160,400 tonnes of coal from the annexed eastern regions of Donetsk and Luhansk arrived in Turkey. Three producers listed in the customs data confirmed that they had shipped coal from these areas to Turkey during that period.
While the United States and European Union have imposed restrictions on trade with Russia and the annexed regions of Ukraine, Turkey, as a NATO member, has yet to follow suit. Despite being a key supporter of Ukraine’s efforts to fend off Russian aggression and repeatedly stating its recognition of Ukraine’s territorial integrity, Turkey has not imposed sanctions on the areas controlled by Moscow.
Turkey’s position is in contrast to that of the United States, which has warned companies against assisting Russia in its conflict with Ukraine or evading sanctions. However, Turkey’s Ministry of Trade and Customs Directorate did not provide any comment or clarification regarding the shipments.
According to the commercial trade data reviewed by Reuters, coal from at least 10 producers was sent to Turkey between February and July. Turkey stood as the primary destination for this coal, accounting for 95% of the shipments during this period. Turkey is a significant coal consumer and importer, presently increasing coal’s share in electricity generation. Official data shows that it produced 31.5 million megawatt hours (MWh) of electricity from imported coal in the first half of 2023, representing a 25% increase from the same period in 2022.
The sellers of the coal are registered in Russia and the annexed territories of Ukraine, as confirmed by the Interfax news agency’s Spark database of Russian companies. However, the buyers are companies registered in various offshore jurisdictions, including Hong Kong, the UAE, Belize, and the British Virgin Islands. No Turkish companies were listed as buyers. It remains unclear who the ultimate beneficiaries of the transactions are, as Reuters was unable to establish contact with the buyers.
Following Russia’s invasion of Ukraine in February 2022, the United States imposed sanctions on February 21, prohibiting imports from or exports to the so-called Donetsk and Luhansk People’s Republics. The European Union also announced measures that include an import ban on goods from these regions. Turkey, however, is not subject to the same restrictions. Nevertheless, the United States has sanctioned several companies, including some from Turkey, on the grounds that they support Moscow in its war against Ukraine.
The US State Department expressed awareness of reports on trade like this but refrained from commenting on the specific findings. The State Department spokesperson stated that they condemn any attempts by Russia to profit from the theft of Ukraine’s natural resources, emphasizing that Ukraine’s natural resources belong to the people of Ukraine. The European Commission declined to comment.
In conclusion, Turkey’s importation of annexed Ukraine coal has raised concerns and questions about its stance on Western sanctions against Russia. While Turkey has shown support for Ukraine’s territorial integrity and has played a role in mediating diplomatic efforts, its decision to continue coal imports from annexed areas may complicate its relationship with Western allies. However, the full extent of the impact and consequences of these imports remains to be seen.
