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(Correct title to UAE, Turkey, not Middle East, and add Turkey in 1st paragraph)
by Daphne Psaledakis and Humeyra Pamuk
WASHINGTON (Reuters) – The top U.S. Treasury Department sanctions official visiting Turkey and the Middle East next week will warn countries and companies that they could lose access to U.S. markets if they do business with U.S.-restricted entities as Washington cracks down on Russia is trying to evade sanctions over its war in Ukraine.
Undersecretary for Terrorism and Financial Intelligence Brian Nelson will travel to Oman, the United Arab Emirates and Turkey from January 29 to February 3 to meet with government officials as well as businesses and financial institutions, reiterating that Washington will continue to vigorously enforce its sanctions, a Treasury spokesman told Reuters.
“Individuals and institutions operating in permissive jurisdictions may lose access to U.S. markets due to doing business with sanctioned entities or failing to conduct proper due diligence,” the spokesperson said.
While in the region, Nielsen will discuss Treasury’s efforts to combat Russia’s evasion of sanctions and export controls imposed in response to its brutal war against Ukraine, Iran’s destabilizing activities in the region, and illicit financial risks that undermine the economy growth and foreign investment.
Following a series of warnings from U.S. Treasury and Commerce officials last year, the visit marks the latest visit by top Treasury officials to Turkey to discuss sanctions as Washington ramps up pressure on Ankara to ensure U.S. restrictions on Russia .
tense relationship
Nelson’s trip comes amid tensions between the United States and Turkey, as the two NATO allies disagree on a range of issues.
More recently, Washington has been rattled by Turkey’s refusal to approve Sweden and Finland’s proposals to join NATO, while Ankara has become frustrated that its request to buy F-16 fighter jets is increasingly tied to the two Nordic nations’ ability to join the alliance.
Nielsen will visit Ankara, the capital of Turkey, and Istanbul, the financial center, from February 2 to 3. The spokesman said he would warn companies and banks that they should avoid deals related to the potential transfer of dual-use technology that could end up being used by the Russian military.
Dual-use items can have both commercial and military uses.
Washington and its allies have imposed multiple rounds of sanctions on Moscow since the invasion, which has killed thousands and left Ukrainian cities in ruins.
Turkey condemned the Russian incursion and sent armed drones to Ukraine. At the same time, it opposes Western sanctions against Russia and has close ties with Black Sea neighbors Moscow and Kyiv.
It also strengthens trade and tourism with Russia. Some Turkish companies have bought or attempted to buy Russian assets withdrawn due to sanctions from Western partners, while others have retained significant assets in the country.
But Ankara has pledged not to evade international sanctions in Turkey.
Washington also worries about U.S. evasion of sanctions on Iran.
The United States last month imposed sanctions on prominent Turkish businessman Sitki Ayan and his network of companies, accusing him of facilitating oil sales and money laundering by Iran’s Revolutionary Guard Corps.
While in the United Arab Emirates, Nelson will notice “poor sanctions compliance” in the country, the spokesman said.
Washington has imposed a series of sanctions on companies based in the United Arab Emirates for evading Iran-related sanctions and on Thursday designated a UAE-based airline to support Wagner Group, a Russian mercenary company fighting in Ukraine.
(Reporting by Daphne Psaledakis and Humeyra Pamuk, editing by Don Durfee and Leslie Adler)
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