RE: Always a Way............"Dependency"27 Sep 2023 12:09
Turkey has not joined western sanctions on Russia and has retained close diplomatic and economic ties with Moscow since Vladimir Putin launched a full-scale invasion of Ukraine. Russia is a pivotal trade partner for Turkey, which needs to import large amounts of energy to fuel its $900bn economy.
Turkey’s energy and natural resources ministry and Haldivor Energy did not respond to requests for comment. Glencore has no other prewar supply contracts in place, according to people familiar with the matter.
Large western trading houses such as Glencore, Trafigura and Mercuria are having to tread carefully between western sanctions in support of Ukraine and European policymakers’ desire to mitigate the harm inflicted on their economies by limiting access to Russian raw materials.
European officials have said that trade with Russia through third countries such as Turkey, China and the UAE is hampering the effectiveness of western sanctions.
“Imports and exports via third countries is the problem the EU is having with sanctions implementation,” said an Italian government official.
Imports of Russian copper by Turkey have nearly tripled to 159,000 tonnes in the first seven months of 2023 compared with the same period a year earlier, according to Trade Data Monitor. This accounts for a third of the country’s imports of the red metal.
CRU Group, a research firm, estimates that overall Turkish imports of copper cathode and wire rod at 330,000 tonnes were 125,000 tonnes higher year on year in the first six months of 2023, which it says is “far in excess of domestic requirements”.
Italy has become Turkey’s largest export destination for copper, growing 3 per cent in this year, compared with steep falls for Germany, and the UK. This points to Italy becoming an integral part of the trade route for Russian copper, said experts.
Glencore continues to trade Russian aluminium under a multiyear supply deal with producer Rusal, a contract that chief executive Gary Nagle expects to expire by the end of next year, depending on the volumes traded.
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