Exclusive: Top U.S. Treasury official to warn UAE, Turkey over sanctions evasion - Reuters

WASHINGTON, Jan 28 (Reuters) - The U.S. Treasury Department's apical sanctions authoritative connected a travel to Turkey and the Middle East adjacent week volition pass countries and businesses that they could suffer entree to G7 markets if they bash concern with entities taxable to U.S. curbs arsenic Washington cracks down connected Russian attempts to evade sanctions imposed implicit its warfare successful Ukraine.

Brian Nelson, undersecretary for coercion and fiscal intelligence, volition question to Oman, the United Arab Emirates and Turkey the week of Jan. 29 and conscionable with authorities officials arsenic good arsenic businesses and fiscal institutions to reiterate that Washington volition proceed to aggressively enforce its sanctions, according to a Treasury statement.

"Individuals and institutions operating successful permissive jurisdictions hazard perchance losing entree to G7 markets connected relationship of doing concern with sanctioned entities," the section said.

During the trip, archetypal reported by Reuters, Nelson volition sermon Treasury's efforts to ace down connected Russian efforts to evade sanctions and export controls imposed implicit its brutal warfare against Ukraine, Iran’s destabilizing enactment successful the region, illicit concern risks undermining economical growth, and overseas investment.

The travel marks the latest sojourn to Turkey by a elder Treasury authoritative to sermon sanctions, pursuing a drawstring of warnings past twelvemonth by officials, arsenic Washington ramped up unit connected Ankara to guarantee enforcement of U.S. curbs connected Russia.

STRAINED RELATIONS

Nelson's travel coincides with a play of strained ties betwixt the United States and Turkey arsenic the 2 NATO allies disagree implicit a big of issues.

Most recently, Turkey's refusal to green-light the NATO bids of Sweden and Finland has troubled Washington, portion Ankara is frustrated that its request to bargain F-16 combatant jets is progressively linked to whether the 2 Nordic countries tin articulation the alliance.

Nelson volition sojourn Ankara, the Turkish capital, and fiscal hub Istanbul connected Feb. 2-3. He volition pass businesses and banks that they should debar transactions related to imaginable dual-use exertion transfers, which could yet beryllium utilized by Russia's military, a Treasury spokesperson told Reuters connected Friday.

Dual-use items tin person some commercialized and subject applications.

Washington and its allies person imposed respective rounds of sanctions targeting Moscow since the invasion, which has killed and wounded thousands and reduced Ukrainian cities to rubble.

Turkey has condemned Russia's penetration and sent equipped drones to Ukraine. At the aforesaid time, it opposes Western sanctions connected Russia and has adjacent ties with some Moscow and Kyiv, its Black Sea neighbors.

It has besides ramped up commercialized and tourism with Russia. Some Turkish firms person purchased oregon sought to bargain Russian assets from Western partners pulling backmost owed to the sanctions, portion others support ample assets successful the country.

But Ankara has pledged that planetary sanctions volition not beryllium circumvented successful Turkey.

Washington is besides acrophobic astir evasion of U.S. sanctions connected Iran.

The United States last month imposed sanctions connected salient Turkish businessman Sitki Ayan and his web of firms, accusing him of acting arsenic a facilitator for lipid income and wealth laundering connected behalf of Iran's Revolutionary Guard Corps.

While successful the United Arab Emirates, Nelson volition enactment the "poor sanctions compliance" successful the country, the spokesperson said.

Washington has imposed a bid of sanctions connected United Arab Emirates-based companies implicit Iran-related sanctions evasion and connected Thursday designated a UAE-based aviation steadfast implicit enactment to Russian mercenary institution the Wagner Group, which is warring successful Ukraine.

In Oman, Nelson volition conscionable with counterparts to sermon practice connected countering illicit finance, including violent financing, the section said.

Reporting by Daphne Psaledakis and Humeyra Pamuk Editing by Don Durfee, Leslie Adler and Diane Craft

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