Turkish President Tayyip Erdogan will convene a top-level meeting focused on the economy on Friday to discuss Russia’s Mir payment system and possible Western sanctions, two sources with knowledge of the matter told Reuters. The meeting with government officials and others will also discuss deals with Russia, the recent sharp volatility in Istanbul’s stock market and the general economic situation, the sources said, speaking on condition of anonymity. Two private Turkish banks, Denizbank and Isbank, suspended the use of Mir this week after Washington expanded its sanctions on Russia over its invasion of Ukraine, including targeting the head of the entity that manages the payments system. Ankara, a member of NATO, mainly opposes Western sanctions on Russia and has close ties to both Moscow and Kyiv, its Black Sea neighbors. It also condemned the Russian invasion and sent armed drones to Ukraine as part of its diplomatic balance. But Western countries are concerned about increased economic ties between Turkey and Russia, diplomats say, particularly after several meetings between Erdogan and President Vladimir Putin, including last week in Uzbekistan. Earlier on Thursday, the head of Russia’s National Card Payment System said Mir bank cards continued to operate in Turkey, despite the two banks suspending them. Russia’s central bank promised last week to expand the number of countries that accept its Mir cards. The US sanctions target individuals and entities accused of helping Moscow circumvent economic sanctions. Last month, the US Treasury Department sent a letter to major Turkish businesses warning that they risk sanctions if they maintain trade ties with sanctioned Russians. Earlier this week, a senior US government official said Washington expected more banks to cut Mir due to the risk of sanctions, and added that the suspension decisions by Isbank and Denizbank were very reasonable. Separately, on the Istanbul Stock Exchange, banking stocks have fallen sharply since last week after a strong rally since July, prompting the country’s clearinghouse to tweak risk parameters to ease pressure.
