**Russia Used US Banks to Send Billions to Turkey, WSJ Reports**
A U.S. Justice Department investigation found that Russia sent billions of dollars through American banks to Turkey in 2022. The funds were used to support the Akkuyu nuclear power plant project, which helped Russia evade sanctions.
The investigation revealed that JPMorgan Chase and Citigroup facilitated over $5 billion in transfers linked to the Russian-backed project. At least $2 billion of these funds were later frozen by U.S. authorities.
**Suspicious Transactions**
The Justice Department suspects that the scheme was orchestrated at high levels in Moscow. The Bank of Russia secretly funded a $9 billion loan through Gazprombank, allowing Russian money to flow into Turkey while avoiding direct transactions with sanctioned entities. Officials believe the transfers were designed for nuclear construction and to create an offshore dollar reserve for Russian state initiatives.
**Diplomatic Concerns**
Despite prosecutors’ efforts to seize the frozen funds in 2024, the Biden administration halted the case due to concerns about diplomatic fallout with Turkey, a NATO ally. The White House and State Department worried that legal action could strain cooperation on prisoner exchanges, counterterrorism, and Middle East stability.
**Turkey’s Role**
Turkey has refused to impose sanctions on Russia and has expanded trade with Moscow while providing weapons to Ukraine. The country’s financial system benefited from the Russian transfers as the Turkish central bank sought to stabilize the lira amid inflation.
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