Following Russia's invasion of Ukraine, a series of significant payments was made from Russia to Turkey, purportedly intended to fund Turkey's inaugural nuclear power plant project. In reality, investigators found that these large transfers—totaling over $5 billion—were part of an elaborate scheme designed to bypass U.S. sanctions imposed on Russia’s central bank by using Turkey as an intermediary.
The investigation revealed that Russian technocrats routed billions of dollars through U.S. banks like JPMorgan Chase, transferring the funds to Turkey where they could be channeled to support state initiatives. Although JPMorgan and Citigroup are not being directly targeted by the investigation, approximately $2 billion in Russian funds remains trapped at JPMorgan due to halted transfers initiated by the U.S. government.
Initially, U.S. prosecutors intended to confiscate the money in 2024 on grounds of sanctions evasion, money laundering, and bank fraud. However, this action was postponed in the final stages of the Biden administration to avoid further straining the complex relationship with Turkey, a nation that remains a critical yet occasionally contentious ally. The ongoing scrutiny serves as a stark reminder of the challenges inherent in navigating international financial transactions amidst geopolitical tensions.