December 31, 2013 | Quoted by Jamie Dettmer, The Daily Beast

Turkey And Iran Accused Of Oil-For-Cash Sanctions Scheme

A massive unfolding corruption scandal in Turkey—which has already forced the resignations of three government ministers and threatens to upend the Islamist government of Prime Minister Recep Tayyip Erdogan— is fast acquiring an international dimension amid accusations that Iran is enmeshed in Ankara’s political crisis.

What started out as a domestic scandal involving shady real estate deals and allegations of bribery and kickbacks among the Erdogan government and its business allies is now expanding, with major international ramifications. Among the potential repercussions, analysts say: a potential destabilization in the delicate negotiations underway between the West and Iran over Tehran’s nuclear program.

The first hint of the Iranian angle in the corruption probes launched by Turkish police in the face of government obstruction came before Christmas when a complicated oil-for-gold deal between Turkey and Iran was unmasked.  The investigators didn’t set out to uncover the sanction-busting oil deal but say they were led to it by following a trail of cash bribes.

One of the benefits for Iranian firms of operating from Turkey is they are able to trade in European markets—which is often impossible when operating from inside Iran because of the sanctions, notes Emanuele Ottolenghi, a Senior Fellow at the Washington DC-based think tank the Foundation for Defense of Democracies. He says the hundreds of Iranian firms in Turkey are connected to “extensive global networks of Iranian-controlled companies involved in shipping, the gold trade, prepaid credit card sales, money transfer services and tourism industry services, including aviation and the purchase and sale of aircraft.”

Read the full article here.

Issues:

Iran Iran Sanctions Turkey