Turkey rejected the US warning about the trade with Russia

“Turkey is one of the most powerful political and economic countries in the world. Our business world should always feel the power of the state on its side,” he wrote on Twitter on Friday morning.

The response comes amid growing concern in Washington that Turkey is becoming a safe haven for Russian oligarchs to stash their assets after the Kremlin launched an invasion of Ukraine in February.

In addition, Turkey has strengthened its economic ties with Moscow in recent months, buying more Russian crude oil and increasing export substitution for goods that Russians cannot buy from the West.

US Treasury Undersecretary Wally Adeyemo warned two Turkish trade associations on Monday that Turkish companies could face sanctions if they do business with selected Russian individuals and institutions, The Wall Street Journal reported.

The letters intensified US pressure on Turkey to comply with sanctions imposed on Russia over its invasion of Ukraine. Turkey was the only member of the North Atlantic Treaty Organization to choose not to impose sanctions on Russia during the war, in part to protect its vulnerable economy from the fallout from the conflict.

Turkish President Recep Tayyip Erdogan expressed his desire to strengthen economic cooperation with Russia in early August, promising to pay for Russian gas in rubles and expand the Russian card payment system in Turkey.

US officials have privately expressed concern that the Russians are using Turkey as a safe haven for hundreds of millions in assets, including money, land, industrial plants, homes and yachts.

After the US and its allies imposed sanctions following the Ukraine war, Russia has turned to Turkey to reduce its international isolation. Russia has imported from Turkey everything from kitchen appliances to clothing and industrial goods to replace imports from Europe.

Turkey needs foreign currency after last year’s crisis after the country’s central bank cut interest rates under pressure from Mr. Erdogan.

The US imposed sanctions on Turkey’s Defense Production Agency in 2020 after Mr Erdogan chose to buy Russia’s S-400 air defense system. Turkey’s Halkbank is facing criminal charges in New York over a purchase that has strained ties with the US. Iran has evaded sanctions. The bank rejected the suit and the case was put on hold at the Court of Appeal in January.

Financial analysts say Turkey’s response will probably do little to ease concerns about US sanctions violations.

“The concern will be a bit of a green light to continue the Turkish business,” said Timothy Ash, senior emerging markets strategist at BlueBay Asset Management in London. “The United States wanted something stronger.”

Write Jared Malsin at jared.malsin@wsj.com