HUŞ KAPLAMARotary-cut birch veneer from Russia

Paying a supplier in Russia: channels and KKDF

Turkey is not a party to the sanctions, but Turkish banks apply strict compliance to transfers heading for Russia because of secondary-sanctions exposure — so the problem is not a prohibition, it is a bank's reluctance. In practice there are three channels: direct SWIFT (works at some banks, 7–15 days, a high minimum fee), a USD or EUR transfer through a payment agent (10 minutes to 3 working days, and by far the most used route), and the letter of credit, which does not really work because no confirming bank can be found for a Russian beneficiary. Timing is money too: pay in advance, before the customs declaration is registered, and the 6% KKDF (Resource Utilisation Support Fund) levy never arises — on a 100,000 USD lot that is 6,000 USD.

6%
KKDF rate
on deferred payment only
6,000USD
Saved on a 100,000 USD lot
prepayment instead of deferral
3days
Payment agent
10 minutes to 3 working days
20–30%
Advance on the first deal
balance against the bill of lading
KKDF
6%
payment agent
10 min – 3 days
direct SWIFT
7–15 days
SWIFT minimum fee
from ~300 EUR
letter of credit
does not work
currency
USD or EUR
refund if refused
5–15 working days
code on the proforma
4408.90

The real name of the problem: not a ban, a reluctance

Almost everything written on this subject falls into one of two extremes — «you cannot send money to Russia» or «there is no problem at all». Both are wrong.

The legal position. Turkey is not a party to the sanctions against Russia. Importing wood and veneer is permitted under Turkish law, and there is no special restriction on GTİP (Turkish customs tariff code) 4408.90.

The banking position. Turkish banks have to protect their correspondent relationships with US banks. The secondary-sanctions regime that came into force in December 2023 allows foreign financial institutions to be targeted over transactions connected with the Russian military-industrial complex. The result: a bank assesses risk transaction by transaction rather than customer by customer, and when in any doubt it prefers to refuse.

The practical conclusion. The payment channel is a clause of the contract no less important than the price, and one of the first three questions to ask when choosing a supplier.

Three channels, three risk profiles

ChannelTimeTypical costWhen it worksWhere the risk sits
Direct SWIFT7–15 daysHigh minimum fee (of the order of 300 EUR)If your bank’s foreign trade desk has agreed in advanceGetting stuck at the correspondent bank; the money can sit in transit for weeks
Payment agent10 minutes – 3 working daysA percentage of the amountThe most widely used routeThe intermediary itself; with a weak document chain the payment is hard to prove
Letter of creditPractically neverNo confirming bank is available for a Russian beneficiary

When you pay: the 6% line item

Just as important as the channel is the moment the payment is made.

KKDF, the Resource Utilisation Support Fund, is levied at 6% of the transferred amount on imports made on deferred payment terms. Cash against documents, a deferred letter of credit and payment against acceptance are all forms of deferral. If the payment clears before the customs declaration is registered, KKDF does not arise.

A 100,000 USD lotDeferredPrepaid
Value of goods100,000 USD100,000 USD
KKDF at 6%6,000 USD0 USD
KDV (Turkish VAT) at 20%, allowing for the difference in basehigherlower

So prepayment is not a discount squeezed out of a supplier — it is a direct saving on payments to the state, and in absolute terms it is usually larger than the per-cubic-metre discount people spend the negotiation arguing over. The full calculation is on the customs page.

The bank’s compliance pack: assemble it in advance

Most refusals are caused by missing documents rather than by politics. The bank will ask for the following — have the whole set ready before the transaction starts.

DocumentWhy the bank wants it
Signed sale contractShows the commercial purpose of the transaction
Proforma invoiceAmount, currency, delivery terms
The tariff code stated (4408.90)Shows the goods are not dual-use
Certificate of originGeneral form of the Russian Chamber of Commerce and Industry
Seller’s registration documentsBeneficiary identity and sanctions-list screening
End-use statementExplains that the goods are an industrial input

Payment structure: how to split the risk

Prepayment zeroes out KKDF, but it puts the whole risk on the buyer. The structure usually used on a first transaction is a split payment.

  1. Contract signature — a 20–30% advance to plan production and loading.
  2. Loading — loading photographs, the weighing note and the moisture measurement record are sent.
  3. Balance against the bill of lading — the remainder once the bill of lading and shipping documents are presented.

For KKDF purposes this counts as prepayment, because the payment is completed before the declaration is registered, yet the risk is spread across stages. In the contract, write out one by one which document each stage is tied to.

What to do on the first transfer

  1. Talk to your bank’s foreign trade desk beforehand. Show them the draft contract and the tariff code, and ask for written confirmation.
  2. Start small. Make the first transfer the advance instalment rather than the full amount — it is the cheapest way to confirm the channel works.
  3. Keep a fallback channel ready. Channels closing is routine; do not tie your shipping schedule to a single route.
  4. Fix the exchange rate. The currency, the rate and the rate date all have to be stated clearly in the contract.
  5. Keep the document chain. The payment order, proforma, contract and bill of lading belong in one file — on the next transaction the bank will ask for the same pack again.

What we do on our side

We confirm the payment channel separately for every transaction and say plainly, before the contract, which route is working at that moment. Saying a channel is closed is better than hiding it and letting the shipment slip: a buyer who finds out about a payment problem on the first delivery does not make a second one.

The full list of questions worth putting to a supplier is on the supplier selection page.

FAQ

Frequently asked questions

Is it legal to pay a supplier in Russia from Turkey?

Yes. Turkey is not a party to the sanctions against Russia, and importing wood is permitted under Turkish law. The difficulty is not legal but banking: Turkish banks apply their own compliance rules so as not to put their correspondent relationships at risk under the secondary-sanctions regime the United States brought into force in December 2023.

Which bank will make a transfer to Russia?

There is no permanent answer to that question, and if you find a ready-made list online, do not trust it. Policy differs from bank to bank and even between branches of the same bank, and it can change within months. The right approach is to get written confirmation from your own bank's foreign trade desk and to keep a second channel ready in parallel.

What is a payment agent, and is it safe?

An intermediary company registered in a third country that puts the transfer through its own accounts. In Turkey–Russia trade this is the most widely used route; it takes between 10 minutes and 3 working days. The risk is the intermediary itself: insist on the chain of documents showing the money reached the seller named in the contract, and keep the first transaction small.

Can we use a letter of credit?

In practice, no. A letter of credit needs a bank in the beneficiary's country willing to confirm it, and for a Russian beneficiary a confirming bank is extremely hard to find in current conditions. That is why trade with Russia uses prepayment or a split payment — an advance plus the balance against the bill of lading — instead.

Why does prepayment work in the buyer's favour?

Because of KKDF. The Resource Utilisation Support Fund is levied at 6% of the transferred amount on imports made on deferred payment terms; if payment clears before the customs declaration is registered, it does not arise at all. On a 100,000 USD lot that is a straight 6,000 USD. This is not a concession we are asking you for — it is your own tax saving.

Which currency is used?

USD or EUR, as a rule. Write the currency and the rate date into the contract explicitly: if a rouble list price is being converted into dollars, the question of which day's rate applies is the single most common source of arguments afterwards.

What happens if the transfer is refused?

The money usually returns to your account within 5–15 working days, but the fees are not refunded and the shipping schedule slips. Which is why three things matter: a small trial transaction first, a second channel ready to go, and a contract clause stating that a payment delay does not automatically cancel the shipment.

Tell us the format, thickness and monthly volume

We will work out the cubic metres per container, the freight to your port and the lead time. We answer during Turkish business hours, in Turkish, English and Russian.

Author: Andrey, Turkey representative, HUŞ KAPLAMA · Published: · Updated: