Is your foreign energy company owed money in Turkey? Learn how to recover unpaid EPC invoices, energy-sector receivables and contractual debts through notices, mediation, enforcement proceedings, asset attachment, litigation and arbitration in Turkey in 2026.

Foreign energy companies operating or contracting in Turkey may face substantial payment problems even where the underlying project is commercially successful. An international EPC contractor may complete a construction milestone but remain unpaid. A foreign equipment supplier may deliver transformers, turbines, solar modules, battery systems or other equipment without receiving the final invoice amount. An engineering company may perform services while the Turkish project company delays payment for months.

For a foreign creditor, the most important mistake is usually waiting too long.

Debt recovery in Turkey can involve several different legal mechanisms, including direct enforcement proceedings, commercial litigation, mandatory mediation, provisional protective measures, attachment of debtor assets, arbitration, and recognition or enforcement of foreign judgments and arbitral awards.

The correct strategy depends on the contract, evidence, debtor’s financial position and location of recoverable assets.

Why Energy-Sector Debt Recovery Requires a Different Strategy

Energy receivables are often more complicated than ordinary unpaid invoices.

A debtor may refuse payment by alleging:

• EPC construction delay;
• defective equipment;
• performance shortfalls;
• incomplete commissioning;
• liquidated damages;
• warranty claims;
• failure to satisfy contractual milestones;
• disputed variations;
• set-off rights.

Accordingly, a foreign energy company should determine at the beginning whether the debt is genuinely undisputed or whether the debtor is preparing a substantive contractual defense.

That distinction can determine whether direct enforcement, litigation, arbitration or settlement is the most effective route.

Step 1: Review the Contract Before Starting Collection

The first step is a detailed contractual review.

Foreign creditors should identify the governing law, jurisdiction clause, arbitration agreement, payment terms, invoice procedure, contractual notice requirements, interest provisions, dispute escalation clauses, bank guarantees and limitation-of-liability provisions.

A contract governed by Turkish law with Turkish court jurisdiction may require a completely different strategy from an EPC contract providing for international arbitration.

The creditor should also determine whether the agreement contains mandatory negotiation, engineer determination, dispute-board or mediation requirements before proceedings may begin.

Step 2: Determine Exactly What Is Owed

The claim should be quantified before legal proceedings are initiated.

This sounds straightforward but can become complicated in energy projects.

The creditor may have claims for:

unpaid principal, contractual interest, default interest, variation payments, retention amounts, milestone payments, additional works, delay-related costs or other contractual compensation.

Each category should be supported separately.

An exaggerated demand can weaken negotiations and make later proceedings unnecessarily complicated.

Step 3: Collect the Evidence Immediately

Foreign companies should assemble a complete collection file.

Important evidence may include:

• signed contracts and amendments;
• purchase orders;
• invoices;
• delivery documents;
• acceptance certificates;
• progress certificates;
• commissioning records;
• correspondence;
• payment schedules;
• bank records;
• meeting minutes;
• variation orders;
• performance reports;
• acknowledgments of debt.

Email and commercial correspondence can be particularly important where the Turkish debtor has expressly acknowledged the amount owed.

The creditor should preserve original electronic records rather than relying only on screenshots.

Step 4: Check Whether the Payment Is Actually Due

Before enforcement begins, the creditor should confirm that the contractual payment date has passed.

Energy contracts frequently make payment conditional upon certification or achievement of milestones.

For example, an EPC payment may become due only after an engineer issues a progress certificate.

An equipment contract may require successful factory acceptance testing before payment.

The debtor may exploit uncertainty concerning these conditions.

The creditor should therefore establish precisely why the payment became due and on what date.

Step 5: Send a Formal Payment Demand

A carefully drafted payment demand can be useful before formal proceedings.

The demand should identify the agreement, invoice, amount, maturity date and legal basis of the claim.

It can also establish a final deadline for payment and reserve the creditor’s rights concerning interest, enforcement costs and litigation.

For substantial energy-sector debts, the notice should not be treated as an informal collection email.

Its wording may later become evidence.

Step 6: Investigate the Debtor Before Filing

Winning a case against an insolvent company may have limited commercial value.

A foreign creditor should therefore consider the debtor’s financial position before spending substantial resources on proceedings.

Relevant questions include whether the debtor has:

bank accounts, real estate, vehicles, machinery, receivables, company shares, project assets or other attachable property in Turkey.

The creditor should also investigate whether the company appears to be disposing of assets, facing multiple enforcement proceedings, undergoing restructuring or experiencing serious financial distress.

Debt recovery should be planned around collectability, not merely legal entitlement.

Step 7: Determine Whether Direct Enforcement Is Available

Turkey’s enforcement system permits monetary claims to be pursued through enforcement mechanisms in circumstances permitted by the Enforcement and Bankruptcy Law.

For certain unsecured monetary claims, a creditor may initiate enforcement without first obtaining a court judgment.

The debtor may then have statutory rights to object.

If an objection is validly filed, the creditor may need to pursue the appropriate procedure to overcome that objection before coercive collection continues.

For a foreign energy company, this route can sometimes provide substantial procedural pressure where the debt is clearly documented.

Step 8: Expect the Debtor to Object

Foreign creditors should not assume that initiating enforcement will automatically produce payment.

A Turkish debtor may dispute:

• the existence of the debt;
• the amount;
• signature;
• jurisdiction;
• maturity;
• interest;
• contractual performance.

The creditor must then decide how to challenge or overcome the objection.

The correct procedural route depends on the nature of the documents and claim.

This is why enforcement proceedings should be designed together with the expected next stage rather than initiated mechanically.

Step 9: Consider Mandatory Mediation

Commercial receivables may fall within Turkey’s mandatory mediation framework before certain lawsuits can be filed.

The mediation requirement must therefore be checked before commencing commercial litigation.

This does not mean that the creditor must accept a discount or settlement.

It means that completion of the required mediation process may constitute a procedural condition for bringing the relevant action.

For foreign companies, mediation can also provide an opportunity to negotiate accelerated payment, security or a structured repayment arrangement before expensive litigation begins.

Step 10: Demand Security During Settlement Negotiations

A settlement promise without security may simply create another period of delay.

If a financially distressed debtor requests installments, the foreign creditor should consider demanding appropriate protection.

Depending on the circumstances, this may include a bank guarantee, mortgage, pledge, acknowledgment of debt or another legally effective security arrangement.

The objective is not merely to obtain a promise to pay.

The objective is to improve recoverability if the debtor defaults again.

Step 11: File a Commercial Lawsuit Where Necessary

Where the debt is disputed and cannot be resolved through enforcement or settlement, litigation may be necessary.

The creditor must establish:

the contractual relationship, its own performance, maturity of the payment obligation, amount owed and legal basis for interest or additional claims.

The debtor may file counterclaims concerning defects, delay, liquidated damages or contractual non-performance.

Energy disputes can therefore evolve from apparently straightforward debt cases into technically complex commercial litigation.

Step 12: Consider Precautionary Attachment

One of the greatest risks in debt recovery is asset dissipation while proceedings are pending.

In appropriate circumstances, Turkish law provides protective mechanisms that may allow a creditor to seek measures against debtor assets before obtaining a final judgment.

The requirements are technical and fact-specific.

A creditor should therefore assess early whether there is a legally sufficient basis for seeking precautionary attachment or another interim protective measure.

Timing can be decisive.

If assets disappear before the creditor acts, a later favorable judgment may be difficult to collect.

Step 13: Attach Debtor Assets After Enforcement Becomes Possible

Once the creditor has the necessary enforceable position, collection may proceed against legally attachable assets.

Depending on the debtor and applicable rules, relevant targets can include bank funds, vehicles, real estate, commercial receivables and other property.

The enforcement strategy should prioritize assets that are both legally attachable and commercially valuable.

Attaching an asset with substantial senior security may produce little recovery.

Due diligence on asset value and existing encumbrances is therefore important.

Step 14: Consider Third-Party Receivables

A Turkish energy company may itself be owed money by other companies.

In appropriate enforcement circumstances, receivables owed to the debtor by third parties may become relevant to the collection strategy.

This can be particularly significant for companies with substantial ongoing commercial cash flows but limited unencumbered fixed assets.

A creditor should therefore analyze the debtor’s business model, not merely its balance-sheet assets.

Step 15: Examine Bank Guarantees

Energy contracts frequently contain performance guarantees, payment guarantees, parent-company guarantees, letters of credit or other security instruments.

If the unpaid amount falls within the scope of a valid guarantee, recovery against the guarantor may be more efficient than pursuing the financially distressed contractual debtor alone.

The guarantee must be reviewed separately from the underlying contract.

Its expiry date, maximum amount, demand conditions, governing law and required documents may determine whether payment can be obtained.

Step 16: Pursue the Parent Company Only Where a Legal Basis Exists

Foreign creditors sometimes assume that the parent company of a Turkish project company automatically becomes responsible for subsidiary debts.

That is generally not a safe assumption.

Separate legal personality matters.

A parent company may nevertheless become directly liable where it has provided a guarantee, assumed the debt or another recognized legal basis exists.

Corporate-group structures should therefore be investigated before claims are asserted against affiliated companies.

Step 17: Arbitration May Control the Dispute

Many international EPC, equipment-supply and energy investment contracts contain arbitration clauses.

If the payment dispute falls within a valid arbitration agreement, commencing ordinary court litigation without analyzing that clause can create jurisdictional problems.

The creditor should review the scope of the arbitration agreement and any pre-arbitration procedures.

An arbitral award may ultimately be enforceable against assets in Turkey subject to the applicable international and domestic enforcement framework.

Turkey recognizes the international framework for recognition and enforcement of foreign arbitral awards, including the New York Convention.

Step 18: Enforcing a Foreign Arbitral Award in Turkey

A foreign energy company may already have won arbitration outside Turkey but discover that the debtor’s principal assets are located in Turkey.

The next issue becomes enforcement.

The New York Convention establishes the international framework under which contracting states recognize and enforce qualifying foreign arbitral awards, subject to specified defenses. Turkey’s Ministry of Justice publishes the Convention among the international instruments relevant to arbitration and mediation.

The creditor should prepare the award, arbitration agreement and required translations and supporting documentation carefully.

Step 19: Enforcing a Foreign Court Judgment

A foreign court judgment is different from an arbitral award.

A judgment obtained abroad does not simply become a Turkish enforcement order because the creditor presents it to an enforcement office.

Recognition and enforcement requirements under Turkish private international law and any applicable international treaty must be examined.

International judicial cooperation may also affect service, evidence and procedural documentation. Turkey’s Ministry of Justice confirms that international civil judicial assistance can involve evidence, banking and accounting records, commercial documents, addresses and service of judicial documents.

Step 20: Foreign Creditors and Security for Costs

Foreign companies should also consider the security-for-costs rules applicable to foreign litigants and enforcement creditors.

Article 48 of Turkey’s International Private and Procedural Law provides for security by foreign natural or legal persons bringing proceedings, intervening in litigation or commencing enforcement, while also recognizing exemption based on reciprocity. Turkey’s Ministry of Justice maintains guidance concerning countries and arrangements relevant to this issue.

This should be checked at the beginning of the case rather than discovered after proceedings start.

Step 21: International Service of Documents

Cross-border cases can be delayed by defective service.

Turkey participates in international arrangements concerning service of judicial and extrajudicial documents, including the 1965 Hague Service Convention framework. The Ministry of Justice also explains that international service may be governed by multilateral conventions, bilateral agreements or reciprocity depending on the countries involved.

Foreign energy companies should therefore ensure that addresses, translations and procedural documents are accurate.

Step 22: Asset Transfers to Related Parties

A debtor experiencing financial difficulties may transfer valuable assets to shareholders, affiliates, relatives or other connected parties.

Such transactions should not automatically be assumed to be fraudulent.

However, suspicious transfers made in circumstances prejudicing creditors may require separate legal analysis under Turkish enforcement and insolvency rules.

The creditor should investigate unusual transactions early because statutory time limits and evidentiary requirements may apply.

Step 23: Insolvency and Restructuring Risk

Debt collection strategy changes dramatically if the Turkish debtor enters insolvency proceedings or restructuring.

Individual enforcement measures may be restricted or affected depending on the procedure.

A foreign creditor should immediately identify filing deadlines, creditor-registration requirements, security rights and the treatment of its claim.

Waiting for ordinary collection negotiations while formal insolvency proceedings advance can result in lost procedural opportunities.

Step 24: Foreign Currency Receivables

International energy contracts commonly denominate payments in euros or US dollars.

The creditor should determine whether the debt can be claimed in the contractual currency, how default interest is calculated and how currency conversion issues affect enforcement.

Exchange-rate movements can materially alter the economic value of a claim during a long dispute.

The claim should therefore be structured carefully from the outset.

Step 25: Do Not Ignore Limitation Periods

A company should never allow commercial negotiations to continue indefinitely without analyzing limitation periods.

Repeated statements such as “payment will be made next month” do not justify ignoring statutory deadlines.

The applicable limitation period depends on the legal characterization of the claim and relevant contract.

Foreign creditors should therefore obtain a limitation analysis as soon as a material receivable becomes overdue.

Step 26: 2026 Debt Recovery Strategy for Foreign Energy Companies

For 2026, an effective Turkish energy debt-recovery strategy should combine contract analysis, evidence preservation, debtor asset investigation, mediation requirements, enforcement options, interim measures, litigation or arbitration, and cross-border enforcement planning.

The best procedural route is not necessarily the most aggressive one.

If the debtor has valuable attachable assets today but faces financial distress, speed may be critical.

If the debtor is solvent but raises a technically complex EPC counterclaim, carefully prepared litigation or arbitration may provide greater leverage.

The strategy should therefore be based on both legal merits and actual collectability.

Frequently Asked Questions

1. Can a foreign energy company collect an unpaid invoice in Turkey?

Yes. Foreign companies can pursue contractual receivables in Turkey through the legally appropriate enforcement, litigation or arbitration mechanisms. Jurisdiction, the contract, evidence and debtor assets should be examined first.

2. Do I need a Turkish court judgment before starting debt collection?

Not in every case. Certain monetary claims may be pursued through Turkish enforcement procedures without first obtaining a judgment, although the debtor may object and force the creditor to take additional legal action.

3. What happens if the Turkish debtor objects to enforcement?

The effect depends on the type of proceeding and objection. The creditor may need to use the appropriate judicial procedure to overcome the objection before coercive collection can continue.

4. Can the debtor’s bank accounts be attached?

Bank funds may become a significant target in enforcement proceedings once the required legal conditions are satisfied. The precise procedure depends on the creditor’s enforceable position and applicable enforcement rules.

5. Can I freeze assets before winning the lawsuit?

Potentially. Turkish law provides interim protective mechanisms, including precautionary attachment in qualifying circumstances. The statutory requirements must be established and urgent legal action may be necessary.

6. Is mediation mandatory for commercial debt claims?

Certain commercial monetary claims are subject to mandatory mediation before litigation. The specific claim should be classified before filing the lawsuit to determine whether mediation is a procedural prerequisite.

7. Can a foreign arbitration award be enforced against assets in Turkey?

Potentially, yes. Turkey participates in the New York Convention framework for recognition and enforcement of foreign arbitral awards, subject to applicable requirements and defenses.

8. Can a foreign court judgment be directly enforced in Turkey?

Generally, a foreign judgment must satisfy the applicable Turkish recognition and enforcement framework before coercive enforcement can proceed. Relevant international treaties may also affect the analysis.

9. Can a foreign creditor be required to provide security in Turkey?

Potentially. Article 48 of the International Private and Procedural Law addresses security by foreign natural and legal persons commencing litigation or enforcement proceedings, with possible exemptions based on reciprocity.

10. What should a foreign energy company do immediately when a Turkish customer stops paying?

Review the contract, calculate the debt, preserve evidence, investigate the debtor’s financial position, identify available security, check limitation periods and determine whether enforcement, mediation, litigation, arbitration or an interim protective measure provides the strongest route.

Legal Support for Foreign Energy Companies Recovering Debts in Turkey

An unpaid energy-sector receivable can become substantially more difficult to recover if action is delayed. The debtor may dispose of assets, additional creditors may initiate enforcement, security may expire, or financial distress may develop into formal restructuring or insolvency.

Fırat Fesih Kaya provides legal assistance to foreign energy companies, EPC contractors, equipment manufacturers, renewable-energy developers, engineering companies, international suppliers and investors concerning unpaid invoices, commercial receivables, enforcement proceedings, precautionary attachment, debtor asset recovery, EPC payment disputes, bank guarantees, commercial litigation, arbitration and enforcement of foreign awards in Turkey.

Early legal intervention can help identify the debtor’s assets, preserve evidence and determine the fastest legally appropriate collection strategy before the creditor’s position deteriorates.

For a case-specific assessment of an unpaid EPC invoice, energy-sector receivable, contractual debt, arbitral award or other commercial claim against a company in Turkey, you may contact our office.

Phone: +90 312 434 22 22
Mobile: +90 532 769 22 22
Email: info@firatfesihkaya.av.tr
Address: Mevlana Boulevard No: 221, Yıldırım Tower No: 148, 06520 Balgat, Çankaya, Ankara, Turkey