Foreign Arbitration Pending but Assets Are Located in Turkey: Can the Creditor Obtain an Injunction? – 2026 Updated Guide

Learn how foreign creditors can seek injunctions, precautionary attachments and evidence protection in Turkey while an international arbitration is pending.

A foreign creditor may be able to obtain an injunction or other interim measure in Turkey even when the main dispute is being resolved through arbitration in another country. This is particularly important when the debtor owns Turkish real estate, bank accounts, shares, receivables, goods or machinery that could be transferred before the arbitration ends.

The Turkish court does not necessarily decide the merits of the arbitration dispute. Its role may be limited to protecting assets or evidence until the arbitral tribunal issues a final decision. However, the creditor must prove urgency, present a credible claim and comply with procedural and security requirements.

Can a Foreign Creditor Request an Injunction in Turkey?

Yes. The existence of a foreign arbitration agreement does not automatically prevent a creditor from applying to a Turkish court for urgent protection.

A Turkish court may assist with assets and evidence located within Turkey, even when the arbitration has a foreign seat. This may include an interim injunction, precautionary attachment, evidence preservation or measures preventing the transfer of specific assets.

The application should clearly explain that the foreign creditor is not asking the Turkish court to decide the commercial merits. It is requesting temporary protection so that the future arbitral award does not become impossible or difficult to enforce.

What Is the Difference Between an Injunction and a Precautionary Attachment?

An injunction generally protects a non-monetary right or prevents a specific action. For example, it may be used to prevent the sale of a particular property, the transfer of company shares or the destruction of commercial records.

A precautionary attachment is more commonly associated with monetary claims. It may help preserve assets so that a future payment claim can be collected. Depending on the circumstances, it may concern bank accounts, receivables, vehicles, shares, inventory or other identifiable assets.

The appropriate remedy depends on the nature of the claim. A creditor should not request a general and unlimited measure when a narrower asset-specific application would be sufficient.

What Conditions Must the Creditor Satisfy?

A foreign creditor generally needs to establish four central elements:

• A credible contractual or legal claim.
• An urgent risk requiring immediate protection.
• A risk that ordinary arbitration or enforcement will not provide effective protection in time.
• A proportionate connection between the requested measure and the threatened asset.

The creditor should provide documents showing the underlying debt, breach, contractual obligation or liability. A mere suspicion that the debtor may become insolvent may be insufficient unless supported by objective evidence.

The court may also require security. This is intended to protect the debtor against potential losses if the interim measure is later found to have been unjustified.

Does Pending Arbitration Prevent Turkish Court Assistance?

No. Arbitration and court assistance can operate together. The arbitral tribunal may have authority to order interim measures under the selected arbitration rules, while a Turkish court may be needed to implement protection against assets located in Turkey.

If the arbitral tribunal has already been constituted, the creditor should first review the tribunal’s authority and the applicable arbitration rules. In urgent circumstances, a Turkish court application may still be necessary where enforcement powers or local asset protection are required.

The creditor should expressly reserve its arbitration rights in the Turkish court application. Seeking a temporary measure should not be presented as acceptance of Turkish court jurisdiction over the merits.

Which Turkish Assets Can Be Protected?

The type of available protection depends on the asset and the evidence of risk. Potential targets may include:

• Turkish bank accounts.
• Real estate and land interests.
• Company shares.
• Vehicles, machinery and inventory.
• Receivables owed by Turkish customers.
• Goods held in warehouses.
• Contractual payment rights.
• Corporate records and digital evidence.

The creditor should identify the assets as precisely as possible. Applications are generally stronger when they explain the ownership connection, location, value and immediate risk of transfer.

Where third-party rights are involved, additional care is required. A bank, warehouse operator, purchaser or customer may have independent rights that the court must consider.

What Evidence Shows a Risk of Asset Dissipation?

The strongest applications usually rely on concrete evidence rather than general allegations. Relevant evidence may include:

• Recent transfers to related companies.
• Sales of property below market value.
• Closure of offices or business locations.
• Unpaid debts to multiple creditors.
• Attempts to move goods outside Turkey.
• Sudden changes in company management.
• Notices of liquidation or business closure.
• Emptying of bank accounts.
• Unusual payments to shareholders or directors.
• Communications indicating that assets will be transferred.

Bank records, invoices, corporate documents, title records, payment instructions, accounting data and commercial correspondence may help establish the risk.

The creditor should preserve original electronic records. Emails, cloud files, electronic signatures, online accounting systems and messaging records may be relevant in 2026 proceedings.

Can the Creditor Freeze a Turkish Bank Account?

A foreign creditor may request protection concerning a Turkish bank account where the legal and factual conditions are satisfied. However, the court does not automatically freeze every account merely because arbitration is pending.

The creditor should show the basis of the monetary claim, the urgency of the request and the risk that funds will be withdrawn or transferred. The amount requested should generally correspond to the claim, interest and reasonably recoverable costs.

A court may require security before granting the measure. The creditor should also be prepared to take the necessary enforcement steps after the order is issued.

Can Turkish Real Estate Be Subject to an Injunction?

Yes, Turkish real estate may be protected in appropriate cases. A creditor may seek measures preventing a sale, transfer or other transaction where there is a direct connection between the property and the claim.

The application should include title information, ownership records, contractual documents and evidence of the threatened transaction. A general request covering unrelated properties may be challenged as disproportionate.

An injunction concerning real estate may protect the creditor’s position temporarily, but it does not automatically transfer ownership or establish a final property right.

Can an Emergency Arbitrator Also Grant Protection?

Some arbitration institutions allow a party to request an emergency arbitrator before the main tribunal is constituted. If the tribunal is already operating, the tribunal itself may have authority to issue interim measures under the applicable rules.

An emergency arbitrator’s order may be commercially useful, but practical enforcement against Turkish assets may still require Turkish court assistance. The creditor should therefore assess both the arbitration mechanism and local enforcement requirements.

In urgent cases, the most effective strategy may involve obtaining an arbitral order and seeking a Turkish court measure designed specifically for assets located in Turkey.

What Happens If the Debtor Challenges the Injunction?

The debtor may request that the measure be removed, narrowed or modified. It may argue that there is no urgency, that the claim is weak, that the measure is excessive or that the creditor failed to provide sufficient security.

The creditor should be prepared to explain why the protection remains necessary and why the requested scope is proportionate. If the creditor fails to commence or continue the main arbitration within the required period, the interim measure may lose its effect.

If the debtor violates the order by transferring assets or destroying evidence, the creditor should document the violation immediately and notify the relevant court or tribunal.

Practical Procedure for Foreign Creditors

A foreign creditor should act according to a coordinated plan:

1. Review the arbitration agreement and applicable rules.
2. Confirm the arbitration seat and current procedural stage.
3. Identify Turkish assets and evidence.
4. Collect documents proving the claim and urgency.
5. Choose between tribunal relief, Turkish court protection or both.
6. Prepare corporate authorization and power of attorney documents.
7. Assess possible security requirements.
8. File the urgent application before assets are transferred.
9. Take the necessary steps to implement the order.
10. Continue the foreign arbitration and prepare for enforcement of the award.

Foreign corporate documents may require authentication, translation or other formalities before they can be used in Turkey. A Turkish lawyer can coordinate the local proceedings with the foreign arbitration team.

Lawyer Fırat Fesih Kaya assists foreign creditors with injunctions, precautionary attachments, asset tracing, arbitration support and enforcement proceedings in Turkey.

Frequently Asked Questions (FAQ)

1. Can a foreign creditor obtain an injunction in Turkey during arbitration?

Yes. A creditor may request temporary protection for assets or evidence located in Turkey, provided that the legal requirements are satisfied.

2. Does a foreign arbitration clause prevent Turkish court applications?

No. Turkish courts may still provide limited assistance concerning Turkish assets, evidence and enforcement.

3. Can a Turkish bank account be frozen before an arbitral award?

In appropriate circumstances, the creditor may request a precautionary attachment or similar protection before receiving a final award.

4. What evidence is needed for an injunction?

The creditor should present evidence of a credible claim, urgency, a real risk of harm and the proportionality of the requested measure.

5. Is security required from the foreign creditor?

The court may require security to protect the debtor against losses if the measure is later considered unjustified.

6. Can Turkish real estate be protected during foreign arbitration?

Yes, if the creditor establishes a sufficient legal connection to the property and demonstrates a risk of transfer or other harm.

7. Does applying for an injunction waive arbitration rights?

Not necessarily. The application should state that it seeks only interim protection and does not waive the arbitration agreement.

8. Can an emergency arbitrator protect assets in Turkey?

An emergency arbitrator may issue an order where the applicable rules allow it, but Turkish court assistance may still be needed for coercive measures against local assets.

9. What if the debtor transfers assets after receiving the injunction?

The creditor should preserve evidence of the violation and promptly inform the court, tribunal and relevant enforcement authorities.

10. How quickly should a foreign creditor act?

The creditor should act immediately. Delays may allow the debtor to transfer, conceal or devalue assets before protection is obtained.

This article is provided for general informational purposes only and does not constitute legal advice. We recommend consulting a lawyer about your specific circumstances to avoid any loss of rights.

Legal Support for Foreign Arbitration and Asset Protection in Turkey

Foreign creditors facing asset-transfer risks should obtain urgent legal assistance before the debtor’s assets disappear. Fırat Fesih Kaya Law Office provides professional legal support throughout Turkey and internationally for injunctions, precautionary attachments, arbitration proceedings, asset tracing and enforcement of foreign arbitral awards.

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