An Israeli steel and scrap metal company has gone bankrupt after Türkiye’s comprehensive trade ban on Israel, imposed in response to the ongoing genocide in Gaza.

The Shaul Gueta Company, headquartered in the southern Israeli port city of Ashdod, declared bankruptcy this week following a dramatic collapse in exports, the majority of which had been destined for Türkiye. The company specialized in collecting, purchasing, sorting, crushing, and exporting scrap metal to foreign clients—mainly Turkish industrial buyers.

According to financial filings, the firm’s total debts have reached approximately 105 million shekels (over $32 million), with revenue plummeting from 200 million shekels ($61 million) in 2022 to just 35 million shekels ($11 million) in the first half of 2025. Around 70% of its sales had relied on exports to Türkiye, which were halted following Ankara’s trade embargo.

The Beersheba District Court appointed attorney Doron Tishman as trustee to oversee the company’s liquidation or restructuring process. Major creditors include the International Bank (18 million shekels), Bank Hapoalim (15 million), Mercantile Bank (11 million), and Mizrahi-Tefahot Bank (1.5 million). Additional debts were listed to Max credit card company (5 million) and non-banking firms S.R. Accord and Ampla (4 million each).

Company representatives told the court that the drastic drop in sales was primarily due to Türkiye’s decision to suspend all commercial ties with Israel in reaction to Tel Aviv’s ongoing military campaign in Gaza. “Our entire export structure was built on trade with Türkiye. The embargo completely cut off our primary market,” the firm said in its filing.

Türkiye had already reduced trade with Israel by about 30% in the months following Israel’s assault on Gaza. On May 2, 2024, Ankara announced a full halt to exports, imports, and transit trade with Israel—covering all product categories and ending customs and free-zone transactions.

The embargo, described by Turkish officials as a moral and political response to Israel’s “genocidal war” in Gaza, has led to growing economic pressure on Israeli industries dependent on Turkish materials and markets.

Since October 8, 2023, Israel’s genocidal aggression on Gaza has left over 68,000 Palestinians dead and 170,000 wounded, with nearly 90% of the enclave’s civilian infrastructure destroyed. (ILKHA)