Russia's defence ministry says it has proof the Turkish President and his family are benefiting from the illegal smuggling of oil from Islamic State-held territory.
The war of words began when a Turkish air force jet shot down a Russian military plane near the Syrian-Turkish border.
It's the most serious incident between Russia and a NATO state in half a century.
Russian Defence ministry officials have displayed what they claim are satellite images showing thousands of oil trucks streaming from IS-controlled facilities in Syria and Iraq into Turkish sea ports and refineries.
Russia also accuses Turkish President Recep Tayyip Erdogan and his family of profiting from the alleged trade.
Russia's Deputy Defence Minister, Anatoly Antonov, says IS makes $2.7 billion (US) a year from the trade.
"Turkish leaders, including President Erdogan, won't step down. And they won't acknowledge anything even if their faces are smeared with the stolen oil."
Russian officials say there are three main routes by which oil and oil products travel from Islamic State territory into Turkey.
They say the satellite pictures reveal there are no inspections carried out on the vehicles.
Russia says the information released is only part of the evidence they possess, and they will release further intelligence in the next days and weeks.
President Erdogan denies that Turkey procures oil from anything other than legitimate sources.
"No one has the right to slander Turkey by accusing it of buying oil from Daesh. Turkey has not lost its values so much as to buy oil from a terrorist organisation. I said this in Paris as well. Those who slander Turkey need to prove it. If they can prove their allegations I will not remain in my post as the President even for a minute. But those who make these slanders should not remain in their posts either."
The United States has categorically rejected Russia's claim that the Turkish government is in league with I-S militants to smuggle oil.
State Department spokesman Mark Toner says while illegal oil supplies may be making their way into Turkey, the Turkish government isn't involved.
"We reject outright the premise that the Turkish government is in league with ISIL to smuggle oil across its borders. And we frankly see no evidence, none, to support such an accusation. Talking more broadly about oil-smuggling, some of them (smuggling routes), no doubt, probably lead to parts of Turkey. I can't categorically rule that out. But it's not what was implied, which is that the Turkish government is somehow complicit in this arrangement, that's just untrue."
