Erdogan says US sanctions would ‘disrespect’ Turkey
ISTANBUL (Reuters) – President Tayyip Erdogan said on Friday US sanctions over Turkey’s purchase of Russian S-400 missiles would be disrespectful to a NATO ally, after sources said Washington was poised to take the step likely to further strain relations.
The report of imminent US sanctions targeting Turkey’s defence industry over missiles comes as EU leaders at a summit discussed separate sanctions against Turkish officials over gas exploration in disputed parts of the Mediterranean.
Both developments — examples of Erdogan’s long-strained relations with Western allies — have caused anxiety among investors. The US moves, earlier than expected and potentially wider in scope, are likely to have the greater immediate impact.
The lira tumbled nearly 2% after Reuters cited sources saying US sanctions are set to be announced as soon as Friday. The currency later rebounded as investors weighed up the impact.
The US measures under the Countering America’s Adversaries Through Sanctions Act (CAATSA) would be enacted by US President Donald Trump as President-elect Joe Biden prepares to take office on Jan. 20.
“For America to get up and confront Turkey with a matter like CAATSA is disrespectful to a very important NATO partner,” state-owned Anadolu agency cited Erdogan as saying.
In a later speech to officials from his AK Party, Erdogan took a more conciliatory tone, calling on both US and EU politicians to “break from the influence of anti-Turkey lobbies”.
“There are no issues that we cannot solve with dialogue and cooperation,” he said.
The lira, which has hit a series of record lows and is among the worst performers in emerging markets this year, weakened past 8 to the dollar for the first time in two weeks. By 1226 GMT it had rebounded to 7.89, flat on the day.
A 25% currency depreciation has worsened economic fallout from the coronavirus pandemic this year.
Ankara acquired the S-400 ground-to-air defences in mid-2019 and says they pose no threat to NATO allies. Washington disagrees, and last year removed Turkey from an F-35 jet programme.
