ISTANBUL - President Tayyip Erdogan said on Friday U.S. sanctions over Turkey’s purchase of Russian S-400 missiles would be disrespectful of a NATO ally, after sources said Washington was poised to take the step likely to worsen bilateral relations.
Turkey’s lira tumbled nearly 2% after Reuters, citing sources, reported U.S. sanctions are set to be announced as soon as Friday and target Turkey’s Defence Industries Directorate.
They would be enacted by U.S. President Donald Trump as President-elect Joe Biden prepares to take office on Jan. 20, and could test diplomacy already strained by disputes ranging from the conflict in Syria to a Turkish cleric living in exile in the United States.
“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 of the so-called CAATSA sanctions, which target weapons deals with Moscow.
“After the U.S. transfer of power we will no doubt see the trend much more clearly,” Erdogan added of the coming Biden presidency. “So it is for us to be patient and see.”
Turkey’s economy and ties with the West could come under more pressure from a separate agreement by European Union leaders to apply sanctions over offshore Mediterranean claims - another move rejected by Ankara.
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.
A 25% currency depreciation has worsened economic fallout from the coronavirus pandemic this year, and exacerbated Turkey’s depleted FX reserves and double-digit inflation.
Ankara acquired the S-400 ground-to-air defences in mid-2019 and says they pose no threat to allies and will not be integrated into North Atlantic Treaty Organisation (NATO) defences. Washington says the S-400s are a threat and last year removed Turkey from a F-35 jet programme. (Reuters)