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Turkish defense industry risks big damage from US sanctions

The US sanctions targeting Turkey’s defense industry agency may be seen as rather mild by some observers, but they threaten to deprive Turkey of key military technology should they last more than a year.

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A Turkish T129 ATAK attack helicopter flies over US and Turkish military vehicles during a joint patrol in the Syrian village of al-Hashisha on the outskirts of Tell Abyad town along the border with Turkey, on Sept. 8, 2019. US objections to the export of US technology used in the T129 are already hurting Turkish military sales and new US sanctions on Turkey linked to Turkey's S-400 purchase seem likely to hurt the Turkish military industry even more. — DELIL SOULEIMAN/AFP via Getty Images

The new US sanctions against Turkey over its purchase of Russian air defense systems stand to inflict heavy damage on the flourishing Turkish defense industry unless Ankara moves to compromise with Washington to limit the duration and impact of the penalties.

The sanctions, based on the Countering America's Adversaries Through Sanctions Act (CAATSA), were announced Dec. 14, more than a year after Turkey took delivery of the S-400 systems from Russia. President Donald Trump — long under fire for going easy on his Turkish counterpart Recep Tayyip Erdogan — actually surprised Ankara by greenlighting the sanctions weeks before his term expires.

The decision made Turkey the first NATO ally to face sanctions under CAATSA and the second country after China to be penalized for purchasing the S-400s, sending a strong signal to other countries that have shown interest in the S-400s such as India and Qatar. Secretary of State Mike Pompeo said Washington has demonstrated its resolve to “fully implement CAATSA” and “not tolerate significant transactions with Russia's defense sector.”

The sanctions include a ban on US export licenses to Turkey’s Presidency of Defense Industries (SSB) — the government agency in charge of military procurement and exports and the development of the local defense industry — as well as an asset freeze and visa restrictions on the SSB’s president and three senior officials.

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