Turkey Threatens To Retaliate If US Blocks Sale Of 116 F-35s

[Swordsmyth]

President Donald Trump "has a great deal of frustration," with Turkish President Recep Tayyip Erdogan, White House press secretary Sarah Huckabee Sanders said at a briefing Tuesday, calling again on the Turkish "executive president" to release pastor Brunson and other U.S. citizens as the diplomatic standoff between the two nations continued to weigh on global markets.
"We’re going to continue to call on Turkey to do the right thing and release those individuals," including pastor Andrew Brunson, Sanders said.
The statement came shortly after a White House official said that the United States warned more economic pressures may be in store for Turkey if it refuses to release the jailed American pastor. The message emerged a day after White House national security adviser John Bolton met privately with Turkish ambassador Serdar Kilic about the case of evangelical pastor Andrew Brunson. Bolton warned him that the United States would not give any ground, a senior U.S. official said.
The White House official, speaking to Reuters on condition of anonymity, said "nothing has progressed" thus far on the Brunson case.

"The administration is going to stay extremely firm on this. The president is 100 percent committed to bringing Pastor Brunson home and if we do not see actions in the next few days or a week there could be further actions taken," the official said.

Further actions would likely take the form of economic sanctions, the official said, who added: The pressure is going to keep up if we're not seeing results.
Trump doubled tariffs on imports of Turkish steel and aluminum last week, contributing to a precipitous fall in the lira which has lost a quarter of its value this month. The United States is also considering a fine against Turkeys state-owned Halkbank for allegedly helping Iran evade U.S. sanctions. Earlier this month, the United States imposed sanctions on two top officials in President Recep Tayyip Erdogans cabinet in an attempt to get Turkey to turn over Brunson.
In response, on Tuesday Erdogan vowed to boycott American electronics, including iPhones, in a defiance of Trump’s demands. And while even a widespread Turkish boycott would do little to dent U.S. economic interests, it shows Erdogan is refusing to give in to market turmoil that’s pushed borrowing costs to record highs and threatens to descend the nation into a financial crisis.

More at: https://www.zerohedge.com/news/2018-...ration-erdogan

[Swordsmyth]

The White House on Wednesday condemned Turkey’s doubling of tariffs on U.S. cars, alcohol and tobacco imports, calling the action “a step in the wrong direction.”

Sanders said Brunson’s release would not lead to an easing in the tariffs, but that it could lead to an easing in sanctions.
“The tariffs that are in place on steel will not be removed with the release of pastor Brunson. The tariffs are specific to national security,” she said.
“The sanctions, however, that have been placed on Turkey are specific to pastor Brunson and others that we feel are being held unfairly, and we would consider that at that point,” Sanders added.

More at: https://www.reuters.com/article/us-t...KBN1L020G?il=0

[Swordsmyth]

Turkey is ready to discuss its ongoing issues with the United States as long as there are no threats, Foreign Minister Mevlut Cavusoglu said on Wednesday, amid a widening dispute between the NATO allies that has sent the Turkish currency plunging.

More at: https://www.reuters.com/article/us-t...KBN1L020U?il=0

[Swordsmyth]

The Lira and Turkish stocks are sliding notably after Treasury Secretary Steven Mnuchin warned that Washington is preparing more sanctions for Turkey due to the lack of progress on the release of Pastor Brunson.
Following a Turkish court's refusal yesterday to release American pastor Andrew Brunson, Mnuchin warned at a White House cabinet meeting today that U.S. has more sanctions prepared for Turkey if Brunson isn't quickly released.
Additionally, as Bloomberg reports, President Donald Trump said during a Cabinet meeting at the White House on Thursday that Turkey hasn’t turned out to be a great friend to the U.S., and he complained that his administration secured the release of a Turkish citizen from an unnamed country on Turkish President Recep Tayyip Erdogan’s behalf.

“We got somebody out for him,” Trump said, from “some place,” but Turkey continues to hold pastor Andrew Brunson. It’s “not right” and a “terrible thing,” he said.

The Lira is seeing the biggest dip in 3 days, erasing all overnight gains in just a few minutes...


More at: https://www.zerohedge.com/news/2018-...more-sanctions

[Swordsmyth]

Turkey's Foreign Minister Mevlut Cavusoglu said Turkey was "ready to talk about everything" with the U.S.

More at: https://www.investors.com/market-tre...220&yptr=yahoo

[Swordsmyth]

After a week in which Turks were encouraged to engage in PR stunts like smashing, burning, and shooting their iPhones, and as the lira took a nose dive of 16% against the dollar after President Trump authorized doubling tariffs on steel and aluminum imports from Turkey, it doesn't appear these efforts have done much to significantly dent iPhone sales in Turkey.
Turkish President Recep Tayyip Erdogan encouraged Turks to boycott Apple and other US electronic products this week: "If they have iPhone, there is Samsung on the other side. And we have our Venus and Vestel. We are going to produce enough for ourselves. We have to serve better quality goods than we are importing from them," he urged in a Tuesday speech.
But despite Turkish media giving the boycott extensive coverage and a spate of YouTube videos showing citizens burning dollar bills and destroying Apple's iPhones, it appears Turks are still buying the US product. Or at least we could say there's nothing substantive to prove the boycott is having the desired impact.


Though limited to the level of anecdotal testimonial, Russian state-run Sputnik has surveyed a dozen or more iPhone salespersons and consumers at stores in Turkey.
Below are some of the highlights from these interviews:

Speaking on condition of anonymity, a salesman from one of Ankara's mobile phone outlets told Sputnik that "both prices and a balance of purchases [in the city] remain unchanged" and that three out of ten customers are still interested in buying an iPhone, while the remaining seven customers prefer Samsung models and those made by other manufacturers.

And one Turkish iPhone customer interviewed believes that Erdogan's call to abandon the US-made electronic goods is more emotional than real: "The turnover of funds in the Turkish electronics market amounts to millions of dollars, and swiftly pulling the plug will mean a full-fledged economic blow to mainly domestic entrepreneurs. No one seeks to implement this task," the man identified only as Ali explained.
A number of Turks said their feelings about purchasing or using an iPhone would not be altered based on coercion from the state, such as an engineer named Orhand, who said:

"As far as I know, in terms of the number of the phones that have been sold the, iPhone occupies 7 percent of the market, but in terms of money iPhone accounts for 26 percent. These phones are very expensive for people to buy. Most Turks buy Samsung models, which occupy more than 50 percent of the country's market.

Another consumer noted of her iPhone that she was "very disappointed with it because Apple is constantly updating my gadget without asking my permission" but balked at the idea that Erdogan's call to boycott would have any effect on her decisions.
A further young person interviewed said such demands to boycott from Ankara would like turn Turkey's youth against the state: "But I am against the state, not me, deciding on what brand of a mobile phone people should use and what brand they should give up," he said.
Pricing for the iPhone X starts at 7,499 Turkish lira, which at the current exchange rate is now over $1,245. At such a price — which had been high even before the lira's dive — there likely weren't a flood of Turks lining up to get it in the first place.

More at: https://www.zerohedge.com/news/2018-...-turkey-report

[Swordsmyth]

An unknown gunman fired several gunshots from a passing vehicle at the US embassy in the Turkish capital, Ankara, on Monday, hitting a window in a security cabin but causing no casualties, police and broadcaster CNN Turk reported. The attack has coincided with a deepening row between Ankara and Washington over the trial of a U.S. pastor in Turkey.

A police officer told Reuters at the scene the drive-by shooting occurred around 5 a.m. (0200 GMT) and that nobody was hurt. The embassy was closed for a weeklong public holiday to mark the Islamic Eid al-Adha festival.
Broadcaster Haberturk showed police teams inspecting one of the entrances to the embassy and apparent damage caused by a gunshot could be seen in one window. It said empty cartridges were found at the scene.

#BREAKING: Shots fired at the US Embassy in Ankara #Turkey, targeting the security guards booth pic.twitter.com/Zg5VJHyB5M
— Amichai Stein (@AmichaiStein1) August 20, 2018

Commenting on the shooting, an Erdogan spokesman said that the shooting at the US embassy was a clear attempt to create chaos.
Police teams were searching for the assailants, who fled in a white car after the attack, CNN Turk said. Four or five gunshots were heard, it said.
The U.S. embassy in Ankara and the consulate in Istanbul have been the targets of attacks by militants and have faced numerous security threats in the past.
Separately, in the latest diplomatic escalation between the US and Turkey, the WSJ reported , citing a White House official, that the Trump administration has "rejected an effort by Turkey to tie the release of a U.S. pastor with relief for a major Turkish bank facing billions of dollars in U.S. fines," and has told Ankara other issues are off the table until the minister is freed.

Following the shooting, together with the WSJ report of the news of the US hardline negotiating stance, the Turkish Lira slumped against the dollar despite the weeklong Turkish holiday, and was the worst performing currency against the dollar in today's session.

More at: https://www.zerohedge.com/news/2018-...astors-release

[Swordsmyth]

Rosoboronexport’s Director General Alexander Mikheev said that the defense company would begin implementing a contract for the supply of its advanced S-400 missile defense systems to Turkey in 2019, the RIA Novosti reported.

“The contract [on the S-400 supplies to Turkey] will be implemented within the agreed time limits. In 2019 we will start implementing the contract,” the company’s director general and CEO Aleksandr Mikheev told reporters on Tuesday.
Washington has expressed great concern that NATO member Turkey’s upcoming deployment of the Russian S-400s could pose a serious security risk for U.S.-made weapons used by Turkey, including the Lockheed Martin F-35 Lightning II, a fifth-generation combat aircraft.
Rosoboronexport told Turkey it would switch to the Lira, instead of using the dollar to complete the transaction, the RIA news agency reported.

More at: https://www.zerohedge.com/news/2018-...fense-missiles

[Swordsmyth]

The Turkish regime was given an ultimatum by the U.S. Senate this past week: either abandon their acquisition of the Russian-made S-400 air defenses system or face expulsion from the F-35 program. According to a report from Bloomberg, the U.S. Senate recently gave this ultimatum to Turkey after the latter continued with their acquisition of the S-400 air defense system.


“For Turkey to remain in the F-35 program, it can’t move ahead with procurement” of the Russian system known as the S-400, Senator James Inhofe said in a statement.

More at: https://www.almasdarnews.com/article...e-or-no-f-35s/

Hat Tip: goldenequity

[Swordsmyth]

The New York prosecutor's office has withdrawn an appeal to extend the sentence of Hakan Atilla, a former executive of Halkbank who was convicted of violating sanctions on Iran, the Hurriyet Daily News reported Dec. 7.

More at: https://worldview.stratfor.com/situa...ence-extension

[Swordsmyth]

Just days after President Erdogan insulted the White House by snubbing National Security Advisor John Bolton, Turkey has delivered its latest middle finger to the US by refusing to abandon its agreement to buy S-400 air defense systems from Moscow - a precondition for buying American-made Patriot air defense systems, according to RT.
If the US ties the sales to Ankara with Turkey tearing up its existing arms deal with Moscow, Ankara will have no choice but to choose the latter, said Foreign Minister Mevlut Cavusoglu, adding that the deal to buy the S-400s has already been finalized.
"The S-400 deal has already been finalized. We can agree with the US on the Patriot system, but not if there will be [a condition] to abandon the S-400s," the minister said during an interview with state TV.
Cavusoglu added that Ankara had received the proposal to buy weapon and would consider the terms - but warned against Washington attempting to meddle in Ankara's relationship with Moscow.

More at: https://www.zerohedge.com/news/2019-...ms-deal-moscow

[Swordsmyth]

Turkey is now venting its wrath as its F-35 standoff with Washington is thrust to the next level, and after Friday President Trump signed a spending bill that blocks further F-35 transfers until November 1st of 2019, which gives the White House a window of time to evaluate if Ankara will indeed move forward with transfer of Russia's S-400 air defense system to Turkey. Amidst the Pastor Andrew Brunson detention affair which drew widespread media attention last summer Congressional leaders demanded that the over 100 Lockheed Martin-made F-35 stealth jets purchased by Turkey be blocked from delivery. Following Brunson's release, the bigger security issue became Turkey's seeking the S-400.
On Wednesday the chairman of Turkey's Defense Industry Directorate Ismail Demir addressed this more pressing and latest issue to hold up the F-35 sale — the question of reception of the Russian S-400 while simultaneously rejecting the US offer to sell American-made Patriot defense systems.


“There is need to talk about conditions, there are a series of issues that must be clarified” he told pro-government news channel NTV. He further ruled out the American Patriot defense systems as it currently stands, according to Turkish media reports. He further stated that "delivery process of S-400 to Turkey will start by July 2019 and the system will be active by October of 2019" in a staunch assertion sure to be noticed by the Pentagon.
The advanced S-400 air defense system purchased by Turkey has been seen as a threat by the United States, given the potential for compromising the F-35 advanced radar evading and electronics capabilities. The main argument for blocking the F-35 transfer is the fear that Russia would get access to the extremely advanced Joint Strike Fighter stealth aircraft, enabling Moscow to detect and exploit its vulnerabilities. Russia would ultimately learn how the S-400 could take out an F-35.
Beginning early last summer the US State Department threatened that Turkey would be targeted by sanctions if it receives the S-400 from Russia under a contract finalized between Ankara and Moscow at the end of 2017, said to be worth $2.5 billion. Coupled with that threat has remained the blockage of the over 100 F-35's.
During his Wednesday comments, Ismail Demir also confirmed that Turkey received two F-35 jets from the US and it hopes to receive the next pair by next month. Earlier in the week Turkish President Erdogan said during a speech that three unmet conditions for the purchase of the Patriots must be deciding factors: technology transfer, co-production and financial support.

More at: https://www.zerohedge.com/news/2019-...-patriot-offer

[Swordsmyth]

Last Friday we reported that Turkey slammed the door on Washington's demands that it cancel its S-400 contract with Moscow in the wake of continued US threats that it will deny transfer of F-35s to Turkey over the Erdogan government's plans to move forward with taking delivery of the advanced Russian anti-air defense system in July.
This took place one day after four US senators introduced a bipartisan bill last Thursday to prohibit the transfer of the F-35 until the US can certify that Ankara will reject the S-400 deal. But Turkish officials reiterated their prior stance that it's a "done deal" and that Turkey won't back down.
"We have signed a deal with Russia, and this deal is valid. Now we are discussing the delivery process," Foreign Minister Mevlut Cavusoglu said on Friday during a press conference while standing beside his Russian counterpart. He added that "We have an agreement with Russia and we are bound by it." Confirming Turkey is set to take delivery from the Russians in July of this year, Cavusoglu added that every aspect of Turkish defense purchases were legitimate and in accord with international law.
The foreign minister also noted that Ankara has met its obligations to Lockheed Martin, producer of the F-35 stealth fighter. "Turkey is also a partner in the F-35 project. Some parts are being made in here in Turkey. Turkey has fulfilled its responsibilities in this regard," the minister said.
* * *
Fast forward to today when, with Erdogan still smarting from one of his biggest electoral losses in decades in local elections which saw the ruling AKP lose control over the capital Ankara and, most likely, Istanbul as well, Reuters reports that the US has followed through with its threat, and halted delivery of equipment related to the stealthy F-35 fighter aircraft to the Nato ally, "marking the first concrete U.S. step to block delivery of the jet to the NATO ally in light of Ankara's planned purchase of a Russian missile defense system."
According to the Reuters sources, U.S. officials told their Turkish counterparts they will not receive further shipments of F-35 related equipment needed to prepare for the arrival of the stealthy jet. The sources also said the next shipment of training equipment, and all subsequent shipments of F-35 related material, have been canceled.

In March, a Pentagon official said that the United States had a number of items it could withhold in order to send Turkey a signal that the United States was serious about Ankara dropping its ambition to own the S-400: the F-35 was one of them.
Predictably, the U.S. decision on the F-35s will likely complicate Turkish Foreign Minister Mevlut Cavusoglu's planned visit to Washington this week for a NATO summit.
In parallel, Washington is also exploring whether it can remove Turkey from production of the F-35. Turkey makes parts of the fuselage, landing gear and cockpit displays. Sources familiar with the F-35's intricate worldwide production process and U.S. thinking on the issue last week said Turkey's role can be replaced.
The United States and other NATO allies that own F-35s fear the radar on the Russian S-400 missile system will learn how to spot and track the jet, making it less able to evade Russian weapons in the future.
In an attempt to persuade Erdogan to drop its plans to buy the S-400, the United States offered the pricier American-made Patriot anti-missile system in a discounted deal that expired at the end of March. And while Turkey had shown interest in the Patriot system, it would not do so at the expense of abandoning the S-400 and extending Russia's strategic ties with Turkey.
Meanwhile, Turkish Defense Minister Hulusi Akar in March said that despite the escalating diplomatic scandal, Turkish pilots were continuing their training at an air base in Arizona on the F-35, each of which costs $90 million, and that Ankara was expecting the aircraft to arrive in Turkey in November.

More at: https://www.zerohedge.com/news/2019-...missile-system