Turkey says buying Russian defense system should not trigger U.S. sanctions

FILE PHOTO: New S-400 "Triumph" surface-to-air missile system after its deployment at a military base outside the town of Gvardeysk near Kaliningrad, Russia. Picture taken March 11, 2019. REUTERS/Vitaly Nevar/File Photo/File Photo

By Humeyra Pamuk

WASHINGTON (Reuters) – Turkey’s purchase of a Russian air defense missile system should not trigger U.S. sanctions because Ankara is not an adversary of Washington and remains committed to the NATO alliance, Defense Minister Hulusi Akar said on Monday.

Speaking at a U.S.-Turkey conference in Washington amid rising tensions between the two NATO allies over Ankara’s plan to buy the Russian S-400 missile system, Akar adopted a relatively conciliatory tone and urged to resolve issues via dialogue.

“Turkey is clearly not an adversary of the United States,” Akar said and added that therefore its procurement of the S-400 system should not be considered within the scope of U.S. sanctions designed to target America’s enemies.

U.S. Secretary of State Mike Pompeo said last week that Washington had told Ankara it could face retribution for buying the S-400s under a sanctions law known as Countering America’s Adversaries Through Sanctions Act (CATSAA).

“This procurement decision does not signify a change in Turkey’s course. I’d like to reiterate strongly that there is no change in Turkey’s commitment to NATO,” Akar said.

FILE PHOTO: A Lockheed Martin F-35 aircraft at the ILA Air Show in Berlin, Germany, April 25, 2018. REUTERS/Axel Schmidt/File Photo/File Photo

FILE PHOTO: A Lockheed Martin F-35 aircraft at the ILA Air Show in Berlin, Germany, April 25, 2018. REUTERS/Axel Schmidt/File Photo/File Photo

The disagreement over the F-35 is the latest of a series of diplomatic disputes between the United States and Turkey including Turkish demands that the United States extradite Islamic cleric Fethullah Gulen, differences over Middle East policy and the war in Syria, and sanctions on Iran.

Turkish President Tayyip Erdogan has refused to back down from Ankara’s planned purchase of a Russian S-400 missile defense system that the United States has said would compromise the security of F-35 aircraft, made by Lockheed Martin Corp . Turkey has said it will take delivery of the S-400s in July.

In early April, the United States halted delivery of equipment related to the stealthy F-35 fighter aircraft to Turkey, marking the first concrete U.S. step to potentially blocking the delivery of the jet to the NATO ally.

Akar said Turkey was puzzled by the move and expected U.S. and other partners in the program to fulfill their obligations.

“We firmly believe that linking the S-400 to the F-35 project is unfortunate … We are one of the investors and partners and not just a buyer. We have invested over $1 billion … and fulfilled all our obligations,” he said.

Akar repeated Turkey’s offer to hold technical talks with the United States to address “technical concerns” over the S-400 purchase.

Turkey is also assessing a renewed offer from the United States to buy Patriot missile defense systems, Akar added.

“Recently we received the restated offer for the Patriots. This offer is now on the table, we are studying it carefully,” he said.

(Reporting by Humeyra Pamuk; Additional reporting by Ezgi Erkoyun in Istanbul; Editing by Dominic Evans and Phil Berlowitz)

Erdogan’s AK Party challenges Istanbul, Ankara election results

Supporters of Ekrem Imamoglu, main opposition Republican People's Party (CHP) candidate for mayor of Istanbul, wait for him to visit Anitkabir, the mausoleum of modern Turkey's founder Mustafa Kemal Ataturk, in Ankara, Turkey, April 2, 2019. REUTERS/Umit Bektas

By Daren Butler and Tuvan Gumrukcu

ISTANBUL/ANKARA (Reuters) – President Tayyip Erdogan’s AK Party has submitted objections to local election results in all districts of Istanbul and Ankara, party officials said on Tuesday, after results showed the opposition earned narrow victories in both cities.

The AK Party is on track to lose control of what are Turkey’s two biggest cities, its commercial hub of Istanbul and the capital Ankara, in a surprise election setback that may complicate Erdogan’s plans to combat recession.

In Istanbul, the mayoral candidate of the main opposition Republican People’s Party (CHP), Ekrem Imamoglu, and his AKP rival, ex-prime minister Binali Yildirim, both said on Monday Imamoglu was around 25,000 votes ahead. Istanbul has an estimated total population of 15 million.

The AKP had previously said it would use its right to object to the results where there were voting irregularities, adding that the errors at the ballots had affected the outcome.

On Tuesday, Bayram Senocak, the AKP’s Istanbul head said that objections had been submitted by the 3 p.m. (1200 GMT) deadline for appeals, and added that legal action would be taken against electoral officials who made the errors.

“We have submitted all our appeals to the district electoral councils,” Senocak said, as he waved ballot records in which he said vote count irregularities could be seen.

An AKP deputy chairman later said the difference between Imamoglu and Yildirim was down to 20,509 votes and would keep falling as a result of their appeals. He said the elections were “the biggest blemish in Turkish democratic history.”

The CHP’s Istanbul head Canan Kaftancioglu said her party submitted objections in 22 districts, adding they expected to receive 4,960 more votes after the appeals were resolved.

“They are trying to steal the will of the people as it was reflected in the ballots,” she told reporters in Istanbul.

The CHP’s Imamoglu said on Tuesday he was saddened by the AKP failure to congratulate him after the election board count put him ahead.

“I’m watching Mr Binali Yildirim with regret. You were a minister of this nation, the parliament speaker and a prime minister,” Imamoglu said in Istanbul. “What could be more noble than congratulating?”

“The world is watching us with shame right now. We are ready to manage the big city of Istanbul. Let go and congratulate us with honor, so we can do our job,” he said.

“MOMENT OF BEGINNING”

Ahead of the elections, the CHP had formed an electoral alliance with the Iyi (Good) Party to rival that of the AKP and their nationalist MHP partners. The alliances nominated joint candidates in certain cities, including Ankara and Istanbul.

Imamoglu, who laid a wreath at the mausoleum of modern Turkey’s founder, Mustafa Kemal Ataturk, in Ankara, later went to CHP headquarters to meet Mansur Yavas, the opposition’s candidate in the capital. Speaking at the CHP building, Imamoglu said the elections marked a “moment of beginning” for Turkey.

In Ankara, Yavas received 50.9 percent of votes, ahead of his AKP rival and former minister Mehmet Ozhaseki in Sunday’s local elections by nearly 4 percentage points. The AKP said it had also submitted objections to results across Ankara.

Defeats in Ankara and Istanbul would be a significant setback for Erdogan, who has dominated Turkish politics for more than 16 years. He had campaigned relentlessly ahead of the vote, describing it as a “matter of survival” for the country.

Erdogan’s political success has rested on years of stellar economic growth in Turkey, but an economic recession that has brought surging inflation and unemployment and a plunging lira currency have taken their toll on his popularity.

Uncertainty generated by the local elections has added to pressure on the lira, which weakened sharply last week as a lack of confidence in the currency among Turks led them to snap up record holdings of dollars and gold.

On Tuesday the lira weakened more than 2 percent against the dollar on concerns about tensions with the United States after it halted delivery to Turkey of equipment related to the F-35 fighter aircraft.

(Reporting by Ezgi Erkoyun and by Tuvan Gumrukcu; Additional reporting by Ece Toksabay; Writing by Tuvan Gumrukcu and Daren Butler; Editing by Dominic Evans. Gareth Jones, William Maclean)

Turkish lira down as U.S. halts fighter parts delivery, threatens sanctions

FILE PHOTO: Turkish Lira banknotes are seen in this October 10, 2017 picture illustration. REUTERS/Murad Sezer/Illustration/File Photo

By Sarah Dadouch

ISTANBUL (Reuters) – The lira dropped nearly 3 percent on Tuesday after the United States halted delivery of equipment related to a Turkish order of F-35 fighter planes, warning Ankara’s insistence on buying Russian defense systems risked triggering sanctions.

At 1634 GMT, the lira stood at 5.6590 against the dollar, having earlier fallen 3.3 percent to as low as 5.6800.

The Turkish currency lost nearly 30 percent against the dollar last year in a sell-off sparked by concerns over the independence of the central bank and exacerbated by worsening ties with Washington.

“Factors behind last year’s currency crisis have reared their heads again,” said Jason Tuvey, senior emerging markets economist at Capital Economics.

Washington and other NATO allies are concerned that radar on the Russian S-400 missile system that Turkey is also buying will learn how to track the F-35, making it less able to evade Russian weapons.

A senior U.S. official said the purchase of the S-400 risked triggering sanctions.

Acting Defense Secretary Patrick Shanahan said later on Tuesday he expected to resolve the dispute, but his comments had little impact on the lira.

The row marks the latest in a series of bilateral disputes, notably over Turkish demands that the United States extradite Islamic cleric Fethullah Gulen, differences over Middle East policy and the war in Syria, and sanctions on Iran.

STRUCTURAL PROBLEMS

The lira has also been under pressure from domestic political developments.

Currency volatility in the run-up to local elections on Sunday led the central bank to suspend one-week repo auctions, a move seen by analysts as a “back door” tightening that reignited worries that the central bank was under pressure from politicians to lower its policy rate.

The lira lost as much as 2.5 percent against the dollar on Monday after results showed President Tayyip Erdogan’s AK Party on track to lose control of both Ankara and Istanbul, his popularity hit by the recession that the lira’s losses in large part triggered.

The AKP submitted objections to the results in all districts of both cities, party officials said on Tuesday.

“The lira is under pressure as now the focus is back on structural problems for the Turkish economy,” said Nikolay Markov, a senior economist at Pictet Asset Management.

A widening current account deficit could deepen the recession through a further lira depreciation, leading to higher inflation and borrowing costs, Markov said.

“The central bank should raise policy rates but that won’t happen because of pressure from the government,” although AKP electoral losses could reduce that pressure, he said.

(Reporting by Ezgi Erkoyun and Sarah Dadouch; Additional Reporting by Tom Arnold in London; Editing by Dominic Evans and John Stonestreet)

Erdogan suffers major setbacks in local elections in Turkey’s big cities

Supporters of AK Party wave flags in Ankara, Turkey April 1, 2019. REUTERS/Umit Bektas

By Orhan Coskun and Can Sezer

ANKARA/ISTANBUL (Reuters) – Turkey’s President Tayyip Erdogan suffered stunning setbacks in local elections as his ruling AK Party lost control of the capital Ankara for the first time since the party’s founding in 2001, possibly complicating his plans to fight back recession.

Both the AKP and the main opposition Republican People’s Party (CHP) claimed victory in Istanbul, Turkey’s largest city and economic hub. The AKP said it had “plenty of” evidence of voting irregularities in Istanbul.

Erdogan, who has dominated Turkish politics since coming to power 16 years ago and ruled his country with an ever tighter grip, campaigned relentlessly for two months ahead of Sunday’s vote, which he described as a “matter of survival” for Turkey.

But his daily rallies and overwhelmingly supportive media coverage failed to win over voters in the two main cities, as last year’s punishing currency crisis weighed heavily on Turks.

“The people have voted in favor of democracy, they have chosen democracy,” said opposition leader Kemal Kilicdaroglu, whose secularist CHP also held its Aegean coastal stronghold of Izmir, Turkey’s third largest city.

The AKP and its Islamist predecessor have controlled Istanbul and Ankara for 25 years. The results, which were still being tallied and faced appeals, would likely bring personnel changes at the highest ranks of government, according to sources inside and close to the AKP.

IRREGULARITIES

In Istanbul, the county’s largest city, the CHP mayoral candidate was more than 25,000 votes ahead of his AKP opponent as the last votes were being counted, according to the country’s electoral board and CHP data.

But AKP Istanbul provincial head, Bayram Senocak, said voting irregularities had had an impact on the outcome and insisted that Erdogan’s party had won.

In Ankara, Turkish broadcasters said the CHP candidate had won a clear victory, but the AKP said it would appeal in districts across the city and expected to shift the outcome in its favor.

Erdogan’s ruling alliance, including the nationalist MHP, captured 51.7 percent of the nationwide vote with nearly all votes counted, according to state-owned Anadolu news agency. The turnout was a very high 84.52 percent.

Despite eking out majority support across the country, defeat for Erdogan’s Islamist-rooted party in Ankara was a significant blow for the president. The possibility of losing Istanbul, where he launched his political career and served as mayor in the 1990s, was an even greater shock.

The Turkish lira, which swung wildly https://tmsnrt.rs/2CEaO11 in the week ahead of the elections echoing last year’s currency crisis, weakened on Monday as much as 2.5 percent against the dollar before recovering early losses.

An AKP official and a source close to the party predicted a cabinet shuffle or other changes among those around Erdogan, especially given the loss in Istanbul.

“There will certainly be changes in some places, such Erdogan’s close circle in the party and the cabinet,” said the official, who requested anonymity. “Markets expect that there will be a change in the cabinet. This makes a change necessary.”

(Additional reporting by Tuvan Gumrukcu, Ece Toksabay, Tulay Karadeniz and Nevzat Devranoglu in Ankara, and Daren Butler, Ali Kucukgocmen, Behiye Selin Taner, Ceyda Caglayan, Ebru Tuncay and Ezgi Erkoyun in Istanbul, and Karin Strohecker in London; Writing by Dominic Evans; Editing by Jonathan Spicer and Gareth Jones)

In first vote since Turkey’s crisis, Erdogan could lose capital city

A stallholder reads a newspaper as he waits for customers at a bazaar in Ankara, Turkey, March 26, 2019. Picture taken March 26, 2019. REUTERS/Umit Bektas

By Tuvan Gumrukcu and Ece Toksabay

ANKARA (Reuters) – Ismail Akin has voted for Turkish President Tayyip Erdogan’s party for almost 20 years, but the father of three said that will change on Sunday because the plunging economy has forced him to shut his shop and take on debt.

In a market in the Turkish capital last week, Akin clutched his jacket and said “even this is mortgaged” after the economy tipped into recession following last year’s currency crisis.

“We voted for this man (Erdogan) for 20 years. Enough. Let’s hit him with the back of our hand so he sees what this nation is made of,” Akin said.

He said he would vote for the main opposition candidate in Sunday’s local elections.

Polls suggest Erdogan could be defeated in Ankara, the city from which he has ruled Turkey with an increasingly iron grip since 2003. His AK Party (AKP) could hang on to power in a tight race in Istanbul, where he was once mayor, but a defeat in Ankara would be a blow.

“The psychological factor of losing the capital, losing one of the big cities in Turkey, could be perceived by voters as the beginning of the decline,” said political analyst Murat Yetkin.

The nationwide local elections are the first since last year’s currency meltdown, and come as authorities fight a fresh wave of selling in the lira.

The currency has bounced back this week, in part because Turkey directed its banks to withhold lira liquidity in London, a key overseas market, until after Sunday’s election – blocking foreign investors from betting against the currency.

The stop-gap measure may save Erdogan the embarrassment of a currency meltdown on the eve of voting but economists say that longer-lasting reforms are needed to return to the strong growth which was a hallmark of the AKP’s early years in power.

AKP officials say they are anxious about Sunday’s vote. In recent weeks Erdogan has held up to five rallies per day and described the elections as a “matter of survival”.

Interviews in Ankara with more than 50 voters two weeks ahead of the vote suggested several long-time AKP supporters were shifting their views on the party and looking to punish Erdogan for the turmoil caused by the ailing economy.

“There is no production, nothing. They brought in the food stands, but will he (Erdogan) fix the economy with food stands?” said Orhan Akkaya, a local business manager who said he would no longer back AKP.

“They finished the country.”

‘VERY SERIOUS PROBLEMS’

Ahead of the elections, the main opposition Republican People’s Party (CHP) formed an electoral alliance with the IYI (Good) Party to rival that of Erdogan’s AKP and the nationalist MHP.

Mansur Yavas, the opposition candidate, appears to hold a 2 percentage point lead over his AKP rival Mehmet Ozhaseki, according to polling company Gezici. However, a poll conducted by the AKP showed Ozhaseki had closed the gap and gained a 1.5 point advantage, a party source said.

Yavas was also the CHP’s candidate in 2014, but lost in a vote marred by claims of voter fraud. Ozhaseki, a former three-term mayor from central Anatolia, was a minister until he was removed from the post after last year’s presidential and general elections cemented Erdogan’s grip on power.

Speaking to Reuters on his campaign trail, Yavas said he believed he would win in Ankara because his rival had overlooked the economic struggles of the people.

“They don’t see the economic hardships in Ankara,” he said. “They don’t come here and talk with shop owners.”

While Erdogan, championed by more pious Turks, has become modern Turkey’s most popular leader, he is also the most divisive. Secular Turks say his policies quash dissent and infringe on private lives and personal rights.

But it was his unorthodox economic policies, including a buildup in foreign debt, that helped spark last year’s crisis that wiped some 30 percent off the value of the lira. The contraction in the fourth quarter was the economy’s worst in nearly a decade.

“What we expected didn’t happen in the economy, that is a reality,” an AKP official told Reuters. “While the economy was a gain before, it’s now our weak point.”

“If there is a big loss (in Ankara)…we may enter a period where there will be very serious problems for the AK Party.”

People shop in a second-hand bazaar in Ankara, Turkey, March 27, 2019. Picture taken March 27, 2019. REUTERS/Umit Bektas

People shop in a second-hand bazaar in Ankara, Turkey, March 27, 2019. Picture taken March 27, 2019. REUTERS/Umit Bektas

‘FED UP’

Murat Gezici, chairman of pollster Gezici, said three of every four undecided voters have backed the MHP or AKP in past general or local elections.

The fraying economy had left many of them unsure, Gezici said citing his company’s March 16-17 poll, and added that rather than the AKP’s past successes, voters were more focused on candidates’ future promises.

“Maybe I won’t even vote, that’s how fed up I am,” said Huseyin Kilic, another longtime but disenchanted AKP voter.

Sacked from his factory job and waving in the air coins that he said were his last, Kilic, standing in a street market in the central Ankara district of Ulus, said he had not yet settled on a favored candidate.

Yet few are writing off Erdogan before votes are counted.

In nearly two decades he and his AKP have not lost a local election in Ankara or Istanbul. The party is leading polls in other big cities like Adana and Konya.

Shopping for vegetables in central Ankara, Neriman said she remained committed to the AK Party, dismissing economic woes.

“They (the AKP) gave us everything, financially and emotionally. There are no economic troubles. Are there?” she said. “I am planning on voting for the AK Party because for years we’ve been so much better off.”

($1 = 5.5652 liras)

(Additional reporting by Orhan Coskun and Mert Ozkan; Editing by Jonathan Spicer and Anna Willard)

Turkey will resist U.S. sanctions over pastor, Erdogan says

FILE PHOTO: Turkish President Tayyip Erdogan with his wife Emine are seen in a car as they arrive in Berlin, Germany, September 27, 2018. REUTERS/Hannibal Hanschke/File Photo

By Gulsen Solaker and Ece Toksabay

ANKARA (Reuters) – Turkey will resist U.S. efforts to impose sanctions on Ankara over the trial of a Christian pastor who has been detained for two years, President Tayyip Erdogan said on Monday, accusing the preacher of having “dark links with terror”.

The case of evangelical pastor Andrew Brunson, whose next court hearing is on Oct. 12, has plunged ties between Ankara and Washington into crisis, leading to U.S. sanctions and tariffs which helped push Turkey’s lira to record lows in August.

Brunson is charged with links to Kurdish militants and supporters of Fethullah Gulen, the cleric blamed by Turkey for a failed coup attempt in 2016. He has denied the charges and Washington has demanded his immediate release.

Relations between the two NATO allies were already strained by disputes over U.S. support for Kurdish fighters in northern Syria, Turkey’s plans to buy a Russian missile defense system, and the jailing of a Turkish bank executive for violating U.S. sanctions on Iran.

“We are deeply saddened by the current U.S. government, a strategic partner, targeting our country without any logical, political and strategic consistency,” Erdogan said in a speech to a new session of parliament.

Erdogan said Turkey was determined to fight, within legal and diplomatic frameworks, “this crooked understanding, which imposes sanctions using the excuse of a pastor who is tried due to his dark links with terror organizations.”

Brunson’s case has become the most divisive issue between the two countries. U.S. President Donald Trump believed he and Erdogan had agreed a deal to release him in July, but Ankara has denied agreeing to free the pastor as part of a wider agreement.

Brunson, who has been jailed or held under house arrest since October 2016, faces up to 35 years in jail if convicted. Last month the main prosecutor in his trial was replaced, a move which his lawyer cautiously welcomed, saying it might be a sign of changing political will.

In his speech to the first session of parliament since its summer recess, Erdogan held out the possibility of better relations, while adding that there was still much work to do.

“We can say that we started to make progress towards reaching a common understanding (with the United States), although it is not at the desired level,” he said.

He also repeated Turkey’s accusation that Washington is protecting Gulen, who has been based in the United States for two decades, and said the conviction in a New York court of an executive of state-owned Halkbank for violating U.S. sanctions on Iran was “an example of unique unlawfulness”.

Tensions with Washington contributed to a meltdown in the Turkish lira in August, when the currency hit a record low of 7.20 to the dollar. It had already weakened over concerns at the extent of Erdogan’s control of the economy and opposition to raising interest rates to combat double-digit inflation.

Erdogan said Turkey’s economy was overcoming what he described as “midnight operations” designed to break it.

“Our economy started rebalancing with measures we have taken, meetings we have realized and programs we have developed,” he told parliament.

The lira <TRYTOM=D3> firmed more than 2 percent on Monday, reaching its strongest level in more than six weeks, on growing optimism that Brunson might be released and following a hike in interest rates and the govenrment’s new economic program.

Turkey’s exports also rose sharply in September, the trade ministry said, but Turkish manufacturing activity slid to its lowest level in nine years, a business survey showed.

(Additional reporting by Tuvan Gumrukcu; Editing by Dominic Evans)

Exclusive: Turkey’s Erdogan says court will decide fate of detained U.S. pastor

Turkey's President Recep Tayyip Erdogan addresses the 73rd session of the United Nations General Assembly at U.N. headquarters in New York, U.S., September 25, 2018. REUTERS/Carlo Allegri

By Stephen Adler and Parisa Hafezi

NEW YORK (Reuters) – Turkish President Tayyip Erdogan said a Turkish court, not politicians, will decide the fate of an American pastor whose detention on terrorism charges has hit relations between Ankara and Washington.

U.S. Secretary of State Mike Pompeo said on Monday he was hopeful Turkey would release evangelical pastor Andrew Brunson this month. The preacher was moved to house arrest in July after being detained for 21 months.

In an interview with Reuters late on Tuesday while he was in New York for the United Nations General Assembly meetings, Erdogan said any decision on Brunson would be made by the court.

“This is a judiciary matter. Brunson has been detained on terrorism charges … On Oct. 12 there will be another hearing and we don’t know what the court will decide and politicians will have no say on the verdict,” Erdogan said.

If found guilty, Brunson could be jailed for up to 35 years. He denies the charges. “As the president, I don’t have the right to order his release. Our judiciary is independent. Let’s wait and see what the court will decide,” Erdogan said.

U.S. President Donald Trump, infuriated by Brunson’s detention, authorized a doubling of duties on aluminum and steel imported from Turkey in August. Turkey retaliated by increasing tariffs on U.S. cars, alcohol and tobacco imports.

The Turkish lira has lost nearly 40 percent of its value against the dollar this year on concerns over Erdogan’s grip on monetary policy and the diplomatic dispute between Ankara and Washington.

“The Brunson case is not even closely related to Turkey’s economy. The current economic challenges have been exaggerated more than necessary and Turkey will overcome these challenges with its own resources,” Erdogan said.

Turkey’s central bank raised its benchmark rate by a hefty 625 basis points this month, boosting the lira and possibly easing investor concern over Erdogan’s influence on monetary policy. Erdogan said he was against the measure.

“It shows the central bank is independent. As the president, I am against high-interest rates and I am repeating my stance here again,” he said, adding that high rates “primarily scare away investors”.

“This was a decision made by the central bank … I hope and pray that their expectations will be met because high rates lead to high inflation. I hope the other way around will happen this time.”

The lira firmed slightly on Wednesday morning after Erdogan’s assurance on the independence of the central bank was published.

IMPROVING TIES

In an effort to boost the economy and attract investors, Erdogan will travel on Sept. 28 to Germany, a country that is home to millions of Turks.

“We want to completely leave behind all the problems and to create a warm environment between Turkey and Germany just like it used to be,” Erdogan said, adding that he will meet Chancellor Angela Merkel during his visit.

The two NATO members have differed over Turkey’s crackdown on suspected opponents of Erdogan after a failed coup in 2016 and over its detention of German citizens.

On Syria, Erdogan said it was impossible for Syrian peace efforts to continue with President Bashar al-Assad in power.

Earlier this month, Turkey and Russia reached an agreement to enforce a new demilitarized zone in Syria’s Idlib region from which “radical” rebels will be required to withdraw by the middle of next month.

But Erdogan said the withdrawal of “radical groups” had already started.

“This part of Syria will be free of weapons which is the expectation of the people of Idlib … who welcomed this step,” he said. The demilitarized zone will be patrolled by Turkish and Russian forces.

Close to 3 million people live in Idlib, around half of them displaced by the war from other parts of Syria.

Erdogan said Turkey will continue to buy natural gas from Iran in line with its long-term supply contract despite Trump’s threats to punish countries doing business with Iran.

“We need to be realistic … Am I supposed to let people freeze in winter? …Nobody should be offended. How can I heat my people’s homes if we stop purchasing Iran’s natural gas?,” he said.

Trump pulled the United States out of a 2015 multinational nuclear deal with Iran and in August Washington reimposed sanctions on Tehran, lifted in 2016 under the pact. U.S. sanctions on Iran’s energy sector are set to be re-imposed in November.

(Writing by Parisa Hafezi; Editing by Raju Gopalakrishnan and Andrew Heavens)

Turkish court rules that U.S. pastor move from jail to house arrest

FILE PHOTO: A prison vehicle, believed to be carrying jailed U.S. pastor Andrew Brunson, leaves from the Aliaga Prison and Courthouse complex in Izmir, Turkey July 18, 2018. REUTERS/Kemal Aslan

By Ezgi Erkoyun and Daren Butler

ISTANBUL (Reuters) – A Turkish court ruled on Wednesday that an American pastor be transferred from jail to house arrest, his lawyer said, after nearly two years in detention on terrorism charges in a case which has strained ties between Ankara and Washington.

Andrew Brunson, a Christian pastor from North Carolina who has worked in Turkey for more than 20 years, was detained in October 2016 and indicted on charges of helping the group which Ankara says was behind a failed military coup earlier that year.

Brunson’s lawyer Ismail Cem Halavurt confirmed Turkish media reports that the court had ruled for him to be moved to house arrest. He will have to wear an electronic ankle bracelet and is banned from leaving the country, Halavurt said.

A week ago the same court rejected a call by Brunson’s defense for his release. State-owned Anadolu news agency said the court decided, after re-evaluating the case, that he could leave prison on health grounds and because he would be under effective judicial control.

It said Brunson’s defense had been completed and evidence for the case was almost all collected.

Brunson’s detention deepened a rift between NATO allies Washington and Ankara – also at odds over the Syrian war and Turkey’s plan to buy missile defenses from Russia – and financial markets took his transfer order as a positive sign.

The Turkish lira strengthened to 4.8325 against the dollar from 4.8599 before the report. Shares in Halkbank, whose former deputy general manager was convicted in January of evading U.S. sanctions on Iran, jumped 12 percent.

Brunson was indicted on charges of helping supporters of Fethullah Gulen, the U.S.-based cleric who Turkish authorities say masterminded the coup attempt against President Tayyip Erdogan in which 250 people were killed. He was also charged with supporting outlawed PKK Kurdish militants.

The pastor, who denies the charges, faces up to 35 years in jail if found guilty.

Erdogan has previously linked his fate to that of Gulen, whose extradition from the United States has been a long-held demand of Turkish authorities. Gulen denies any involvement in the coup.

President Donald Trump said in a tweet last week that Brunson was being held hostage and that Erdogan should “do something to free this wonderful Christian husband & father”.

The U.S. Senate passed a bill last month including a measure that prohibits Turkey from buying F-35 Joint Strike Fighter jets because of Brunson’s imprisonment and Turkey’s purchase of Russia’s S-400 air defense system.

(Reporting by Daren Butler and Tuvan Gumrukcu; Writing by Dominic Evans; editing by David Stamp)

Turkish court keeps U.S. pastor in jail; Trump calls on Erdogan to act

A Turkish soldier stands guard in front of the Aliaga Prison and Courthouse complex in Izmir, Turkey July 18, 2018. REUTERS/Kemal Aslan

By Ezgi Erkoyun

ALIAGA, Turkey (Reuters) – A Turkish court decided on Wednesday to keep an American pastor in jail, dashing hopes that he could be released during his trial on terrorism and spying charges, a case that has deepened a rift with NATO ally Washington.

Andrew Brunson, a Christian pastor from North Carolina who has lived in Turkey for more than two decades, was indicted on charges of helping the group that Ankara blames for a failed 2016 coup against President Tayyip Erdogan, as well as supporting outlawed PKK Kurdish militants.

Brunson, who denies the charges, faces up to 35 years in jail if found guilty.

“It is really hard to stay in jail and be separated from my wife and children,” Brunson, wearing a black suit and a white shirt, told the court in Turkish.

“There is no concrete evidence against me. The disciples of Jesus suffered in his name, now it is my turn. I am an innocent man on all these charges. I reject them. I know why I am here. I am here to suffer in Jesus’s name.”

U.S. President Donald Trump late on Wednesday said in a tweet that Erdogan “should do something to free this wonderful Christian husband and father,” saying that Brunson has “been held hostage far too long.”

The U.S. Senate passed a bill last month including a measure that prohibits Turkey from buying F-35 Joint Strike Fighter jets because of Brunson’s imprisonment and Turkey’s purchase of Russia’s S-400 air defense system.

The U.S. envoy to Turkey said he was “disappointed” by the ruling of the court in the Aegean province of Izmir, where Brunson had been living.

“Our government is deeply concerned about his status and the status of other American citizens and Turkish local employees of the U.S. diplomatic mission who have been detained under state of emergency rules,” Charge d’Affaires Philip Kosnett told reporters outside the courtroom.

“We have great respect for both Turkey’s traditional role as a haven for people of faiths and Turkey’s legal traditions,” he said. “We believe this case is out of step with these traditions.”

NEW WITNESSES

Erdogan has previously linked Brunson’s fate to that of Fethullah Gulen, a U.S.-based Muslim cleric who Turkey accuses of masterminding the failed coup. Gulen denies any involvement in the coup, in which at least 250 people were killed.

The spokesman of Turkey’s ruling AK Party, Mahir Unal, said that just as Washington had responded repeatedly to Ankara’s requests for Gulen’s extradition by saying it was a matter for the U.S. courts, so Brunson’s fate was a judicial matter.

Brunson was pastor of the Izmir Resurrection Church, serving a small Protestant congregation in Turkey’s third-largest city, south of the Aegean town of Aliaga where he is now on trial.

His lawyer Ismail Cem Halavurt had raised hopes that Brunson could be released as the prosecution witnesses finish testifying.

But Halavurt said on Wednesday the prosecution has added the testimony of two new anonymous witnesses to the case and that the court would reconvene on Oct. 12 to hear them and view new evidence.

Turkey’s lira weakened against the dollar immediately after the ruling, reflecting investor worries about tensions with the United States.

Brunson’s trial is one of several legal cases that have raised tensions between Washington and Ankara. A U.S. judge sentenced a Turkish bank executive in May to 32 months in prison for helping Iran evade U.S. sanctions, while two locally employed U.S. consulate staff in Turkey have been detained.

The two NATO allies are also at odds over U.S. policy in Syria, where Washington’s ally in the fight against Islamic State is a Kurdish militia that Turkey says is an extension of the PKK, which has waged a three-decade insurgency in southeast Turkey.

In a statement late on Wednesday, four Republican U.S. senators called for the immediate release of Brunson and other U.S. citizens being held in Turkey, warning of legislative reprisals otherwise.

“We encourage the Administration to use all the tools at their disposal to ensure the release of these innocent people before Congress is forced to press for even stricter legislative measures that will be difficult to unwind,” Senators Thom Tillis, Jeanne Shaheen, James Lankford, and Lindsey Graham said.

(Writing by Ezgi Erkoyun and Humeyra Pamuk; Editing by John Stonestreet and Leslie Adler)

Turkey says it will retaliate if U.S. halts weapons sales

Turkish President Tayyip Erdogan makes a speech during a ceremony in Istanbul, Turkey May 4, 2018. REUTERS/Murad Sezer

By Tuvan Gumrukcu

ANKARA (Reuters) – Turkey will retaliate if the United States enacts a proposed law that would halt weapons sales to the country, Foreign Minister Mevlut Cavusoglu said on Sunday.

Lawmakers in the U.S. House of Representatives released details on Friday of a $717 billion annual defense policy bill, including a measure to temporarily halt weapons sales to Turkey.

In an interview with broadcaster CNN Turk, Cavusoglu said the measures in the bill were wrong, illogical and not fitting between the NATO allies.

“If the United States imposes sanctions on us or takes such a step, Turkey will absolutely retaliate,” Cavusoglu said. “What needs to be done is the U.S. needs to let go of this.”

The proposed U.S. National Defense Authorization Act, which is several steps from becoming law, would ask the Defense Department to provide Congress with a report on the relationship between the United States and Turkey, and would block the sale of major defense equipment until the report was complete.

Turkey plans to buy more than 100 of Lockheed Martin’s <LMT.N> F-35 Joint Strike Fighter jets, and is also in talks with Washington over the purchase of Patriot missiles.

Turkey signed an agreement with Russia in December to buy S-400 surface-to-air missile batteries as part of Ankara’s plans to boost its defense capabilities amid threats from Kurdish and Islamist militants at home and conflicts across its borders in Syria and Iraq.

The move to buy S-400s, which are incompatible with the NATO systems, has unnerved NATO member countries, which are already wary of Moscow’s military presence in the Middle East, prompting NATO officials to warn Turkey of unspecified consequences.

Cavusoglu dismissed the warnings, saying Turkey’s relations and agreements with Russia were not an alternative to its ties with the West and accused the United States of trying to control Turkey’s actions.

“Turkey is not a country under your orders, it is an independent country… Speaking to such a country from above, dictating what it can and cannot buy, is not a correct approach and does not fit our alliance,” he said.

Relations between Ankara and Washington have been strained over a host of issues in recent months, including U.S. policy in Syria and a number of legal cases against Turkish and U.S. nationals being held in the two countries.

Last month, U.S. Secretary of State Mike Pompeo told Cavusoglu that the United States was seriously concerned over Ankara’s decision to buy the Russian S-400 missile batteries.

Cavusoglu said he would visit the United States next week to meet Pompeo, but added a specific date had not been set yet.

(Reporting by Tuvan Gumrukcu; Editing by Adrian Croft)