Turkey will retaliate if U.S. imposes sanctions over S-400s: minister

FILE PHOTO: First parts of a Russian S-400 missile defense system are unloaded from a Russian plane at Murted Airport, known as Akinci Air Base, near Ankara, Turkey, July 12, 2019. Turkish Military/Turkish Defence Ministry/Handout via REUTERS/File Photo

By Ece Toksabay and Tuvan Gumrukcu

ANKARA (Reuters) – Turkey would retaliate against what it called an unacceptable threat of U.S. sanctions over Ankara’s purchase of Russian S-400 missile defenses, its foreign minister said on Monday, adding he thinks President Donald Trump wants to avoid such measures.

Turkey began receiving deliveries of the surface-to-air S-400 systems earlier this month, prompting the United States to begin removing the NATO ally from its F-35 stealth fighter program over security concerns.

Washington says it is concerned that S-400 software will compromise its F-35s to the benefit of Russia. While several Republican and Democratic U.S. lawmakers have pressed for sanctions, Trump has equivocated in recent days.

“If the United States portrays an adversarial attitude towards us, we will take retaliatory measures, as we’ve told them. This is not a threat or a bluff,” Foreign Minister Mevlut Cavusoglu said in an interview with broadcaster TGRT Haber.

“We are not a country that will bow down to those who show animosity towards Turkey,” he said, reiterating a threat of retaliation that Turkey made last month.

Cavusoglu added that he did not expect the U.S. administration to take such action.

“Trump does not want to impose sanctions on Turkey and he frequently says that his administration and the previous U.S. administration is also responsible for Turkey not being able to buy Patriot systems. This is true,” Cavusoglu said.

The United States announced last week it was beginning the process of removing Turkey from the program for the F-35 stealth jets, the most advanced aircraft in the U.S. arsenal, which is used by the North Atlantic Treaty Organization and other partner countries.

Turkey, like some other NATO partners, was part of the manufacturing supply chain for the aircraft, producing some 900 parts and Turkish defense companies are set to lose work worth billions of dollars.

A U.S. official said it would cost some $500 million to $600 million to shift F-35 manufacturing from Turkey.

RUSSIAN ALTERNATIVE

The delivery of S-400 components is ongoing, with 14 shipments of related equipment having landed in Turkey over the last nine days. Deliveries are set to continue through April 2020.

Separately, Sergei Chemezov, head of Russia’s Rostec state conglomerate, said that Russia and Turkey were in talks about the possibility of jointly manufacturing some components of the S-400 system in Turkey.

“Moscow and Ankara are holding consultations in the area of the licensed production of the S-400 air defense system component parts,” Turkey’s state-run Anadolu news agency quoted Chemezov as saying.

“Besides, Turkey is interested in the latest Russian combat modules, air defense systems of various ranges, as well as anti-tank systems. Negotiations are underway for Russia to help the Republic of Turkey in creating its national air defense and long-range missile defense systems,” he said.

Chemezov added that Moscow was ready for various formats of technological cooperation, including in such high-tech areas as the aerospace industry, helicopter construction, and energy.

(Writing by Ece Toksabay; Editing by Jonathan Spicer and Frances Kerry)

U.S. removing Turkey from F-35 program after its Russian missile defense purchase

Turkey and U.S. flags are seen in this picture illustration taken August 25, 2018. REUTERS/Dado Ruvic/Illustration

By Idrees Ali and Phil Stewart

WASHINGTON (Reuters) – The United States said on Wednesday that it was removing Turkey from the F-35 fighter jet program, a move long threatened and expected after Ankara began accepting delivery of an advanced Russian missile defense system last week.

The first parts of the S-400 air defense system were flown to the Murted military air base northwest of Ankara on Friday, sealing NATO ally Turkey’s deal with Russia, which Washington had struggled for months to prevent.

“The U.S. and other F-35 partners are aligned in this decision to suspend Turkey from the program and initiate the process to formally remove Turkey from the program,” Ellen Lord, the undersecretary of defense for acquisition and sustainment, told a briefing.

Turkey’s foreign ministry said the move was unfair and could affect relations between the two countries.

Lord said moving the supply chain for the advanced fighter jet would cost the United States between $500 million and $600 million in non-recurring engineering costs.

Turkey makes more than 900 parts of the F-35, she said, adding the supply chain would transition from Turkish to mainly U.S. factories as Turkish suppliers are removed.

“Turkey will certainly and regrettably lose jobs and future economic opportunities from this decision,” Lord said. “It will no longer receive more than $9 billion in projected work share related to the F-35 over the life of the program.”

The F-35 stealth fighter jet, the most advanced aircraft in the U.S. arsenal, is used by NATO and other U.S. allies.

Washington is concerned that deploying the S-400 with the F-35 would allow Russia to gain too much inside information about the aircraft’s stealth system.

“The F-35 cannot coexist with a Russian intelligence collection platform that will be used to learn about its advanced capabilities,” the White House said in a statement earlier on Wednesday.

Washington had long said the acquisition of the S-400 might lead to Turkey’s expulsion from the F-35 program.

FRAYED TIES

After the Pentagon announcement, Turkey’s foreign ministry said in a statement: “We invite the United States to return from this mistake which would open irreparable wounds in strategic relations.”

NATO Secretary General Jens Stoltenberg, speaking at the Aspen Institute’s annual security forum in Aspen, Colorado, said he was concerned at Turkey’s expulsion from the F-35 program.

But while the S-400 could not become part of NATO’s shared air and missile defenses, he said, Turkey has aircraft and radars that would remain part of the system.

“The S-400, the Russian air defense system, it’s not possible to integrate into the integrated NATO air defense and missile system, which is about sharing, you know, radar picture, about joint air policing, which is about shared capabilities. And Turkey has not asked for that,” Stoltenberg said.

The S-400 acquisition is one of several issues that have frayed ties between the two allies, including a dispute over strategy in Syria east of the Euphrates River, where the United States is allied with Kurdish forces that Turkey views as foes.

The Pentagon had already laid out a plan to remove Turkey from the program, which included halting training for Turkish pilots on the aircraft.

Lord said all the Turkish F-35 pilots and personnel had “firm plans” to leave the United States and were scheduled to leave by July 31.

Turkey will no longer be able to buy the 100 F-35s it had agreed to purchase.

“These would likely have been delivered at an annual rate of 8-12 aircraft/year through the 2020s,” Byron Callan, an analyst at Capital Alpha Partners, said in a research note on Wednesday.

The jet’s prime contractor, Lockheed Martin Corp and the jet’s program office at the Pentagon “should be able to re-market those delivery positions,” Callan said.

Lockheed Martin spokeswoman Carolyn Nelson said: “Over the last several months we’ve been working to establish alternative sources of supply in the United States to quickly” adjust for the loss of Turkey’s contribution to the program.

The United States is considering expanding sales of the jets to five other nations, including Romania, Greece and Poland, as European allies bulk up their defenses in the face of a strengthening Russia.

David Trachtenberg, the deputy undersecretary of defense for policy, told reporters at the briefing that the United States still valued its relationship with Turkey.

“Our strategic partnership continues, but as I said, this is a specific response to a specific action,” Trachtenberg said.

(Reporting by Idrees Ali and Phil Stewart; Additional reporting by Mike Stone, David Alexander and Jonathan Landay in Washington and Ezgi Erkoyun in Istanbul; Editing by Jonathan Oatis and Peter Cooney)

Russia delivers missile system to Turkey in challenge to NATO

By Sarah Dadouch and Ezgi Erkoyun

ISTANBUL (Reuters) – Russia began delivery of an advanced missile defense system to Turkey on Friday, a move expected to trigger U.S. sanctions against a NATO ally and drive a wedge into the heart of the Western military alliance.

The first parts of the S-400 air defense system were flown to a military air base near the capital Ankara, the Turkish Defense Ministry said, sealing Turkey’s deal with Russia which Washington had struggled for months to prevent.

The United States says the Russian military hardware is not compatible with NATO systems and that the acquisition may lead to Ankara’s expulsion from an F-35 fighter jet program.

Investors in Turkey have been unsettled by the deal. The Turkish lira weakened as far as 5.728 against the dollar from 5.683 before the ministry announced the arrival of the S-400 consignment to the Murted Air Base, northwest of Ankara. The main Istanbul share index fell 1.4%.

“The delivery of parts belonging to the system will continue in the coming days,” Turkey’s Defense Industry Directorate said. “Once the system is completely ready, it will begin to be used in a way determined by the relevant authorities.”

At least two Russian Air Force AN-124 cargo planes flew to Turkey on Friday morning, data from plane tracking website Flightradar24 showed. Turkish broadcasters showed footage of one plane parked at airbase and a second one landing at around 12.30 pm (0930 GMT).

Russia’s Federal Service for Military-Technical Cooperation confirmed on Friday it had started delivering the S-400 systems and that the deliveries would continue in accordance with an agreed schedule, the RIA news agency reported.

An unnamed military-diplomatic source was cited by Russia’s TASS news agency as saying a second delivery would be carried out by plane soon. A third delivery – of 120 guided missiles – will be carried out by ship at the end of the summer, the source was quoted as saying.

Twenty Turkish servicemen received training from Russia in May-June and 80 more Turkish servicemen will receive training to use the S-400 system, the source was quoted as saying.

ERDOGAN-TRUMP TALKS

Turkey says the system is a strategic defense requirement, particularly to secure its southern borders with Syria and Iraq. It says that when it made the deal with Russia for the S-400s, the United States and Europe had not presented a viable alternative.

President Tayyip Erdogan said after meeting President Donald Trump at a G20 summit last month that the United States did not plan to impose sanctions on Ankara for buying the S-400s.

Trump said Turkey had not been treated fairly but did not rule out sanctions. U.S. officials said last week the administration still plans to impose sanctions on Turkey.

Under legislation known as Countering America’s Adversaries through Sanctions Act (CAATSA), which targets purchases of military equipment from Russia, Trump should select five of 12 possible measures.

These range from banning visas and denying access to the U.S.-based Export-Import Bank, to the harsher options of blocking transactions with the U.S. financial system and denying export licenses.

Washington says the S-400s could compromise its Lockheed Martin F-35 stealth fighter jets, an aircraft Turkey is helping to build and planning to buy.

Turkey could also face expulsion from the F-35 program under the sanctions. Erdogan has dismissed that possibility, but Washington has already started the process of removing Turkey from the program, halting training of Turkish pilots in the United States on the aircraft.

Investors in Turkey have been concerned about the impact of potential U.S. sanctions on an economy which fell into recession after a currency crisis last year.

Turkey’s dollar bonds dropped to three-week lows on the news of the delivery, while the cost of insuring exposure to Turkish sovereign debt also rose.

The S-400 acquisition is one of several issues which have frayed ties between the two allies, including a dispute over strategy in Syria east of the Euphrates River, where the United States is allied with Kurdish forces that Turkey views as foes.

The detention of U.S. consular staff in Turkey has also strained relations, along with disagreements over Iran, Venezuela and Middle East policy. Turkey has long demanded Washington hand over a Muslim cleric which Ankara holds responsible for an attempted coup in 2016.

The Murted base was formerly known as Akinci Air Base and was used by putschist soldiers in the failed 2016 coup.

(Additional reporting by Orhan Coskun in Ankara, Maxim Rodionov and Thomas Balmforth in Moscow; Writing by Daren Butler; Editing by Dominic Evans and Gareth Jones)

No sign of progress at NATO in U.S.-Turkey dispute over Russian defenses

Turkey and U.S. flags are seen in this picture illustration taken August 25, 2018. REUTERS/Dado Ruvic/Illustration

By Phil Stewart

BRUSSELS (Reuters) – The United States and Turkey appeared to make no progress during talks at NATO headquarters on Wednesday toward resolving a major dispute over Ankara’s plans to acquire a Russian air defense system, just ahead of its expected July delivery.

The United States says Turkey’s acquisition of Russia’sS-400 air defenses poses a threat to the Lockheed Martin Corp’s F-35 stealthy fighters, which Turkey also planned to buy. Washington says Ankara cannot have both and has started the process of removing Turkey from the F-35 program, including halting training of Turkish pilots in the United States on the advanced, stealth aircraft. Acting U.S. Defense Secretary Mark Esper warned his Turkish counterpart, Hulusi Akar, during closed-door talks on Wednesday that Turkish acquisition would also have an economic impact, a senior U.S. defense official said, in a nod to expected U.S. sanctions.

“The secretary was very firm, once again, that Turkey will not have both the S-400 and the F-35. And if they accept the S-400 they should accept ramifications not only to the F-35 program but also to their economic situation,” the official said.

Buying military equipment from Russia leaves Turkey vulnerable to U.S. retribution under a 2017 law known as the Countering America’s Adversaries Through Sanctions Act, or CAATSA.

Turkey has played down U.S. concerns about the security of the F-35 and insists it cannot back away from the S-400 purchase. U.S. offers to supply it with Patriot missiles, manufactured by Raytheon Co, have failed to sway Ankara.

Asked if Turkey changed its position in any way, the official said: “There were no surprises but…the minister and the secretary were very clear with each other.”

ERDOGAN-TRUMP MEETING

If the United States follows through with removing Turkey from the F-35 program, and imposes sanctions on the NATO ally, it would be one of the most significant ruptures in recent history in the relationship between the two nations, experts said.

But strains in ties between Washington and Ankara already extend beyond the F-35 to include conflicting strategy in Syria, Iran sanctions and the detention of U.S. consular staff in Turkey.

Turkey’s defense ministry issued a short statement, acknowledging that the F-35 came up in discussions, as well as Syria and “other bilateral security and defense cooperation issues.”

The ministry said Esper and Akar “emphasized the importance of maintaining dialogue between Turkey and the United States.”

The head of Russian state arms exporter Rosoboronexport, Alexander Mikheev, was quoted on Wednesday saying Russia would make first delivery of the S-400 missile systems to Turkey in July.

With the clock ticking, attention will shift to an expected meeting between Turkish President Tayyip Erdogan and U.S. President Donald Trump at the G20 summit in Japan this week. Erdogan has said he expected to discuss the issue with Trump.

One senior NATO diplomat said that was probably the last chance of finding a solution.

But officials in Ankara and Washington are cautious.

“Everything indicates that Russia is going to deliver the system to Turkey and that will have consequences,” Kay Bailey Hutchison, the U.S. ambassador to NATO, said in Brussels on Tuesday.

(Reporting by Phil Stewart, additional reporting by Robin Emmott in Brussels, Ezgi Erkoyun in Istanbul; Editing by Chizu Nomiyama and Alistair Bell)

Erdogan does not expect U.S. sanctions over Russian S-400 deal

FILE PHOTO - Turkish President Recep Tayyip Erdogan attends talks with Iranian President Hassan Rouhani and Russian President Vladimir Putin, during their meeting in the Black sea resort of Sochi, Russia, 14 February 2019. Sergei Chirikov/Pool via REUTERS

By Jonathan Spicer and Humeyra Pamuk

ISTANBUL (Reuters) – President Tayyip Erdogan said on Thursday he did not expect the United States to impose sanctions over Turkey’s planned purchase of a Russian missile defense system, but he would retaliate if it did.

Speaking at a rare news conference for foreign media in Istanbul, Erdogan repeated that the purchase of Russian S-400 systems was a done deal and said the United States should think carefully before imposing sanctions on a NATO member.

“I do not see any possibility of these sanctions happening,” Erdogan said. However, if they did, “we will have sanctions of our own”.

Washington has repeatedly threatened to impose sanctions unless Ankara backs down from the S-400 purchase. Erdogan said the delivery of the system would start in the first half of July.

His expectation of no sanctions appeared largely based on his personal relationship with President Donald Trump. “I say this very openly and sincerely, our relations with Trump are at a place that I can call really good … In the event of any issues, we immediately work the phones,” Erdogan said.

He said he would discuss the issue with Trump at the G20 summit in Japan at the end of June, and that the problem was largely with other U.S. officials. “When we have talks with those below Trump, we see that many cannot agree with our officials, and one example is the S-400,” he said.

Turkey and the United States have been at loggerheads over the issue for months. Washington says the S-400 is incompatible with NATO’s defense network and could compromise its F-35 fighter jets, an aircraft Turkey is helping build and planning to buy.

Buying military equipment from Russia leaves Turkey liable to U.S. retribution under a 2017 law known as the Countering America’s Adversaries Through Sanctions Act, or CAATSA.

Even minor U.S. sanctions could prompt another sharp sell-off in the Turkish lira. A 30 percent slide in the currency drove the Middle East’s largest economy into recession last year. It has fallen another 10 percent this year and markets remain on edge.

Erdogan said Turkey wanted to buy Patriot missiles from the U.S. but that offer was in no way comparable to Russia’s.

He said Turkey would appeal to international courts and ask for its F-35 payments to be refunded if needed.

(Additional reporting by Ali Kucukgocmen and Canan Sevgili; Writing by Humeyra Pamuk; Editing by Daren Butler and John Stonestreet)

Turkey rejects U.S. ultimatums, says it will not back down on Russian S-400s

FILE PHOTO: A view shows a new S-400 "Triumph" surface-to-air missile system after its deployment at a military base outside the town of Gvardeysk near Kaliningrad, Russia March 11, 2019. REUTERS/Vitaly Nevar/File Photo - RC1BFE102410

By Tuvan Gumrukcu

ANKARA (Reuters) – Turkey will not back down from its decision to buy Russian S-400 missile defense systems despite U.S. warnings that it will lead to Ankara’s exclusion from the F-35 fighter jet program, Foreign Minister Mevlut Cavusoglu said on Thursday.

In what has become the main source of tension between Ankara and Washington, the NATO allies have sparred publicly for months over Turkey’s purchase of the S-400s, which Washington has said could trigger U.S. sanctions.

U.S. Acting Secretary of Defense Patrick Shanahan last week sent his Turkish counterpart a letter warning that Ankara would be pulled out of the F-35 jet program unless it changes course from its plans to install the defenses.

In what was Turkey’s first direct response to the letter, Cavusoglu said no one can give Turkey ultimatums.

“Turkey will not back down from its decisions with these kinds of letters,” he said. “Turkey bought S-400, it is going to be delivered and stationed in Turkey.”

The S-400s are not compatible with NATO’s defense systems and Washington says they would compromise its F-35s, which Turkey also plans to buy. Turkey has proposed that the allies form a working group to asses the impact of the S-400s, but has yet to receive a response from the United States.

Cavusoglu on Thursday repeated Turkey’s call for the joint working group, saying experts from both countries should come together to evaluate U.S. concerns.

A day earlier, President Tayyip Erdogan said that Turkey had completed the deal with Russia and that the systems will be delivered in July. Russia has said it will begin the delivery of the systems in July.

Erdogan also said that Ankara would challenge its potential removal from the F-35 program on every platform and hold those who exclude Turkey accountable.

The United States has threatened to impose sanctions on Ankara under its Countering America’s Adversaries Through Sanctions Act (CAATSA), the possibility of which has spooked investors and caused a selloff in the lira this year.

The lira stood at 5.8460 at 1029 GMT on Thursday, weakening from around 5.8320, where it stood prior to Cavusoglu’s speech. It was down some 0.7% from Wednesday’s close.

While Turkey has dismissed the U.S. warnings, Washington has said discussions are taking place with Ankara on selling Turkey rival Raytheon Co-Patriot defense systems. But, Erdogan has said the U.S. offer was not “as good as the S-400s”.

Defense Minister Hulusi Akar has said Turkey is working on a response to Shanahan’s letter and that it will be delivered in coming days.

The ministers later spoke by telephone on Thursday and discussed the letter, Turkey’s defense ministry said, adding that Akar had “emphasized the improper wording not in line with the spirit of the Alliance” in the letter during the call.

Israel’s deputy Defense Minister Eli Ben-Dahan said the strains between Turkey and the United States could help strengthen ties with Israel and boost the country’s participation in the F-35 program.

“It could also very much be that..the State of Israel will get another portion within the framework of the F-35 and additional things which, in part, were meant to have been transferred to factories in Turkey,” he told Army Radio.

(Reporting by Tuvan Gumrukcu and Ali Kucukgocmen; Additional reporting by Dan Williams in Jerusalem; Writing by Daren Butler; Editing by Jonathan Spicer and Angus MacSwan)

Pentagon says expects to resolve row with Turkey over S-400

Acting U.S. Secretary of Defense Patrick Shanahan testifies to the House Armed Forces Committee on Capitol Hill in Washington, U.S., March 26, 2019. REUTERS/Joshua Roberts

WASHINGTON (Reuters) – Acting Defense Secretary Patrick Shanahan said on Tuesday that he expected to solve a dispute with Turkey over its purchase of Russia’s S-400 air defense system, a day after the United States halted the delivery of equipment related to the F-35 aircraft to Ankara.

“I expect we’ll solve the problem so that they have the right defense equipment in terms of Patriots and F-35s,” Shanahan told reporters at the Pentagon. Washington has sought to persuade Turkey to purchase the Patriot defense system, instead of S-400s.

Shanahan added that he expected the delivery of F-35s currently at Luke Air Force base to Turkey.

(Reporting by Idrees Ali and Phil Stewart)