Turkish banks could face big U.S. fines over Iran: report

Turkish banks could face big U.S. fines over Iran: report

ANKARA/ISTANBUL (Reuters) – Six Turkish banks face billions of dollars of fines from U.S. authorities over alleged violations of sanctions with Iran, the Haberturk newspaper reported on Saturday, citing senior banking sources.

The report could not be verified by Reuters. Two senior Turkish economy officials told Reuters that Turkey has not received any notice from the United States about such penalties, adding that U.S. regulators would normally inform the finance ministry’s financial crimes investigation board.

Turkish authorities are expected to issue a statement to issue the address the issue soon, the senior economy officials said.

The report comes as relations between Washington and Ankara have been strained by a series of diplomatic rows, prompting both countries to cut back issuing visas to each other’s citizens.

Haberturk did not name the six banks potentially facing the fines. One bank will face a penalty in excess of $5 billion, while the rest of the fines will be lower, it said.

U.S. officials will notify the banks of their penalties in the coming days and the banks are likely to be able to negotiate down the fines, Haberturk said.

U.S. authorities have hit global banks with billions of dollars in fines over violations of sanctions with Iran and other countries in recent years.

U.S. prosecutors last month charged a former Turkish economy minister and the ex-head of a state-owned bank with conspiring to violate Iran sanctions by illegally moving hundreds of millions of dollars through the U.S. financial system on Tehran’s behalf.

President Tayyip Erdogan has dismissed the charges as politically motivated, and tantamount to an attack on the Turkish Republic.

The charges stem from the case against Reza Zarrab, a wealthy Turkish-Iranian gold trader who was arrested in the United States over sanctions evasion last year. Erdogan has said U.S. authorities had “ulterior motives” in charging Zarrab, who has pleaded not guilty.

(Reporting by Orhan Coskun and Ebru Tuncay; Writing by Dirimcan Barut; Editing by David Dolan and Stephen Powell)

Kremlin says Putin, Erdogan discuss Syria in phone call

Kremlin says Putin, Erdogan discuss Syria in phone call

MOSCOW (Reuters) – Russian President Vladimir Putin and Turkish President Tayyip Erdogan discussed an upcoming meeting of the Astana process on the Syrian conflict in the Kazakh capital in late October, the Kremlin said on Saturday.

During their phone conversation, Putin and Erdogan talked about joint efforts within the Astana process, including the creation of “de-escalation zones” in Syria, and further coordination towards resolving the Syria situation, the Kremlin said in a statement.

The Astana talks are brokered by Russia, Turkey and Iran. In mid-September, the three countries agreed to post observers on the edge of a de-escalation zone in northern Syria’s Idlib region largely controlled by Islamist militants.

Putin and Erdogan also said the agreements reached between Russia and Turkey in Ankara in late September were being successfully implemented, particularly in trade and economic relations.

“Overall, the conversation was business-like and constructive, directed at strengthening bilateral cooperation and interaction on the regional agenda,” the Kremlin said.

The Russian-Turkish trade relationship has been affected by their dispute over supplies of Turkish tomatoes to Russia which Moscow is yet to fully restore. This dispute has been adding risks to Russian grain trade with Turkey.

Russia, once the largest market for Turkish tomato producers, said this week it will allow purchases of 50,000 tonnes of Turkish tomatoes from only four Turkish producers from Dec. 1.

The announcement came several days after Turkey, the second largest buyer of Russian wheat, said it had imposed a requirement for additional approval of Russian agriculture supplies by the Turkish authorities.

(Reporting by Polina Devitt)

Turkey’s Erdogan says may shut Iraqi border any moment: Hurriyet

Turkey's Erdogan says may shut Iraqi border any moment: Hurriyet

ISTANBUL (Reuters) – President Tayyip Erdogan said Turkey may shut its border with northern Iraq “at any moment” after closing its air space to the region, Hurriyet newspaper reported on Thursday, reviving a threat first made after Kurds there voted for independence.

“We have completely closed our air space to the regional government in northern Iraq,” the paper cited Erdogan as telling reporters on his plane returning from a trip to Poland.

“Talks are continuing on what will be done regarding the land (border) … We have not shut the border gates yet but this could happen too at any moment,” he added.

Turkey announced on Monday it was closing its air space to the semi-autonomous Kurdish region and said it would work to hand control of the main border crossing into the region to the central Iraqi government.

The Habur gate is the main transit point between Turkey and Iraq’s semi-autonomous Kurdish Regional Government.

A Sept. 25 referendum, in which Kurds in northern Iraq voted overwhelmingly in favor of independence, alarmed Baghdad, Iraq’s neighbors and Western powers, all of whom feared further regional conflict could arise from the vote.

Subsequently Kurdish Peshmerga forces retreated to positions they held in northern Iraq in June 2014 in response to an Iraqi army advance into the region after the referendum, a senior Iraqi commander said on Wednesday.

Ankara, which has been battling a three-decade insurgency in its own mainly Kurdish southeast, fears an independent Kurdish state on its borders would heighten separatist tension at home.

(Reporting by Tulay Karadeniz; Writing by Daren Butler; Editing by Dominic Evans)

Turkey says will not submit to ‘impositions’ from United States in visa crisis

U.S. Consulate is pictured in Istanbul, Turkey, October 11, 2017. REUTERS/Murad Sezer

ANKARA (Reuters) – Turkey will not submit to “impositions” from the United States over an on-going visa crisis and will reject any conditions it cannot meet, Foreign Minister Mevlut Cavusoglu said on Wednesday.

A delegation from the United States is visiting Turkey in an attempt to repair diplomatic ties between the NATO allies after both countries stopped issuing visas to each other’s citizens this month.

Washington first suspended visa services at its missions in Turkey, after Turkish authorities detained two Turkish nationals employed as U.S. consular staff. The U.S. delegation has asked Ankara for information and evidence regarding the detained staff, private broadcaster Haberturk reported.

“We will cooperate if their demands meet the rules of our constitution but we will not succumb to impositions and we will reject any conditions that we cannot meet,” Cavusoglu told a news conference, when asked about the report of requests from the U.S. delegation.

A translator at the consulate in the southern province of Adana was arrested in May and a Drug Enforcement Administration (DEA) worker was detained in Istanbul two weeks ago. Both were detained on suspicion of links to last year’s failed coup, allegations the United States has rejected.

Haberturk said the U.S. delegation, which arrived in Turkey this week, laid out four conditions to solve the visa crisis, including that Turkey must provide information about its investigations into the detained workers, and evidence related to DEA worker Metin Topuz.

President Tayyip Erdogan’s spokesman said last week Topuz had been in contact with a leading suspect in last year’s failed military coup. Turkish media reported similar accusations against the translator in May.

The U.S. delegation told Ankara that if the contacts which Turkish authorities are seeking to investigate were undertaken on the instructions of the consulate, the employees should not have been arrested, Haberturk said.

(Reporting by Tulay Karadeniz; Writing by Ece Toksabay; Editing by Dominic Evans)

Somalia calls for blood donations after bombing, Turkey sends doctors

Civilians walk at the scene of an explosion in KM4 street in the Hodan district of Mogadishu. REUTERS/Feisal Omar

By Maggie Fick

NAIROBI (Reuters) – Somalia is in desperate need for donated blood to treat survivors of a truck bombing in the capital Mogadishu on Saturday that killed more than 300 people and injured at least 400 others, a minister said.

The bombing was one of the worst such attacks in Somalia. Officials said it bore the hallmarks of the al Qaeda-linked al Shabaab group, but they have not claimed responsibility.

Information Minister Abdirahman Omar Osman said Somalia does not have a blood bank and that the limitations of its health care system was impeding the medical response. Countries including Turkey and Qatar are providing medical assistance.

“We are requesting blood, we are requesting assistance for verifying the dead in order for their relatives to know,” Osman told Reuters by phone from Mogadishu.

Somalia has been mired in conflict since 1991, when clan warlords overthrew a dictator then turned on each other. One of the poorest countries in Africa, it faces severe food insecurity and relies on foreign donors to support its institutions and basic services.

Osman said the bodies of more than 100 people buried on Monday “were blown beyond recognition”, and that he hoped other bodies could still be identified.

Turkish doctors — mainly surgeons and specialists in spine injuries — arrived along with Turkey’s health minister on Monday.

“They are treating people in hospitals in Mogadishu,” the minister said.

Turkey evacuated 35 critically wounded Somalis to Ankara by plane on Monday, the country’s deputy prime minister Recep Akdag told reporters upon returning from Somalia. An increasingly close ally of Somalia, Turkey opened a $50 million military base in the capital last month.

Medicine from neighboring nations Djibouti and Kenya arrived by plane on Tuesday and “air ambulance” was en route from the Gulf state of Qatar, the minister said.

Qatar would be evacuating 25 more injured people to a hospital in Sudan.

(Reporting by Maggie Fick; Additional reporting by Tuvan Gumrukcu in Ankara; Editing by Raissa Kasolowsky)

Turkey orders detention of 100 former police officers in post-coup probe: Anadolu

Turkey orders detention of 100 former police officers in post-coup probe: Anadolu

ANKARA (Reuters) – Turkish authorities issued detention warrants on Saturday for 100 former police officers and have so far detained 63 of them, the state-run Anadolu news agency said, as part of a widening crackdown since last year’s failed coup attempt.

The suspects were believed to be users of ByLock, an encrypted messaging app which the government says was used by the network of U.S.-based cleric Fethullah Gulen, accused by Ankara of orchestrating last July’s abortive putsch.

Gulen, who has lived in self-imposed exile in Pennsylvania since 1999, denies involvement.

Anadolu said security forces were seeking the suspects in 19 provinces across the country.

Since the abortive coup, more than 50,000 people have been jailed pending trial over alleged links to Gulen, while 150,000 people have been sacked or suspended from jobs in the military, public and private sectors.

Rights groups and some of Turkey’s Western allies have voiced concern about the crackdown, fearing the government is using the coup as a pretext to quash dissent.

The government says only such a purge could neutralize the threat represented by Gulen’s network, which it says deeply infiltrated institutions such as the army, schools and courts.

 

(Reporting by Tuvan Gumrukcu; Editing by Adrian Croft)

 

U.S. still seeking explanation for arrest of staff in Turkey: ambassador

U.S. Ambassador to Turkey John Bass speaks during a meeting with media members in Ankara, Tukey, October 11, 2017. REUTERS/Stringer

By Tulay Karadeniz and Gulsen Solaker

ANKARA (Reuters) – The United States is still seeking an explanation from Ankara for the detention of staff at U.S. missions in Turkey which led Washington to stop issuing visas and triggered a diplomatic crisis, the U.S. ambassador said on Wednesday.

Ambassador John Bass said the decision to suspend granting visas was not taken lightly, but the detentions indicated a breakdown in communication between the two NATO allies, whose relations have come under increasing strain.

“Unfortunately… the U.S. government still has not received any official communications from the Turkish government about the reasons why our local employees have been detained or arrested,” he told reporters at the U.S. embassy in Ankara.

Washington says two locally employed staff were arrested in Turkey this year. In May, a translator at the consulate in the southern province of Adana was arrested and last week a Drug Enforcement Administration worker was detained in Istanbul.

President Tayyip Erdogan’s spokesman said last week the Istanbul employee, Metin Topuz, had been in contact with a leading suspect in last year’s failed military coup. Turkish media reported similar accusations against the translator.

“The notion that people in our employment are facing or are under suspicion of terrorism charges here, that is a very serious allegation,” Bass said. “It is one we want to take seriously and we want to better understand the ostensible evidence that supports these allegations”.

Since the failed military coup in July last year, in which at least 240 people were killed, more than 50,000 people have been detained and 150,000, including teachers, academics, soldiers and journalists, have been suspended from work.

Some Western allies fear the crackdown shows the country is slipping ever deeper into authoritarian rule under Erdogan.

Ankara says its critics fail to understand the scale of the security challenges in Turkey, which has also faced conflict on its southern borders with Iraq and Syria, and an insurgency in its mainly Kurdish southeast.

ENVOY TARGETED

Erdogan has blamed Bass for the latest dispute, suggesting he acted unilaterally in suspending visa services and declaring that his government no longer considered Bass to be Washington’s envoy and would not hold meetings with him.

The U.S. State Department denied Bass acted alone, saying his actions were coordinated with officials in Washington.

In a sign that Ankara was stepping back from the pledge to exclude Bass, Turkish television channels reported that he met a foreign ministry official later on Wednesday. The ambassador is due to leave Turkey within days to take up a post in Afghanistan.

U.S.-Turkish tensions have risen in recent months over U.S. military support for Kurdish YPG fighters in Syria, considered by Ankara to be an extension of the banned PKK which has waged an insurgency for three decades in southeast Turkey.

Turkey has also pressed, so far in vain, for the United States to extradite Muslim cleric Fethullah Gulen, a former ally of Erdogan who is viewed in Ankara as the mastermind behind the failed coup.

Another source of friction was the U.S. indictment of Turkey’s former economy minister Zafer Caglayan for conspiring to violate U.S. sanctions on Iran. A U.S. court also indicted 15 of Erdogan’s guards after they clashed with protesters during his visit to Washington in May.

In addition to the two detained consulate workers, Turkey is holding a U.S. pastor on charges which Turkish media say include membership of Gulen’s network. Bass called for the release of the Christian missionary, Andrew Brunson, saying he had seen nothing of merit in the charges against him.

He denied reports that Turkish police were trying to speak to another consulate employee. “To the best of our knowledge there are not any outstanding requests from Turkish law enforcement officials for any of our local staff to come in and talk to them,” he said.

(Reporting by Tulay Karadeniz and Gulsen Solaker; Writing by Daren Butler; Editing by Dominic Evans and Hugh Lawson)

Turkey’s Erdogan blames U.S. envoy for diplomatic crisis

Turkish President Recep Tayyip Erdogan in Belgrade, Serbia, October 10, 2017. REUTERS/Marko Djurica

By Ercan Gurses

ANKARA (Reuters) – President Tayyip Erdogan blamed the U.S. ambassador to Turkey on Tuesday for a diplomatic crisis between the two countries and said Ankara no longer considered him Washington’s envoy.

In a blunt and personal attack on outgoing Ambassador John Bass, Erdogan suggested Bass acted unilaterally in suspending visa services in Turkey after the arrest of a U.S. consulate worker, and said “agents” had infiltrated U.S. missions.

The U.S. State Department defended Bass, saying he had the “full backing” of the U.S. government and his actions were coordinated with the State Department, White House and National Security Council.

“Our ambassadors tend not to do things unilaterally,” State Department spokeswoman Heather Nauert told a briefing. “We have a very close coordination and cooperation with our ambassadors,” she added, saying Bass had done “a terrific job in Turkey.”

The dispute has plunged already fragile relations between the two NATO allies to a new low after months of tension linked to the conflict in Syria, last year’s failed military coup in Turkey, and U.S. court cases against Turkish officials.

The U.S. embassy said on Sunday night it was suspending visa services while it assessed Turkey’s commitment to the safety of its missions and its staff, a message reiterated in a video released by Bass late on Monday.

“An ambassador in Ankara taking decisions and saying he is doing so in the name of his government is strange,” Erdogan said. “If our ambassador did this, we wouldn’t keep him there even a minute.”

The embassy said allegations that the arrested employee had links to Fethullah Gulen, a U.S.-based Muslim cleric blamed by Ankara for orchestrating the failed coup against Erdogan last year, were baseless.

Nauert said Turkey, which has arrested two local U.S. embassy staff members this year, summoned a third local staff member for questioning over the weekend, a “deeply disturbing” move. Some of those targeted were responsible for law enforcement coordination between the countries, she said.

“Being able to have close security cooperation, especially with a NATO partner, is incredibly important,” Nauert said. “And when they start arresting, detaining our people, our people who are responsible for law enforcement coordination, that is a … major concern of ours. And so that is why we took these steps.”

But Erdogan said the arrest, and a police request to question a second consulate employee, showed “there is something cooking in the U.S. consulate in Istanbul … How did these agents infiltrate the U.S. consulate?”

He said Bass, who is due to leave the country within days to take up a posting in Afghanistan, had been making farewell visits to government offices.

“But our ministers, parliament speaker and myself did not accept and will not accept his request because we do not see him as a representative of the United States,” Erdogan told a televised news conference during a visit to Belgrade.

Prime Minister Binali Yildirim said the visa suspension had punished citizens of both countries, and accused Washington of taking an emotional and inappropriate step against an ally.

“You are making your citizens and ours pay the price,” he said. “We call on the United States to be more reasonable. The issue must of course be resolved as soon as possible,” he said, describing U.S. behavior as “unbecoming” of an ally.

In a speech in Ankara to ruling AK Party parliamentarians, Yildirim also defended Turkey’s decision to retaliate with its own visa suspension after the U.S. embassy announcement.

“Turkey is not a tribal state, we will retaliate against what has been done in kind,” he said.

(Additional reporting by Tuvan Gumrukcu and Daren Butler; writing by Dominic Evans; editing by Richard Balmforth and Tom Brown)

Turkey could look elsewhere if Russia won’t share missile technology

Russian S-400 Triumph medium-range and long-range surface-to-air missile systems drive during the Victory Day parade, marking the 71st anniversary of the victory over Nazi Germany in World War Two, at Red Square in Moscow, Russia, May 9, 2016.

ISTANBUL (Reuters) – Turkey could seek a deal to acquire a missile defense system with another country if Russia does not agree to joint production of a defense shield, its foreign minister was quoted as saying on Monday.

NATO member Turkey is seeking to buy the S-400 system from Russia, alarming Washington and other members of the Western alliance, and President Tayyip Erdogan said Ankara has already paid a deposit on the deal.

Turkey hopes that the deal would allow it to acquire the technology to develop its own defense system, and Foreign Minister Mevlut Cavusoglu, in an interview with Turkish newspaper Aksam, said the two countries had agreed on joint production.

“If Russia doesn’t want to comply, we’ll make an agreement with another country,” he said when asked about reports that Russia was reluctant to share the technology. “But we haven’t got any official negative replies (from Russia)”.

Kremlin spokesman Dmitry Peskov, asked in a conference call with reporters if the deal would go ahead if Moscow did not agree to joint production, said: “Contacts and negotiations at an expert level in the context of this deal are ongoing. This is all I can say for now.”

Cavusoglu said Turkey had initially hoped to reach agreement with producers from NATO allies.

Western firms which had bid for the contract included U.S. firm Raytheon, which put in an offer with its Patriot missile defense system. Franco-Italian group Eurosam, owned by the multinational European missile maker MBDA and France’s Thales, came second in the tender.

Turkey, with the second-largest army in the alliance, has enormous strategic importance for NATO, abutting as it does Syria, Iraq and Iran. But the relationship has become fractious since an attempted coup against Erdogan in July 2016 and a subsequent crackdown.

 

 

(Reporting by Ali Kucukgocmen in Istanbul and Dmitry Solovyov in Moscow; Editing by Dominic Evans and Richard Balmforth)

 

Turkish minister says will work to improve ties with Germany

Turkey's Minister of Foreign Affairs Mevlut Cavusoglu arrives at a meeting to discuss the Rohingya situation during the United Nations General Assembly in New York City, U.S. September 18, 2017. REUTERS/Stephanie Keith

BERLIN (Reuters) – Turkish Foreign Minister Mevlut Cavusoglu said on Saturday he would work towards a normalization of relations with Germany after months of mutual recriminations on a range of issues between the NATO allies.

Already tense relations took a turn for the worse after Turkish President Tayyip Erdogan launched a crackdown on his opponents following a failed coup attempt last year.

Germany has also protested against the detention of German citizens on political charges and has raised the question of whether EU accession talks with Turkey should go ahead.

Striking an unusually conciliatory tone, Cavusoglu told Der Spiegel weekly there was no reason for problems between the two countries.

“If you take one step towards us, we will take two towards you,” he said.

And asked if he believed there would be a normalization in relations, Cavusoglu said: “Yes. And I am ready to make an effort towards that.”

Earlier this year, Erdogan and some of his political allies compared Germany to the Nazi era after some local authorities stopped Turkish ministers campaigning here for a referendum that handed the president sweeping new powers. German officials cited security concerns.

The Nazi comparisons were a kind of “response to the hostility” from Germany, Cavusoglu said, adding Germany had to learn to respect Turkey.

Germany’s deputy foreign minister Michael Roth told Welt am Sonntag weekly that Berlin was ready to talk and said he hoped “that we can soon move closer together again.”

However, he said Germany would not be silent when innocent German citizens are behind bars. “We must find solutions to this,” he said.

In an election on Sept. 24, conservative Chancellor Angela Merkel won a fourth term but suffered heavy losses to the far right.

She looks set to try to form a coalition with the pro-business Free Democrats (FDP) and Greens. A possible candidate for foreign minister is Cem Ozdemir, a co-leader of the Greens who has Turkish parents and has been very critical of Erdogan.

“Whoever comes to Turkey as foreign minister will meet the same respect as he shows us,” Cavusoglu told Der Spiegel.

(Reporting by Madeline Chambers; editing by Clelia Oziel)