US Announces Turkey Sanctions, Export Restrictions for Its Purchase of Russian Missile Defense System

The U.S. announced sanctions on Turkey for buying Russian missile defense systems, saying Dec. 14 the purchases provide “substantial funds” to Russia’s defense sector and harm U.S. national security. The sanctions target Turkey’s Presidency of Defense Industries (SSB) and several SSB officials, including SSB President Ismail Demir, Vice President Faruk Yigit, and air defense officials Serhat Gencoglu and Mustafa Alper Deniz.

In addition to financial sanctions imposed under the Countering America’s Adversaries Through Sanctions Act (CAATSA), the move blocks the U.S. from granting export licenses for certain shipments to SSB. The Commerce Department's Bureau of Industry and Security said it will impose a “policy of denial” for export licensee applications to SSB. The sanctions also ban U.S. Export-Import Bank assistance for exports to SSB, prohibit loans by U.S. banks to SSB of more than $10 million in any one-year period, and require that the U.S. “oppose loans benefiting SSB by international financial institutions.”

The sanctions stem from Turkey’s purchase of Russian S-400 missile defense systems (see 1912030017, 1910100049 and 1912270034). “The United States made clear to Turkey at the highest levels and on numerous occasions that its purchase of the S-400 system would endanger the security of U.S. military technology and personnel and provide substantial funds to Russia’s defense sector.”

In coordination with the State Department, the Treasury Department added SSB to its Non-Specially Designated Nationals Menu-Based Sanctions List, which lists entries subject to “non-blocking menu-based sanctions” imposed under other authorities, such as CAATSA.