Erdogan hopes for resolution on sanctions, F-35s, Halkbank after Trump talks

ANKARA – President Tayyip Erdogan said he was hopeful that his meeting in September with US President Donald Trump would help lift sanctions blocking Turkey’s purchase of F-35 jets, and also help resolve a legal case against state lender Halkbank.

The US CAATSA sanctions, applied in 2020 over Turkey’s purchase of Russian S-400 air defences, and the US charges that Halkbank helped Iran skirt separate sanctions emerged as key issues in the White House talks two weeks ago.

The sides announced no agreements on those issues after the meeting between Mr Trump and Mr Erdogan.

“I hope the F-35 issue will be resolved and CAATSA sanctions will be lifted,” Mr Erdogan told reporters on a flight back from Azerbaijan, when asked about the meeting and a subsequent phone call with Mr Trump.

“We must achieve this. Our visit has ushered in a new era in Turkish-US relations and further strengthened the dialogue and friendship between us,” he said, according to a transcript of his remarks shared by his office on Oct 8.

On Halkbank, Mr Erdogan said that Mr Trump told him both at the White House and in their phone call that “the Halkbank problem is finished for us”, according to the readout.

Reuters reported on Oct 7, citing two sources, that Turkish officials proposed settling the case against Halkbank for some US$100 million (S$129.7 million) during the White House meeting. Shares in Halkbank subsequently rose 7.9 per cent in Istanbul.

“We also know that there are some processes (related to Halkbank) that need to be completed. Our hope is that these processes will conclude positively as soon as possible,” Mr Erdogan was quoted as saying on the flight. REUTERS