T urkey started its negotiations on the purchase of 4 divisions of the S-400 anti-aircraft missile systems from Russia back in 2016. Opposed to the deal, The United States, announced that if the arrangement went ahead it would have serious implications on Turkish American relations. The US has been sending clear signals to Turkey to pull out of the contract. Moreover, the US warned sanctions on a number of Turkish companies cooperating with Russia in the field of defense within the framework of CAATSA (Countering America's Adversaries Through Sanctions Act), an act that has been set to counter anti American influence through the use of Sanctions. Trump’s administration urged Turkey to abandon the deal with Moscow, threatening to impose heavy sanctions, including the suspension of supplies of F-35 fighter jets.

On December 14, 2020 the United States imposed its first sanctions on senior officials of the Turkish Presidency of Defense Industries (SSB) over the S-400 system acquired from Russia. Particularly, the US stated, that from now sanctions on the Turkish Presidency of Defense Industries (SSB) is pursuant to Section 231 of the Countering America's Adversaries Through Sanctions Act for knowingly engaging in a significant transaction with Rosoboronexport and for purchasing S-400 anti-aircraft missile systems. Sanctions include prohibition of US export licenses and permissions for SSB, as well as asset freeze and visa restrictions towards the SSB President Ismail Demir and other employees of SSB. Particularly, Demir’s deputy Faruk Yiğit, and heads of air defense departments Mustafa Alper Deniz and Serhat Gencoglu appeared under individual sanctions and have been banned from entering the United States.

According to CAATSA, sanctions against Ankara include a ban on an export license and on the supply of American goods and technology to the Turkish military-industrial complex. Moreover, US financial institutions are prohibited from providing loans to SSB for more than $ 10 million and the Export Import Bank (ExIm Bank) has ceased to support exports in Turkey’s defense interests. Besides all of this, the United States intends to further prevent the process of loans provided to Ankara by international financial institutions, if those funds are intended for defense needs. 

The State Department’s Spokesperson Cale Brown briefed Turkish Foreign Minister M. Cavusoglu on the US position noting that sanctions have no goal of destroying Turkey's defense capabilities, but are directed against Russia, aimed at preventing it from receiving significant revenues from the sale of its weapons. The State Department added that Turkey is called upon to return to the fulfillment of obligations in the NATO format and acquire only those weapons that fit NATO standards.

According to V. Kashin, employee of the Russian Higher School of Economics, the sanctions imposed by the US against Turkey's defense industry are designed to solve two problems. First, to limit Turkey's choice of implementing any new military-industrial programs to the use of American technologies, components and equipment, and secondly, to complicate the maintenance of American equipment for arming Turkish troops. He believes that the sanctions will set a trend and expand military-technical cooperation and create new opportunities for Russian and Chinese armament exporters.

According to Can Kasapoğlu, director of the Center for Economics and Foreign Policy Studies (EDAM) Defense Program, the sanctions won’t be light for Turkey, noting that Turkey has agreements with a number of countries. For instance, some of the systems, subsystems and components of the weapons sold to Ukraine and Palestine, Turkey purchases from the United States. In this regard, sanctions may impede contractual obligations to partner countries.

To sum up experts believe that Turkey’s defense industry won’t collapse yet, however, it will face difficulties not only in arms production and export, but also in general economic issues. According to some estimates, the sanctions may affect bilateral agreements. It is about $1,5-2,3 bil., which accounts for about 5% of US-Turkish mutual trade.