US to impose sanctions on Turkey over Russian S-400 defense system

The United States is poised to impose sanctions onTurkeyover its acquisition last year of Russian S-400 air defense systems, according to a report in Reuters, a move likely to worsen already problematic ties between the two NATO allies.

The long-anticipated step, which is likely to infuriate Ankara and weigh onTurkey's relations with the incoming administration of President-elect Joe Biden, is expected to be announced this week, sources have said.

The sanctions would targetTurkey's Presidency of Defence Industries and its head, Ismail Demir, sources have said. They would be damaging but narrower than the severe scenarios some analysts have outlined.

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Two sources familiar with the matter, including a USofficial speaking on the condition of anonymity, said President Donald Trump had given aides the blessing for the sanctions.

The Turkish lira weakened as much as 1.4 per centfollowing the news. USsanctions could harm a Turkish economy struggling with a coronavirus-induced slowdown, double-digit inflation, and badly depleted foreign reserves.

A senior Turkish official said sanctions would backfire and hurt ties between the two NATO members.

"Sanctions would not achieve a result but be counter-productive. They would harm relations," the official said. "Turkeyis in favor of solving these problems with diplomacy and negotiations. We won't accept one-sided impositions," he said.

The decision will have repercussions far beyondTurkey, sending a message to USpartners around the world that might consider buying Russian military equipment and have been warned repeatedly about USsanctions.

Turkey's leader, President Tayyip Erdogan, had hoped to prove USthreats hollow, betting the relationship he developed with Trump would insulate Ankara from punitive USaction.

Having forged a working relationship with Erdogan, Trump long opposed USsanctions againstTurkeydespite the advice of advisers. Officials in his administration internally recommended sanctions against Ankara in July 2019, when the Turkish government started taking delivery of the S-400s, sources familiar with the matter told Reuters.

But sanctions appeared likely even if Trump did not act, the sources said.

The final version of the $740 billion annual USdefense authorization legislation, which the Senate is expected to vote on as early as this week, would force Washington to impose sanctions within 30 days.

One of the U.S. officials said one of the reasons Trump was finally willing to move ahead withTurkeysanctions was to "decouple" the issue from NDAA bill, which carries a provision that would require him to impose measures on Ankara. This way, Trump can avoid looking like his hand is being forced, the official said.

Kicked out of F-35 program

Still, increasing USpressure is not without risk. Washington does not want to push Erdogan even closer to Russian President Vladimir Putin, whose goal is to weaken and divide the NATO alliance.

Russia delivered the ground-to-air S-400s last year andTurkeytested them as recently as October. Ankara said they would not be integrated into NATO systems and pose no threat, and has called for a joint working group on the issue.

But the United States maintained that the S-400 does pose a threat, and announced last year it was removingTurkeyfrom the F-35 fighter jet program over Ankara's decision.

Lockheed Martin's F-35 stealth fighter jet is the most advanced aircraft in the USarsenal and is used by NATO members and other USallies.

The USState Department could still change plans and widen or narrow the scope of planned sanctions againstTurkey.

However, sources said the announcement of the sanctions in their current form was imminent.