US Secretary of State Mike Pompeo, announcing on Monday US sanctions, said that “today, the United States is imposing sanctions on the Republic of Turkey’s Presidency of Defence Industries (SSB) pursuant to Section 231 of the Countering America`s Adversaries Through Sanctions Act (CAATSA) for knowingly engaging in a significant transaction with Rosoboronexport, Russia’s main arms export entity, by procuring the S-400 surface-to-air missile system.”
“The sanctions include a ban on all US export licenses and authorizations to SSB and an asset freeze and visa restrictions on Dr. Ismail Demir, SSB’s president, and other SSB officers,” he said.
Pompeo noted that “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 US military technology and personnel and provide substantial funds to Russia’s defence sector, as well as Russian access to the Turkish armed forces and defence industry.”
“Turkey nevertheless decided to move ahead with the procurement and testing of the S-400, despite the availability of alternative, NATO-interoperable systems to meet its defence requirements. This decision resulted in Turkey’s suspension and pending removal from the global F-35 Joint Strike Fighter partnership,” he noted.
Pompeo said “today’s action sends a clear signal that the United States will fully implement CAATSA Section 231 and will not tolerate significant transactions with Russia’s defence and intelligence sectors.”
“I also urge Turkey to resolve the S-400 problem immediately in coordination with the United States. Turkey is a valued Ally and an important regional security partner for the United States, and we seek to continue our decades-long history of productive defence-sector cooperation by removing the obstacle of Turkey’s S-400 possession as soon as possible.
According to a State Department press release, the Secretary of State, in consultation with the Secretary of Treasury, has selected the following sanctions from CAATSA Section 235, as implemented by Executive Order (E.O.) 13849, to impose on SSB:
a prohibition on granting specific U.S. export licenses and authorizations for any goods or technology transferred to SSB (Section 235(a)(2));
a prohibition on loans or credits by U.S. financial institutions to SSB totaling more than $10 million in any 12-month period (Section 235(a)(3));
a ban on U.S. Export-Import Bank assistance for exports to SSB (Section 235(a)(1));
a requirement for the United States to oppose loans benefitting SSB by international financial institutions (Section 235(a)(4)); and
imposition of full blocking sanctions and visa restrictions (Section 235(a)(7), (8), (9), (11), and (12)) on Dr. Ismail Demir, president of SSB; Faruk Yigit, SSB’s vice president; Serhat Gencoglu, Head of SSB’s Department of Air Defence and Space; and Mustafa Alper Deniz, Program Manager for SSB’s Regional Air Defence Systems Directorate.
“Today’s action further demonstrates the Department of State’s continuing commitment to the full implementation of CAATSA 231. State encourages all persons to avoid engaging in transactions with entities on the LSP that may risk mandatory sanctions, including those for high-value, sophisticated weapons systems,” it says.
OFAC also added the four individual officers to its Specially Designated Nationals and Blocked Persons List. As a result of this action, all property and interests in property of these individuals within United States jurisdiction are blocked, and United States persons are generally prohibited from transacting with them. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked.
Unless authorized by a general or specific license issued by OFAC, or otherwise exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person or the receipt of any contribution or provision of funds, goods, or services from any such person.
