U.S. Missile Offer Still in Play as Turkey Stands by Russia

(Bloomberg) -- Turkey is evaluating the latest U.S. proposal to sell its Patriot air-defense system even as officials vowed they’re determined to go through with a Russian missile deal that’s angered the Trump administration and prompted threats of tough sanctions.

President Recep Tayyip Erdogan has rebuffed American demands that Turkey delay the purchase of the S-400 missile-defense system from Russia, and Turkey’s top military official said army personnel have been dispatched for training in Russia ahead of the delivery of the missile batteries.

“The latest U.S. proposal dated March 28 had amendments on the price, co-production, upgrade and technology transfer, even though they don’t exactly meet our demands,” Turkish Defense Minister Hulusi Akar said. “Relevant bodies are continuing their evaluation and preparing their response. We have a principled stance and say we have relations with Russia and it is a done deal. Americans say ‘no deal is a done deal.’"

The U.S. balked for years at selling its Patriot air-defense system to Turkey and sharing its technology. In December, the State Department notified Congress that it had proposed allowing the sale, a gambit seemingly designed to get Erdogan to scrap the S-400 deal. Akar said the U.S. is “apparently very disturbed that a NATO member country is buying a system from a provider outside the U.S. and Europe.”

U.S. officials have repeatedly expressed opposition to Turkey buying the S-400 system, saying it isn’t compatible with North Atlantic Treaty Organization equipment and could be used to collect data to improve Russian targeting of the next-generation F-35 jet, built by Lockheed Martin Corp.

“There will be very real and very negative consequences” if Turkey follows through with its plans to buy the Russia system, State Department spokeswoman Morgan Ortagus told reporters in Washington on Wednesday.

Turkey will send more personnel for S-400 training in the coming months, and Russian military experts may also arrive in Turkey to help set up the systems, according to Akar. Moscow may bring forward the delivery date from July, Erdogan said.

Turkey Must Pick Between U.S., Russia Arms Deals by June: CNBC

“We’re just buying an air-defense system,” Akar said at a news conference in Ankara late Tuesday. “There is no reason for anyone to be disturbed unless they’re planning to attack Turkey.”

As Ankara remains engaged in talks with Washington, it’s still asking for the transfer of the U.S. missile technology that the Pentagon has resisted sharing. Turkey has until the end of first week of June to decide if it will buy Raytheon Co.’s U.S.-made Patriot missile-defense system or follow through on an agreement to buy the Russian missile, CNBC reported, citing multiple people familiar with the matter.

Turkey finds itself under threat on all fronts in a war-torn region and is working to minimize tensions, Akar said.

Elsewhere, a Turkish military delegation is engaged in talks this week in Athens. It’s a rare effort to defuse territorial disputes by overcoming past grievances in an attempt “to discuss all problems” with Greece in the Aegean Sea, the eastern Mediterranean and Cyprus, so that each side can put forth its own arguments on the table, Akar said.

--With assistance from Nick Wadhams.

To contact the reporter on this story: Selcan Hacaoglu in Ankara at shacaoglu@bloomberg.net

To contact the editors responsible for this story: Onur Ant at oant@bloomberg.net, Paul Abelsky, Alaa Shahine

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