Economist Necmettin Batırel stated that lifting CAATSA sanctions would unlock significant defense and economic benefits for Turkey, including securing engine supply for the KAAN fighter jet, resolving compensation for excluded F-35 program payments, and facilitating F-16 procurement and modernization.
Why it matters
- Turkey was sanctioned under CAATSA in December 2020 after purchasing Russia’s S-400 air defense system, leading to its removal from the F-35 program.
- Lifting sanctions would allow legal clearance for the KAAN’s F110 engine procurement and a potential $700 million engine deal.
- It would ease the offsetting of prior F-35 program payments through F-16 acquisition and upgrades.
- Turkish defense firms would regain access to financing from international financial institutions and U.S. banks.
The removal of sanctions would reduce Turkey’s country risk premium (CDS), lowering foreign borrowing costs and increasing confidence in global capital flows toward the country. Reports indicate that U.S. President Donald Trump signaled intent to lift sanctions ahead of the July 2026 NATO summit.
Lifting CAATSA would directly ease constraints on Turkey’s defense industry capacity, support international capital flows, and strengthen economic stability. It would also revive technical and financial cooperation with the United States within the NATO alliance framework and enhance Turkey’s competitiveness in the global defense market.
Source: ssbulten tercüme