The Congressional Research Service released a report Oct. 18 on with updates on U.S. sanctions on Turkey, Turkey’s military purchases from Russia, the potential for new sanctions and other possible U.S. options as Turkey’s military occupies northern Syria. The report details possible outcomes as Congress tries to impose its own set of sanctions on Turkey after the administration said it would lift sanctions in exchange for a ceasefire in Syria (see 1910180060).
Export Compliance Daily is providing readers with some of the top stories for Oct. 15-18 in case they were missed.
The House plans to pass a “strong, bipartisan” sanctions package this week in response to the Trump administration's decision to lift sanctions on Turkey in exchange for a ceasefire in Syria, House Speaker Nancy Pelosi said. Pelosi’s comments came after the Trump administration announced last week it would be suspending further sanctions on Turkey and plans to lift recently announced sanctions in exchange for the ceasefire.
A top U.S. Department of Agriculture official lauded China’s recent purchases of U.S. agricultural products, saying the “phase one” agreement announced last week is a “positive.”
Two stalwart Republican supporters of the president joined with three Democratic senators to say that Congress is united in a push to levy sanctions on Turkey for its invasion of Syria.
The United Kingdom won’t issue any more export licenses on goods destined for Turkey that "might be used in military operations in Syria," U.K. Foreign Secretary Dominic Raab told Parliament on Oct. 15. The policy will remain in place while it conducts a review of the U.K.’s defense exports to Turkey, he said. Raab, who noted that the EU has declined to impose sanctions on Turkey, was answering questions on the U.K.’s policies toward Turkey in light of the country’s military action in northern Syria.
A Turkish government-owned bank was charged with fraud, money laundering and conspiracy to violate the International Emergency Economic Powers Act after working with Iran to evade U.S. sanctions, the Justice Department said in an Oct. 15 press release. The bank -- Turkiye Halk Bankasi A.S., also known as Halkbank -- helped run the “multibillion-dollar scheme” by deceiving U.S. regulators and foreign banks and lying to U.S. authorities, the press release said.
The European Union Council said Turkey should be sanctioned for its “illegal drilling activities” near Cyprus, calling on the EU’s High Representative and the European Commission to “swiftly present proposals.” The council said the Commission should adopt a “framework regime of restrictive measures” targeting those responsible for the drilling. Cyprus condemned Turkey's drilling in an Oct. 4 statement and backed the EU’s decision to consider sanctions.
The Treasury’s Office of Foreign Assets Control sanctioned Turkey’s government and issued three general licenses as Congress called for harsher restrictions on Turkey for its military activities in Syria (see 1910140005). OFAC’s sanctions -- issued after President Donald Trump announced an executive order granting the Treasury and State departments new power to sanction Turkey -- target Turkey’s defense ministry, energy ministry, defense minister (Hulusi Akar), energy minister (Fatih Donmez) and interior minister (Suleyman Soylu). Treasury said more sanctions may be coming.
President Donald Trump will sign an executive order giving the Treasury Department “very significant” new sanctions authorities to target the Turkish government, Treasury Secretary Steven Mnuchin said Oct. 11. The authorities will include primary sanctions and secondary sanctions, Mnuchin said, but stressed the U.S. is not yet activating the sanctions. “We are putting financial institutions on notice that they should be careful, and that there could be sanctions,” Mnuchin said. “Again, there are no sanctions at this time, but this will be the broadest executive authorities delegated to us.”