Ankara Rules Out Compliance with US Sanctions on Iran

Turkish Foreign Minister Mevlut Cavusoglu on Tuesday ruled out his country's compliance with U.S. sanctions on Iran, a move that threatens to exacerbate tensions between the NATO allies.

"We have told them we will not join these sanctions," said Cavusoglu, referring to a meeting last Friday with senior U.S. officials in Ankara. "While we are explaining why we will not obey these sanctions, we have also expressed that we do not find these U.S. sanctions appropriate."

Ankara strongly opposes U.S. President Donald Trump's decision to impose sanctions after pulling out of an international agreement with Iran on its nuclear energy program. Stringent sanctions are to start taking effect at the end of August, with measures against Iranian energy exports beginning in November.

Energy-hungry Turkey is heavily dependent on its Iranian neighbor for oil and natural gas, while Turkish businesses are eyeing Iran as an increasingly important market.

On Friday, Marshall Billingslea, assistant secretary of the Treasury for terrorist financing, visited Ankara to meet with Turkish officials and business representatives. Billingslea described the talks as "positive" and acknowledged the difficulties faced by Turkish companies, but warned, "The Treasury sanctions will be enforced very, very aggressively and very comprehensively."

Washington says no to any waivers for countries trading with Iran, which puts it on a collision course with Ankara.

"We've seen this in the past. Turkey will not comply with U.S. sanctions. It will not stop importing Iranian gas and oil," said Sinan Ulgen, head of the Istanbul-based Edam research institution. "Maybe the Turkish banks will be more careful because of what happened to Halkbank, but that's about it."