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Policy & Law

Turkey Gains $700 Million Military Sales, Halkbank Settlement under Trump-Erdoğan Relationship

The deals come as Erdoğan prepares to host the NATO summit in July, with critics questioning whether the U.S. is rewarding a leader aligned with Iran and Russia.

Adam Schiff — Adam Schiff, Official Portrait, 115th Congress (cropped)
Photo: en:United States House of Representatives Office of Photography (Public domain) via Wikimedia Commons
⚡ The Bottom Line

Erdoğan enters the July NATO summit having secured significant diplomatic and economic wins. His government has resolved the Halkbank prosecution, gained access to advanced military technology, and positioned itself as indispensable to Western defense production needs. Trump's personal relationship with Erdoğan appears to have provided international legitimacy that shields Turkey from isolation...

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Turkish President Recep Tayyip Erdoğan is capitalizing on his relationship with President Trump, securing sanctions relief and favorable treatment ahead of a NATO summit he will host in Ankara July 7-8. The administration approved more than $700 million in military sales to Turkey this week for advanced jet engines supporting the country's domestic next-generation fighter jet program. Separately, a federal judge approved a Justice Department deferred prosecution agreement with Turkey's state-owned Halkbank on June 17, ending a case that had charged the bank with evading U.S. sanctions on Iran and providing $20 billion to the Iranian regime.

The developments represent Erdoğan's latest wins in Washington after more than two decades in power. Trump told reporters he intends to restore Turkey's access to the F-35 fighter jet program, despite sanctions imposed during Trump's first term over Turkey's purchase of Russia's S-400 air defense system. The administration also dropped its pursuit of charges against Halkbank that had carried potential penalties benefiting American terrorism victims.

What the Left Is Saying

Democratic lawmakers sharply criticized the Halkbank settlement as rewarding Turkey for conduct they say enabled Iranian aggression. Sens. Adam Schiff (D-Calif.) and Richard Blumenthal (D-Conn.) wrote to the DOJ in April objecting to the deal, arguing that sanctions evasion by Halkbank provided a critical financial lifeline to Iran during years it carried out terrorist activities including kidnapping, torturing, and murdering Americans.

"The sanctions evasion scheme, involving billions of dollars, was a critical financial lifeline for the Iranian regime during the same years it carried out wide-scale global terrorist activities," Schiff and Blumenthal wrote. They noted that Turkey's intervention helped end a war conducted with key Iranian support and funded in part through Ankara.

Progressive groups have also raised concerns about Erdoğan's human rights record, including consolidation of power in the presidency, jailing of political opponents, journalists, academics, and artists, and threats against NATO allies Greece and Cyprus. Critics argue that expanding military cooperation without demanding democratic reforms rewards authoritarian behavior.

What the Right Is Saying

Trump and his supporters have framed the relationship with Erdoğan as strategically valuable for U.S. interests. The president praised Erdoğan for staying out of the war between the U.S., Israel, and Iran in late February, crediting his personal appeal for keeping Turkey neutral.

"He was a prime candidate to go into the war with Iran... And I asked him to stay out. He stayed out," Trump said Wednesday. "Erdoğan's a great leader, very strong person, great military... everything I've ever asked him for he's done."

Some conservative voices have defended Turkey's NATO value despite reservations about Erdoğan. Gönül Tol, senior fellow at the Middle East Institute, noted that Turkey serves as a powerful base of military production that can help address U.S. equipment shortfalls from production delays, protectionism, and depleted American stockpiles due to the Iran conflict. She said Turkey's defense partnerships with nations across Europe to the Persian Gulf make it strategically important.

"Turkey comes in handy there," Tol said. "It already has these defense partnerships, and it's only going to strengthen those partnerships."

The administration cited Turkey's role in securing hostages kidnapped during Hamas's October 7, 2023 attack on Israel and brokering a ceasefire as key factors in both the Halkbank settlement and expanded military cooperation.

What the Numbers Show

The military sales package approved this week totals more than $700 million for advanced jet engines supporting Turkey's domestic fighter jet development. The deal proceeded despite pushback from some lawmakers.

Halkbank had been charged with providing approximately $20 billion to Iran through sanctions evasion, funneling money through front companies and fraudulent transactions. Under the deferred prosecution agreement, Halkbank did not admit criminal wrongdoing and faced no fine, though it committed to not engaging in transactions benefiting Iran.

A recent Pew Research Center survey found only 6 percent of Turkish respondents had confidence in Trump to do the right thing in world affairs, and just 13 percent held a favorable view of the United States. Turkey hosts nearly 3 million refugees from the Syrian civil war and threats from the Islamic State.

Turkey was expelled from the F-35 program following its acquisition of Russia's S-400 system in 2019, prompting sanctions under the Countering America's Adversaries Through Sanctions Act that Trump imposed during his first term.

The Bottom Line

Erdoğan enters the July NATO summit having secured significant diplomatic and economic wins. His government has resolved the Halkbank prosecution, gained access to advanced military technology, and positioned itself as indispensable to Western defense production needs. Trump's personal relationship with Erdoğan appears to have provided international legitimacy that shields Turkey from isolation among NATO allies.

Congressional oversight of both the military sales and Halkbank settlement is expected. The administration has indicated it will seek congressional support for restoring Turkey's F-35 access, which would require addressing the unresolved S-400 issue. Whether lawmakers skeptical of Erdoğan's alignment with U.S. adversaries will accept those conditions remains to be seen.

Sources