Turkey said to choose Russia in missile defense
By SELCAN HACAOGLU | Bloomberg | Published: July 13, 2017
Turkey has agreed to pay $2.5 billion to acquire Russia's most advanced missile defense system, a senior Turkish official said, in a deal that signals a turn away from the NATO military alliance that has anchored Turkey to the West for more than six decades.
The preliminary agreement sees Turkey receiving two S-400 missile batteries from Russia within the next year, and then producing another two inside Turkey, according to the Turkish official, who asked not to be named because of the sensitivity of the matter. A spokesman for Russia's arms-export company Rosoboronexport said he couldn't immediately comment on details of a deal with Turkey.
Turkey has reached the point of an agreement on a missile defense system before, only to scupper the deal later amid protests and condemnation from NATO. Under pressure from the U.S., Turkey gave up an earlier plan to buy a similar missile-defense system from a state-run Chinese company, which had been sanctioned by the U.S. for alleged missile sales to Iran.
Turkey has been in NATO since the early years of the Cold War, playing a key role as a frontline state bordering the Soviet Union. But ties with fellow members have been strained in recent years, with Turkish President Recep Tayyip Erdogan pursuing a more assertive and independent foreign policy as conflict engulfed neighboring Iraq and Syria.
Tensions with the U.S. mounted over U.S. support for Kurdish militants in Syria that Turkey considers terrorists, and the relationship with the European Union soured as the bloc pushed back against what it sees as Turkey's increasingly autocratic turn. Last month, Germany decided to withdraw from the main NATO base in Turkey, Incirlik, after Turkey refused to allow German lawmakers to visit troops there.
The missile deal with Russia "is a clear sign that Turkey is disappointed in the U.S. and Europe," said Konstantin Makienko, an analyst at the Center for Analysis of Strategies and Technologies, a Moscow think-tank. "But until the advance is paid and the assembly begins, we can't be sure of anything."
The Russian system would not be compatible with other NATO defense systems, but also wouldn't be subject to the same constraints imposed by the alliance, which prevents Turkey from deploying such systems on the Armenian border, Aegean coast or Greek border, the official said. The Russian deal would allow Turkey to deploy the missile defense systems anywhere in the country, the official said.
For Turkey, the key aspect of any deal is transfer of technology or know-how, the Turkish official said. Turkey wants to be able to produce its own advanced defense systems, and the Russian agreement to allow two of the S-400 batteries to be produced in Turkey would serve that aim, the official said.
"There are a lot of different levels of technology transfer," and any offer to Turkey would probably be limited in terms of sophistication, said Makienko, the Moscow-based analyst. "For Turkey to be able to copy the S-400 system, it would have to spend billions to create a whole new industry."
The S-400 is designed to detect, track and then destroy aircraft, drones or missiles. It's Russia's most advanced integrated air defense system, and can hit targets as far as 250 miles away. Russia has also agreed to sell them to China and India.
The sides are currently sorting out technical details and it could take about one year to finalize the project, the Turkish official said. One battery may be available earlier if Russia decides to divert it from another country, the official added. The missiles are not ready to sell off-the-shelf and Russia will have to produce the batteries before delivering them, the official said.
The official said the systems delivered to Turkey would not have a friend-or-foe identification system, which means they could be deployed against any threat without restriction.
U.S. and European rivals have also bid to co-produce missile defense systems with Turkey, as it seeks partnerships allowing it to enhance its domestic arms production amid a military buildup in the region.
Disagreements between Turkey, which has the second-largest army by personnel numbers in NATO, and the U.S., the bloc's biggest military, have also impacted business. No U.S. companies bid for a Turkish attack helicopter contract in 2006 after Turkey insisted on full access to specific software codes, which the U.S. refused to share, considering it a security risk. Turkey partnered with Italy instead in a $3 billion project to co-produce 50 attack helicopters for its army.
Bloomberg's Ilya Arkhipov and Gregory L. White contributed.