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Explainer: What Are CAATSA Sanctions and What Could Lifting Them Mean for Trkiye?

Ankara: US President Donald Trump's announcement that Washington intends to lift sanctions on Trkiye could mark a potential turning point in bilateral relations. The move is expected to affect defense cooperation, the future of Trkiye's participation in the F-35 fighter jet program, and broader strategic ties between the two NATO allies.

According to Anadolu Agency, ahead of the NATO summit in Ankara, Trump stated on Tuesday that the US plans to remove sanctions imposed on Trkiye under the Countering America's Adversaries Through Sanctions Act (CAATSA). "We're going to be taking the sanctions off. It's time to do that ... We don't want to sanction friends. It's very simple," Trump told reporters before closed-door talks with Turkish President Recep Tayyip Erdogan.

Trump also mentioned working with US Secretary of State Marco Rubio and Defense Secretary Pete Hegseth to finalize the decision. However, the White House has not yet announced when the measures would formally be lifted or if any permanent repeal of CAATSA would require congressional action. While the US president can modify or waive certain sanctions authorities, CAATSA is a federal law enacted by Congress in 2017, meaning permanently terminating sanctions requires procedures established under US law.

The US imposed CAATSA sanctions on Trkiye in December 2020 after Ankara acquired the Russian-made S-400 air defense system. The sanctions came about a year after Trkiye was removed from the F-35 fighter jet program in 2019 over US concerns that operating the S-400 alongside the F-35 could compromise the stealth aircraft's sensitive technology and interoperability within NATO. Trkiye has consistently maintained that purchasing the S-400 was a sovereign decision aimed at strengthening its air defense capabilities. Turkish officials have rejected US security concerns and previously proposed establishing a joint technical commission to examine the compatibility of the S-400 and F-35 systems.

The CAATSA measures did not target Trkiye's armed forces or its broader economy. Instead, they focused on Trkiye's Presidency of Defense Industries (SSB), the government agency responsible for managing the country's defense industry, military procurement, and modernization programs, as well as several senior officials. The sanctions included a ban on US export licenses and authorizations for the SSB, restrictions preventing US financial institutions from providing the SSB with loans or credits exceeding $10 million within a 12-month period, a prohibition on assistance from the US Export-Import Bank for exports to the SSB, requirements for US authorities to oppose loans from international financial institutions that could benefit the SSB, and visa restrictions on designated officials. Turkish officials criticized the sanctions as unjust and an infringement on the country's sovereignty. Analysts say the sanctions ultimately benefited Trkiye's defense industry by accelerating investment in indigenous military te chnologies, including drones.

Analysts say removing the sanctions could provide strategic, economic, and technological benefits for Trkiye. One of the most significant outcomes could be reopening discussions on Trkiye's participation in the F-35 program. Asked about restoring F-35 sales to Ankara, Trump said he would "certainly consider" the issue, describing Trkiye as "much more loyal than other countries." "The F-35 is the best plane by far," Trump said, adding that the US has "an obligation" to maintain equipment sold to partners. He also dismissed concerns over Trkiye's S-400 acquisition, saying the Turkish-US relationship is "better, probably than it's ever been."

Lifting the sanctions could restore the SSB's access to US export licenses, financing mechanisms, and broader defense cooperation, potentially facilitating military procurement, technology transfers, and joint defense projects. Analysts also say ending the sanctions could remove a longstanding source of friction between Ankara and Washington, creating opportunities for closer strategic cooperation within NATO.