(Bloomberg) -- Acting Defense Secretary Patrick Shanahan told his Turkish counterpart that the U.S. will end Turkey’s participation in the F-35 jet program by July 31 over the NATO ally’s decision to go forward with the purchase of a Russian missile defense system.
In a June 6 letter to Defense Minister Hulusi Akar, Shanahan said there is still time for Turkey “to change course on the S-400” missile system, but he also laid out a timeline of how cooperation on the next-generation fighter will wind down. The U.S. has long said Turkey’s decision to buy the Russian equipment is incompatible with its role in both NATO and the F-35 program.
“In addition to threatening the security of platforms like the F-35, Turkey’s procurement of the S-400 will hinder your nation’s ability to enhance or maintain cooperation with the United States and within NATO, lead to Turkish strategic and economic over-dependence on Russia, and undermine Turkey’s very capable defense industry and ambitious economic development goals,” Shanahan wrote in the letter.
The dispute over the S-400 has become the most visible sign of how U.S.-Turkey ties have deteriorated in recent years. Turkish President Recep Tayyip Erdogan has so far rebuffed U.S. threats, saying the purchase is essential to meeting his country’s air defense needs. But the move comes as Erdogan and Russian President Vladimir Putin have sought to bolster ties and Turkey remains frustrated over U.S. support for Kurdish militias in neighboring Syria.
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Turkey has been a key international partner in building the F-35, a Lockheed Martin Corp (NYSE:LMT). jet that is the Pentagon’s most expensive weapons program, at a projected cost of more than $428 billion. In addition to manufacturing key portions of the fighter, the country had plans to buy about 100 of the jets.
In a sign that the standoff won’t end, Turkey is considering deploying the S-400 along the the country’s southern coast, near where its warships are accompanying vessels exploring for energy, according to four people with knowledge of the deliberations. That would enhance the country’s capabilities in the Eastern Mediterranean, where it’s embroiled in a spat with European Union member Cyprus over offshore gas exploration.
As the U.S. moves closer to winding down cooperation with Turkey on the F-35, Shanahan said Turkish personnel training on the jet in the U.S. must leave by July 31. According to the letter, 34 pilots scheduled to train from June to November will be barred from participating. In addition, the U.S. will continue to “suspend indefinitely F-35 material deliveries and activities” and the Pentagon will look to alternate sources for production.
Members of Congress have also warned Turkey that deploying the S-400 could lead to more severe sanctions under the Countering America’s Adversaries Through Sanctions Act. Shanahan raised that warning in his letter: “There is strong bipartisan U.S. Congressional determination to see CAATSA sanctions imposed on Turkey if Turkey acquires the S-400.”
President Donald Trump and Erdogan agreed last month to form a study group to look at the S-400, though the American view is that the group’s findings will support the U.S. position that deploying the Russian system would put the F-35 at risk, according to a U.S. official. Despite the agreement, it isn’t clear what the time frame for the study group would be or when it will be formed.
Shanahan emphasized that there is still time for Turkey to prevent the program from being suspended and he spelled out what he said were some of the broader costs of the dispute, particularly if sanctions are imposed.
“Pursuing this path will cause a loss in jobs, gross domestic product, and international trade,” he said. “President Trump committed to boost bilateral trade from $20 billion currently to more than $75 billion, however that may be challenging if the United States imposes CAATSA sanctions.”
