US President Donald Trump did his successor Joe Biden a favour last week when he sanctioned Turkey under the Countering America’s Adversaries Through Sanctions Act (CAATSA).
The new sanctions, in response to Turkey’s purchase of Russian-made S-400 missile defence systems, were required under US law, and thus all but inevitable. The US State Department has barred American dealings with Turkey’s military procurement body, its chief and three top officials.
In the context of the broader Turkish economy, this amounts to little more than a slap on the wrist. But depending how long they remain in place, the sanctions could do real damage to Turkey’s defence industry, which relies on US imports. That industry has matured a great deal under the Justice and Development Party (AKP), from a $5 billion budget in 2002 to $60bn today, while producing some of the world’s most advanced drones.
Of course, Turkish defence industry leaders will not have forgotten that it was a previous punishment from Washington – an American arms embargo from 1975-78, in response to Turkey’s invasion of Cyprus – that helped spur their sector’s development in the first place. They may see these latest sanctions as another hurdle to overcome, rather than an unprecedented assault.
Turkish President Recep Tayyip Erdogan, unsurprisingly, has decried the sanctions as a blatant attack on a Nato ally. But it is undeniably better for Mr Biden that Mr Trump levied them now, clearing the way for the next administration to take office without being on a direct collision course with Turkey.
Of course, the two sides are not about to change their stripes. Mr Biden's White House is most likely to call for greater respect for human rights, international law and the continued integrity of defence alliances like Nato, while Mr Erdogan's Turkey will remain dogged and challenge the western system at nearly every turn.
US analysts and some officials will, in the days ahead, denounce Mr Erdogan's authoritarianism and probably call for Turkey to be removed from Nato. Turkish analysts will talk of kicking the US and its nuclear weapons out of Incirlik airbase, as Mr Erdogan continues to push the envelope. The Turkish drillship Oruc Reis, which has been accused of aggressive forays into Greek waters, is already back at sea after a brief return to port under the threat of EU sanctions. Ankara is now calling for Greek islands to be demilitarised.
This is precisely why US sanctions will have little longer-term impact. The US-Turkey relationship is nowadays defined largely by disagreements. These include maritime boundaries in the Eastern Mediterranean, the extradition of Turkish dissident cleric Fethullah Gulen, the US alliance with Syrian Kurds and the rule of law. The threats and disputes have become almost mechanical, habitual.
As with a bickering elderly couple, nobody fears they will divorce. Turkey is too crucial to Nato’s defence strategy, and it needs the US all the more in the face of regional isolation. It also needs the EU as its economy faces growing hardship.
Key to Mr Biden’s success with respect to Turkey will be his ability to work with European leaders to apply greater pressure on Ankara. That groundwork has already been laid. The US sanctions came a few days after the EU concluded its summit with an agreement to levy sanctions on Turkish individuals and entities linked to Eastern Mediterranean drilling. EU leaders said they would seek to co-ordinate with the White House before deciding on harsher sanctions, such as an arms embargo, at their next summit in March.
That gathering, which will come two months after Mr Biden’s January 20 inauguration, may be a bellwether for Turkey-West relations. If Mr Biden and Mr Erdogan have by then agreed on a plan to lift CAATSA sanctions, the EU may once again revert to a softer approach on Turkey. If Mr Erdogan remains uncompromising, things could take a darker turn.
Despite Mr Trump's stated affinity for Mr Erdogan, some analysts have argued that it was the US President's problematic diplomacy that led to these sanctions in the first place. Throughout 2018 and into 2019, Trump defended Turkey's decision to buy the S-400s, laying the blame on the Obama administration and vowing never to levy sanctions. Now that he has done precisely that, Mr Erdogan likely feels betrayed.
But Mr Trump is now on his way out, and the relatively mild sanctions from both the US and EU represent the “Goldilocks approach”: if the punishments had been harsher, the Turkish economy might be imperilled and Mr Erdogan more willing to lash out; if no sanctions had been levied, Mr Erdogan would feel free to do as he pleases on the high seas and beyond.
This makes for a strong starting point for Mr Biden. The warning shots have been fired and the new administration has an opportunity to take a clear diplomatic stand. Assuming Ankara will want to avoid total degradation of its western alliances, the relationship has a solid chance of starting with compromise, rather than confrontation. Mr Erdogan has already begun to talk of major economic and judicial reforms and has talked up how Mr Biden, in his role as vice president under the previous US administration, visited him at his home.
However the looming Biden-Erdogan talks play out, the battered US-Turkey alliance will stagger on. It’s less than ideal. One would sooner have Nato’s two largest militaries on friendlier terms. But at this point, strained relations is the best these two can do.
David Lepeska is a Turkish and Eastern Mediterranean affairs columnist for The National
HWJN
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The Bio
Favourite holiday destination: Either Kazakhstan or Montenegro. I’ve been involved in events in both countries and they are just stunning.
Favourite book: I am a huge of Robin Cook’s medical thrillers, which I suppose is quite apt right now. My mother introduced me to them back home in New Zealand.
Favourite film or television programme: Forrest Gump is my favourite film, that’s never been up for debate. I love watching repeats of Mash as well.
Inspiration: My late father moulded me into the man I am today. I would also say disappointment and sadness are great motivators. There are times when events have brought me to my knees but it has also made me determined not to let them get the better of me.
Expert advice
“Join in with a group like Cycle Safe Dubai or TrainYAS, where you’ll meet like-minded people and always have support on hand.”
Stewart Howison, co-founder of Cycle Safe Dubai and owner of Revolution Cycles
“When you sweat a lot, you lose a lot of salt and other electrolytes from your body. If your electrolytes drop enough, you will be at risk of cramping. To prevent salt deficiency, simply add an electrolyte mix to your water.”
Cornelia Gloor, head of RAK Hospital’s Rehabilitation and Physiotherapy Centre
“Don’t make the mistake of thinking you can ride as fast or as far during the summer as you do in cooler weather. The heat will make you expend more energy to maintain a speed that might normally be comfortable, so pace yourself when riding during the hotter parts of the day.”
Chandrashekar Nandi, physiotherapist at Burjeel Hospital in Dubai
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
COMPANY PROFILE
Company name: Blah
Started: 2018
Founder: Aliyah Al Abbar and Hend Al Marri
Based: Dubai
Industry: Technology and talent management
Initial investment: Dh20,000
Investors: Self-funded
Total customers: 40
Brief scores:
Southampton 2
Armstrong 13', Soares 20'
Manchester United 2
Lukaku 33', Herrera 39'
Frankenstein in Baghdad
Ahmed Saadawi
Penguin Press
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
MATCH INFO
What: 2006 World Cup quarter-final
When: July 1
Where: Gelsenkirchen Stadium, Gelsenkirchen, Germany
Result:
England 0 Portugal 0
(Portugal win 3-1 on penalties)
The five pillars of Islam
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
Visit Abu Dhabi culinary team's top Emirati restaurants in Abu Dhabi
Yadoo’s House Restaurant & Cafe
For the karak and Yoodo's house platter with includes eggs, balaleet, khamir and chebab bread.
Golden Dallah
For the cappuccino, luqaimat and aseeda.
Al Mrzab Restaurant
For the shrimp murabian and Kuwaiti options including Kuwaiti machboos with kebab and spicy sauce.
Al Derwaza
For the fish hubul, regag bread, biryani and special seafood soup.
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
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THE SPECS
Engine: 1.5-litre turbocharged four-cylinder
Transmission: Constant Variable (CVT)
Power: 141bhp
Torque: 250Nm
Price: Dh64,500
On sale: Now