Earlier this week Turkey received its first shipment of the S-400 anti-aircraft missile system from Russia, further testing the strained relationship between the United States and Turkey. The U.S. and NATO fear that the S-400 system is incompatible with the U.S.-made F-35s and could allow Russia access to critical technology. Consequently, the U.S. has threatened to remove Turkey from the F-35 program and impose sanctions on Turkey pursuant to the Countering America’s Adversaries Through Sanctions Act (“CAATSA”). With talk of sanctions swirling, here are five things Turkish businesses should know about CAATSA.It is very possible that, in the coming days and weeks, Turkish individuals and entities that played a role in the S-400 acquisition might be sanctioned by the U.S. Government pursuant to CAATSA. If so, financial institutions, investors, lenders, and defense contractors, among others, should recalibrate their due diligence and screening protocols in order to ensure that they do not inadvertently engage in transactions with such targeted persons. Those located in Turkey, or those that actively participate in the Turkish economy, should be particularly rigorous in this regard, as they are at a heightened risk of transacting with sanctioned entities.
On July 24, 2019 at 10:00 AM (EST) 17:00 (GMT +3), FH+H PLLC and HERDEM Attorneys at Law will be cosponsoring a webinar, during which their attorneys will discuss CAATSA and its implications for global businesses in greater detail.