Turkey hits US with tit-for-tat sanctions as row escalates

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The rift between Ankara and Washington deepened on Saturday when President Recep Tayyip Erdogan said Turkey would impose retaliatory sanctions on two US officials.

Turkey's holding of pastor Andrew Brunson on terror-related charges for almost two years has sparked an intense diplomatic crisis.

"Today I will give our friends instructions to freeze the assets in Turkey of the American justice and interior ministers, if they have any (such assets)," Erdogan said in a televised speech.

US Pastor Andrew Brunson (C) is seen inside a car escorted by Turkish police officers as he arrives at his house on July 25, 2018 in Izmir. /VCG Photo

Erdogan's announcement was a response to Washington's decision to impose sanctions on Turkish Interior Minister Suleyman Soylu and Justice Minister Abdulhamit Gul over Brunson's detention.

The steps taken by the US were not suitable for a strategic partner and were disrespectful to Turkey, Erdogan added.

NATO allies split

The dispute is one of many problems in relations between Ankara and Washington, including opposing approaches to Syria, Turkey's close ties with Russia, US threats to NATO, and the failure of the US to extradite the alleged mastermind of the 2016 failed coup Fethullah Gulen.

Turkish President Recep Tayyip Erdogan greets members of his ruling AK Party during a meeting in Ankara, Turkey August 4, 2018. /VCG Photo

The US and Turkey have the largest and second-largest militaries in NATO, and the row risks further weakening the alliance.

"Although it is unlikely the sanctions will have much practical effect in either case, it is significant and unprecedented that two NATO allies have sanctioned members of each other's government," Amanda Sloat, a former State Department official and now a senior fellow at the Brookings Institution, told AFP.

'Lose-lose games'

The Turkish lira, which has plunged in value this year, has already reached the five to the dollar mark for the first time in history over the sanctions.

"There is a risk of more sanctions to come... which could hit more directly at the heart of Turkish government interests and which have the potential to cause a run on the lira," Anthony Skinner, director of Middle East and North Africa at risk management consultants Verisk Maplecroft, told AFP.

US President Donald Trump (R) extends his hand for a handshake with President of Turkey Recep Tayyip Erdogan (L), in the White House on May 16, 2017 in Washington, DC. /VCG Photo

He said the "Achilles' heel" of Turkey's fragile economy was its exposure to foreign portfolio investments and credit. And Erdogan appeared to indicate that he did not want the crisis to escalate further to full-scale economic sanctions.

"We don't want to be a party to lose-lose games. Moving political and judicial disputes into an economic dimension will be harmful for both sides," Erdogan said.

Is a solution in sight?

Brunson was moved to house arrest last week following nearly two years in jail on terror-related charges but the change only increased tensions.

President Donald Trump and his Vice President Mike Pence, who shares Brunson's evangelical Christian faith, have made his release and return back to his family in the United States a priority.

US Secretary of State Mike Pompeo, who discussed the issue with Turkish counterpart Mevlut Cavusoglu on Friday, said he was "hopeful" of progress in the "days and weeks to come."

Erdogan said diplomatic channels were working "very intensely" and added he thought "a significant part of the issues of discord can soon be left behind."

(With input from agencies)

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