US government blocks sale to Turkish firm

A Turkish firm has been sanctioned by the US government after Turkey agreed a preliminary defence deal with a Chinese firm also under US sanctions.

US government blocks sale to Turkish firm

World Bulletin / News Desk

The Turkish firm Vestel has had its application to buy a laser designator for its new local drones from the US firm West-Cam denied after the US administration refused permission.

West-Cam asked the US adminstration for permisson but this was denied without any excuse. The decision was interpreted as a sanction.

Turkey, a member of NATO, said in September that it had chosen an air and missile defence system built by China Precision Machinery Import and Export Corp (CPMIEC) over rival offers from Franco-Italian Eurosam SAMP/T and U.S. firm Raytheon Co.

U.S. and NATO officials are unhappy with Turkey's choice of CPMIEC, which is under US sanctions for selling items to Iran, Syria and North Korea that are banned under US laws to curb the proliferation of weapons of mass destruction.

Karayel replaces Israeli Heron

The first domestic unmanned reconnaissance plane is planned to replace Israeli "Heron" drones in the Turkish army.

The Turkish army will receive six "Karayel" planes from the first batch of these aircraft within one year.

Vestel intends to manufacture about 50-60 "Karayel" aircraft. These UAVs will be able to carry about 70 kilograms of payload. The aircraft's endurance is about 20 hours and has an operational altitude of 22,500 feet.

Merrill drops bid to advise Turkish defence firm

Meanwhile, Bank of America Merrill Lynch has withdrawn its bid to advise Turkish defence contractor Aselsan. 

Merrill Lynch had made a joint bid with Turkey's Halk Investment to advise Aselsan on a planned secondary listing but has since written to the firm to say it was pulling out, the Aselsan official said, asking not to be named.

"We have received five bids from brokerage houses. One of those was the Halk Investment-Merrill Lynch bid ... Due to the missile deal with China, Merrill Lynch has informed us that they pulled out," the official said.

Merrill Lynch officials in Turkey could not immediately be reached for comment.

Turkey has said the $3.4 billion Chinese deal offered the most competitive terms and would help it achieve its aim of building a stronger domestic defence industry by allowing co-production.

But Turkish officials have made clear that the decision is not yet final, keeping their options open by asking CPMIEC and its rivals to extend the validity of their bids.

Last Mod: 06 Aralık 2013, 14:35
Add Comment
A. Khan
A. Khan - 5 yıl Before

If Westcam could develop this technology, then why can't Turkish companies do it. They should at least make a beginning on self reliance and get out of the habit of buying or borrowing.