State Department issues further sanctions against Turkish SSB & its officials

The State Department has issued further sanctions against Turkish defence industry SSB, its president and other officials over the possession of Russian S-400 missiles.

A press release said the Secretary of State has determined, pursuant to the Countering America’s Adversaries Through Sanctions Act of 2017 (CAATSA), that the Turkish entity Presidency of Defence Industries (SSB), engaged in a significant transaction with a person that is part of, or operates for or on behalf of, the defence or intelligence sectors of the Government of the Russian Federation.

The Secretary of State has also selected certain sanctions to be imposed upon SSB and Ismail Demir, SSB’s president; Faruk Yigit, SSB’s vice president; Serhat Gencoglu, SSB’s Head of the Department of Air Defense and Space; and Mustafa Alper Deniz, Program Manager for SSB’s Regional Air Defense Systems Directorate, pursuant to CAATSA.

This document is scheduled to be published in the Federal Register on 04/07/2021 and available online at federalregister.gov/d/2021-07048, and on govinfo.gov

The sanctions selected to be imposed upon SSB call for United States Government departments and agencies shall not issue any specific license or grant any other specific permission or authority under the Export Control Reform Act of 2018, the Arms Export Control Act , the Atomic Energy Act of 1954 or any statute that requires the prior review or approval of the United States Government as a condition for the export or re-export of goods or technology to  SSB.

United States financial institutions shall be prohibited from making loans or providing credits to SSB totaling more than $10,000,000 in any 12-month period unless SSB is engaged in activities to relieve human suffering and the loans or credits are provided for such activities.

The Export-Import Bank of the United States shall not give approval to the issuance of any guarantee, insurance, extension of credit, or participation in the extension of credit in connection with the export of any goods or services to SSB.

The United States executive director to each international financial institution shall use the voice and vote of the United States to oppose any loan from the international financial institution that would benefit SSB; and impose on the principal executive officer or officers of SSB, or on persons performing similar functions and with similar authorities as such officer or officers, certain sanctions, as selected by the Secretary of State.

In addition, it is noted that the Secretary of State has selected further sanctions to be imposed upon Ismail Demir, Faruk Yigit, Serhat Gencoglu, and Mustafa Alper Deniz. These include a prohibition on any transactions in foreign exchange that are subject to the jurisdiction of the United States and in which the four officials have any interest, a prohibition on any transfers of credit or payments between financial institutions, or by, through, or to any financial institution, to the extent that such transfers or payments are subject to the jurisdiction of the United States and involve any interest of Ismail Demir, Faruk Yigit, Serhat Gencoglu, or Mustafa Alper Deniz.

Furthermore, all property and interests in property of the four Turkish nationals that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in.

It was also decided that the Secretary of State shall deny the four Turkish nationals a visa and shall be excluded from the United States, by treating them as persons covered by section 1 of Proclamation 8693 of July 24, 2011 (Suspension of Entry of Aliens Subject to United Nations Security Council Travel Bans and International Emergency Economic Powers Act Sanctions).