Turkey defies U.S. as Russian S-400 missile defence arrives

Turkey's President Recep Tayyip Erdogan addresses a meeting of the NATO's Mediterranean Dialogue in Ankara Turkey Monday

The Turkish lira was 1.3 percent weaker against the dollar on Friday over United States sanction worries, after Russian Federation delivered S-400 air defence missile system parts to Turkey.

Turkey's Defense Ministry has posted photos of the first batch of the Russian-made S-400 missile system's equipment delivered to the country. The Turkish lira weakened as much as 1.6% to 5.7780 against the dollar, before recovering somewhat, after the ministry announced the arrival of the S-400 consignment.

Gen. Mark Milley, Trump's choice to be the next chairman of the joint chiefs of staff, said in written testimony to the Senate Thursday that "my recommendation would be to discontinue the transfer of F-35 aircraft to Turkey and unwind Turkey from the F-35 program if Turkey accepts delivery of the S-400".

Washington has opposed Turkey's purchase, saying Russian military hardware is not compatible with North Atlantic Treaty Organisation systems and that the acquisition may lead to Turkey's expulsion from an F-35 fighter jet program.

Turkey maintains that it has fulfilled all of its financial obligations concerning the F-35 program and can not be excluded from the project.

Longer-dated maturities took the biggest hit, with 2038 and 2040 bonds losing around two cents, according to Tradeweb data. The main Istanbul share index fell 2.13%. A second shipment of equipment is expected to arrive in the near future, reported Russian state-run TASS news agency, citing a military diplomatic source. It has also said Turkey won't be allowed to participate in the program to produce high-tech F-35 fighter jets.

The Pentagon has twice pushed back a planned briefing today by senior officials on the subject, and it's unclear when anyone from the U.S. government will comment.

With the Russian system now landing on Turkish soil, North Atlantic Treaty Organisation said on Friday that it's "concerned" about Russian missiles being deployed by a North Atlantic Treaty Organisation ally. "Russian influence is here to stay in the new Turkey".

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Activities to deliver Russia's S-400 air defense systems to Turkey scheduled for Friday are over, Turkish Defense Minister Hulusi Akar said.

President Tayyip Erdogan said after meeting President Donald Trump in Osaka that the United States did not plan to impose sanctions on Ankara for buying the S-400s, which he said would arrive in the first half of July.

"The F-35 move could prove to be a costly mistake for [Recep Tayyip] Erdoğan, especially during Turkey's ongoing economic downturn".

Investors in Turkey have been concerned about the impact of potential United States sanctions on an economy that fell into recession after a currency crisis past year.

Why is the United States opposed to Turkey owning the S-400 system?

.

USA officials have encouraged Turkey to buy the Patriot missile defense system instead of the S-400s.

The US has already halted deliveries of the aircraft to Turkey and suspended the training of Turkish pilots.

The mounting diplomatic pressure is seeing Turkey push back, saying it will not bow to global pressure and as a sovereign nation, it has the right to buy whatever it wants from any country. It was used by putschist soldiers in the attempted coup of July 2016.

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