Turkey reportedly cancels $3.4bn controversial missile deal with Chinese CPMIEC

By bne IntelliNews November 16, 2015

Turkish Prime Minister Ahmet Davutoglu has signed last week the decision to cancel a controversial long-range missile system deal with China Precision Machinery Import and Export Corp (CPMIEC) before the G20 summit held on November 14-15 in Turkey, Reuters quoted on November 15 an unnamed official at prime minister’s office as saying. The unnamed official also said that Turkey now plans to launch its own project to develop the missile system.

Turkey started talks with China on the $3.4bn missile system in September 2013, but has not signed the final deal. However, Turkey’s NATO allies expressed concern over Ankara’s plans to buy a Chinese system, citing security and compatibility problems. In 2013, Turkish government decided to choose Chinese CPMIEC's missile system over rival systems of US Raytheon and Lockheed Martin (Patriot), Russia's Rosoboronexport (S-300), and the Italian-French consortium Eurosamrs (Stamp -T). Following the government’s decision, both NATO and the U.S voiced concerns over security issues and the compatibility of Chinese system with NATO network. Eurosamrs was the second best bidder in the tender.

The termination of the missile contract with CPMIEC will be formally approved this week by Turkey’s defence industry executive committee, Hurriyet Daily News reported November 15, citing a report from TV channel CNN Turk. Turkey’s largest defence company Aselsan and Turkish missile manufacturer Roketsan may be commissioned to produce the missile system, CNN Turk reported, citing anonymous sources.

Related Articles

Erdogan says he plans talks with lenders on cutting Turkish interest rates

Turkey's President Recep Tayyip Erdogan said on October 13 that he plans to hold talks with both public and private lenders on how to lower interest rates. He did not say, however, when those ... more

Turkey's Erdogan turns fire on US ambassador in diplomatic spat over arrest

Turkish President Recep Tayyip Erdogan has turned his fire on the US ambassador to Turkey for the ... more

Turkey-based Eurasian development bank ETDB signs memo to boost return to Iran

The Central Bank of Iran (CBI) and the Turkey-based ECO Trade and Development Bank (ETDB) have signed a memorandum on strengthening bilateral ties, the CBI said on October 10. ETDB is a Eurasian ... more

Dismiss