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.

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