Trump plans to remove Turkey from US sanctions list during NATO summit

President Donald Trump announced on July 7, 2026, that he will lift US sanctions on Turkey, a move that reverses restrictions he himself authorized during his first term. Sitting alongside Turkish President Recep Tayyip Erdogan at the NATO summit in Ankara, Trump made it characteristically simple: “We’re going to be taking the sanctions off. Okay?”

The sanctions in question were imposed on December 14, 2020, under the Countering America’s Adversaries Through Sanctions Act (CAATSA). Turkey’s crime? Purchasing Russia’s S-400 air defense system, which Washington viewed as a direct threat to NATO interoperability and the security of the F-35 fighter jet program.

Turkey became the first NATO ally ever sanctioned under CAATSA. The penalties targeted Turkey’s Presidency of Defense Industries (SSB) and its chief, Dr. Ismail Demir, imposing export bans, asset freezes, and visa restrictions. Turkey was also booted from the F-35 consortium, losing both its manufacturing role and its order for the jets.

Now, roughly six years later, Trump wants to undo all of that. He even hinted at restoring Turkey’s access to the F-35 program, though legal hurdles remain before any jets can actually change hands.

What the sanctions reversal actually means

For Turkey, the immediate upside is obvious: restored access to US defense technology exports and the unwinding of financial restrictions that have complicated its relationships with Western banks and institutions. Discussions about lifting the sanctions reportedly began as early as March 2026, with Turkish officials confirming ongoing negotiations with Washington.

The crypto angle: Turkey’s financial re-integration

Turkey has one of the highest crypto adoption rates in the world. The Turkish lira has experienced persistent depreciation over the past several years, pushing millions of Turkish citizens toward Bitcoin, stablecoins, and other digital assets as a hedge against inflation.

Sanctions, even when targeted at defense entities rather than the broader economy, create a chilling effect on financial institutions. Banks operating in sanctioned jurisdictions tend to over-comply, restricting services even where they’re technically permitted. This has complicated Turkey’s integration with global financial rails, including the on-ramps and off-ramps that crypto exchanges depend on for fiat conversion.

What investors should watch

The sanctions haven’t been formally lifted yet. Trump’s announcement is a statement of intent, not an executive order. The process requires navigating CAATSA’s legal requirements, and Congress may have opinions about whether Turkey has sufficiently addressed the S-400 issue. The Russian-made system is still sitting on Turkish soil, which gives congressional skeptics ammunition to delay or block the reversal.

No specific crypto tokens or market reactions were reported as a result of the sanctions relief announcement. If Turkey regains F-35 access, that’s a material event for Lockheed Martin and the broader supply chain, though the timeline for any actual aircraft delivery would stretch years into the future.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.