Close
Date TimeJuly 12, 2019
Voice

EU to Cut the Flow of Funds to Turkey as Drilling Spat Heats Up
(Bloomberg) -- The European Union is poised to freeze most high-level contacts with Turkey and cut the flow of funds to the country, while holding back for now on sanctions that could target Turkish companies involved in offshore drilling in the eastern Mediterranean.EU diplomats have agreed on the wording of a draft decision due to be formally adopted by the bloc’s foreign ministers on Monday, two officials familiar with the talks said. The draft calls for suspending negotiations on an aviation agreement with Ankara, halting scheduled ministerial meetings, reducing aid and inviting the European Investment Bank to review sovereign-backed lending to Turkey.The bloc will also reiterate that it’s working on targeted sanctions in light of Turkey’s continuing controversial drilling practices, according to the final draft of the communique seen by Bloomberg. The statement was agreed on Friday afternoon after several rounds of redrafting, and it will be rubber-stamped by EU ambassadors on Monday before ministers sign off later in the day.Turkey and Cyprus are at loggerheads over offshore gas reserves in the eastern Mediterranean that are claimed by the Cypriots and disputed by Ankara. Turkey has sent exploration vessels into the area, a move Cyprus calls a violation of its sovereignty.Deep-Sea ExplorationEU leaders have squarely sided with Cyprus in the dispute, declaring last month that they’re ready to consider sanctions if Turkey continues drilling. That could target companies, individuals, and Turkey’s deep-sea hydrocarbon exploration and production sectors, though such measures weren’t officially on the menu of options debated this week.Still, the escalation marks a new low in EU-Turkey relations, which have been deteriorating since President Recep Tayyip Erdogan pushed through constitutional reforms that Brussels claims weaken the country’s democratic safeguards.The European Commission says Turkey has been drifting further away from the prospect of eventual EU membership, and some member states, such as Germany and France, have considered formally shelving long-stalled accession talks.The spat with Brussels adds to a climate of uncertainty weighing on Turkish assets, following the dismissal of the country’s top central banker and the prospect of U.S. sanctions over Erdogan’s decision to purchase Russian missiles. Washington has also called on Turkey to cease drilling off the coast of Cyprus.Maintaining CommunicationDespite renewed tensions in the Mediterranean, the EU is wary of an escalation that would risk a landmark 2016 migration agreement, under which Turkey stemmed the bulk of refugee flows to Europe in exchange for financial assistance. Even though options for targeted sanctions were mandated by the bloc’s leaders last month, they are not being activated at this stage.An EU diplomat said the bloc in its Monday decision will seek a balance between sending a clear message to Ankara and agreeing on measures that won’t harm the interests of EU nations or cut all ties with Turkey. The EU wants to keep some lines of communication open in areas such as migration and terrorism, the diplomat said, asking not to be named discussing sensitive issues.\--With assistance from Viktoria Dendrinou and Jonathan Stearns.To contact the reporter on this story: Nikos Chrysoloras in Brussels at nchrysoloras@bloomberg.netTo contact the editors responsible for this story: Chad Thomas at cthomas16@bloomberg.net, Jerrold Colten, Chris ReiterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.




Related Stories
Isil leader Abu Bakr al-Baghdadi died like a dog and coward in US special forces raid, says Donald TrumpIsil leader Abu Bakr al-Baghdadi 'died like a dog and coward' in US special forces raid, says Donald Trump
Devin Nunes face after Gordon Sondlands testimony says it allDevin Nunes' face after Gordon Sondland's testimony says it all
U.S. mulls leaving some troops in Syria to guard oil: PentagonU.S. mulls leaving some troops in Syria to guard oil: Pentagon
White House Ukraine Expert Twice Raised Trump Call ConcernsWhite House Ukraine Expert Twice Raised Trump Call Concerns
After a Week Off the Grid, Sondland Surfaces on Capitol Hill To Review TestimonyAfter a Week Off the Grid, Sondland Surfaces on Capitol Hill To Review Testimony
Former special counsel thinks Alexander Vindman will get Gordon Sondland in deep, deep legal troubleFormer special counsel thinks Alexander Vindman will get Gordon Sondland in 'deep, deep legal trouble'
Could This Straight Shooter Bring Trump One Step Closer to Impeachment?Could This Straight Shooter Bring Trump One Step Closer to Impeachment?
Late night hosts think Trumps Colorado border wall cleanup tweet is somehow even weirderLate night hosts think Trump's Colorado border wall cleanup tweet is somehow even weirder
First impeachment deposition transcripts released: Yovanovitch says State concerned rug would be pulled out if they supported herFirst impeachment deposition transcripts released: Yovanovitch says State concerned 'rug would be pulled out' if they supported her
Turkey-U.S. Sparring Escalates as Bank Spurns NY CourtTurkey-U.S. Sparring Escalates as Bank Spurns NY Court
Latest News
European roundup: Drama as Gladbach beat Bayern; Napoli slump continuesEuropean roundup: Drama as Gladbach beat Bayern; Napoli slump continues
Iran releases US hostage held for three years as suspected spy in prisoner swapIran releases US hostage held for three years as suspected spy in prisoner swap
Saudi gunman called US nation of evil before Florida shooting, monitoring group saysSaudi gunman called US 'nation of evil' before Florida shooting, monitoring group says
Iraqis protest to defy slaughter in Baghdad as drone hits clerics homeIraqis protest to defy 'slaughter' in Baghdad as drone hits cleric's home
Indian police investigated over killings of rape suspectsIndian police investigated over killings of rape suspects
Rashford and Martial give Manchester United derby honours against CityRashford and Martial give Manchester United derby honours against City
Munster pile more agony on Saracens thanks to Peter O’Mahony’s tryMunster pile more agony on Saracens thanks to Peter O’Mahony’s try
Ron Saunders, title-winning Aston Villa manager, dies aged 87Ron Saunders, title-winning Aston Villa manager, dies aged 87
Champions Cup: John Cooney secures late win for Ulster over HarlequinsChampions Cup: John Cooney secures late win for Ulster over Harlequins
Jonny Bairstow’s Test recall raises questions about his role in South AfricaJonny Bairstow’s Test recall raises questions about his role in South Africa
Leaders
Donald-TrumpDonald Trump
45th President of the United States of America
Mike-PenceMike Pence
Vice President of the United States
Boris-JohnsonBoris Johnson
British Prime Minister
Angela-MerkelAngela Merkel
Chancellor of Germany
Emmanuel-MacronEmmanuel Macron
President of France
Justin-TrudeauJustin Trudeau
Prime Minister of Canada
Nancy-PelosiNancy Pelosi
Speaker of the United States House of Representatives
Barack-ObamaBarack Obama
44th U.S. President
Theresa-MayTheresa May
Member of Parliament of the United Kingdom
Vladimir-PutinVladimir Putin
Russian President
Shinzo-AbeShinzō Abe
Prime Minister of Japan
Related Stories
Isil leader Abu Bakr al-Baghdadi died like a dog and coward in US special forces raid, says Donald TrumpIsil leader Abu Bakr al-Baghdadi 'died like a dog and coward' in US special forces raid, says Donald Trump
Devin Nunes face after Gordon Sondlands testimony says it allDevin Nunes' face after Gordon Sondland's testimony says it all
U.S. mulls leaving some troops in Syria to guard oil: PentagonU.S. mulls leaving some troops in Syria to guard oil: Pentagon
White House Ukraine Expert Twice Raised Trump Call ConcernsWhite House Ukraine Expert Twice Raised Trump Call Concerns
After a Week Off the Grid, Sondland Surfaces on Capitol Hill To Review TestimonyAfter a Week Off the Grid, Sondland Surfaces on Capitol Hill To Review Testimony
Former special counsel thinks Alexander Vindman will get Gordon Sondland in deep, deep legal troubleFormer special counsel thinks Alexander Vindman will get Gordon Sondland in 'deep, deep legal trouble'
Could This Straight Shooter Bring Trump One Step Closer to Impeachment?Could This Straight Shooter Bring Trump One Step Closer to Impeachment?
Late night hosts think Trumps Colorado border wall cleanup tweet is somehow even weirderLate night hosts think Trump's Colorado border wall cleanup tweet is somehow even weirder
First impeachment deposition transcripts released: Yovanovitch says State concerned rug would be pulled out if they supported herFirst impeachment deposition transcripts released: Yovanovitch says State concerned 'rug would be pulled out' if they supported her
Turkey-U.S. Sparring Escalates as Bank Spurns NY CourtTurkey-U.S. Sparring Escalates as Bank Spurns NY Court
Latest News
European roundup: Drama as Gladbach beat Bayern; Napoli slump continuesEuropean roundup: Drama as Gladbach beat Bayern; Napoli slump continues
Iran releases US hostage held for three years as suspected spy in prisoner swapIran releases US hostage held for three years as suspected spy in prisoner swap
Saudi gunman called US nation of evil before Florida shooting, monitoring group saysSaudi gunman called US 'nation of evil' before Florida shooting, monitoring group says
Iraqis protest to defy slaughter in Baghdad as drone hits clerics homeIraqis protest to defy 'slaughter' in Baghdad as drone hits cleric's home
Indian police investigated over killings of rape suspectsIndian police investigated over killings of rape suspects
Rashford and Martial give Manchester United derby honours against CityRashford and Martial give Manchester United derby honours against City
Munster pile more agony on Saracens thanks to Peter O’Mahony’s tryMunster pile more agony on Saracens thanks to Peter O’Mahony’s try
Ron Saunders, title-winning Aston Villa manager, dies aged 87Ron Saunders, title-winning Aston Villa manager, dies aged 87
Champions Cup: John Cooney secures late win for Ulster over HarlequinsChampions Cup: John Cooney secures late win for Ulster over Harlequins
Jonny Bairstow’s Test recall raises questions about his role in South AfricaJonny Bairstow’s Test recall raises questions about his role in South Africa
Leaders
Donald-TrumpDonald Trump
45th President of the United States of America
Mike-PenceMike Pence
Vice President of the United States
Boris-JohnsonBoris Johnson
British Prime Minister
Angela-MerkelAngela Merkel
Chancellor of Germany
Emmanuel-MacronEmmanuel Macron
President of France
Justin-TrudeauJustin Trudeau
Prime Minister of Canada
Nancy-PelosiNancy Pelosi
Speaker of the United States House of Representatives
Barack-ObamaBarack Obama
44th U.S. President
Theresa-MayTheresa May
Member of Parliament of the United Kingdom
Vladimir-PutinVladimir Putin
Russian President
Shinzo-AbeShinzō Abe
Prime Minister of Japan
Low-cost Moon mission puts India among lunar pioneers
China warns US 'not to play with fire' regarding Taiwan
Federal court: Duggar sister privacy lawsuit can proceed
Lil Nas X blesses us with a new 'Old Town Road' remix
Ed Sheeran confirmed he's married to longtime love Cherry Seaborn
Duterte critics laud UN vote to scrutinize drug killings
TRNSMT 2019 sees Scots show off their festival style as sun shines on Glasgow Green
Oprah Winfrey praised for opening her private road during Maui fire to help evacuations
Migrants, refugees in Libyan centres must be freed: UN
Kamala Harris Shuts Down Meghan McCain for Siding With Joe Biden
Nasa chief fired as Trump administration vents frustration over moon landing delays
Why Was an American Scientist Murdered in a Nazi Bunker?
Federer prevails over Nadal, gets Djokovic in final
'Check your facts!' Andrew Neil scolded by Boris Johnson in fiery BBC interview
Jeffrey Epstein's opulent New York mansion said to contain bizarre, disturbing art
Trump’s border patrol chief 'posted in secret Facebook group' featuring violent anti-migrant content
Father chases down thief who stole car with children inside and beats him to death with help of bystanders
Trump Concedes Legal Fight to Add Citizenship Question to Census, Issues Executive Order to Get Information By Other Means
Europe's ties with Africa must change: Ghana president
Remains of Napoleon's One-Legged General Found Under Russian Dance Floor
DRC opposition figure drops activism for African Bank job
US Coast Guard filmed raiding moving submarine filled with £185m of cocaine
Trump news - live: President sends warning to Iran after attacking AOC and Ilhan Omar in rambling presser
South African court finds Zuma's son not guilty over car crash death
Democrats Counter GOP Border Proposals on Migrant Conditions
For Palestinian family, tunnel under Israel barrier leads home
Britain to send second warship to Gulf amid rising tension with Iran
The Latest: Japan blames S.Korea export control 'weaknesses'
Swedish Government Won’t Sign ‘Problematic’ UN Nuclear Treaty
China police bust bitcoin miners for stealing $3 mn in electricity
Fights break out as Taiwan's President Tsai visits New York
Despite US warnings, Russian S-400 systems land in Turkey
Radioactive uranium, whiskey and rattlesnake found in stolen car pulled over by police
Vietnam Goes From Trade War Winner to Trump Target
Epstein Offers to Put Up Mansion, Jet to Get Out of Jail
Taiwan president in U.S. after warning of threat from 'overseas forces'
Britain sending destroyer to Gulf amid Iranian threats
Miley Cyrus Says She Felt 'Ridiculous' Being Hannah Montana After Having Sex
Diane Keaton revealed that she hasn't been on a date in a whopping 35 years
Prince Harry ‘would be completely left out’ by other royals during his childhood, author claims
New Mexico, Colorado get fired up over hot peppers
Raped, widowed, homeless: Haiti's slum women abandoned to gangs
Missing girl's family lawyer: no bones in Vatican tombs
Earthquake rattles Washington state, followed by aftershock
Former Blue Peter presenter John Leslie charged with sexual assault
How Jermaine Dupri made stars of Alicia Keys, Kris Kross and more
Ed Sheeran Drops Star-Studded Collaboration Album
Russia delivers missile system to Turkey in challenge to NATO
Greece recognizes Venezuela's Guaido, in line with EU
Takeover Trap: Why Imperialist China Is Invading Africa
Turkey drills off Cyprus in bid for regional influence
Warren, Biden Campaigns Appear to Find Loophole Around Paid Internships
Nancy Pelosi’s renewed attacks on AOC aren’t just disrespectful, they’re dangerous
Envoy to Afghanistan says US not 'cutting and running'
Boris Johnson says he's not to blame for ambassador's ouster
First parts of Russian S-400 system delivered to Turkey: ministry
12,000 Years Ago, a Boy Had His Skull Squashed into a Cone Shape. It's the Oldest Evidence of Such Head-Shaping
Iran calls on Britain to release seized oil tanker immediately
Black Caucus Member Charges AOC With Playing the Race Card
Four Britons held in China, two days after drugs bust
Sudan general says coup attempt foiled
Hong Kong protesters march with mock coffin of city leader
Dog the Bounty Hunter Says He's Lost 17 Pounds in 2 Weeks Since Beth Chapman's Death
President Trump Is the Latest Critic of Facebook's Libra
Serena Williams credits Murray after beating Strycova to reach Wimbledon final
Remains of missing Kentucky mom Savannah Spurlock found after months-long search
Terry Barber show takes fans into Freddie Mercury’s world
AOC, other liberal Dems in spotlight at immigration hearing
Stuber review, Uber-set action-comedy gets stuck in first gear
AP source: Russell Westbrook going to Rockets for Chris Paul
R Kelly arrested on federal sex trafficking charges
eBay says Prime Day is mostly deals on ‘random stuff nobody really wants’
Fossil of 99 million-year-old bird with giant toe found in Burma
Trump Lost on the Census, but the Scandal Is Just Getting Started
I was terrified: Jeffrey Epstein accused of building a network of victims
AOC weeps while hearing mother’s story of toddler who died after being detained by ICE
The Latest: Police say remains are missing Kentucky woman
Taiwan former leader Ma cleared in political leaks case
Trump criticism widespread among diplomats amid Darroch resignation: ‘It could have been any of us’
Pelosi implores Democrats to unify, warning of dangers ahead
Man eaten by his own pet dogs
Harley-Davidson's electric Hog: 0 to 60 mph in 3 seconds
Trump's Pentagon pick says he won't be bullied into making 'stupid decisions'
Warren's new U.S. immigration policy would end border crossing as a crime
Fox News Hasn’t Asked Paid Contributor Ken Starr About His Pedophile Client Jeffrey Epstein
The Latest: House members request briefing on Epstein deal
2020 Democrats paint contrast with Trump on immigration
US plans Gulf naval escorts after Iranians menace UK oil tanker
Afghan women note Taliban shift after Doha talks
Cuban-Americans sue French bank over Castro-era nationalization
Britain 'recommends heightened security' for ships in Straits of Hormuz after Iran tries to block oil tanker
Man facing death penalty after murdering woman he found through Tinder 'with girlfriend'
Brazil cotton farmers sue Bayer over patent on GMO seed
The Latest: Trump approves federal declaration due to Barry
Venezuela government, opposition agree to pursue crisis talks
Venezuela seeks extradition of suspect accused of burning man to death
Head of Boeing's 737 MAX program to retire: company memo
Police: Remains found in Kentucky confirmed as missing woman
Pelosi Advises Illegal Immigrants on How to Avoid ICE
House Speaker Pelosi says she's seeking budget, debt deal before August recess
US, allies planning naval escort for Gulf tankers: Pentagon
Ex-Israeli premier plays down relationship with Epstein
Tropical Storm Barry nears New Orleans, raising flood threat
Human remains discovered in search of home believed to be linked to missing Kentucky mom
U.K. Navy Intervenes After Iran Tries to Stop British Oil Tanker
Parents of dead Hong Kong protester urge others to carry on
Macron to unveil France's nuclear-powered 'Barracuda' submarine
AP Explains: How do immigration authorities make arrests?
Black Caucus Member Charges AOC With Using the Race Card
Alexander Acosta: Trump official who helped paedophile Epstein evade prosecution wants to slash funding for fighting child sex trafficking
Oliver North Claims NRA’s Leader Defamed Him
The Latest: Governor seeks federal declaration due to Barry
Storm Barry bears down on New Orleans with 'extreme rain,' flooding risk
Schiff Says Barr’s Trying to Discourage Mueller From Testifying
Spanish-language reporter released from immigration custody
Vincent Lambert: French quadriplegic at heart of life-support debate
Amazon, seeking more skilled workers, will do the training
Teenage rape victim in El Salvador handed 30-year prison sentence over stillbirth to face retrial for murder
UK Labour under pressure over anti-Semitism after BBC doc
This Is Iran's Sad Attempt at Reverse-Engineering an Old F-5F Fighter
New Orleans area braces for first hurricane of the season
Trump drops executive action on U.S. Census, will seek citizenship survey by other means
U.S. House chair says NY law may not be relevant in securing Trump's federal returns
AP Interview: Buttigieg discusses his plan to tackle racism
Gabrielle Union Stuns In Multi-Colored Floral Mini Dress At The 2019 ESPY Awards
Meghan Markle shamed online for how she held son Archie at polo event
'Willy Wonka' actress dies at 62
Slain Danish student's mother urges death sentences in Morocco trial
Heidi Klum is secretly married to rocker Tom Kaulitz
Thousands of people have taken a Facebook pledge to storm Area 51 to 'see them aliens'
Noel Gallagher brands Scotland ‘a third world country’ in Lewis Capaldi spat
England book Cricket World Cup final place as Jason Roy and Jofra Archer destroy Australia
Redskins CB Josh Norman runs with bulls in Spain, leaps over one
‘A risk to democracy’: North Carolina law may be violating secrecy of the ballot
Hundreds of blindfolded goats airdropped into mountain range
Mainlanders among Hong Kong protesters, though many stay away
Democratic U.S. presidential hopeful Kamala Harris unveils plan to tackle rape kit backlog
Democrat Buttigieg unveils plan to fight racism in America
Trump's Pentagon pick says won't be bullied into making 'stupid decisions'
Germany steps up warnings about right-wing Identitarian Movement
MH370 pilot in control ‘until the end’, French investigators suspect
Saudi Arabia to 'ease' male guardianship law restricting women's travel
Trump to announce executive action on census citizenship question
How Epstein's secret deal could affect sex trafficking case
French supermarket managers ousted over safari hunting snaps
AOC: Pelosi ‘Singling Out’ Progressive Women of Color ‘Disrespectful’
Christian doctor lost his job after refusing to identify a six-foot-tall bearded man as ‘madam’, tribunal hears
Viking bones and DNA will decay quickly as Greenland thaws
EU threatens Turkey with sanctions over Cyprus drilling: draft
Fewer F-35s? Air Force Looks to Buy 80 F-15Xs Instead
What the A-10 Warthog Would Do in a Second Korean War
Meghan McCain is now calling our Kourtney Kardashian for crying over turning 40: 'It's a bad look'
Tommy Robinson given nine-month jail sentence for contempt of court
Julio Iglesias ruled to be father of man, 43
At least seven killed as freak storm lashes Greek resorts
Tropical Storm Barry forms in Gulf, could become hurricane
Venezuela talks with opposition conclude in Barbados, no deal announced
Majority of US vets say Afghanistan war 'not worth fighting': poll
Former NFL defensive tackle Albert Haynesworth says he's in dire need of a kidney
Long Island Bagel Boss customer filmed other public tirades
Tropical Storm Barry develops in the Gulf, threatening more epic flooding in Louisiana
New Book: Former Speaker Paul Ryan’s Retirement Was An ‘Escape Hatch’ From Trump
Melvin Gordon wants new deal or he'll skip training camp, demand to be traded
Trump to announce action over census citizenship question: officials
Pelosi in escalating feud with AOC and fellow young female Democrat progressives: 'Stop tweeting about us'
AP Explains: Mideast tensions threaten key global oil route
Feds not ready to take sentencing position in Flynn case
UK Labour Party in turmoil over new anti-Semitism claims
Missing teen mystery deepens as Vatican dig reveals empty graves
The Latest: Evacuations ordered ahead of weather in the Gulf
U.S. wants 'El Chapo' in prison for life, after he hears from murder plot victim
US diplomat gets 40 months in jail over Chinese agent ties
Nearly two dozen countries unite at UN to condemn China’s mass detention of one million Muslims for first time
No bones found in Vatican tombs searched for missing girl
Bosnian Muslims mark 1995 massacre of thousands with burials
Heavy rains flood New Orleans streets in taste of storm ahead
Trump Says Deutsche Bank, Now ‘Maligned,’ Wanted His Business
Trump to ‘unlawfully’ demand citizenship question included on census despite Supreme Court ruling
Trump to announce action over census citizenship question -source
Bosnian Muslims mark 24th anniversary of Srebrenica massacre
All the people Donald Trump claims he hasn't met - despite evidence to the contrary
Britain says it fended off Iranian attempt to block its oil tanker
From hot sauce to pop gloss, US products seep into Iran
Moldova has Become a Geopolitical Battleground between Russia and the West
U.S. wants North Korea freeze as beginning, not end, of denuclearization
When the U.S. puts a border between migrant kids and their caretakers
Rare 1971 Buick GS 455 To Be Auctioned Soon
Prosecutors seek life in prison for El Chapo
AP Interview: Mayor Pete Buttigieg's straight talk on race
Iran tried to seize British oil tanker: report
US, UK will 'regret' seizing tanker off Gibraltar: Iran Guards
Turkey rejects Greek, EU claims that drilling off Cyprus illegitimate
Erdogan’s Excellent Adventure in Idlib
Ex-combat pilot Amy McGrath challenges Republican McConnell for Senate
US, Egypt warn Turkey over drilling off Cyprus
US peace envoy to Afghanistan in Beijing for meeting
Ilhan Omar calls Tucker Carlson a 'racist fool'
Britain says Iran tried to 'impede' UK tanker in Gulf
Britain says Iranian vessels tried to block tanker in Gulf
Body of Slain University of Utah Student Mackenzie Lueck Was Found Bound in Shallow Grave
Close