Turkey’s F-35 Contract: An Analysis of Financial Implications and Turkish Compliance

Turkey’s involvement with the F-35 fighter jets program has been fraught with complications, primarily revolving around its purchase of the Russian S-400 missile system. This essay delves into the financial aspects of the F-35 deal and the implications of Turkey’s actions, examining why Turkey is unable to return the funds and how the United States might find alternative uses for the aircraft.

Financial Implications and Compliance with Agreements

The F-35 program is a joint military initiative between several countries, with the United States as the primary partner. Turkey had contracted to purchase multiple F-35 fighter jets but failed to comply with the agreement after opting to purchase the Russian S-400. This breach of contract has significant financial implications for both parties involved.

Given that Turkey has not paid the US for the F-35 fighters, the jets remain on a US base, costing the Americans money to maintain. While Turkey has been earning revenue by selling F-35 parts to the United States, these parts now need to be phased out and redesigned in the US, adding even more costs. Therefore, the assertion that Turkey should refund the money is based on incorrect information. Turkey profited without paying, while the US had to bear additional manufacturing and maintenance costs.

This situation can be summarized as follows:

Turkey made money through part sales while not paying for the F-35 jets. The US incurred significant costs to manufacture and maintain the aircraft. The US ended up compensating Lockheed Martin for fighter jets that Turkey did not need, now stored on US bases.

The reality is that Turkey fulfilled its contractual obligation by buying the S-400, thus invoking penalties and canceling the F-35 deal. The US is now left with no choice but to find a way to use or dispose of the aircraft.

Turkey's Investments and Ongoing Policy

Turkey's involvement in the F-35 program began in earnest in 2016 when it purchased four F-35 fighters. These aircraft, while not operational, were used by Turkish pilots for training purposes at bases in Arizona. The jets are still in the process of final inspection and remains part of the US military inventory.

In 2019, the US was considering repurchasing the F-35s from Turkey or converting the proposal to purchasing Turkey's S-400 system. However, none of these proposals materialized, leaving the US with four unused F-35 aircraft and a liability of approximately $1.2 billion. With no immediate resolution, Turkey is likely to seek legal means to resolve its issue of compliance.

Future Financial Implications and Resolution

The US could easily refund the money to Turkey, but the financial flows between Turkey and other parties complicate the issue. Turkey receives aid from both the US and the EU worth over $4 billion annually. Hence, the aid provided by these entities could be considered a form of compensation for the delivery of the F-35 jets.

Therefore, the ongoing financial obligations and political tensions between Turkey and the US necessitate a multi-faceted approach to resolving the F-35 conflict. It is likely that Turkey will pursue legal or diplomatic channels to either reclaim the funds or secure alternative forms of compensation.

In conclusion, the F-35 contract dispute between Turkey and the US is primarily a result of non-compliance with the initial agreement. The financial implications highlight the need for clear and enforceable international agreements, particularly in high-stakes military procurement programs.