WEEKLY NEWS BULLETIN ON TURKEY JULY 27, 2026

by instituDE, published on 27 July 2026

ANALYSIS

"The New Energy Routes Out of the Gulf" by Enes Esen, The Institute for Diplomacy and Economy

Ankara would previously have objected to a project competing directly with the Kirkuk-Ceyhan pipeline, but it has not done so. Two considerations may account for this acquiescence. The first concerns Syria. Ankara has heavily invested in the survival of the new authorities in Damascus, whose durability depends on economic recovery. Transit revenue would serve that objective directly while giving Baghdad a material stake in Syrian stability.

The second consideration is commercial. Turkey is a heavy purchaser of oil rather than a supplier. It imports the overwhelming share of its crude and natural gas, and the price shock has added an estimated $14 billion to its energy bill for 2026, of which roughly $8 billion is attributable to oil and $6 billion to gas. Bayraktar has estimated the sensitivity at approximately $400 million a year for every dollar per barrel. Any additional volume reaching international markets reduces what Ankara pays, and the anticipation of new capacity exerts downward pressure on prices in advance of any physical delivery.

"What challenges await Erdogan’s new rival and Turkey’s new opposition party?" by Halil Karaveli, Al-monitor

Turkey’s court-ousted opposition leader, Ozgur Ozel, may have emerged as the defiant face of resistance to President Recep Tayyip Erdogan, but his path forward is littered with political mines: surviving a widening legal crackdown, holding together an ideologically fractured coalition and building a political party capable of challenging Erdogan.

Ozel’s biggest challenge may be to reconcile the conflicting expectations and demands of Turkish nationalists and Kurds. He appeals to both constituencies, but is decidedly more popular among the latter. 

That breadth of support has strengthened Ozel’s claim to lead a wider opposition front, but it has also made him a more prominent target of the legal crackdown, and Turkish media abounds with speculation that Ozel might be next in line to be arrested. 

POLITICS

Ousted Leader Ozel Launches ‘New Party’ with Mass Exodus from CHP

Ozgur Ozel, the former leader of Turkey’s Republican People’s Party (CHP), has launched Yeni Parti (New Party) after a court removed him as CHP chair in May.

Ozel and 83 other lawmakers bid farewell to the CHP during the party’s weekly group meeting on July 21, where he said, “We are founding our new party.”

He later resigned from the CHP on July 24 together with 90 lawmakers and signed the founding documents of the New Party. The party has also submitted its application to the Ministry of Interior, and its logo has surfaced.

After announcing his resignation, Ozel changed his profile photo on X and removed “CHP General Chairman” from his account. He also updated his cover photo to reveal the New Party’s logo.

The lawmakers’ departure would give the New Party 91 seats in Turkey’s 600-member parliament, making it the second-largest party and potentially the main opposition once it formally registers its parliamentary group. This mass departure leaves the CHP with just 44 seats in the parliament. 

Probe Launched Over 'Paid Extras' Allegations at Kilicdaroglu Ceremony

Turkey's prosecutors opened an investigation following allegations that organizers paid extras to attend a July 25 membership ceremony for court-appointed CHP leader Kemal Kilicdaroglu.

According to reports, hundreds of individuals gathered at a Mecidiyeköy shopping mall and were transported by shuttle to a Sarıyer hall, where they were directed to chant slogans and clap on cue. During the three-hour event, exits were allegedly blocked. The extras reportedly included unemployed citizens, retirees, unappointed teachers, and immigrants, paid 950 Turkish Lira each. 

The Chief Prosecutor's Office announced that it has launched an investigation into the allegations. Following the completion of the initial investigation, statements will be taken from those involved in the allegations, it said.

Turkey Arrests Opposition Izmit Mayor in Corruption Probe

A Turkish court arrested opposition Izmit mayor Fatma Kaplan Hurriyet and 20 other suspects on July 23 in a corruption investigation, while releasing 10 others under judicial supervision.

Police initially detained Hurriyet, her husband, and a local official from the Republican People's Party (CHP) on July 20 after simultaneous raids in five provinces, including Istanbul, Ankara, and Kirikkale.

The Istanbul Chief Public Prosecutor's Office issued warrants for 31 people, accusing them of establishing a criminal organization, bribery, and bid rigging in municipal tenders.

Prosecutors alleged that companies winning city contracts had familial ties to municipal officials and that businesses providing services to the municipality paid illegal commissions. They also accused Hurriyet's husband of interfering in tender processes and hiring decisions despite holding no official position.

Hurriyet told reporters outside her home as police took her into custody that her conscience was clear and she had nothing to fear.

Imprisoned PKK Leader Ocalan Urges Turkey to Enact Legal Framework for Peace

Abdullah Ocalan, the jailed leader of the outlawed Kurdistan Workers’ Party (PKK), renewed his call for legislation to advance Turkey’s peace process with the group. The imprisoned Kurdish leader told a visiting delegation that lawmakers must establish a legal framework to permanently remove armed conflict from the country’s agenda.

The pro-Kurdish Peoples’ Equality and Democracy Party (DEM Party) published Ocalan’s message on July 21 following a five-hour meeting at Imralı Prison. Delegation members Pervin Buldan, Mithat Sancar, and lawyer Ozgur Faik Erol met with Ocalan to discuss the path forward.

"The time has come to establish a legal foundation that takes mutual sensitivities into account," Ocalan said in the statement. He called on all sides to “do their part to initiate the legal and legislative process set out in a report adopted in February by parliament’s National Solidarity, Brotherhood and Democracy Commission. "We must completely remove conflict and weapons from the equation and open a brand-new chapter," he added.

Turkey Weighs Sulaymaniyah as Exile Hub for Senior PKK Figures

Turkey has settled on Sulaymaniyah as a possible destination for senior PKK figures whom Ankara refuses to allow back into the country, journalist Nuray Babacan wrote in Nefes, citing meetings in Syria and northern Iraq.

Babacan said Turkish officials had initially considered sending the group to Europe or other third countries after the PKK left its bases in the Qandil Mountains. Ankara later abandoned that idea over concerns that foreign intelligence services could recruit or influence the figures, she wrote. Officials favored Sulaymaniyah because Turkey could monitor their activities more easily there.

The pro-government Turkiye newspaper also cited sources in the ruling Justice and Development Party (AK Party) as saying that Ankara would not permit about 200 senior PKK figures in Qandil to enter Turkey. The report, however, described Sulaymaniyah as an option under consideration rather than a finalized plan.

The newspaper said the government would introduce legal measures gradually. Authorities would first draft regulations for people who had not committed crimes, those who had not taken part in armed actions and PKK members currently in prison.

The plan would also allow people who run the PKK’s lobbying network in Europe to return to Turkey without punishment if they have no criminal record or face only accusations of membership in a terrorist organization, the report said.

ECONOMY

Turkey's Central Bank Holds Interest Rates Steady at 37 Percent

Turkey's central bank held its benchmark interest rate steady at 37 percent on July 23, matching market expectations. The lender also maintained its overnight lending rate at 40 percent and its overnight borrowing rate at 35.5 percent.

This pause marks the fourth consecutive meeting that the central bank held the one-week repo rate unchanged. The lender trimmed the benchmark rate from 38 percent to 37 percent in January before holding it steady in March, April, June, and July.

Bank officials noted that domestic demand stays weak and economic activity continues to decelerate. They pointed to geopolitical tensions that weigh on costs, output, and market expectations. The central bank vowed to tighten monetary policy should inflation forecasts deteriorate.

Turkey's Exporters Chief Demands Economic Overhaul as Lending Costs Stifle Industry

The head of Turkey's Exporters Assembly demanded the government overhaul its economic program on July 23, warning that soaring borrowing costs near 50 percent threaten the survival of manufacturers.

Mustafa Gultepe, president of the assembly, delivered the warning during a panel at the Istanbul Chamber of Industry. He noted that the textile and apparel sectors shed 153,000 registered jobs over the past two years.

Gultepe told the audience that companies require breathing room to recover before they can fund new brands or technology. He revealed that businesses seeking court-supervised debt restructuring tripled in the last two to three years.

"Economic policies need to change," Gultepe said. He added that officials must implement measures to slash production costs, even if inflation drops below 20 percent.

Turkey Breaks Record in Solar Electricity Generation in June

Turkey generated 30.35 billion kilowatt-hours of electricity in June, breaking the all-time record for the month, the Energy and Natural Resources Ministry's data showed.

Solar facilities produced 4.99 billion kilowatt-hours last month, establishing a new all-time high for solar generation. Solar energy supplied 16.4 percent of the nation's total electricity needs.

The ministry also reported that renewables generated 20.65 billion kilowatt-hours in June, marking the highest monthly figure since 2000. Domestic energy sources contributed 24.22 billion kilowatt-hours to the national grid.

U.S. Imposes 12.5% Tariff on Turkish Imports Over Forced Labor Policy

The United States imposed a 12.5 percent tariff on covered Turkish imports on July 24, placing Ankara in the higher penalty tier of a new trade action targeting nations that fail to block goods produced using forced labor.

The Office of the United States Trade Representative (USTR) applied the 12.5 percent rate to 38 economies, while 17 others face a lower 10 percent levy. Washington assigned Turkey the steeper penalty because the country's government neither enacted a qualifying import ban nor pledged compliance with U.S. demands to halt forced labor practices.

Turkish Regulators Block Access to Polymarket Over Illegal Betting Claims

Turkish regulators have blocked access to the US-based prediction market platform Polymarket, citing illegal betting. According to the Freedom of Expression Association (İFÖD), the National Lottery Administration issued the access ban on July 16. The Spor Toto Organization Presidency also blocked the platform on July 21, 2026.

Polymarket allows users to place wagers on the outcomes of political events, sports matches, and breaking news. 

Turkey Clears Saipem-Subsea7 Merger as Deal Faces Global Antitrust Hurdles

Turkey's competition authority approved the merger between Italian energy contractor Saipem and Norwegian rival Subsea7. Both firms maintain operations in Turkey and hold separate contracts to develop the Sakarya field in the Black Sea, the country's largest offshore natural gas discovery.

The combined entity still faces substantial antitrust scrutiny overseas. European Union authorities will launch a full-scale investigation into the deal, while competition watchdogs in Australia and Brazil also review the transaction.

HUMAN RIGHTS

Turkey's Justice Minister Leaves 872 Parliamentary Questions Unanswered

Turkey's Justice Minister Akin Gurlek has failed to respond to a single parliamentary inquiry since taking office. This silence contradicts Gurlek's prolific activity on social media, where he frequently comments on ongoing investigations. 

Parliamentary records show the minister received 923 questions during his tenure. He currently leaves 872 of those questions unanswered. The deadline for 51 of Gurlek's questions remains open. 

Meanwhile, Interior Minister Mustafa Ciftci, who joined the cabinet on the same day as Gurlek, answered 215 inquiries. Ciftci still has 373 questions pending.

Turkey Passes Law Granting Vast Internet Blocking Powers

Turkish Parliament approved a controversial cybersecurity law on July 24 that grants the executive branch broad authority to block internet services and disrupt digital infrastructure within hours.

The legislation empowers the Cybersecurity Directorate to enforce undefined "measures" at its own initiative or upon request from intelligence agencies. Internet service providers must implement these directives within two hours. Authorities can block applications, filter web traffic, manipulate domain name systems, and force data centers offline.

Critics warn the law institutionalizes an "implement first, then question" approach to internet censorship. They argue the legislation creates open-ended intervention mechanisms that extend far beyond simple access blocking and threaten press freedom and privacy.

Security Forces Detain 128 in Nationwide Raids Targeting Gulen Movement

Turkish security forces detained 128 people during house raids across 22 provinces, the Interior Ministry announced on July 22. Police targeted alleged followers of the Gulen movement in operations spanning Istanbul, Ankara, and Izmir.

The ministry accused the detainees of allegedly sustaining ties to the movement, financing its networks, and promoting its ideology online.

Authorities arrested 51 people and released 14 under judicial supervision. Investigators continue to process the remaining individuals.

Turkey Probes TV Station over Remarks Calling Syria’s Sharaa a ‘Killer’

Turkey’s broadcast regulator opened an investigation on July 24 into comments aired on the government-critical channel Sozcu TV that described Syrian President Ahmed al-Sharaa as a “killer” and “terrorist,” saying the remarks could damage relations with Syria.

Sozcu TV anchor Serap Belovacakli made the comments during a broadcast. However, the Radio and Television Supreme Council, or RTUK, did not name the broadcaster in its statement. 

RTUK called the remarks “baseless accusations” against Syria’s “legitimate president” and said they could harm good-neighborly relations. The regulator also said the comments conflicted with Turkey’s foreign policy principles.

Turkey’s Top Court Faults State Over 1993 Sivas Massacre Investigation

Turkey’s Constitutional Court ruled on July 23 that authorities failed to deliver an effective investigation into the 1993 Madımak Hotel arson attack, in which a mob killed 35 people during a festival honoring Alevi poet Pir Sultan Abdal.

On July 2, 1993, attackers surrounded the Madımak Hotel in the central province of Sivas and set the building on fire as writers, poets, musicians and other guests attended the cultural gathering. The blaze killed 33 festival participants and two hotel workers. 

The court issued a unanimous ruling that the state violated its obligation to investigate the deaths. Victims’ relatives had brought the case to the Constitutional Court 12 years ago.

The court also ordered the state to pay compensation to the victims’ families.

FOREIGN POLICY

U.S. Still Blocks F-35 Sales to Turkey over S-400 Dispute

The US State Department informed Congress on July 22 that Turkey cannot receive F-35 fighter jets until Ankara divests from its Russian-made S-400 air defense system and fulfills other legal mandates, according to a report in the Greek newspaper Kathimerini. 

Officials issued the letter following an inquiry from Democratic Congressman Wesley Bell about Turkey's potential reentry into the advanced aircraft program.

The department emphasized that US law strictly prohibits F-35 transfers until Turkey aligns with the Countering America's Adversaries Through Sanctions Act (CAATSA) and additional statutory requirements. "Turkey has not yet met these conditions," the letter read. State Department officials added that Washington and Ankara maintain ongoing talks to settle the S-400 disagreement.

This official stance contradicts recent public statements from President Donald Trump during a bilateral meeting with Turkish President Recep Tayyip Erdogan at the NATO summit in Ankara. The US president had stated that Washington would lift CAATSA sanctions and allow Turkey to purchase F-35s. 

US Sanctions Istanbul Fintech over Alleged Iran Crypto Payments Network

The United States sanctioned an Istanbul-based financial technology company and its Iranian chairperson on July 24, accusing the firm of providing payment services to a cryptocurrency exchange linked to a network that helped Iran evade sanctions.

The US Treasury Department’s Office of Foreign Assets Control (OFAC) added Zedpay Financial Systems and Services Inc. and its chairperson, Mehdi Rezazadeh, to the Specially Designated Nationals and Blocked Persons List. The action targeted four individuals and nine companies in total.

US Treasury records identify Zedpay’s address as Tekstilkent Plaza in Istanbul’s Esenler district. The records say the company began operating on May 24, 2022, in the computer programming sector.

U.S. Sanctions Turkey-Based Firm and Three Nationals for Financing Hamas

The US Treasury Department sanctioned a Turkey-based company and three foreign nationals on July 23 for funneling money to Hamas through an underground banking network.

The Office of Foreign Assets Control (OFAC) designated El-Kahira for General Trading alongside the firm's Palestinian owner, Khaldun Khamis Zakaria Alden, and two Iraqi shareholders, Zaid Issam Ahmed Al-Jebouri and Abdulla Issam Ahmad Al-Jebouri.

OFAC officials said the company moved hundreds of thousands of dollars to support Hamas operations. 

Belgium Considers Turkish Frigates as Dutch Deliveries Stall

Belgium's navy risks being left without frigates as delivery timelines for ships ordered from the Netherlands continue to slip, pushing Brussels to consider Turkey among alternative suppliers.

Belgium's current frigates, built in 1988, have reached the end of their service life. Belgium ordered new vessels from the Netherlands in 2016, but construction has yet to begin, and the earliest delivery date is now 2034, with costs rising.

Defence Minister Theo Francken said Belgium would approach frigate producers in Turkey, Italy, France, Germany, and Spain.

According to state broadcaster VRT, Turkey offered to deliver its first frigate by 2027 and could build three ships at the price the Netherlands is charging for two. Sensors could be Turkish-made or sourced elsewhere, with additional costs for non-Turkish options.

However, Belgian navy officials raised concerns that Turkish frigates were designed for Mediterranean operations, while Belgium operates in the Atlantic.

Turkey Launches Seismic Surveys for Proposed Gas Pipeline to Northern Cyprus

Turkey issued a navigational warning for the Oruc Reis research vessel to conduct seismic surveys along a proposed undersea natural gas pipeline route. The surveys will run through August 30, connecting the country's southern coast to Northern Cyprus.

The vessel marks the first publicly reported offshore operation since Turkish and Turkish Cypriot leaders signed a memorandum of understanding on July 10 to advance the energy project. Ankara and the Turkish Cypriot administration aim to boost energy cooperation and secure natural gas resources in the eastern Mediterranean.

Togo Opposition Demands Probe into Alleged Russian, Turkish Forces in North

The opposition in Togo has demanded an immediate public debate over the alleged presence of Russian mercenaries and Turkish private military contractors in the north of the country.

A coalition of opposition political parties and civil society groups said in a joint statement on July 21 that international media reports confirmed the presence of "foreign forces on the ground," specifically citing Russia’s state-controlled Africa Corps paramilitary force and Turkey’s SADAT private military company.

They also called for guarantees that no foreign troops would take part in surveillance, intimidation, or arrest operations against civilians.

Lome signed a military cooperation framework agreement with Turkey in 2021 and a similar deal with Russia in 2025.

ASEAN Grants Turkey Full Dialogue Partner Status

The Association of Southeast Asian Nations (ASEAN) has granted Turkey full Dialogue Partner status, upgrading Ankara’s institutional ties with the Southeast Asian bloc and making it the 12th external partner to hold the designation.

The Philippine government said ASEAN foreign ministers adopted the decision on July 21 during their 59th meeting in Manila.

Turkey’s Foreign Ministry welcomed the move as a milestone in Ankara’s relations with Southeast Asia. "This step will further advance our strategic cooperation with ASEAN on the basis of mutual benefit and shared prosperity", the ministry said.