- In Russia’s Footsteps? Turkey Dumps US Sovereign Debt as Political Rift Deepens
US Treasury reports previously showed that Russia has also drastically decreased its share in the US debt amid a deterioration of relations between the two countries and following a set of harsh sanctions imposed by Washington.
In June 2018, Turkey significantly decreased its portion of US sovereign debt, having reduced its portfolio from $32.6 billion to $28.8 billion, according to the US Treasury report. The trend in reducing US debt owned by Ankara started in November 2017, when the country held $61.2 billion worth of US debt.
The reduction in Turkey’s possession of US sovereign debt is taking place amid a negative trend in bilateral relations between Ankara and Washington. This has been caused by among other things, the S-400 acquisition dispute, sanctions against Turkey’s officials over American pastor Andrew Brunson and tariffs the US imposed on Turkish steel (50%) and aluminum (20%).