EU Mulls Cutting Funds to Turkey as Drilling Fight Escalates
- Government envoys to discuss menu of measures on Wednesday
- Sanctions follow Turkish drilling in area claimed by Cyprus
Construction workers place a Turkish national flag on the dome of mosque in Istanbul.
Photographer: Kostas Tsironis/BloombergThis article is for subscribers only.
The European Union may suspend most high-level contact with Turkey and cut the flow of funds in protest at its drilling activities off the coast of Cyprus.
Those measures are among a range of proposals that EU government envoys will discuss Wednesday in Brussels and could limit the European Investment Bank’s sovereign-backed lending in Turkey and confirm a cut of some 146 million euros ($163 million) in aid for next year, according to a person familiar with the matter. The Turkish lira pared gains on the news.