Former Turkish PM Davutoğlu Details Turkey's Deliberate Evasion of Iran Sanctions

Davutoğlu Reveals Sanctions Evasion Strategy

In a recent television interview aired on January 14, 2026, former Turkish Prime Minister and Foreign Minister Ahmet Davutoğlu provided a detailed account of how Turkey deliberately bypassed United States sanctions against Iran. Davutoğlu, speaking on the nationalist-leaning TiVi6 television station, characterized this approach as a conscious and intentional policy decision made by the Turkish government at its highest echelons. He explicitly stated that Ankara openly rejected the embargo regime imposed by the U.S. and constructed alternative financial channels to maintain economic relations with its neighbor. Davutoğlu's revelations offer one of the clearest first-hand accounts of Turkey's strategy during the period of heightened U.S. pressure on Iran.

Turkey's Stance Against the Embargo

Davutoğlu asserted that Turkey's decision to circumvent the sanctions was rooted in its national interests, including energy needs and economic ties with Iran. He recalled communicating this position directly to senior U.S. officials, informing them that Turkey did not consider the embargo legitimate. According to Davutoğlu, Washington was explicitly told that Turkey would continue importing Iranian oil and gas and would not allow U.S. sanctions to dictate its relations with Tehran. He stated, 'We told the Americans very clearly that we did not consider the embargo on our neighbor Iran to be legitimate,' and 'Turkey had energy needs, Turkey had economic interests, and we never saw it as acceptable to cut off a country with which we share one of the oldest borders in the world.'

The Halkbank Connection and Reza Zarrab

The former Prime Minister's statements shed further light on the context surrounding the prominent Halkbank case. The state-owned Turkish bank has been accused by U.S. prosecutors of participating in a multi-billion dollar scheme to move Iranian oil revenue through the global financial system, involving gold and cash transactions disguised as trade. Davutoğlu acknowledged the connection, noting that the policy of non-compliance with sanctions later 'spiraled into one of the largest sanctions-evasion cases ever prosecuted in the United States.' He specifically mentioned Reza Zarrab, a key figure in the scheme who was arrested in the U.S. in 2016 and later became a cooperating witness, testifying about bribing senior officials and falsifying trade records. Davutoğlu indicated that Zarrab becoming a state witness marked a critical turning point, stating, 'I said openly: if you do not try him here, he will go to New York and testify. That is exactly what happened.'

Policy vs. Corruption: A Critical Distinction

Throughout his interview, Davutoğlu drew a clear distinction between the Turkish state's official policy of not recognizing U.S. sanctions and the subsequent acts of corruption that allegedly exploited this policy. He argued that while the decision to maintain economic ties with Iran was a legitimate political choice, the lack of legal boundaries and accountability allowed corruption to flourish under political protection. The fallout from these activities extended to Halkbank executives, including former deputy general manager Mehmet Hakan Atilla, who was convicted in New York for his role in helping Iran evade sanctions. The U.S. Supreme Court recently declined to review Halkbank's appeal, clearing the way for the bank to stand trial, underscoring the ongoing legal ramifications of these past actions.