Turkish assets slide as political crackdown widens
The detentions, which prosecutors say are part of anti-corruption investigations, are seen by the opposition and some foreign leaders as an effort by President Tayyip Erdogan to weaken the Republic People's Party (CHP).
Jamie Fallon of Tellimer said the detentions had "fuelled fears around the rule of law and political instability".
Turkish assets are notably sensitive to domestic politics, with foreign investors crowding back in after Erdogan's return to orthodox economic policies in 2023, but prepared to ditch them if the latest political developments impact those policies - or the economy more broadly.
The lira slid by some 0.2% to beyond 40 against the dollar, before clawing back some of the losses, to trade at 39.99 at 1025 GMT, still weaker than its close on Friday.
Turkey's international dollar bonds also slid, with the 2045 maturity shedding nearly 1 cent to be bid at 85 cents on the dollar. And the country's 5-year credit default swap, an indication of the cost of insuring its debt against default, widened by 13 basis points from Friday's close to 292 bps.
The mayors of the big southern cities of Adana, Adiyaman and Antalya were taken into custody as part of a corruption investigation, expanding a months-long legal crackdown well beyond its origins in Istanbul.
Istanbul's benchmark BIST 100 index (.XU100), opens new tab was down 1.25% at 1050 GMT. The banking index (.XBANK), opens new tab was down 0.58% at the same time, after an earlier drop of 1.68%.
The lira has weakened some 11% so far this year on concerns over domestic politics and conflicts in neighbouring countries.
There are expectations that Turkey's central bank would begin cutting rates again this month, but the lira's weakness - and the economic impact of the political developments - has thrown that prospect into question.
Hilmi Yavas, an Istanbul-based independent macro strategist, said the bank's efforts to stabilize the economy were already under pressure.
"High real interest rates still seem necessary to contain domestic demand for foreign currency, while services inflation remains more elevated than a central banker would find comfortable," Yavas said. "Meanwhile, tight monetary policy is placing increasing strain on the real economy."
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The Independent
2 hours ago
- The Independent
The minister, the general and the oil baron: All the mysterious deaths of Russian officials and businessmen
Roman Starovoit was found dead in his car just hours after it had been announced that Vladimir Putin had fired him as Russia's transport minister. While Russian authorities gave no reason for firing Starovoit, state media has suggested that his dismissal was linked to a corruption investigation. In a statement released on Tuesday, the Kremlin said that Starovoit, 53, had taken his own life and that Putin was 'shocked' by his death. Starovoit is among a number of state officials and prominent businessmen who have died in mysterious circumstances since the beginning of the war in Ukraine. Putin's foes and critics have often met with violent deaths. Below, the Independent looks at the deaths of major public figures that have prompted speculation in Russia and abroad. Roman Starovoit Starovoit's body was found in the Odintsovo district of Moscow that is home to many members of Russia's elite, according to the Investigative Committee, the country's top criminal investigation agency. The agency said Starovoit's body was found in his car, but Russian media that carried images from the scene later reported that he was found dead in a small park next to a parking lot where he left his Tesla and a pistol presented to him as an official gift was at his side. Starovoit had served as Russia's transport minister since May 2024, but prior to this served as the governor of the Kursk region which was attacked by Ukrainian forces in August 2024. Kyiv's military success in the region has humiliated Russia. Russian media reported that Starovoit's dismissal and his death could have been linked to an investigation into the embezzlement of state funds allocated for building fortifications in Kursk, where he was governor for five years. Starovoit's successor as governor, Alexei Smirnov, stepped down in December and was arrested on embezzlement charges in April. The alleged embezzlement was cited as one reason behind the Russian military's failure to foresee Ukraine's surprise attack in August 2024. Starovoit's dismissal also followed a weekend of travel chaos in Russia as airports were struck by Ukrainian drones. Some commentators in Russia suggested that Starovoit's associates in higher echelons could have ordered his killing to avoid exposure, the Associated Press reported. Yevgeny Prigozhin Yevgeny Prigozhin soared to prominence in Russia as the founder of the Wagner Group mercenary force, whose fighters have played a significant role in the invasion of Ukraine. Formerly a close confidant of Putin, Prigozhin's downfall came exactly two months after he launched a brief rebellion against the Russian president using soldiers from Wagner. Russian state media reported that he died aged 62 on 23 August 2023 in a plane crash. The Embraer Legacy 600 business jet was travelling from Moscow to St Petersburg when it crashed and killed all 10 people on board. While the Kremlin denied any involvement in Prigozhin's death, western officials later suggested that he may have been killed. The Wall Street Journal later reported in December 2023 that Putin's oldest ally, Nikolai Patrushev, had ordered Prigohzin's assassination, citing western intelligence officials. Andrei Badalov Oil executive Andrei Badalov, 62, was found dead last Friday after falling from a height from his apartment on Rublevskoye Highway in Moscow. A source told the state-owned Tass news agency that the 'preliminary cause of death is suicide', adding that an investigation was underway. Badalov was vice president of Transneft, a state-controlled oil pipeline company based in Moscow. There have been a string of unexplained deaths of senior executives in Russia's energy sector since the beginning of the war in Ukraine, including four deaths in 2022 linked to the state energy giant Gazprom, according to the Moscow Times. Aleksey Avramenko Aleksey Avramenko, 46, was a Belarusian politician who served as minister of transport and communications from 2019 to 2023. He died suddenly on 4 July 2023, according to state news agency Belta, without a cause of death mentioned. The former minister, who served in the government of Putin ally Alexander Lukashenko, was placed under international sanctions after he illegally diverted a passenger flight to arrest an opposition journalist Roman Pratasevich in 2021. The Ryanair flight FR4978 had been due to fly from Greece to Lithuania, but landed in Minsk airport after Belarusian authorities claimed that a bomb threat was on board. The incident provoked outrage in Western countries. Natalia Larina Natalia Larina had only been retired for six months from her role as a judge in Moscow's Tagansky District Court before she was found dead in June last year. Larina, 50, who had been involved in a number of high-profile political cases, was found dead outside her apartment bock in south east Moscow. Russian media reported that she had left a note and listed a suspected suicide as a cause. Larina had worked as a judge for more than 15 years. She was involved in the trial of a Russian Transport Ministry official convicted raping his daughter in 2011, as well as the trial of opposition activist Pyotr Pavlensky, who set fire to the entrance of Russia's main intelligence agency headquarters. He was convicted of vandalism and fined 500,000 rubles (£4,700). Vladimir Sviridov Vladimir Sviridov, 68, was the former lieutenant-general of the 6th Air and Air Defence Forces Army. He was found dead in his home alongside his wife in November 2023. Russian news agency RIA Novosti reported they had been dead for around a week with 'no trace of violent death'. Instead, they said there had been a malfunction in the heating system following a power outage which led them to get carbon monoxide poisoning. On-site measurements did not reveal any carbon monoxide concentration limits being exceeded. The military chief had previously criticised Putin for allowing a 'third-ranking' air force, and warned that officers were leaving the Army due to poor pay and conditions.
BreakingNews.ie
3 hours ago
- BreakingNews.ie
Kremlin calls minister's death ‘tragic' but gives no clues on apparent suicide
The apparent suicide of Russia's transportation minister brought expressions of shock and sorrow from the Kremlin but no new clues as to why Roman Starovoit might have taken his own life. It comes amid media speculation that he was potentially facing corruption charges. Advertisement Mr Starovoit, who served in his post for a little over a year, was found dead from a gunshot wound – news that broke hours after a decree was issued on Monday by Russian President Vladimir Putin that dismissed the 53-year-old cabinet member. Russian President Vladimir Putin, left, meets with Russian transport minister Roman Starovoit at the Kremlin (Gavriil Grigorov/AP) Mr Starovoit's body was found in the Odintsovo district just west of the capital that is home to many members of Russia's elite, according to the Investigative Committee, the country's top criminal investigation agency. It said that a criminal probe was launched into his death and investigators saw suicide as the most likely cause. The agency said Mr Starovoit's body was found in his car, but Russian media that carried images from the scene later reported that he was found dead in a small park next to a parking lot where he left his Tesla and a pistol presented to him as an official gift was at his side. Advertisement The reports said Mr Starovoit's personal assistant was asked to identify his body and she was seen weeping afterwards. Kremlin spokesman Dmitry Peskov refused to comment on the circumstances of Mr Starovoit's death, saying that investigators will have to determine the details. 'Such information is always tragic and sad,' Mr Peskov said, noting that Mr Putin was immediately informed about it. 'Naturally, we were shocked by it.' Advertisement Russian media reported that Mr Starovoit's dismissal and his death could have been linked to an investigation into the embezzlement of state funds allocated for building fortifications in the Kursk region, where he was governor for five years before becoming transportation minister. Mr Starovoit's successor as governor, Alexei Smirnov, stepped down in December and was arrested on embezzlement charges in April. Some Russian media have claimed that Mr Smirnov had told investigators about Mr Starovoit's alleged involvement in the corruption scheme and his arrest appeared inevitable. Russian transport minister Roman Starovoit attends a meeting in Mineralnye Vody, Russia (Dmitry Astakhov/AP) Some commentators even alleged that Mr Starovoit's associates in higher echelons could have ordered his killing to avoid exposure. Advertisement The alleged embezzlement has been cited as one reason behind the Russian military's failure to stem a surprise August 2024 incursion in the region by Ukrainian troops that quickly overwhelmed lightly armed Russian border guards and inexperienced army conscripts. The incursion humiliated the Kremlin — the first time the country's territory was occupied by an invader since the Second World War. The Russian military announced in April that its troops had fully reclaimed the border territory nearly nine months after losing chunks of the region. Ukraine had disputed that assertion. Advertisement On July 1, former deputy defence minister Timur Ivanov was convicted on charges of embezzlement and money laundering and sentenced to 13 years in prison in a high-profile case that exposed rampant military corruption widely blamed for Moscow's military setbacks in Ukraine. Mr Ivanov was the most visible figure in a far-ranging probe into alleged military graft that also targeted several other top officials who were close to former defence minister Sergei Shoigu. Mr Shoigu, a veteran official who had personal ties to Mr Putin, survived the purge of his inner circle and was given a high-profile post of secretary of Russia's Security Council. Mr Ivanov, 49, was named deputy defence minister in 2016 and oversaw military construction projects, as well as property management, housing and medical support for the troops. He was known for his lavish lifestyle that outraged many in Moscow just as the fighting in Ukraine exposed glaring deficiencies in Russian military organisation and supplies that resulted in battlefield setbacks. Mr Putin named Andrei Nikitin, who served as deputy transport minister, to replace Mr Starovoit. Legislators in the lower house of Russian parliament quickly endorsed his appointment on Tuesday. Mr Starovoit, who was divorced, is survived by two teenage daughters.
The Independent
3 hours ago
- The Independent
Kremlin calls transportation minister's death 'tragic' but gives no clues about his apparent suicide
The apparent suicide of Russia's transportation minister brought expressions of shock and sorrow Tuesday from the Kremlin but no new clues as to why Roman Starovoit might have taken his own life amid media speculation that he potentially was facing corruption charges. Starovoit, who served in his post for little over a year, was found dead from a gunshot wound -- news that broke hours after a decree was issued Monday by President Vladimir Putin that dismissed the 53-year-old Cabinet member. Starovoit's body was found in the Odintsovo district just west of the capital that is home to many members of Russia's elite, according to the Investigative Committee, the country's top criminal investigation agency. It said that a criminal probe was launched into his death and investigators saw suicide as the most likely cause. The agency said Starovoit's body was found in his car, but Russian media that carried images from the scene later reported that he was found dead in a small park next to a parking lot where he left his Tesla and a pistol presented to him as an official gift was at his side. The reports said Starovoit's personal assistant was asked to identify his body and she was seen weeping afterward. Kremlin spokesman Dmitry Peskov refused to comment on the circumstances of Starovoit's death, saying that investigators will have to determine the details. 'Such information is always tragic and sad,' Peskov said, noting that Putin was immediately informed about it. 'Naturally, we were shocked by it.' Russian media reported that Starovoit's dismissal and his death could have been linked to an investigation into the embezzlement of state funds allocated for building fortifications in the Kursk region, where he was governor for five years before becoming transportation minister. Starovoit's successor as governor, Alexei Smirnov, stepped down in December and was arrested on embezzlement charges in April. Some Russian media have claimed that Smirnov had told investigators about Starovoit's alleged involvement in the corruption scheme and his arrest appeared inevitable. Some commentators even alleged that Starovoit's associates in higher echelons could have ordered his killing to avoid exposure. The alleged embezzlement has been cited as one reason behind the Russian military's failure to stem a surprise August 2024 incursion in the region by Ukrainian troops that quickly overwhelmed lightly armed Russian border guards and inexperienced army conscripts. The incursion humiliated the Kremlin — the first time the country's territory was occupied by an invader since World War II. The Russian military announced in April that its troops had fully reclaimed the border territory nearly nine months after losing chunks of the region. Ukraine had disputed that assertion. On July 1, former Deputy Defense Minister Timur Ivanov was convicted on charges of embezzlement and money laundering and sentenced to 13 years in prison in a high-profile case that exposed rampant military corruption widely blamed for Moscow's military setbacks in Ukraine. Ivanov was the most visible figure in a far-ranging probe into alleged military graft that also targeted several other top officials who were close to former Defense Minister Sergei Shoigu. Shoigu, a veteran official who had personal ties to Putin, survived the purge of his inner circle and was given a high-profile post of secretary of Russia's Security Council. Ivanov, 49, was named deputy defense minister in 2016 and oversaw military construction projects, as well as property management, housing and medical support for the troops. He was known for his lavish lifestyle that outraged many in Moscow just as the fighting in Ukraine exposed glaring deficiencies in Russian military organization and supplies that resulted in battlefield setbacks. Putin named Andrei Nikitin, who served as deputy transport minister, to replace Starovoit. Lawmakers in the lower house of Russian parliament quickly endorsed his appointment on Tuesday. Starovoit, who was divorced, is survived by two teenage daughters.
