On March 1, a U.S. District Court in New York will start the trial of what is alleged to be the largest-ever sanctions evasions scheme, a $20 billion plan prosecutors say was carried out by Turkey’s state-owned Halkbank, in connivance with top Turkish government officials, to help Iran sidestep punishing U.S. economic sanctions.
If Halkbank is found guilty and ends up frozen out of the U.S. financial system, the economic implications for an already reeling Turkish economy could be massive. Likewise, the political aftershocks in Turkey from the trial’s outcome could be devastating for Turkish President Recep Tayyip Erdogan, who has tried to blame political enemies for the whole scheme.
