US rejects Turkey’s offer to release pastor if it drops investigation into bank

The US government has rejected Turkey’s offer to release an American pastor if it drops an investigation into a top Turkish bank that could face fines of billions of dollars.

Washington and Ankara are locked in a dispute over the nearly two-year detention of Andrew Brunson on terrorism and espionage charges, which have triggered a trade row and sent the lira into a tailspin.

In exchange for Mr Brunson’s release, and that of other US citizens as well as three Turkish nationals working for the US government, Turkey asked Washington to drop an inquiry into Halkbank, which may face fines for helping Iran to evade US sanctions.

But the US said that discussions over the fines and other areas of dispute between the two countries were off the table until Mr Brunson was released, a White House official told The Wall Street Journal.

“A real Nato ally wouldn’t have arrested Brunson in the first place,” the unidentified official said.

The reports emerged as US President Donald Trump told Reuters that he had ruled out agreeing to any demands from Ankara over Mr Brunson’s release.

He said he was not concerned that his bullish stance would hurt European and emerging market economies.

Mr Trump said that he thought he had struck a deal with Turkish President Recep Tayyip Erdogan when he helped to persuade Israel to free a detained Turkish citizen.

He had presumed Mr Erdogan would then release Mr Brunson, who denies Turkey’s claims that he was involved in a coup against Mr Erdogan two years ago.

“I think it’s very sad what Turkey is doing. I think they’re making a terrible mistake. There will be no concessions,” Mr Trump said.

Ankara has denied agreeing to free Mr Brunson in return.

Turkey has long demanded that the US hand over Fethullah Gulen, a Turkish cleric living in exile in Pennsylvania who Ankara believes was instrumental in the coup plot, but Washington has baulked at the request.

Mr Trump has imposed tariffs on imports of Turkish steel and aluminium in response to Mr Erdogan’s refusal to free the pastor, raising concerns of damage in Europe and emerging market economies.

“I’m not concerned at all. This is the proper thing to do,” he said.

A senior White House official said that Mr Trump and Mr Erdogan discussed Mr Brunson’s case when they met in Brussels for a Nato summit last month.

The dispute threatens to intensify already deep divisions between the US and Turkey, a key Nato ally that plans to buy Russian missiles.

“I like Turkey. I like the people of Turkey very much,” Mr Trump said.

“Until now I had a very good relationship, as you know, with the president.

“I got along with him great. I had a very good relationship. But it can’t be a one-way street. It’s no longer a one-way street for the US.”