Erdogan appoints himself head of Turkey wealth fund

President Recep Tayyip Erdogan has appointed himself chairman of Turkey’s sovereign wealth fund and named his son-in-law and Finance Minister as deputy chairman. (AFP)
Updated 12 September 2018
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Erdogan appoints himself head of Turkey wealth fund

  • The fund was established in August 2016 and tens of billions of dollars worth of state assets including — wholly state-owned — Ziraat Bank were transferred to it in 2017
  • The fund’s other assets include the state’s minority 49.12-percent shareholding in flag carrier Turkish Airlines, as well as state-owned enterprises such as the PTT Turkish post office

ANKARA: President Recep Tayyip Erdogan on Wednesday appointed himself the chairman of Turkey’s sovereign wealth fund and named his son-in-law and Finance Minister Berat Albayrak as deputy chairman.
Zafer Sonmez, who was head of Turkey and Africa for Malaysia’s sovereign wealth fund Khazanah Nasional Bhd, was named as the fund’s general manager in presidential decrees published in the official gazette.
One of Erdogan’s advisers mainly known for his outlandish statements, Yigit Bulut, was removed from the board, while new members included Rifat Hisarciklioglu, the president of the Union of Chambers and Commodity Exchanges of Turkey (TOBB).
Erdogan last year said the fund needed a “reorganization” after the first chairman Mehmet Bostan was removed from his post in September 2017.
The fund was established in August 2016 and tens of billions of dollars worth of state assets including — wholly state-owned — Ziraat Bank were transferred to it in 2017.
The fund’s other assets include the state’s minority 49.12-percent shareholding in flag carrier Turkish Airlines, as well as state-owned enterprises such as the PTT Turkish post office.
Turkish Airlines is regarded as one of Turkey’s crown jewel assets and its size is set to grow further with the move to a giant new Istanbul airport as its main hub in October.
The fund was set up in the aftermath of the attempted overthrow of Erdogan in July 2016. Its establishment was seen as a way of tightening state control over Turkey’s assets.
Such funds can be used for large projects, maintaining pensions and national welfare programs, or in times of crisis.


‘Get prices down’ Trump tells OPEC

Updated 20 September 2018
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‘Get prices down’ Trump tells OPEC

  • Trump highlights US security role in region
  • Comments come ahead of oil producers meeting in Algeria

LONDON: US president Donald Trump urged OPEC to lower crude prices on Thursday while reminding Mideast oil exporters of US security support.
He made his remarks on Twitter ahead of a keenly awaited meeting of OPEC countries and its allies in Algiers this weekend as pressure mounts on them to prevent a spike in prices caused by the reimposition of oil sanctions on Iran.
“We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices!” he tweeted.
“We will remember. The OPEC monopoly must get prices down now!”
Despite the threat, the group and its allies are unlikely to agree to an official increase in output, Reuters reported on Thursday, citing OPEC sources.
In June they agreed to increase production by about one million barrels per day (bpd). That decision was was spurred by a recovery in oil prices, in part caused by OPEC and its partners agreeing to lower production since 2017.
Known as OPEC+, the group of oil producers which includes Russia are due to meet on Sunday in Algiers to look at how to allocate the additional one million bpd within its quote a framework.
OPEC sources told Reuters that there was no immediate plan for any official action as such a move would require OPEC to hold what it calls an extraordinary meeting, which is not on the table.
Oil prices slipped after Trumps remarks, with Brent crude shedding 40 cents to $79 a barrel in early afternoon trade in London while US light crude was unchanged at about $71.12.
Brent had been trading at around $80 on expectations that global supplies would come under pressure from the introduction of US sanctions on Iranian crude exports on Nov. 4.
Some countries has already started to halt imports from Tehran ahead of that deadline, leading analysts to speculate about how much spare capacity there is in the Middle East to compensate for the loss of Iranian exports as well as how much of that spare capacity can be easily brought online after years of under-investment in the industry.
Analysts expect oil to trend higher and through the $80 barrier as the deadline for US sanctions approaches.
“Brent is definitely fighting the $80 line, wanting to break above,” said SEB Markets chief commodities analyst Bjarne Schieldrop, Reuters reported. “But this is likely going to break very soon.”