By Bosphorus News Geopolitics Desk
Turkish combat aircraft flew south of Cyprus as Greece, the Republic of Cyprus and Egypt prepared for defense talks in Cairo. In Türkiye, investigators traced large transfers to Switzerland before the fund defaults while selling spread into equities and money-market funds.
Cyprus | Turkish jets fly south as GSI survey plan advances
Turkish combat and support aircraft from several bases carried out a comprehensive training flight south of Cyprus and over international airspace in the Mediterranean on Sept. 21.
Türkiye's Ministry of National Defence said the mission was intended to improve combat capability and readiness and protect Türkiye's rights and interests in the Mediterranean. It did not disclose the number or types of aircraft involved.
Greek newspaper Kathimerini reported separately that Athens and Paris are in advanced preparations to resume seabed work for the Great Sea Interconnector (GSI). According to the report, the two governments have agreed on the wording of a notice informing coastal states, including Türkiye, that a named French-flagged vessel will conduct cable surveys in areas where maritime boundaries have not been delimited.
The notice would specify the survey area and duration. Kathimerini said Greece would inform Türkiye of the work without requesting Ankara's permission.
Greek Cypriot leader Nikos Christodoulides is scheduled to meet UN envoy María Ángela Holguín in New York on Tuesday evening and UN Secretary-General António Guterres on Sept. 24. His government says it is ready to extend its stay if Guterres' schedule allows a joint meeting, but no trilateral has been arranged. The Greek Cypriot side is also awaiting the UN's record of previous negotiating convergences.
Cairo | Greece, Republic of Cyprus and Egypt prepare for defense talks
Greek Defense Minister Nikos Dendias, Republic of Cyprus Defense Minister Vasilis Palmas and Egyptian Defense and Military Production Minister Gen. Ashraf Salem Zaher are due to meet in Cairo on Sept. 22 under their trilateral defense format.
The official agenda includes joint exercises, military training, interoperability, new technologies, defense innovation and regional security. No new agreement had been announced before the meeting.
Greece and the Republic of Cyprus have also been expanding bilateral defense cooperation, including defense industry projects and access to European defense financing.
Türkiye-US | Fidan tells Washington defense restrictions should go
Foreign Minister Hakan Fidan called on Washington to remove restrictions on bilateral defense cooperation, telling a New York event that such barriers "should have no place between two allies."
Fidan said defense remains one of the pillars of Türkiye-US relations and called for wider industrial cooperation. He also urged Washington to remove additional trade barriers as the two governments pursue a $100 billion bilateral trade target.
President Recep Tayyip Erdoğan is due to address the UN General Assembly on Sept. 22 as the fourth speaker of the opening session. Ankara has confirmed bilateral meetings during his New York visit, but no official date or time has been announced for a separate meeting with US President Donald Trump.
Türkiye Markets | Swiss transfers deepen fund crisis as selloff spreads
Turkish media citing a Financial Crimes Investigation Board (MASAK) report said investigators traced large transfers to Switzerland before the Sept. 15-16 redemption failures.
The report, as cited by Turkish outlets, records a transfer equivalent to TL1.198 billion linked to Pusula Finans Holding chairman Serdar Turhan to an account at Edmond de Rothschild in Switzerland on Aug. 24. It records another transfer equivalent to TL2.889 billion linked to Pusula Portföy chairman Muhammed Yarız on Sept. 1.
A separate transaction has produced competing accounts. Turkish media reported that MASAK stopped a roughly TL2 billion transaction involving Hedef Yatırım Bankası and Swissquote Bank.
Hedef Yatırım Bankası later said in a Public Disclosure Platform filing that the transaction was a same-day USD/TRY swap, that the lira leg was destined for Swissquote's correspondent account in Türkiye rather than abroad, and that about $40.9 million was due to its Takasbank account.
Selling has spread beyond the funds directly under investigation. Of 607 shares traded on Borsa İstanbul on Monday, 134 touched their daily lower limit and only 21 closed higher. Money-market funds recorded TL313.7 billion in net outflows over one week, while more than 54,000 investors left the category.
The Capital Markets Board of Türkiye (CMB) has extended the maximum liquidation period for affected funds from three months to six. It said the change was intended to allow assets to be sold under more favorable market conditions and stressed that liquidations could finish earlier.
The latest market reaction extends the fund crisis tracked in Monday's brief beyond the portfolios placed into liquidation.
Black Sea | Russia moves grain north as shipping costs rise
Russian exporters are moving more grain through Baltic and Arctic ports as attacks disrupt Black Sea shipping.
Nearly 90% of Russia's seaborne grain exports moved through the Black Sea in the previous export season. Exports fell 31% year on year in July and August. September shipments are expected to be roughly 50% lower than a year earlier. Fertilizer and coal terminals at Ust-Luga, St. Petersburg and Murmansk are being adapted to handle grain.
London's Joint War Committee has also expanded its Black Sea reporting requirements across almost the entire sea. Voyages within the territorial waters of Türkiye, Georgia, Bulgaria and Romania remain exempt.
The changes raise insurance and operating costs for commercial shipping and add urgency to Türkiye's proposal to reduce attacks on civilian vessels in the Black Sea. Moscow and Kyiv have replied to Ankara's written proposal, but their positions remain apart.
Red Sea | EU seeks more ships as Saudi crude returns to Hormuz
The European Union's Aspides mission needs more than 10 warships to protect Red Sea shipping, EU foreign policy chief Kaja Kallas said. The mission currently operates with six.
Kallas also called for additional air assets. Group of Seven foreign ministers separately urged Iran to stop arming and supporting the Houthis and called for an end to attacks on Saudi Arabia and civilian shipping.
Saudi Arabia is also rerouting oil after the Sept. 13 attack on the East-West Pipeline halted crude shipments through Yanbu. Saudi Aramco loaded about 14 million barrels onto seven very large crude carriers at Ras Tanura on Sept. 20.
Saudi crude flows through the Strait of Hormuz rose to an average of about 2.9 million barrels per day, from roughly 700,000 barrels per day in August.
Traffic through Hormuz remains well below pre-war levels, leaving more Saudi crude dependent on a route already operating under heightened security risk.
Türkiye has said it could help meet Saudi military requirements under the Mecca Joint Defense Agreement if requested. Fidan also joined the sixth Türkiye-Egypt-Pakistan-Saudi Arabia foreign ministers' meeting in New York on Sept. 21, followed by a wider regional coordination session. The four-country mechanism predates the Mecca Pact and is a separate diplomatic format.
Lebanon | Erdoğan calls for international initiative after UNIFIL
Erdoğan told Lebanese Prime Minister Nawaf Salam that an international initiative is needed to replace the United Nations Interim Force in Lebanon (UNIFIL).
The two met at the Turkish House in New York. Türkiye's Presidency said Erdoğan also pledged continued humanitarian and medical support and reiterated Ankara's support for stability in Lebanon.
Erdoğan said in July that Türkiye wanted to take part in efforts supporting Lebanese security and sovereignty after UNIFIL's withdrawal. His meeting with Salam returned that proposal to the agenda during UN General Assembly week.
Bosphorus Read
Turkish aircraft have flown south of Cyprus. Athens and Paris are preparing another GSI survey attempt under a French flag, according to Kathimerini. Greece, the Republic of Cyprus and Egypt are preparing to discuss exercises, interoperability and defense technology in Cairo.
The fund investigation is widening. Authorities are examining transfers made before the defaults, Hedef Yatırım Bankası is contesting reports about a blocked transaction, and withdrawals have reached money-market funds as selling spreads across Borsa İstanbul.
The Red Sea is producing direct military and energy consequences. The EU wants more ships for Aspides, Türkiye says it can assist Saudi military requirements if asked, and the Yanbu disruption has sent more Saudi crude back through Hormuz.
Sources: Türkiye's Ministry of National Defence, Hellenic Ministry of National Defence, Presidency of the Republic of Türkiye Directorate of Communications, Capital Markets Board of Türkiye, Financial Crimes Investigation Board reporting cited by Turkish media, Hedef Yatırım Bankası KAP filing, United Nations, Reuters, Anadolu Agency, Ekonomim, Kathimerini, Cyprus Mail, Bosphorus News review and reporting.
Read Yesterday's brief: Eastern Mediterranean Strategic Brief | September 21: Fidan, Fund Crisis & Black Sea.