EU diplomats have agreed a list of possible measures, including sanctions, against Turkey over its drilling activities in the eastern Mediterranean, after a struggle over the language used in the text.

In response to Turkey's gas exploration off the coast of Cyprus, which Brussels has condemned as "illegal," the EU is prepared to cut pre-accession funding and cancel high-level meetings with Ankara, according to the text drawn up ahead of a meeting of the bloc's Foreign Affairs Council on Monday.

The text also threatens “targeted” sanctions if Turkey, whose bid to join the EU has stalled for more than a decade, does not cease drilling in Cypriot waters.

The text discussed by diplomats on Friday said that the EU would endorse a proposal made by the Commission and the bloc's diplomatic service on Wednesday "to reduce pre-accession assistance to Turkey for 2020" and ask the European Investment Bank "to review its lending activities in Turkey.”

According to three diplomats, the reduction of pre-accession assistance means a cut of €145.8 million, more than a third of the 2020 funding designed to be used for reforms Turkey needs to undertake as part of its accession track. The remaining €252 million, meant to support civil society, will stay untouched.

In 2017, the EU cut €175 million from Turkey's 2018 pre-accession funding due to a sharp deterioration in rule of law and democratic standards.

Overall, loans provided by the European Investment Bank to Turkey reached €385.8 million in 2018 alone.

The text also says that the EU decided to "suspend negotiations on the Comprehensive Air Transport Agreement and agrees not to hold the Association Council and further meetings of the EU-Turkey high-level dialogues for the time being.”

Talks on a Comprehensive Air Transport Agreement with Ankara started in June 2016. Such an agreement would have brought additional revenues and passengers, in particular to the main Istanbul airport, an international hub.

Tension over text

The contentious part of the text, seen by POLITICO, relates to its final paragraph, which says that the Council asks the Commission and the EU's high representative for foreign affairs "to continue work on options for targeted measures in light of Turkey’s continued drilling activities in the Eastern Mediterranean.”

According to diplomats, the language is meant to allow for the possibility of further sanctions, which could include targeting companies and individuals involved in the drilling activity.

The bone of contention was how to phrase that part of the text — whether to apply the threat of sanctions gradually if the situation escalates, or immediately start working on sanctions. Cyprus pushed for the latter, wanting the draft to feature tougher language.

In the end, diplomats settled on a compromise that tilted toward the second approach.

The move to sanction Turkey comes as a second Turkish drillship arrived off the coast of Cyprus, which has been split between an ethnic Greek south and an ethnic Turkish north since Ankara's 1974 invasion.

The Turkish Republic of Northern Cyprus is recognized only by Turkey, and Ankara disputes Nicosia's rights to unilaterally explore for gas around the divided island.

Cypriot pressure

Nicosia last month started amping up pressure on its EU partners to unite behind a firm reaction against Turkey's activities in its territorial waters.

EU leaders last month called on Turkey "to show restraint, respect the sovereign rights of Cyprus and refrain from any such actions” and invited the Commission and the EU's diplomatic service "to submit options for appropriate measures without delay, including targeted measures,” meaning sanctions.

Yet diplomats say they are walking a tightrope — trying to support Cyprus while being careful not to alienate Turkey, with whom the EU maintains a deal designed to limit migration across the Aegean sea.

"It's difficult, because I clearly see Cyprus' issue, but we cannot risk that [Turkish President Recep Tayyip] Erdoğan repudiates the deal,” one of the diplomats said, also stressing that as Ankara is increasingly isolated on the international stage and economically weakened, it would be the wrong moment for Brussels to slam the door on Turkey.

Ankara is not only facing potential sanctions from the EU. On Friday, Turkey — a NATO member — announced it had received its first shipment of a Russian air defense system, a move widely expected to trigger U.S. sanctions against Ankara.

At a meeting on Friday morning, senior EU officials specializing in security and defense issues discussed both the potential EU sanctions over drilling and the issue of the Russian missiles.

The officials see the two issues as linked, a senior diplomat who was present at the meeting said, adding: "They are part of a wider Turkish strategy to dominate the Eastern Mediterranean."