Amid Turkish President Recep Tayyip Erdogan’s boycott on Israeli goods and threats of invasion, the Defense Ministry has extended a contract with Dorad Energy, a power plant supplying electricity to IDF bases, despite a 25% ownership by a Turkish businessman close to Erdogan.
In late April, Erdogan imposed a boycott on Israeli exports and imports due to the Gaza war.In response, Foreign Minister Israel Katz condemned Erdogan, declaring that “we will not surrender to Erdogan’s extortion and threats. The Israeli economy is stronger than a dictator like Erdogan, who violates agreements and acts in the service of Hamas.”
Despite these strong words, the Israeli government has continued to allow substantial funds to flow from the Defense Ministry to Zorlu Holding, the Turkish conglomerate chaired by Ahmet Nazif Zorlu.This conglomerate, based in Istanbul, is a partner in Dorad Energy, which has supplied electricity to the IDF and the Defense Ministry since 2004.
One of Israel's largest power plants
Dorad, one of Israel’s largest power plants, located south of Ashkelon, operates on natural gas and diesel. The state holds a 37.5% stake in the plant through Kinet, now known as Staa.While Finance Minister Bezalel Smotrich has advocated for a 100% tariff on Turkish imports, Zorlu Holding continues to profit from its involvement in Israel’s energy infrastructure.In July, just two and a half months after Erdogan’s boycott began, Dorad’s board of directors, including Zorlu’s representatives, unanimously approved renewing the agreement to supply electricity to IDF bases. At the same time, questions arose about the appropriateness of allowing a Turkish company to maintain a stake in a critical Israeli infrastructure facility, especially one that directly supports the IDF.The Defense Ministry clarified that the agreement with Dorad was not renewed but merely adjusted to reflect a discount rate, aiming to reduce the electricity costs for the Defense Ministry. “Dorad is an Israeli company, with the largest shareholder being the State of Israel. Its activities are conducted according to Israeli law and regulations,” the ministry stated.In Turkey, Zorlu Holding’s connections with Israel have not gone unnoticed. The conglomerate came under pressure from the BDS movement when the Irish band Fontaines DC was scheduled to perform at the Zorlu Center in Istanbul.The band eventually canceled the performance after learning that the venue was associated with a company that “cooperates with the Zionist enemy.”In May, Zorlu Enerji, a subsidiary of Zorlu Holding, sold its stakes in the Ramat Negev Energy and Ashdod Energy power plants to the Adeltec Group for NIS 127 million. The official reason given was a shift in focus towards renewable energy sources, though Zorlu has opted to retain its stake in Dorad, which continues to supply electricity to Israel’s security forces.