Turkish group stops funding electricity in IDF bases after backlash

Following the revelation of the extension of the contract for the supply of electricity to the IDF between the Defense Ministry and Dorad Energy, partially owned by the Turkish Zorlu Holding, whose owners are close to President Erdogan, the corporation announced its intention to sell its holdings in the power plant and liquidate its holdings in Israel.

Since then, the revelation, which was widely disseminated in Turkish media, including a cover story in the Aydinlik newspaper, has come under severe attack by BDS activists.

Various demonstrations took place over the weekend near the home of its leader, Turkish businessman Ahmet Nazif Zorlu, and at the entrance to the company's offices.

Zorlu is a well-known company in Turkey that owns textile factories, home appliance manufacturers, energy companies, infrastructure, real estate, financial services, and huge shopping centers.

The article, published in The Jerusalem Post, received over a million views X, formerly Twitter, and was wildly condemned.

"The dirty trade between Turkish companies and the terrorist organization Israel continues unabated. It will go down in history. Anyone who benefits Zionist Israel is not one of us. Neither are we," a user commented.

"If Zorlu Holding provides electricity to the Zionist barbarians who murdered 100 civilians today, which it is doing, it is complicit in this massacre. May Allah curse them as well. Just as a boycott is applied to Jewish goods, it should also be applied to Zorlu Holdings."

The Turkish BDS movement has called for a boycott of the company.

"Zorlu Holding continues its complicity in genocide by supplying electricity to the occupying army," the movement stated. "We emphasize that Zorlu Holding's energy investments in the occupying country provide logistical support for the ongoing genocide in Palestine, and we repeat our call for a boycott until the end of this partnership."

In the face of harsh criticism, Zorlu Holding, which is traded on the local stock exchange, published a notice declaring its intention to sell its share in Dorad, thus eliminating its business in Israel.

"Concerning the news regarding the Dorad power plant, which was given to the public by various media today and linked to our company," it says, "it was necessary for our company to issue a statement per Section 9 entitled 'Verification of News and Rumors' of the Securities Authority's Special Notice II-15.1.

"In this context, we wish to inform you that we continue our efforts to remove our share of the Dorad power plant and Israel from our portfolio, considering our special statement of 05.24.2024 and all our stakeholders, especially our investors. We will share the developments with the public fully and in a timely manner."

The May transactions

To prove its commitment to the Turkish boycott, at the end of May Zorlu Holding sold its other holdings in Israel, in the Ramat Negev Energy and Ashdod Energy power plants, which the companies jointly operated, to the Edeltech Group, for NIS 127 million.

The official announcement stated that the transaction is part of the Turkish company's transition to focus on renewable energy sources, which includes selling its holdings in gas-based power plants.

Günler önce Zorlu'nun kapısına dayanmış ve "İsrail'le tüm ticari ilişkimizi durdurduk" diyen Zorlu'nun gerçek yüzüne işaret etmiştik. Bu eylemden sadece birkaç gün sonra, bu haber gündeme geldi. Hem yalancı hem de işbirlikçiler...https://t.co/qQHu2gz74v https://t.co/9u51FRaMR4 pic.twitter.com/5f9Hpj91kR

— TKP (@tkpninsesi) August 9, 2024

But so far, it seems that Zorlu had no intention of getting rid of its profitable holding in "Dorad," which pours hundreds of millions into the owners' pockets a year, even though it also operates on gas. Apparently, following the heavy pressure exerted on it in recent days, the announcement states that they "continue efforts to remove our share of the power plant."

Zorlu Holding İsrail işgal ordusu üslerine elektrik sağlama anlaşmasını yeniledi. Hisselerinin %25’i Zorlu’ya ait olan Dorad Energy Şirketi'nin elektrik santrali İsrail’in Savunma Bakanlığı dahil olmak üzere birçok noktaya elektrik sağlıyor. pic.twitter.com/1UVuNxlKei

— Adem Özköse (@ademozkose) August 9, 2024

In 2004, Zorlu partnered with Dorad to establish and maintain the Dorad power plant at a cost of one billion dollars. The solemn signing ceremony was held in Ankara, with the participation of the Israeli Energy Minister and his Turkish counterpart. In January 2005, Zorlu became a co-owner of the power plant when it acquired 25% of the shares.

Dorad, one of the largest power plants in Israel, is located south of Ashkelon. It is powered by natural gas and diesel and is partially state-owned to the extent of 37.5%. Since 2004, the station has provided electricity to the IDF and the Defense Ministry.

In July, about two and a half months after the imposition of the Turkish boycott, the agreement was renewed and unanimously approved by the Dorad board of directors, with the Turkish Zorlu representatives voting in favor of it together with the Israeli shareholders.

Beyond the fact that a Turkish-owned company was chosen by the Defense Ministry to continue supplying electricity to the IDF soldiers, the question arises as to how the State of Israel allows a Turkish company to own a strategic national infrastructure facility while also sharing its ownership with it.

The Defense Ministry said in response to the original news regarding the extension of the agreement, "A long-term agreement was signed between the Defense Ministry and Dorad in 2004, which is still in effect. The agreement was not renewed, but it was agreed to update the discount percentage on the electricity tariff to lower the electricity costs of the defense system per the terms of the agreement.

The Dorad Company is an Israeli company, with the largest shareholder in the company being the State of Israel, and its activities are carried out according to Israeli law and subject to Israeli regulation."