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Erdogan says Turkey is looking at further defence steps with Russia (updated)

(Adds quotes, details, background)
    ISTANBUL, Sept 30 (Reuters) - Turkey is considering more
joint defence industry steps with Russia including for fighter
jets and submarines, President Tayyip Erdogan said after talks
with President Vladimir Putin, despite a U.S. warning of further
sanctions.
    On the return flight to Turkey from the talks, Erdogan told
reporters he also proposed working with Russia on construction
of two more nuclear power plants, and Putin suggested developing
platforms for space rocket launches, broadcaster NTV reported.
    NATO member Turkey's 2019 purchase of Russian S-400 missile
defence batteries prompted Washington to cancel the sale of U.S.
F-35 fighter jets and sanction Turkey's defence industries. 
    When Erdogan suggested last week that Turkey will buy more
S-400s, Washington said Turkey could face further measures under
U.S. legislation penalising countries that buy Russian arms.
    In his comments to journalists after Wednesday's talks in
the Black Sea resort of Sochi, Erdogan did not mention further
S-400 purchases but said Turkey would not back down, and 
highlighted other possible defence projects with Russia.
    "We had the opportunity to discuss comprehensively what
steps to take in the production of plane engines, what steps to
take regarding fighter jets," he said, adding that other
measures could include building ships and submarines.
    Russia's Rosatom is building a nuclear power plant in Akkuyu
in southern Turkey, and Erdogan said he suggested that Russia
collaborate on construction of two further planned plants.
    Erdogan said he would meet U.S. President Joe Biden at the
G20 in Rome next month, as well as at the United Nations'
climate summit in Glasgow, and would discuss the $1.4 billion
which Turkey paid for the F-35 jets it can no longer buy.
    "We will discuss all relations including, military,
political, economic, commercial," he said.
    Last week Erdogan was quoted as saying on his return from a
visit to New York that U.S.-Turkish relations were not healthy
and their current direction "does not bode well".  urn:newsml:reuters.com:*:nL8N2QP3DS
    However, after commenting on his plans to meet Biden next
month he said on his return from Sochi: "There are some steps
being taken that bode well".        

 (Reporting by Daren Butler, Tuvan Gumrukcu, Ali Kucukgocmen and
Can Sezer; 
Editing by Jonathan Spicer and Dominic Evans)
 ((daren.butler@tr.com; +90-212-350 7053; Reuters Messaging:
daren.butler.thomsonreuters.com@reuters.net))

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