–  Turkey is exiting the European Union’s Creative Europe program which supports the arts, including film and TV — a surprise move that comes as relations between the Turkish government and the E.U. become increasingly strained.

In 2015, Turkey joined the ranks of non-E.U. member countries allowed to tap into Creative Europe’s 1.46-billion-euro fund ($1.56 billion) to support culture and the arts between 2014 and 2020. Creative Europe incorporates the E.U.’s Media Program, which subsidizes production, promotion, and distribution of film, TV, and video content.

“The European Commission regrets Turkey’s decision and the fact that Turkish cultural and audiovisual operators will miss future opportunities for cooperation with their counterparts in the E.U.,” an E.U. spokeswoman. “Although this is unfortunate, the commission respects the sovereign decision of Turkey.”

The withdrawal, now under negotiation between the E.U. and the Turkish government, is to be effective from Jan. 1, 2017.

According to Turkish daily Haberturk, the pullout is in response to a and performed in April by Germany’s Dresdner Sinfoniker orchestra, in commemoration of the Armenian genocide.

More recently, in the wake of the July 15 failed coup in Turkey, tensions between the E.U. and Ankara have worsened, partly because E.U. officials have criticized Erdogan’s heavy crackdown against the coup’s alleged plotters and sympathizers.

To date, an estimated 2.4 million euros ($2.6 million) has been allocated by Creative Europe to support Turkish films and cultural projects, including the Istanbul Film Festival’s Meetings on the Bridge co-production forum. It is unclear whether Turkey’s pullout from Creative Europe will also affect the country’s membership in European co-productions fund Eurimages, which is overseen by the Council of Europe, not by the European Union.

In any event, the withdrawal is a blow to the Turkish film industry since producers, distributors and fest and film market organizers will not be able to tap into the Media Program’s soft money. It also symbolically weakens their ties with Europe’s creative community.

“It is a very unfortunate decision,” said Basak Emre, co-director of Festival on Wheels, which promotes Turkish films. “Many artists and cultural institutions will be affected. But we do not know the details of this decision yet,” she noted.