Russia, Turkiye, Renegotiate Akkuyu Nuclear Power Plant Deal After Siemen’s Default

Russia’s Rosatom, its nuclear energy agency, the relevant Turkish government agencies, and key contracting organizations have discussed the implementation status and financing arrangements for the Akkuyu nuclear power plant project in Turkiye, Rosatom have announced. These covered licensing progress, training of operational personnel, physical protection measures and other related topics.

Anton Dedusenko, the JSC Akkuyu Nuclear Board Chairman stated that “The project is being implemented under changing external conditions. In close cooperation with the Turkish side, we are working to resolve issues around ensuring uninterrupted financing of the project while continuing to implement the site work schedule.”

Turkish Deputy Energy Minister Zafer Demircan said that “The Akkuyu NPP project is being implemented in constant coordination among all participating parties.”

The Akkuyu NPP is expected to provide electricity to more than 12 million consumers, including civil and industrial infrastructure facilities, in more than 10 provinces of Turkiye. The NPP will consist of four power units with a capacity of 1200 MW each.

The project has faced several challenges, in particular due to the failure of Germany’s Siemens to deliver equipment for the NPP. Russian Deputy Prime Minister Alexander Novak said late last year that “We’ve found ourselves in a situation where, despite a contract concluded, Siemens breached its contractual obligations on supplying certain equipment items.” That issue is shortly to result in legal action against Siemens, who were paid for the equipment but have not followed through with delivery.

Rosatom, together with the Turkish government, have instead taken corrective measures with alternative equipment procured from friendly countries. The situation has damaged the export sales credibility of EU manufacturing sectors in the global marketplace and enabled competitors to take their place. Rosatom are also bidding for the construction of a second NPP in Turkiye. European contractors will not be invited.

In addition, Rosatom is working on resolving financing issues that arose due to the blocking of significant funds for the Akkuyu NPP by EU sanctions, the corporation said last month. Rosatom is sanctioned by the EU, however the plant is becoming built to service Turkish, not Russian consumers.