A Russian state-owned company is transferring money to a subsidiary building a $20 billion nuclear power plant off Turkey’s Mediterranean coast, allaying concerns that the project could be delayed by sanctions over the war in Ukraine, Bloomberg reports.
Rosatom Corp. sent about $5 billion last week to the Turkey-based manufacturing company, officially known as Akkuyu Nuclear JSC, with two more similar dollar transfers planned for this week and next, according to senior Turkish officials with direct knowledge of subject, reports the agency.
Rosatom, in a statement, clarified that – although the construction site is the largest of its kind worldwide – “current transactions are significantly lower” than the figures given by Turkish officials.
Financing arrangements for the project are private, according to Rosatom, which declined to provide further details.
The power station is considered critical for Turkey if it is to meet its ever-growing energy needs and is expected to meet 10% of domestic electricity demand once all four reactors are operational.
Russia and Turkey have economic ties that go back decades, and Turkish President Recep Tayyip Erdogan has been careful not to alienate the Kremlin despite the invasion of Ukraine, the report noted.
The project has received funding from Russia’s largest bank, Sberbank PJSC, which is on the sanctions list by the US and the European Union, as well as Sovcombank, which is also under sanctions.
Rosatom, the sole owner of the Turkish project, and its subsidiary that builds the plant have not been sanctioned.
A spokesman for Akkuyu Nuclear JSC declined to comment, as did Turkey’s Finance Ministry, Bloomberg reports.
The funding will cover all procurement needs for the project over the next two years, the Turkish officials said, asking not to be named because of the sensitivity of the matter.
Work on the first reactor, known as Akkuyu 1, began in 2018, with engineers starting on Akkuyu 2 two years later. The work is scheduled to be completed by 2026.
One of the officials described the transfers as a goodwill gesture from Russia’s Vladimir Putin for Erdogan’s role in a landmark deal expected to unlock Ukraine’s grain exports and ease concerns about a global food crisis. The two leaders are due to hold talks in Sochi on August 5.
In March, Rosatom announced that it has the right to sell up to 49% in Akkuyu to investors, clarifying however that it has all the necessary resources and tools to successfully deliver the project, even if it finances the construction itself. “Production and delivery of equipment” for the plant is on schedule, he said.
Source: Capital
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