Nuclear power plant in Turkey: old problems, fresh solutions

On 1 September, Recep Tayyip Erdoğan met Vladimir Putin at the margins of the Shanghai Cooperation Organisation summit in China. The talks covered bilateral relations and energy cooperation, peculiarly concerning Akkuyu atomic power plant and its financing. The president of Turkey stressed that tests of the mechanics to cover the construction costs of the facility were completed by the Turkish state-owned energy company BOTAŞ for Russian gas. The funds are to stay in the country and to be allocated to investments in the power plant.

The construction of Akkuyu faces serious problems with Western sanctions on Russia, which make it hard to rise funds and access the components needed to complete the unit. The first agreement between Erdoğan and Putin on the financing of the task by BOTAŞ payments for gas from the FR alleviates these problems, but does not solve the question of uncovering component suppliers.

Comment

• The construction of Akkuyu in the last 2 years has become highly problematic for Turkey. The first of 4 reactors, originally planned for 2023, was moved to 2026 due to Rosatom's difficulties in financing the investment. The delays in transactions are due to the concerns of financial institutions against cooperation with the Russian banking sector under US sanctions, and the funds for the power plant were frozen in US banks as they were most likely considered to be in breach of the ban on transactions with the Central Bank of Russia.
• Russia's problem is limited access to parts needed to complete construction from western suppliers (including turbines, control systems, radiation-resistant materials). The subject of construction problems was raised in May 2025 by abroad Minister Hakan Fidan, who appealed to Putin for aid to overcome them. In the light of the prolonged construction, including these financial and logistical difficulties, in July 2025. Rosatom began negotiations with investors from China, India and the mediate East and Turkey to sale 49% of the project. The engagement of a fresh partner would let for circumvention of Western sanctions and the acquisition of funds and components needed to complete the facility.
• The first agreement between Erdoğan and Putin on the financing of the power plant only partially solves the problems. This mechanics most likely assumes the transfer of Russian gas receivables straight to the Turkish-Russian company Akkuyu Nükleer A.Ş. registered in Ankara and liable for the project. This is to enable FR to get sanctions-free resources and proceed construction. However, this will not address the issue of limited access to key components. It is so crucial to get a partner by selling the shares, which would let Akkuyu Nükleer to destruct this obstacle. Although Turkey has the right to pre-empt them, local economical operators are most likely incapable to deliver parts themselves or pay for them, which may prompt Moscow to like abroad investors, specified as China. However, the engagement of an additional external partner could make problems for Russia in the form of an assertive partner that would impede operational decisions during the operation of the power plant. In Turkey, further failure of control of strategical infrastructure, full owned by abroad entities, would rise fresh concerns about the sovereignty and energy safety of the state.
• Putting Akkuyu, the first atomic power plant in the country, is an crucial investment for Ankara to aid diversify energy sources. Preparations for construction of the facility began in 2010. – Turkey and Russia then signed an agreement under which Rosatom formed Akkuyu Nükleer A.Ş., registered in Ankara and governed by Turkish law. Akkuyu is expected to have 4 reactors and cover 10% of national energy request per year. The task is implemented according to the expression bDuff, have and exploit and is full controlled by Rosatom, who is liable for its financing (cost: US$24–25 billion), construction, 60-year operation and subsequent extinction. The 2010 agreement obliges Turkey to acquisition for 15 years 70% of the energy from the first 2 reactors and 30% of the remaining 2 at a fixed price of $1,1235 per kWh, with the anticipation of selling surplus on the free marketplace after this period.
• After completion of the power plant, Turkey will bind Russia in terms of energy for many decades, giving Moscow another tool to exert force on Ankarain bilateral relations. At the same time, however, Moscow's position, weakened by sanctions, can supply an chance for the Turks to strengthen their position in relations with the FR, for example in negotiating more favourable gas prices.