Does Akkuyu's fate depend on Sinop?

Work has come to a standstill at Akkuyu, Türkiye’s first nuclear power plant. Siemens Energy’s decision to halt exports of some key components due to sanctions against Russia has led to technical delays. But according to the UK-based news agency Reuters, the real crisis is financing. According to the news agency, the $7 billion Rosatom was expected to allocate to the project has still not arrived. Construction of the three reactors has been temporarily suspended.

There is talk of diplomatic tension behind this slowdown in Akkuyu. Türkiye’s negotiations with South Korean and Chinese companies for the second nuclear power plant it plans to build in Sinop have bothered Moscow. Rosatom General Manager Aleksey Likhachev had previously said that President Tayyip Erdoğan wanted to give them the Sinop project as well. However, Ankara continues to negotiate with alternatives.

SEEDLING IS IN ACTION

In the shadow of this tension, Foreign Minister Hakan Fidan went to Moscow last week and met with Russian President Vladimir Putin. According to Reuters, Fidan asked for support to resolve the problems in Akkuyu. At the same press conference, Fidan also asked Putin to support the ongoing negotiations between Gazprom and BOTAŞ.

It is claimed that BOTAŞ's natural gas debt to Russia has reached approximately 27 billion dollars. Ankara continues its talks with Moscow to restructure this debt. The delay in Akkuyu and the discussion about who will be given Sinop indicate a new bargaining process in Turkey-Russia energy relations.

Japan wanted to give up

The Sinop Nuclear Power Plant, which is claimed to be discussed with China, Korea and Russia today, was first discussed with Japan. The Japanese side abandoned the nuclear power plant project, which was undertaken by a Japanese-French consortium of public and private institutions under Japan's leadership, due to increased costs.

$20 billion project not completed

The plant works began 15 years ago. The first signatures were signed between Russia and Turkey in 2010. The works began in 2013. It was planned to be completed in 2023. However, only the construction of the first unit was completed by 2025. The $20 billion project is being carried out by Akkuyu Nuclear Inc., which has mostly Russian capital.

The embargo is also effective in delays

The Russian-Ukrainian war, along with the European embargo on Russia, also had a negative impact on the project. German industrial giant Siemens was held responsible for the delay. Siemens noted in a statement in 2024 that the necessary export and customs permits had not been granted and pointed to the federal government.

Prices are 2-3 times the average

The Akkuyu Power Plant will be Russia's first build-operate-transfer project in Türkiye. Turkey will purchase the energy produced from Akkuyu Nuclear Inc. for 15 years. Turkey will pay Rosatom 12.35 cents per kilowatt hour for the energy for 15 years. Some analysts emphasize that this is 2-3 times higher than the world average.