Turkish nuclear plant threatened by Russian sanctions

New concerns over Turkey’s first nuclear power plant, which is being built by Moscow’s state-owned nuclear firm.

It has arisen as a result of unprecedented sanctions against Russia over its invasion of Ukraine.

The first reactor of the $20 billion Akkuyu Nuclear Power Plant, which is located on the Mediterranean coast near Mersin, is set to start production next year.

However, third-country financing and equipment could cause the project to be delayed.

Rosatom, the Russian company behind Akkuyu, has dodged penalties so far, but the United States is allegedly considering it.

Sberbank, Russia’s largest financial institution and a major supporter of the nuclear power project, has been targeted.

When all four 1,200-megawatt reactors at Akkuyu come online, the company hopes to meet 10% of Turkey’s energy needs.

The project is entirely funded by Russian funds, according to Turkey’s Nuclear Regulatory Authority.

Since 2019, Sberbank has granted $1.2 billion in loans to Akkuyu NPP, which is majority controlled by Rosatom.

Another sanctioned Akkuyu creditor, Sovcombank, provided $300 million in loans in March of last year.

Sanctions against Rosatom might disrupt the flow of equipment to Akkuyu, preventing vendors from supplying energy-related equipment, technology, and services.