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Russia’s Rosatom to sue Siemens over delay of equipment for Akkuyu nuclear power plant construction

Akkuyu Neclear Power Plant

Construction laborers work at the Russian-built Akkuyu Nuclear Power Plant ahead of an opening ceremony in Mersin Province on April 26, 2023. OZAN KOSE / AFP

Russia’s state-run nuclear energy company Rosatom plans to sue German industrial giant Siemens over undelivered equipment for the ongoing construction of the Akkuyu nuclear power plant in southern Turkey, according to the German Berliner Zeitung newspaper.

The Akkuyu nuclear power plant is being built in Akkuyu, Mersin province, by Rosatom. The plant, whose construction began in 2018, is expected to be fully operational in 2026.

“There will be lawsuits,” Rosatom CEO Alexey Likhachev said in an interview with Russia-24 over the weekend. “The equipment paid for in advance has not been delivered, resulting in additional costs for replacement equipment and schedule adjustments.”

The dispute threatens to delay the project, potentially causing significant financial losses, according to Likhachev.

A Siemens Energy spokesperson told  Deutsche Welle Turkish edition in September that while some electrical equipment had been delivered earlier, further shipments have been suspended for about a year due to missing export and customs permits.

“As a company, we are obliged to comply with export regulations,” the spokesperson said, referring to German government restrictions.

In Germany, the Federal Office for Economic Affairs and Export Control issues export licenses under the oversight of the Federal Ministry for Economic Affairs and Climate Protection.

Following Russia’s invasion of Ukraine, German authorities imposed strict controls on exports involving Russian individuals and entities. When asked by DW Turkish, Siemens Energy would not specify which equipment had been delivered, what items were pending, why export permits were denied or if the restrictions were linked to Russia sanctions.

Energy Minister Alparslan Bayraktar acknowledged in a September statement that Turkey’s first nuclear reactor at the Akkuyu power plant faces delays.

Despite 90 percent completion of the plant’s construction, its planned October 2024 commissioning has been pushed back, with Bayraktar announcing in December that the first reactor would begin testing in 2025.

The minister also suggested in September that Siemens’ delivery delays might be linked to EU sanctions on Russia, adding that Rosatom has turned to Chinese suppliers for the necessary components.

The Akkuyu nuclear power plant plays a critical role in Turkey’s push for energy independence.

Rosatom is building Turkey’s first nuclear power plant under a 2010 agreement to construct and operate the facility, marking the world’s first nuclear project using a build-own-operate model.

It will house four reactors with a total capacity of 4,800 MW, each generating 1,200 MW.

While construction began in 2018, the project missed its initial target to launch the first reactor during Turkey’s centennial celebrations in 2023. The ruling Justice and Development Party (AKP) had previously announced this timeline.

Company officials say the first reactor at Turkey’s Akkuyu nuclear power plant could begin operations in 2025 or 2026. The project is fully owned by Rosatom.

Under a 2010 Turkish-Russian agreement, Turkey will purchase 50 percent of the plant’s electricity output for 15 years at 12.35 cents per kilowatt hour. The deal commits Turkey to buy 285 billion kilowatt-hours of electricity for $35.2 billion. Once fully operational, the plant’s four reactors are expected to meet 10 percent of Turkey’s electricity needs.

The agreement also addresses nuclear waste management, with plutonium remaining in Russia while other nuclear waste returns to Turkey for disposal.

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