Delay in the payment of $7bn is slowing down the construction of units 2-4 of the Akkuyu NPP under construction in Türkiye. The issue was discussed during a recent meeting between Russian President Vladimir Putin and Turkish Foreign Minister Hakan Fidan.
Although testing of unit 1 is scheduled for the end of 2025 or early 2026, the broader project timeline is under pressure due to unresolved financial issues. In face of ongoing financial constraints, project company Akkuyu Nukleer has redirected all available resources to complete the construction unit 1. Project officials believe that once the unit is put into operation, its revenue will help finance and accelerate the construction of the remaining three units. If construction continues without further disruptions, the first unit is expected to start generating electricity by mid-2026.
However, the broader construction timeline remains at risk due to a significant delay in expected project financing. Rosatom, the main shareholder of the plant, is seeking financial concessions from Türkiye, including income tax exemption and other fiscal measures. Türkiye failed to comply with these requirements, which contributed to financing problems.
The project also faced external financial obstacles related to international transfers of funds. A previous attempt to transfer $3bn to Türkiye, which was supposed to be held at Ziraat Bank as part of the reserves for the nuclear project, was organised through a partnership between Russian Gazprombank, American Citibank and JPMorgan. In February, the US Department of Justice blocked the transfer of more than $2bn conducted through JPMorgan, freezing the funds due to alleged sanctions violations. Since then, no solution has been found to unlock the capital.
Ahead of a planned meeting with President Putin, Turkish Foreign Fidan said they would discuss resolving some of the differences that had arisen during the construction of the Akkuyu nuclear power plant. “Once again, we have the opportunity to see how sensitive the Russian side is to this issue, and how closely Mr Putin is following this issue in all its details,” he noted. According to sources close to the matter, resolving a growing list of issues, including frozen funds, may eventually require the direct intervention of Turkish President Recep Tayyip Erdogan during future discussions with President Putin.
Reportedly, unit 1 alone requires at least $5bn to complete the main infrastructure and common facilities that will serve all four units. This includes general security systems, control centres, and basic utilities.
Akkuyu NPP will eventually host four Russian-designed VVER-1200 reactors. The pouring of first concrete for unit 1 took place in April 2018, for unit 2 in June 2020, for unit 3 in March 2021, and for unit 4 in July 2022. Rosatom is constructing the reactors according to a build-own-operate model. Unit 1 is expected to begin operation in 2025. In July 2024 Akkuyu NPP reported that some 70% of the equipment and systems installed at unit 1 had already undergone commissioning.
