Newsletters
The Akkuyu Nuclear Power Plant, Türkiye’s flagship nuclear energy project located in Mersin, is reportedly facing a critical delay in the arrival of approximately $7 billion in expected funding, significantly slowing progress on the construction of its second, third, and fourth reactor units.
According to the Turkish news outlet haberturk.com, while the first unit remains on track for preliminary testing by the end of 2025 or early 2026, the broader project timeline is under pressure due to unresolved financial issues.
Amid ongoing financial constraints, Akkuyu Nuclear JSC—the company managing Türkiye’s first nuclear power plant—has redirected all available resources toward completing the facility’s first reactor unit. Project officials reportedly believe that once the unit becomes operational, its revenue stream will help finance and accelerate the construction of the remaining three units. If construction proceeds without further disruption, the first unit is expected to begin electricity production by mid-2026 following initial testing at the end of 2025 or in early 2026.
The broader construction timeline, however, remains in jeopardy due to a significant delay in the arrival of approximately $7 billion in anticipated project financing.
While sources speaking to haberturk.com have not provided a clear explanation for the delay, it is widely believed that the Russian side—led by Rosatom, the plant’s majority stakeholder—has been seeking financial concessions from Türkiye, including exemptions from withholding tax and other fiscal measures. Türkiye has reportedly not met these demands, contributing to the funding bottleneck.
The project also encountered external financial hurdles involving international fund transfers. A previous attempt to move $3 billion into Türkiye—intended to be held in Ziraat Bank as part of the nuclear project’s reserves—was arranged through a partnership between Russia’s Gazprombank, U.S.-based Citibank, and JPMorgan.
However, the Wall Street Journal reported in February that the U.S. Department of Justice intervened, blocking over $2 billion of the transfer routed through JPMorgan and freezing the funds over alleged sanctions violations. No solution has since been found to release the capital, further straining the project financially.
Ahead of his planned meeting with Russian President Vladimir Putin on Monday, Türkiye’s Foreign Minister Hakan Fidan was briefed on the issue. Speaking at a joint press conference following his meeting with Russian counterpart Sergei Lavrov on Tuesday, Foreign Minister Hakan Fidan stated that they discussed resolving certain setbacks encountered during the construction of the Akkuyu Nuclear Power Plant.
He added, “We once again had the opportunity to observe how sensitive the Russian side is on this issue, and how closely Mr. Putin follows the matter in all its details.”
According to sources close to the matter, the resolution of the growing list of challenges—including the stalled funds—may ultimately require direct intervention by President Recep Tayyip Erdogan during future discussions with his Russian counterpart.
Analysts emphasize that the first unit alone requires a minimum of $5 billion of the total $7 billion due to the need to complete core infrastructure and common facilities that will serve all four units. This includes shared safety systems, control centers, and essential utilities.
Akkuyu Nuclear Power Plant, upon full completion, is expected to house four VVER-1200 type pressurized water reactors with a total installed capacity of 4,800 megawatts—enough to supply approximately 10% of Türkiye’s electricity demand. It is also the first nuclear power plant in the world to be built under a Build-Own-Operate (BOO) model by a foreign country.
1 min read
1 min read
