$7B Funding Delay Hits Russia-Led Akkuyu Nuclear Plant Project in Turkey

The Akkuyu Nuclear Power Plant (NPP)—a flagship Russian-Turkish energy project—has encountered a major financial setback as a $7 billion funding transfer has reportedly stalled, placing additional strain on the already delayed construction timeline.

The issue was a central focus during Turkish Foreign Minister Hakan Fidan’s high-profile visit to Moscow, where he met Russian President Vladimir Putin and other senior Russian officials, including Foreign Minister Sergey Lavrov, on May 27.

At a joint press briefing following his meeting with Lavrov, Fidan acknowledged the ongoing challenges at the construction site of Turkey’s first-ever nuclear facility and confirmed that resolving them was part of the discussion.

“We again observed how closely Mr. Putin follows the Akkuyu issue and how important it is to the Russian side,” said Fidan, as reported by Turkiye Today.

Two-Year Delay and Ongoing Hurdles

Located in Mersin on Turkey’s southern Mediterranean coast, Akkuyu NPP has already seen its launch postponed by more than two years. The project faced a significant blow in September 2023 when Germany blocked Siemens Energy from delivering key components due to export licensing issues.

According to Haberturk, the first of the planned four VVER-1200 reactors is still on track for testing by late 2025 or early 2026, but the overall construction timeline is under intense pressure due to the unresolved funding issue.

Funding Crisis: Behind the Bottleneck

Project developer Akkuyu Nuclear JSC, largely controlled by Russia’s Rosatom, has reportedly redirected resources to complete the first reactor, hoping that its eventual operation will generate revenue to fund the rest of the plant.

Insiders cited by Haberturk did not specify the reason for the funding delay but hinted that Rosatom has sought financial concessions from Ankara, including exemptions from withholding taxes—requests that Turkey appears unwilling to meet.

This isn’t the first financial complication. A previous attempt to wire $3 billion into Ziraat Bank—arranged by Gazprombank, Citibank, and JPMorgan—was blocked by the U.S. Department of Justice over alleged sanctions violations, freezing over $2 billion routed through JPMorgan. The capital remains inaccessible.

Strategic Project Under BOO Model

The Akkuyu NPP is a historic initiative as the world’s first nuclear plant constructed under a “build-own-operate” (BOO) model by a foreign country. Once operational, it will have a total capacity of 4,800 megawatts, expected to cover approximately 10% of Turkey’s electricity demand.

Diplomatic Solutions Needed

The ongoing delays underscore the complexities of large-scale international energy projects in a climate of geopolitical friction and evolving sanctions. While both Ankara and Moscow remain committed to the project, the path forward will likely hinge on resolving financial and regulatory bottlenecks.

As diplomatic channels remain active and the first reactor nears completion, stakeholders are watching closely to see whether Rosatom’s demands and Turkey’s fiscal policies can be reconciled in time to save momentum on one of the country’s most ambitious energy ventures.