Turkey, Russia Solve Nuclear Dispute as Turkish Builder Restored

By Bloomberg

Sep 16, 2022

A dispute between Turkish and Russian companies that threatened to derail Turkey’s nuclear power ambitions was resolved on Friday during talks between the two nations’ leaders.

Turkish President Recep Tayyip Erdogan and Russian President Vladimir Putin have agreed to reinstate Turkish builder IC Ictas as the main contractor on the $20-billion project, a Turkish official told Bloomberg, speaking on customary condition of anonymity. “All the issues over Akkuyu nuclear plant construction in Turkey are resolved,” Russian news agency Interfax also reported.

Russian state company Rosatom, which has been building the 4,800-megawatt plant in southern Turkey, kicked IC Ictas out of the project in July, saying Russian firms would replace the Turkish contractor. IC Ictas signaled it could go to court, warning that a legal dispute would threaten timely completion of the project. 

Turkish Builder Ditched by Rosatom Warns Nuclear Work Is Stalled

The two companies are expected to work on a new contract that should better clarify the parties’ responsibilities at the plant, said an IC Ictas executive, speaking on condition of anonymity to discuss information that isn’t public. 

Turkey, whose energy bill this year is projected to reach $100 billion, hopes to see the first of four reactors at Akkuyu operational next year. The nation’s current-account deficit is expected to reach 5.9% of gross domestic product in 2022, fueled by a larger trade deficit due to a rally in energy prices.

More stories like this are available on bloomberg.com

©2022 Bloomberg L.P.

By Firat Kozok , Taylan Bilgic


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