Bloomberg revelation: Russia is financing Turkey for a nuclear plant

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It is worth noting that Rosatom, the sole owner of the Turkish project, and its subsidiary, which is essentially the manufacturing plant, are not on the US and EU sanctions list.

The revelations of a Bloomberg report about a Russian state-owned company funneling money through a subsidiary in Turkey to build a $20 billion nuclear power plant off the coast of the Mediterranean are causing concern.

These revelations undoubtedly allay concerns that the project could be delayed by war sanctions.

Specifically, according to the report, the Russian company Rosatom Corp. last week sent about $5 billion to a Turkey-based construction company, officially known as Akkuyu Nuclear JSC, with two more similar dollar transfers planned for this week and next, according to senior Turkish officials with direct knowledge of the matter.

Rosatom said in a statement that although the site is the largest of its kind worldwide, “current transactions are significantly lower” than the amounts announced by Turkish officials.

Financing arrangements for the project are private, according to Rosatom, which declined to provide further details.

The creation of a power plant is considered a vital issue for Turkey to meet its ever-increasing energy needs, and it is estimated that it will meet 10% of the country’s domestic electricity demand once all four reactors are operational.

Russia and Turkey have economic ties that go back decades.

In fact, Turkish President Recep Tayyip Erdogan made sure not to alienate himself from the Kremlin even after the Russian invasion of Ukraine, despite the relative pressure he received for this from NATO.

The project has received funding from Russia’s largest lender, Sberbank PJSC, which has been sanctioned by the US and the European Union, as well as Sovcombank, which has also been put on the sanctions list.

It is worth noting that Rosatom, the sole owner of the Turkish project, and its subsidiary, which is actually the manufacturing plant, have not received any sanctions.

Both a spokesman for Akkuyu Nuclear JSC and Turkey’s Ministry of Economy and Finance declined to comment on the sidelines of the report.

The funding will cover all supply needs for the Akkuyu project over the next two years, said Turkish officials, who asked not to be named because of the scope and importance of the matter.

Work on the first reactor, known as Akkuyu 1, began in 2018, with engineers starting on Akkuyu 2 two years later. They are scheduled to be completed by 2026.

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