Atom Giant Sues Over Delayed Deliveries

Atom Giant Sues Over Delayed Deliveries

Russian State Nuclear Company Rosatom Plans to Sue German Siemens Over Delayed Delivery of Equipment for Turkish Nuclear Power Plant

Rosatom’s CEO, Alexei Lichatschow, announced on Saturday that the company plans to take legal action against German conglomerate Siemens for failing to deliver the equipment on time for the Akkuyu nuclear power plant in Turkey.

Although Rosatom acquired the necessary equipment from alternative suppliers to maintain the construction schedule, Lichatschow stated that the delayed delivery by Siemens has caused additional costs for the company, both for the purchase of the equipment and for adapting the installation time.

The Akkuyu nuclear power plant, located in the southern Turkish province of Mersin, is expected to become the first nuclear power plant in the country. The project is based on a 2010 agreement between Russia and Turkey. Initially, the first reactor was scheduled to go online in 2023, but due to delays, the timeline has been pushed back to 2024, according to Lichatschow.

Rosatom has not yet given a target date for the commissioning of the first reactor. The four reactors, each with a capacity of 1,200 megawatts, are expected to be operational by 2028. Once the $20 billion facility is fully operational, it is expected to meet 10% of Turkey’s energy demand, as stated by Turkish Energy and Natural Resources Minister Alparslan Bayraktar.

In July, Lichatschow mentioned that Western sanctions, particularly in the areas of financial transactions and equipment procurement, had caused problems for the project. Turkish Energy Minister Bayraktar also touched on the issue in September, pointing out that the non-delivery of Siemens equipment had led to delays.

Bayraktar suggested that the decision not to deliver the equipment was likely influenced by Western restrictions on Russia due to the Ukraine conflict. “If Siemens aims to impose sanctions on Russia, then Turkey is also severely affected” he said. Ankara has already lodged a complaint “at the highest level” and emphasized that the German company would have to pay a price for its behavior.

Turkey, which is resisting the European and US sanctions imposed on Russia over the Ukraine conflict, maintains close ties with both Moscow and Kiev.

Bayraktar mentioned that Rosatom had acquired alternative equipment from Chinese manufacturers to mitigate the impact on the project’s timeline.

A Siemens spokesperson confirmed in September that some parts could not be delivered to Turkey due to German export restrictions.

Despite these challenges, Lichatschow emphasized that the construction of the plant is progressing as planned, citing the success of similar projects in Bangladesh and Egypt.