Russia, Türkiye reportedly discuss gas swap to fund Akkuyu nuclear power plant construction
Akkuyu Nuclear Power Plant (NPP), one of Türkiye's largest energy investments. (AA Photo)
Russia is in talks with Türkiye to use natural gas payments to finance the construction of the $20 billion Akkuyu nuclear power plant (NPP), according to sources familiar with the discussions.
The proposal, first reported by Bloomberg, aims to circumvent delays in cross-border transactions caused by Western sanctions.
Gas swap proposal to fund Akkuyu Nuclear Power Plant project
Under the proposed arrangement, Türkiye would assume some of the construction costs of the Akkuyu plant from Russian state-run developer Rosatom.
In return, Rosatom would pay an equivalent amount in rubles to Russian gas giant Gazprom PJSC, which would then deduct the sum from Ankara’s monthly gas import bill.
This mechanism would provide an alternative to international bank transfers, which have faced increasing difficulties due to fears of U.S. penalties on financial institutions dealing with Russian transactions.
While neither Rosatom nor Gazprom are directly sanctioned, payment flows have been slowed since Washington tightened restrictions in June 2023.
Sanctions impact on Akkuyu NPP project
The Akkuyu nuclear plant, Türkiye’s first nuclear power facility, has already faced multiple delays. Originally scheduled to begin operations in 2025, the first of four 1,200-megawatt reactors may now be pushed back to 2026, according to Turkish officials.
Russia has also encountered sourcing challenges for the project. After a deal with Germany’s Siemens Energy AG fell through due to U.S. export controls, Rosatom turned to China for alternative components.
The latest discussions highlight the broader difficulties Russia faces in funding and maintaining major international energy projects amid sanctions.
Türkiye’s energy needs and Russian gas dependence
Türkiye remains heavily reliant on Russian natural gas, which accounted for 42% of its imports in 2023, according to Türkiye’s Energy Market Regulatory Authority.
Monthly gas payments to Russia typically range between €300 million ($311.1M) and €800 million ($829.8), depending on seasonal consumption.
Late last year, the U.S. granted Türkiye an exemption to continue importing Russian gas after Gazprom’s banking subsidiary was sanctioned. Once completed, Akkuyu is expected to meet 10% of Türkiye’s electricity demand.
US scrutiny, frozen payments
Financial restrictions have already affected the project. The U.S. froze $2 billion in Russian payments to Türkiye for Akkuyu in 2024, suspecting that funds were being used to bypass sanctions on Russia’s central bank, the Wall Street Journal reported on February 2.
A Rosatom spokesperson told the paper that the company expects “funds that have been unjustly withheld through third parties’ influence” to be released.
Türkiye’s broader nuclear ambitions
Beyond Akkuyu, Türkiye has set ambitious nuclear energy targets. Ankara aims to generate 20,000 megawatts of nuclear power by 2050, with plans for two additional full-scale plants and small modular reactors.
The government has engaged in discussions with Russia, China, and South Korea to explore future projects.
