NewsRosatom threatens legal action against Siemens over Akkuyu delay

Rosatom threatens legal action against Siemens over Akkuyu delay

Rosatom is threatening to sue Siemens Energy over delays in delivering equipment to the Akkuyu nuclear power plant in Turkey. Siemens Energy was awaiting an export licence, which led to the delay in fulfilling the order. Rosatom is now considering seeking compensation for the additional costs incurred.

Akkuyu Nuclear Power Plant (NPP)
Akkuyu Nuclear Power Plant (NPP)
Images source: © Getty Images | Anadolu
ed. PRC

The Russian corporation Rosatom intends to take legal action against Siemens Energy due to delays in equipment delivery for the Akkuyu nuclear power plant in Turkey. According to "Deutsche Welle," Rosatom has accused the German company of failing to deliver the ordered equipment, thus affecting the construction schedule. Siemens Energy has explained that the delays were a result of waiting for an export licence from the German BAFA office.

The Akkuyu nuclear power plant project in Turkey is the largest investment between Russia and Turkey, and it is entirely financed by Russia. The power plant is anticipated to meet 10% of Turkey's electricity demand. However, construction has been impeded by sanctions and financing issues, as reported by "Deutsche Welle." Recently, Rosatom's funds allocated for the project were seized, thereby disrupting the construction timeline.

Agreement before the invasion

Siemens Energy, originally part of Siemens, now functions as an independent company. The firm was tasked with delivering gas-insulated switchgear, which is necessary for connecting the power plant to the electrical grid. The agreement with the Russian firm Elektroautomatyka was signed in 2020, prior to the outbreak of war in Ukraine. Siemens Energy asserts that all necessary permits have already been granted.

Rosatom, despite Siemens Energy obtaining the licence, is contemplating a lawsuit to claim compensation for extra costs related to purchasing replacements and the delays encountered.

The Turkish Minister of Energy has confirmed that Rosatom placed an alternative order in China. The Russian Deputy Prime Minister indicated that some of the replacement equipment has already been delivered to Akkuyu.

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