Rosatom's legal battle with Siemens Energy over Akkuyu delays
Rosatom is threatening to sue Siemens Energy due to delays in delivering equipment to the Akkuyu power plant in Turkey. Siemens Energy, which was waiting for an export license, experienced setbacks in fulfilling the order. As a result, Rosatom is considering seeking compensation for the additional costs incurred.
The Russian corporation, Rosatom, plans to sue Siemens Energy for delaying the delivery of equipment to the Akkuyu nuclear power plant in Turkey. According to Deutsche Welle, Rosatom accuses the German company of failing to deliver the ordered equipment, thereby affecting the construction schedule. Siemens Energy attributes the delays to the wait for an export license from the German Federal Office for Economic Affairs and Export Control (BAFA).
The Akkuyu nuclear power plant project in Turkey represents the largest investment between Russia and Turkey, fully funded by Russia. The plant is expected to supply 10% of Turkey's electricity needs. However, construction has been hindered by sanctions and financing issues, Deutsche Welle reports. Rosatom's funds were recently confiscated for the project, further disrupting the construction timeline.
Agreement before the invasion
Siemens Energy, previously a part of Siemens, now operates as an independent company. It was contracted to deliver gas-insulated switchgear to connect the power plant to the electrical grid. The agreement with the Russian firm Elektroautomatyka was signed in 2020, before the Ukraine war outbreak. Siemens Energy assures that all required permits have now been issued.
Despite Siemens Energy obtaining the necessary license, Rosatom is considering a lawsuit to seek compensation for additional costs related to purchasing replacements and the associated delays.
The Turkish Minister of Energy confirmed that Rosatom has placed an alternative order in China. The Russian Deputy Prime Minister reported that some of the replacement equipment has already been delivered to Akkuyu.
