Russia’s Rosatom sells 49 percent stake in Akkuyu nuclear project to Turkish companies

MOSCOW

Russia’s state-owned nuclear energy conglomerate Rosatom agreed to sell a 49 percent stake in a giant nuclear project in southern Turkey to Turkish investors in a preliminary agreement on June 19 on the sidelines of a nuclear conference in Moscow.The stake in the Akkuyu project was sold for an undisclosed sum to the three Turkish companies Cengiz, Kolin and Kalyon, dubbed CKK as a consortium, which are quite active in construction and energy sectors. Each of these companies will have an equal stake.The shareholders’ agreement will be signed by the end of the year, the consortium said in a follow-up press release. The sum of the deal is then expected to be revealed, according to the press release.Turkey and Russia signed an intergovernmental agreement to build and operate a nuclear power plant in the southern province of Mersin’s Akkuyu in 2010. According to the agreement, Russian companies would own a minimum of 51 percent of stake in the nuclear power plant, marking a first in Turkey.The respective parties are planning to start construction this year.Cengiz Construction chair Mehmet Cengiz told state-run Anadolu Agency that the talks for the deal lasted in the last two years.“The construction works will start this year. Turkey needs to learn nuclear energy and Russia is a key partner in this area. If we can achieve to cooperate in the Akkuyu project, we can strengthen our expertise in nuclear energy,” he said, as quoted by the news agency on June 20.According to the consortium leaders, the project will accelerate normalization in bilateral ties between Russia and Turkey.Meanwhile, Turkey’s energy watchdog has given a power generation license to Akkuyu Nuclear JSC for a 49-year period starting as of June 15.In a statement, the Energy Market Regulatory Authority (EPDK) last week recalled that it had issued a preliminary license for power generation to the company for a three-year period.Saying the company fulfilled its responsibilities in this period, the regulator added: “A 49-year power generation license for the Akkuyu Power Plant will become operational as of June 15.”The $20 billion Akkuyu project is expected to meet 6 to 7 percent of Turkey’s electricity demand after it is completed.