Russia and Turkey Sign Multi-Decade Nuclear Deal

December 2, 2014

Russian President Vladimir Putin began a state visit to Turkey yesterday where he will attend the fifth meeting of the Turkey-Russia High Level Strategic Cooperation Council. Putin has already held meetings with Turkish President Recep Tayyip Erdogan. Despite serious differences on policy towards Syria and Ukraine, both countries will seek to expand economic cooperation and commit themselves to increasing the trade volume between them from the current $35 billion to $100 billion by 2020, according to Hurriyet Daily News.

Ahead of Putin's arrival, Erdogan met Gazprom CEO Alexey Miller on Sunday. Sergei Kirienko, the CEO of Rosatom, Russia nuclear power-producer said Russia is looking forward to 100 years of cooperation with Turkey in the nuclear field, as a result of the fact that Rosatom is building Turkey's first nuclear power station comprising four reactors. "We are giving 60 years of guarantee for the Akkuyu nuclear plant, but I'm sure that it will have a lifespan of 80-100 years," Kirienko said.

"We signed an agreement that undertakes mutual commitments for over 100 years...Russia will provide $4 billion from its state budget for this project. We will not reduce the financial support of this project. Russian and Turkish investors will be preferred at first. The project is expected to draw 50-70% of investment. This will happen through investors mostly, not bank loans,"

—Sergei Kirienko, Hurriyet Daily News, November 29th

The agreement to build and operate a nuclear power station was signed in 2011 between Rosatom and the Turkish Energy Ministry. Over 250 Turkish experts have gone to Russia for training as part of the deal. It was also announced that Turkey's Environment and Urbanization Ministry has approved the environment assessment report for a nuclear power plant. Construction at the site has already begun.