The Russian state-owned energy corporation Rosatom reportedly plans to sue a German manufacturer for not delivering equipment meant for the construction of the Akkuyu nuclear power plant in southern Turkey.

The plant would be the first of its kind in Turkey. It is also the largest energy project in Turkey's history. On January 4, Rosatom boss Alexey Likhachev made serious accusations against the German supplier and referred to German industrial giant Siemens, even though he was actually talking about another company, Siemens Energy.

"We have noticed media reports about this, but we do not currently have a lawsuit," Siemens Energy's spokesperson Tim Proll-Gerwe told DW. 

Siemens Energy was previously the energy technology division of Siemens, but in 2020 it became an independent company and was listed on the stock exchange. Siemens currently owns 17% of Siemens Energy.

Proll-Gerwe confirmed that Siemens Energy was supposed to supply gas-insulated equipment for the nuclear plant's power distribution system, critical equipment needed to connect it to the Turkish power grid.

The contract to do so was signed with the Russian company Elektroavtomatika in 2020, two years before Russia's full-scale invasion of Ukraine. According to its website, the St. Petersburg-headquartered company is a regular Rosatom supplier.

Export permissions granted

Siemens Energy had been waiting a "long time" for export permissions from the Federal Office for Economic Affairs and Export Control, or BAFA, Proll-Gerwe told DW, adding that the company adheres to all local regulations.

The necessary permits for exporting the components have, in the meantime, been obtained, Proll-Gerwe said, adding that Siemens Energy could meet its contractual obligations in Akkuyu "if the customer still wants."

However, substitute products have apparently already been found for the delayed Siemens Energy components, and Rosatom could be seeking compensation for its losses. That's what Likhachev seemed to allude to in comments about additional expenses and the "adjustment of installation dates" for the power plant.

It appears the Russian firm would like to blame construction delays in Turkey at least partially on Siemens Energy and on German bureaucracy. The contract for the construction of nuclear power plants in Turkey was first signed in 2010. The cornerstone for the first section of the plant was laid in 2018, and the first reactor is supposed to go online, at the earliest, this year. The whole project is supposed to be finished by 2028.

The substitute components in Turkey appear to be Chinese. Last September, Turkish Energy Minister Alparslan Bayraktar said Rosatom had ordered alternative parts from China. According to Russian news agency Interfax, Russian Deputy Prime Minister Alexander Novak explained that substitute components had been purchased from "friendly countries" and that some had already reached the power plant in Akkuyu.

In the time it took for German authorities to approve the exports, permission to export other equipment was granted much faster, German news outlet ntv reported in September 2024.

Security issues?

But is it permissible for German companies to work with Russian businesses in a sector as sensitive as nuclear energy, given current tensions between Russia and the European Union?

"Siemens Energy ended all activities in Russia earlier and no longer has any contractual relationships there," Siemens Energy spokesperson Proll-Gerwe told DW. "Siemens Energy now only has to fulfill older, outstanding contracts, concluded before the start of the war in Ukraine. But, of course, this should always take place in accordance with any applicable sanctions and export control restrictions."

If BAFA has now issued an export license, it means Siemens Energy's equipment delivery to the Turkish nuclear power plant violates neither German export rules nor EU sanctions on Russia.

It seems unlikely, however, that Rosatom would replace Chinese deliveries with the delayed German equipment. So, there is a chance Siemens Energy could end up in court across from the Russian energy firm.

This story was originally published in Russian.