Russia and Turkey Rapprochement: $20 Billion Nuclear Plant in Turkey

A resounding surprise witnessed last month, June 2022, stating the implementation of a nuclear plant worth $20 billion on the Turkish territory as a result of the Russian-Turkish rapprochement.

This nuclear power plant was named Akkuyu Nuclear Power, and it represents the largest energy project implemented by Turkey and Russia together.

Furthermore, Turkey and Russia’s willingness to take this step proved that they are one of the most important allies to the conflict in the region, but they are also among the major countries that have been able to influence, and whose words and decisions are heard by the countries of the whole world.

What are the details of this rapprochement? and What is its impact on the Turkish real estate market? Greater Turkey is thrilled to talk more about the Russian-Turkish rapprochement, and a plan to implement a nuclear plant in Turkey worth $20 billion in this article.

The Russian-Turkish rapprochement and the implementation of a $20 billion nuclear plant

Turkey’s desire to build a nuclear power plant on its territory dates to the fifties and sixties of the last century, and Turkey has been able to achieve this in the past few years, in partnership with Russia, with the hope of accomplishment in 2026.

However, last August, Turkey launched the construction of the fourth and final nuclear reactor for the first nuclear power plant, which Russia is building on the Mediterranean coast in cooperation with the Turkish government.

The Akkuyu nuclear power plant project is the largest energy project implemented by Turkey and Russia together, and this massive project is founded by its sponsor, the Russian nuclear energy company (Rosatom).

Major details about the Akkuyu nuclear plant

• The plant is built on the Mediterranean coast in the coastal city of Mersin.
• The cooperation agreement concerning it has been signed since 2010.
• The construction works of this plant started in 2018.
• The plant consists of four nuclear reactors.
• The time period in which it is planned to finish is at the end of 2026.
• The plant will be active starting 2023 and coinciding with the Turkish presidential elections.
• The cost of the Akkuyu plant is $20 billion.
• Employing at least 15,000 people during the construction period, and nearly 4,000 people during its operation.

What are the impacts resulting this nuclear reactor on both Turkey and Russia?

We have already mentioned that the most important thing for Turkey is the presence of a nuclear reactor on its territory, and this means that today Turkey is steadily moving towards consolidating its power in the world, and in the region.

Turkey also seeks to be one of the influential countries in every major issue in the world, as it previously influenced Sweden and Finland as one of the founding members of NATO.

In addition, the upcoming nuclear power plant is a vital project for Turkey, because it meets the increasing demand for electricity, as the project will cover about 10% of the total demand for electricity in Turkey, once the four reactors at the plant are operating.

As for Russia, the plant is a good political expansion in the region, as it has previously expanded in several countries, including Syria, by establishing military bases in front of its coasts.

In addition, the founding company of the plant was not covered by the sanctions imposed on Russia, and this is an important advantage for Russia. It will definitely get an additional value for it in the world with this plant.

What are the impacts of this Russian-Turkish rapprochement on the Turkish real estate market?

The Turkish real estate market is an active market, loved by the citizens of Russia, and this was evident in the first half of 2022 coinciding with the war between Russia and Ukraine. The number of properties sold to Russian citizens in Turkey has increased significantly.

As for the most important statistics for the year 2022 regarding the Russian citizens ownership of real estate in Turkey, they ranked first among foreigners to buy real estate in Turkey.

Thus, Russians have broken records compared to their competitors who are citizens of the Iranian and Iraqi countries, and we will mention the statistics to you in the following table:

In the previous table, we see the big jump made by the citizens of the Russian state in the buying real estate in Turkey.

This emphasizes the great Russian-Turkish rapprochement that the two countries witnessed at the level of diplomatic and political relations, and there are several important reasons that prompted Russian citizens to buy real estate in Turkey, which are:

• The conflict between Russia and Ukraine at the present time.
• Turkey’s pleasant climate compared to Russia’s cold climate.
• Lower real estate prices in Turkey compared to their price in Russia.
• The great Russian-Turkish rapprochement at all levels.
• Turkey’s strategic location in the region, and its proximity to Russia.

With years of experience in the Turkish real estate market, Greater Turkey is always thrilled to provide you with its real estate and legal consultancy services in Turkey, so let us assist you and guide you to what is best for you in Turkey, by contacting us from here.

Edited by: Greater-Turkey©

Sources: Turkish Statistics Authority – Daily Sabah – Bloomberg