In 2022, Russia attempted to leverage the construction of Turkey’s Akkuyu nuclear power plant to create a hidden offshore dollar reserve in order to bypass Western sanctions, according to a report by The Wall Street Journal (WSJ).
The scheme, involving senior Russian and Turkish officials, aimed to funnel billions of dollars into Turkish state banks, circumventing restrictions on Moscow’s access to the global financial system.
How the Scheme Worked
At the center of the operation was a $9 billion loan for Turkey’s Akkuyu nuclear power plant, financed by Gazprombank, which was not under U.S. sanctions at the time. The funds were transferred through JPMorgan and Citigroup into Turkey’s state-owned Ziraat Bank before being funneled to Russian companies operating in Turkey.
The goal was to keep Russian money outside the reach of Western financial controls, with Russia’s central bank secretly backing the loan.
Among those involved were Elvira Nabiullina, Russia’s central bank governor, and Ibrahim Kalin, then a top adviser to Turkish President Recep Tayyip Erdogan and now head of Turkey’s National Intelligence Service (MIT).
For Turkey, the arrangement would have helped bring in much-needed U.S. dollars to stabilize its economy as inflation surged.
Russia successfully sent over $5 billion to Turkey in mid-2022, but the plan came under U.S. government scrutiny. The U.S. Department of Justice then stepped in and blocked a $2 billion transfer via JPMorgan.
In 2024, U.S. prosecutors considered seizing the frozen funds, but the Biden administration halted the process, worried it could damage relations with Turkey, a key NATO ally.
Denials and Political Fallout
Russia’s Rosatom, which leads the Akkuyu nuclear project, denied any wrongdoing.
"All funds allocated for the nuclear power plant were used to finance the project and pay contractors, as well as fulfill Turkey’s social and financial obligations," Rosatom said in a statement.
The Central Bank of Russia, Gazprombank, and Ziraat Bank declined to comment.
Meanwhile, the U.S. government reaffirmed its commitment to enforcing sanctions and preventing Russia from finding loopholes to access global financial markets.
