Turkish company Akkuyu Nükleer Genel Merkezi, in which Russia’s Rosatom has a 99.2% share, is to purchase legal services from AB Rybalkin, Gortsunyan, Dyakin & Partners. The notice of purchase from a single supplier was placed on 31 October at the site of Rosatom. The law office has been tasked with preventing problems due to termination of the EPC construction contract, and the maximum value of the contract with Titan2 IC Içtas Insaat Anonim Sirketi for facilities relating to the four power units under construction at the Akkuyu NPP in Turkey. The fee will be RUB50 million ($815,000), subject to taxes and fees.
Akkuyu Nükleer, project company for the NPP, fears that the termination of the contract may cause construction delays. The sole provider was chosen because Rybalkin, Gortsunyan, Dyakin & Partners specialises in dispute resolution in international commercial arbitrations. The law firm refused to reduce the price. Akkuyu Nükleer did not issue a tender for the work because of time constraints.
The responsibilities of the law office will include advising on termination of the contract and related disputes, preparing relevant documents, representing the company in arbitration proceedings under the rules of the International Chamber of Commerce, selecting arbitrators and negotiating with local consultants. The term of the contract is five years, or until its maximum value is exhausted. The specific rates of bureau employees are not specified in the draft contract.
The dispute began in July after Akkuyu Nükleer signed an agreement with TSM Enerji Insaat Sanayi Limited Sirketi to undertake the remaining construction work at the plant after terminating its agreement with IC Içtas. Rosatom had accused IC Içtas of violations affecting the quality and timing of the work. In September it was reported that the dispute had been resolved following talks on the sidelines of the Shanghai Cooperation Organisation (SCO) summit in Uzbekistan between Russian President Vladimir Putin and Turkish President Recep Tayyip Erdogan, whereby the two companies would share the remaining work at the NPP.