WSJ: Russia Used Nuclear Plant Construction for Covert Fund Transfers

Russia attempted to establish a "dollar reserve" in Turkey under the guise of funding the construction of the Akkuyu Nuclear Power Plant to circumvent U.S. sanctions. According to the WSJ, the plan involved a Gazprombank loan through the Turkish Ziraat Bank, financed by the Bank of Russia, reports NewsBox.

Moscow planned to create a hidden currency reserve in Turkey, using the nuclear plant construction project as a cover to bypass American sanctions, according to sources cited by The Wall Street Journal.

The scheme focused on Russian Gazprombank, which wasn't sanctioned at the time, providing Turkey with a loan of approximately $9 billion. These funds were transferred to the state-owned Ziraat Bank, which then funneled them to Russian companies with accounts at the same bank. The Central Bank of Russia served as the actual funding source, potentially allowing it to accumulate dollar reserves abroad.

Moscow managed to transfer more than $5 billion through two American financial institutions—JPMorgan and Citigroup. However, further transfers were intercepted by U.S. authorities. The Department of Justice contacted JPMorgan, demanding the freeze of an upcoming $2 billion tranche. These funds were frozen but not seized.