State consent of the Republic of Turkey was not obtained.

Akkuyu Nuclear Inc.; Completing his work on the Akkuyu NPP Project, IC İçtaş İnşaat Sanayi ve Ticaret A.Ş. terminated contract with The company signed a new contract with TSM Energy Construction Industry Limited Company.

According to trade registry records, TSM Energy Construction Industry Limited Company (TSM); It was established in Mersin in October 2019. According to the records, the partners of TSM Energy, which was established with a capital of 100 thousand TL, are Montreux-Stroitelnoye Upravlaniye No 90 Anonim Şirketi, Konsern Titan-2 Anonim Şirketi and Sosnovoborelektromontaj Anonymous Şirketi.

According to the agreement, Turkey’s consent must be obtained.

Titan2 – IC İçtaş İnşaat Anonim Şirketi, where the contract was terminated for the Akkuyu Nuclear Power Plant project, was also established in Mersin, in partnership with IC İçtaş İnşaat Sanayi ve Ticaret Anonim Şirketi and Joint Stock Company Concern Titan-2. A statement was made today regarding the termination of the company. In the statement, it was stated that the consent of the Republic of Turkey was not obtained in the termination process. However, according to the partnership agreement, Turkish consent must be obtained for the plant-related transactions.

In paragraph 5 of article 5 of the agreement, this situation is stated as follows:

“This includes, but is not limited to, the distribution of shares, the appointment of directors, the mode of stakeholder investment, restrictions on the transfer of shares, the Project Company and the funding mechanisms applicable to the Project, including , but not limited to, matters relating to the Company’s governance, national security and the economy. It is subject to the consent of the Turkish Party to protect interests.”

‘A fraudulent and invalid transaction’

IC İçtaş, “illegal, uncontracted, fraudulent and invalid transaction” announced that he would use his legal rights for the termination, which he defined as It was also stated that criminal complaints were made regarding the termination, which was clearly defined as contrary to international law and the Law of the Republic of Turkey. The company’s statement is as follows:

Akkuyu Nuclear Inc. in the press statements made by the company on 07.29.2022 and 07.30.2022, respectively. “The contract with IC İçtaş İnşaat Sanayi ve Ticaret AŞ, which completed its work on the Akkuyu NPP project, has been terminated” specified and “A contract was signed with TSM Energy Construction Industry Limited Company (TSM), which was established by Akkuyu Nuclear in accordance with the laws of the Republic of Turkey and is a legal entity in Turkey” An attempt was made to deceive the public and create a fait accompli.

Akkuyu Nuclear Inc. This attempted termination by the Company is clearly contrary to both international law to which the contract is subject and the Law of the Republic of Turkey to which the companies in question are subject. In this sense, as a result of these legally invalid activities, the need to inform the public arose.

Firstly, we would like to reiterate that the fraudulent and illegal assignment of all Engineering, Procurement and Construction (EPC) works to a single Russian company; Ending the existence of Turkish companies in the management of the project, bringing it to a fait accompli, liquidating around 3,000 Turkish employees in the project management team and our team of 25,000 people, 93% of whom are Turkish, working under the management of these personnel, and transforming Turkish companies to the level of subcontractors that only carry out standard construction works.

‘Personnel prevented from entering the field’

The issues in the press statements made by Akkuyu Nuclear A.Ş do not reflect the truth and the public is trying to create a perception that all is well in the project area. As part of the instruction given by Akkuyu A.Ş. under the illegal termination notice, work in the field was stopped and tens of thousands of our employees were sent on paid leave so as not to be victimized. Contrary to what is stated, a very limited study is carried out within the scope of works related to the protection of structures that require technical safety. In fact, with the termination, the legal working conditions in the field disappeared, the insurance became invalid and the occupational health and safety conditions disappeared because the employer prevented our authorized personnel from entering the field.

‘Contracts, illegal and invalid’

As part of the Akkuyu Nuclear Power Plant Project, T2-IC Ortak Girişim A.Ş., in which our company IC İçtaş İnşaat A.Ş. has 50-50% equal shares with Russian company Titan-2 (with Rosatom partnership). employer of the Akkuyu Nuclear A.Ş project. signed the Engineering, Procurement and Construction Contract on 07.22.2019. However, in the notice of attempted termination made to the public, it was stated that only the contract of our company IC İçtaş İnşaat was terminated unilaterally. As we mentioned earlier, IC İçtaş İnşaat is not party to any direct contract with Akkuyu Nuclear A.Ş, and that T2-IC Ortak Girişim A.Ş, which was jointly established with Russian company TITAN-2, together with the TITAN -2, has equal rights and benefits. is a 50% responsible shareholder. All project work is carried out jointly with equal rights and responsibilities at all levels.

‘Insufficient’

While Akkuyu Nuclear A.Ş., on the one hand, wants to base the termination of the contract of the Joint Venture T2-IC A.Ş. on extremely superficial and legally unacceptable reasons for a project of this scale; On the other hand, in this joint venture, a new contract was signed with TSM Energy Construction Industry Limited Company (TSM), based in Russia, of which IC İçtaş İnşaat and the Russian company TITAN-2, which has management rights and responsibilities equal, directly or indirectly holds 100% of its shares. As the Main Contractor for a Project of this size, the company that signed the contract does not have any qualifications to complete the work.Limited company” clearly shows the effort to create a fait accompli in the process.

‘contrary to contract’

This agreement between the TSM company and Akkuyu is clearly contrary to both the established law and the agreement that contains the exclusivity clauses in the shareholders agreement signed between IC İçtaş İnşaat and the Russian company TITAN-2.

In addition to all this, T2-IC Joint Venture A.Ş and Akkuyu Nuclear A.Ş. 5.5 of the International Agreement signed between the Republic of Turkey and the Russian Federation, which was promulgated with the approval of the Turkish Grand National Assembly, which is a binding provision in the contract signed between the Republic of Turkey and the Russian Federation, which came into force upon publication in the Official Gazette of 06.10.2010. This attempted termination, which is intended to be made without the consent of the State of the Republic of Turkey and making it a fait accompli, is clearly a fraudulent and invalid transaction against the law, the contract.

‘It is not possible to implement the annulment attempt actually and legally’

Within the scope of this contract, there are about 100 subcontracts, about 1000 material and supply contracts, still in force and whose commercial, legal and technical aspects have not been agreed and settled. None of the suspended works can be transferred to TSM or other companies before these transactions are completed with all aspects of the court order actions.

On the one hand, work stoppage orders are given and, on the other hand, productions that are attempted to be carried out in a chaotic environment by companies and unauthorized people from the countryside, in an effort to give the impression that the works are continuing, have created the risk of go beyond nuclear inspection standards.

‘Crime has been filed’

No machinery, vehicles or laboratories belonging to the Principal Contractor with equal partnership of Titan2 and İçtaş and subsidiaries with separate legal entities within the project site may be used by TSM. We have made our requests for an injunction to the competent courts. Criminal allegations have been made and will continue to be made regarding the usurpation of these companies’ equipment in the current news reflected in the press.

‘Employees are forced to resign’

All contracts that TSM tries to make by forcing our employees to resign at Akkuyu violate labor law and are null and void. Legal remedies will be applied to prevent our employees from entering the field without even being allowed to complete settlement processes properly, confiscate their computers and personal belongings and take action against them without their consent.

We are deeply saddened by the sudden disintegration of the great structure that we have established, as we worked with all our strength to implement this strategically important project of our country, putting our entire system up and running a month ago, and that we had achieved the highest level of performance. since the beginning of the Project, and that the Project was paralyzed in a very short time. This situation will inevitably cause delays in the Akkuyu Project, which is vitally important for the security of our country’s energy supply.

The presence of Turkish companies at the main contractor level in the project is the most important guarantor of institutional knowledge, local employment and supply of domestic sources in the construction of nuclear power plants and serves the superior benefit of our country. We would like to reiterate that our main priority is the protection of the rights and the occupational health and safety of our thousands of employees who are dedicated to the Project. We respectfully announce to the public that we are personally following developments on the matter and that all our legal rights will be exercised at the highest level.

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