Egypt’s Nuclear Megaproject Faces Uncertainty As Russian Funding Squeezed

Egypt seems to be making slow progress on its Russian-funded 4.8GW Dabaa nuclear plant, where start-up from 2028 is targeted. Analysts are wary Cairo’s reliance on $25bn Russian financing and technical input could threaten the megaproject amid Moscow’s draining war in Ukraine.

By Marina Lorenzini, alumnus of The Fletcher School, and researcher at the Belfer Center in Harvard Kennedy School

Egypt seems to be making slow progress on its Russian-funded 4.8GW Dabaa nuclear plant, where start-up from 2028 is targeted. Analysts are wary Cairo’s reliance on $25bn Russian financing and technical input could threaten the megaproject amid Moscow’s draining war in Ukraine.

In an interview with Nada Ramadan Ahmed, North Africa Analyst with MEES magazine, she quotes Marina Lorenzini on the topic of the El Dabaa Nuclear Power Plant in Egypt: “Putin has used the Russian nuclear energy industry, through Rosatom, as a strategic export to build deep dependencies with geopolitically significant countries, such as Bangladesh, Egypt, and Turkey. So, even as times get tough in Moscow, Rosatom’s foreign projects may not receive an immediate axe.”

Other companies cannot necessarily replace Rosatom if needed, leaving Cairo “in a bind to negotiate with Moscow on a point-by-point basis on how to purchase and integrate new equipment. Moscow will likely not welcome such a move, and Cairo may not have a strong enough bargaining position, especially if it’s not paying its bills on time, in order to introduce non-Russian supplies on site.”

Read full brief courtesy of the publisher here.

(This post is republished from The Belfer Center.)