After more than a year of negotiations, Moscow is to build and own a controlling stake in Turkey’s first nuclear power plant.
Russian President Dmitry Medvedev and his Turkish counterpart Abdullah Gul signed the 16 billion euro deal during a landmark meeting in Ankara on Wednesday.
Russia, which has built nuclear power plants in China, India and Iran, will help Turkey realise its ambitions of becoming an energy hub for European supplies.
Moscow and Ankara have also signed an agreement for a new pipeline project which will carry Russian oil from the Black Sea, through Turkey to the Mediterranean.
The two countries hope that their strategic partnership will enable them to double trade in the in the next five years.