The project is a collaboration between a subsidiary of French company Framatome and Russian state nuclear company Rosatom. The project involves producing fuel rods for use in Russian-designed nuclear reactors.
The project will be based at Framatome's facility in the German state of Lower Saxony.
Rosatom has been exempted from the EU sanctions imposed on Russia following the full-scale invasion of Ukraine in February 2022.
Critics say the decision is dangerous from a security perspective. Germany is Ukraine's largest supporter in the country's defence against Russia and has been on high alert for espionage and sabotage by Moscow.
