The June 9, 2010 agreement between the Ukrainian and Russian governments on cooperation in building power units 3 and 4 of the Khmelnytsky Nuclear Power Plant (NPP) has been terminated as of May 12, 2016, while Ukraine is still determined to have these units completed, Energoatom head Yury Nedashkovsky said.
"The deal has been fully terminated since May 12," Nedashkovsky said at the Energy Spring 2016 energy congress in Kiev on May 26.
The completion of the two units has been estimated at 4 billion euro, he said.
Nedashkovsky acknowledged that the main reason for terminating the deal was political, as the project envisioned the use of Russian technologies.
It was reported earlier that Ukraine and Russia had signed an intergovernmental agreement on cooperation in building power units 3 and 4 of the Khmelnytsky NPP on June 9, 2010, under which Russia undertook to arrange the necessary financing to design the construction of the units and put them into operation. The Rada ratified the agreement on January 12, 2011.
Energoatom said in May 2011, that it could not accept the terms of financing offered by Russia's Sberbank, particularly quite a high interest rate. Russia's initial proposals on financing the project concerned the provision of a state rather than a commercial loan, which implies a lower interest rate.
The Ukrainian government initiated the agreement's termination in 2015, and the Verkhovna Rada supported the proposal on September 16, 2015. The parliamentarians also passed legislation on abrogating the law on the location, design, and construction of power units 3 and 4 of the Khmelnytsky NPP the same day.
Energoatom operates all four Ukrainian NPPs, i.e., the Zaporizhzhya, Southern Ukrainian, Rivne, and Khmelnytsky plants, which comprise 15 power units equipped with water-cooled reactors with an aggregate installed capacity of 13,835 MW.
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