Economy

Energoatom asks Poroshenko to help to denounce agreement with Russia on completion of Khmelnytsky NPP

The Ukrainian Foreign Ministry continues to block the initiatives of National Nuclear Generating Company Energoatom and Energy and the Coal Industry of Ukraine on denouncing the bilateral intergovernmental agreement with Russia on the completion of two reactors of Khmelnytsky nuclear power plant (NPP), and Energoatom has said it has been forced to ask for the help of the Ukrainian President Petro Poroshenko.

"The unconstructive position of the Foreign Ministry forces Energoatom to address the Ukrainian president as guarantor of state sovereignty, Ukraine's territorial integrity under Article 106 of the Constitution of Ukraine and ask him to interfere in the situation with the denouncement of the agreement," Executive Director for Legal Issues and Procurement at Energoatom Natalia Musevych said.

Energoatom was trying to denounce the agreement between the Cabinet of Ministers of Ukraine and the Russian government on cooperation in the construction of reactors three and four of Khmelnytsky NPP of June 9, 2010. The company cannot present legal initiatives independently, and in 2014 the company sent the proposals to the energy ministry three times, Musevych said.

The ministry on February 3 drew up a draft cabinet resolution which ordered the Foreign Ministry to draw up and submit proposals on the denouncement of the agreement. However, the Foreign Ministry did not agree to the document and made remarks on the selection of the alternative supplier of reactor equipment – Czech Skoda JS.

"The Czech company has the owner from Russia, and this would not ensure the diversification of supplies of spare parts and would not decrease dependence on Russia," she said. She said that the cost of Skoda JS equipment is no more than 20-25% of the total cost of the project. By now, the construction project has depended on Russia both in technical and financial aspects.

The Foreign Ministry also doubted the feasibility study for the replacement of the supplier of the reactors and construction of reactors on the basis of existing structures.

"We have a question if the ministry has the specialists who are able to make these conclusions," she said.

The ministry said that the draft decision does not foresee measures to prevent possible counter-measures by Russia if the agreement is denounced.

However, the Finance Ministry and Economic Development and Trade Ministry agreed the draft document.

Musevych said that later after holding consultation in the Energy and Coal Industry Ministry it was decided to initiate the adoption of the law on the denouncement of the agreement, although the Foreign Ministry did not present its consent and again presented the similar claims to the draft cabinet resolution on the issues of building reactors three and four of Khmelnytsky NPP.

"This means that the official position of the Foreign Ministry of Ukraine is the following: it is impossible to replace the supplier of equipment, as there is the Ukrainian-Russian agreement, and the denouncement of the agreement with the country-aggressor has not enough grounds, both technically and from the financial point of view," she said.

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