Bulgaria's NEK Expects Russia to Give Up on N-Plant Claim

Russia's state nuclear company Atomstroyexport took Bulgaria to arbitration over delayed payment for nuclear reactors for the Belene Nuclear Power Plant project. File photo

Bulgaria expects that by Wednesday Russia's state nuclear company Atomstroyexport will withdraw its EUR 58 M claim at an arbitration court over delayed payments for its work on two nuclear reactors.

The statement was made Tuesday by the Head of Bulgaria's National Electric Company, NEK, Mihail Andonov, saying if this does not happen NEK will lodge a counter-claim for EUR 61 M over delayed payments under the contract for the purchase of the second-hand equipment for the construction site of the Belene Nuclear Power Plant, NPP, worth about EUR 300 M.

Andonov labeled the situation between Russia and Bulgaria as calm in his first comment for the media on the issue. He informed of a Monday meeting between the NEK management and representatives of the Russian side, who told them they will make a decision on withdrawing the claim by the end of the day Wednesday.

Meanwhile, Russian media published reports that Atomstroyexport will withdraw from the NPP project if there are no developments by November 2011. When asked about it, the NEK Head said that "ultimatums can be given by people who have other interests – we have a contract, we have clauses; the decision is theirs, so is the problem."

Andonov reiterated he had faith the Russians will show reason and withdraw the claim, adding then the Belene project could go on.

Two weeks ago, Atomstroyexport took Bulgaria's NEK to the arbitration court in Paris. The next day the Bulgarian company said it is ready to strike back with a EUR 61 M counter claim against Atomstroyexport.

In radio and TV interviews Sunday and Monday, Bulgaria's Economy and Energy Minister, Traicho Traikov explained that the Bulgarian side has offered Moscow a few options on how to settle the scores without resorting to the arbitration court.

"One of the proposals they received suggests that instead of being involved in court battles, the two companies settle the claims by offsetting," said Traikov,

The Minister further informed he had given the Russian side an ultimatum to withdraw the claim by Monday, August 1, otherwise the Bulgarian company will lodge a counter-claim should Russia persevere.

"Atomstroyexport" say they were baffled by Traikov's ultimatum.

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