CEE Bankwatch Network FOR IMMEDIATE RELEASE July 25, 2002 EURATOM Feeding the Black Hole Kiev/Prague, July 25, 2002 --- The European Commission has announced a tender to support a project which is unlikely ever to be completed. For more than five years, the European Commission has been considering co-supporting the completion of outdated Soviet-designed nuclear reactors in Ukraine, giving the lead decision-making role to the European Bank for Reconstruction and Development (EBRD). In December 2001, the EBRD’s Board of Directors decided not to support the project, which means that the current call for tenders from the EC Tacis program, ‘Legal advice for Euratom loan to K2R4’, comes as a surprise for observers. The controversial nuclear project in Ukraine involves the completion of nuclear reactor units Khmelnitsky 2 and Rivne 4 (known as ‘K2R4’), and has been heavily criticised on economic, safety, environmental and social grounds. However, following Ukraine’s blackmailing not to close Chernobyl (the site of the nuclear catastrophe), the EBRD Board made a preliminary decision that its support of the loan would be subject to numerous conditions. Despite the fact that the majority of the EU countries on the EBRD Board did not support the project, the European Commission has voted in favour of a Euroatom loan.* The EBRD’s support for the project was conditioned on economics, safety and confirmation of financial support by all involved institutions.** When Ukraine failed to meet these conditions, the EBRD refused to approve the K2R4 loan. Euratom was also expected to reject a loan, since it was linked to the same conditions and is not sufficient on its own to complete the project. “It is surprising to see the European Commission wasting its money on a controversial project which was not able to find sufficient financial support to ever be completed,” said Olexi Pasyuk of the CEE Bankwatch Network. “The EC through its Tacis program has already invested over EUR 30 million for this project, expecting it to be completed long before the year 2000. Ukraine should use its money to finance measures for improving efficiency of energy use and production, rather than figuring out how to get taxpayers to repay an uneconomic Euratom loan.” The CEE Bankwatch Network is calling on the Commission to cancel the tender for ‘Legal advice for Euratom loan to K2R4’ since its decision to release the Euroatom loan is not valid due to the unwillingness of other donors to participate in the project. The EC should instead work for improving nuclear safety and energy efficiency in Eastern Europe. * Vote at the EBRD Board on 7 December 2000 – Against: Austria, Netherlands; Abstained: Sweden, Germany, Italy, Spain,Ireland, Denmark, Belgium; In favour: Luxembourg, Finland, UK, France, Greece and Portugal. ** Funds for the completion of the K2R4 units were supposed to come from the following sources: Energoatom (project sponsor), EBRD, Euroatom, the Russian government, UK ECA (ECGD), Czech ECA, French ECA (COFACE), Spanish ECA (CESCE), Swiss ECA (ERG), US (ExIm Bank). For more information please contact: Olexi Pasyuk, CEE Bankwatch Network tel.: +380 44 238 6260 mobile: +380 50 5711684 e-mail: opasyuk@bankwatch.org http://www.bankwatch.org/k2r4 -- International Energy Coordinator CEE Bankwatch Network PO Box #89, 01025, Kiev, Ukraine tel: +380 44 2386260 fax: +380 44 2386259 opasyuk@bankwatch.org http://www.bankwatch.org EURATOM conference “After 45 years of nuclear promotion: time for change” Thursday 12th September European Parliament, Eastman Building, Rue Belliard 135, Brussels (Followed by a NGO strategy day, participation for invited guests) PROVISIONAL PROGRAMME Session 1: Introduction on Euratom and reform proposals 9:00 – 11:00  Welcome and opening by the patrons and the organisers of the event  Consultant NN: “What is Euratom and how does it work“ (General introduction)  Oliver Deleuze, State Secretary for Energy and Sustainable Development, Belgium: "Euratom in an open energy market" (confirmed)  Peer de Rijk, World Information Service on Energy, Amsterdam: “Need for Euratom reform from an NGO perspective” (confirmed) Discussion 11:00 – 11:30 Coffee break Session 2: Euratom loans in practise 11:30 – 12:30  Petko Kovachev, CEIE/CEE Bankwatch, Bulgaria: “EURATOM project in Bulgaria – the role of the EU Commission and of the Bulgarian authorities” (confirmed)  Antonio Tricarico, Campagna per la riforma della banca mondiale: “Cernavoda II – A new reactor for Romania?” (confirmed)  Patricia Lorenz, Friends of the Earth Europe: "Why EURATOM does not make nuclear power plants in Central and Eastern Europe safer" (confirmed) Discussion 12:30 – 14:00 Lunch Session 3: Options for Euratom reform 14:00 – 16:00  Representative of EURATOM: “Why we still need EURATOM” (invited)  Andreas Molin, Head of Division Nuclear co-ordination of the Federal Ministry of Agriculture, Forestry, Environment and Water Management, Austria (BMLFUW): “Possibilities to phase out or reform EURATOM” (confirmed)  NN (delegate to the Convention on the Future of Europe): “Intergovernmental conference and EURATOM”  Representative of the European Commission (invited) Discussion 16:00 – 16:30 Coffee break Session 4: Panel discussion and closing 16:30 – 18:00  Panel discussion with selected speakers (chair: Antony Froggatt) Followed by reception in the evening --------------------------------------- The Euratom Conference is followed by a NGO strategy day, Friday, 13th September (participation only for invited guests) If you are interested to participate, please tick the appropriate box on the registration form. You will receive further information. Further information on the content preparation: patricia.lorenz@foeeurope.org Tel: +43 664 131 66 99 www.foeeurope.org