EC hints about fewer funds for Ignalina

KLAIPEDA - The Lithuanian row with the European Commission over the projected EU allocations for continuation of decommissioning work at the Ignalina Nuclear Power Plant (NPP) has not bent the Commission, which proposed to Lithuania a four-fold less funding for the task. To be exact, instead of receiving 770 million euros for the continuation of the work through 2014-2020, which is what Lithuania had hoped, the EC is planning to allocate only 210 million euros for a shorter period, 2014-2017.

It is thought that some long overdue Ignalina NPP decommissioning work, lagging implementation of some vital projects, as well as possibly unclear use of already allocated EU funds for the nuke shutdown, have impacted the EC determination to propose much less funds.

An EC report on the projected EC assistance for shutting down nuclear plants in 3 EU countries, Bulgaria, Slovakia and Lithuania, says the EC intends to allocate 185 million euros for this kind of work in the Bulgarian nuclear plant till 2020, and 105 million euros for the Slovakian nuke’s dismantling until 2017.

Slovakia had asked for 420 million euros and the Bulgarians 450 millions euros for the nuclear tasks. “The financial support will help the three states to timely carry out the nuclear reactor clean-up work. The financing expresses the solidarity of the European Union, for which nuclear safety is a priority of utmost importance,” Gunther Oettinger, EC member in charge of EU energy issues, was quoted as saying.

The European Commission also reminded the nuclear countries they have to take responsibility for their nuclear plants’ safety themselves, and also certain requirements for the funding allocations have been set.
The Chancellor of Lithuania’s government, Deividas Matulionis, acknowledged the frustration of the government, and tried to downplay the EC proposal, asserting the larger amount that Lithuania was hinting about, around 400 million euros for 2014-2017, was not “official” and more “on the gossip level.”

“We positively evaluate this kind of draft document, and we are working on our response to the EC. However, it is obvious that the current EC proposal in regards to the financing scope is not acceptable to Lithuania, as some doubts about the EU-Lithuanian commitments, stemming from the Lithuanian EU Accession Agreement, rise. Among other things, in our response we are going to reiterate to the European Commission that the mutual commitments in the EU Accession Treaty are very clear, i. e. the EU has acknowledged that decommissioning of the Ignalina NPP is an exceptional case, and an unbearable burden for Lithuania alone. Therefore, emphasizing the latter, we are hoping that the EC will allocate adequate funding for the plant clean-up,” Matulionis said.

He did not want to reveal, however, what scope of financial support he considers to be “adequate.”
“We cannot say the concrete number. It will turn up in the negotiations,” he added.

“Along with other EU countries and the EC, Lithuania is responsible for the implementation of this large-volume project; therefore, we expect to reach an agreement over its financing, securing the safe and timely nuke shutdown. We value lasting cooperation with the European Commission and the European Union, and their lasting support for the implementation of the projects related to the decommissioning of the Ignalina nuclear power plant. We are hoping that all interested sides will perceive the urgency of the issue for the interests of Lithuania, and we are looking forward to reaching a mutual agreement on adequate financing,” Andrius Kubilius, the Lithuanian prime minister, said to BNS.
 Lithuania, in probably a last-ditch effort to influence the EC decision on the decommissioning money, threatened to overhaul the Ignalina NPP Immediate Decommissioning Strategy (IDS). If Lithuania went ahead with the intention, it could possibly postpone the plant clean-up process indefinitely and put at risk the EU and Lithuanian agreements on the NPP shutdown.

In the wake of the initial EC proposal on the plant decommissioning money, Kubilius’ stance could be described as less forthright and more diplomatic as, only a few weeks ago, before the EC’s proposal on the funding was known, the prime minister chose stronger words. “The EC proposal to decrease the financing for decommissioning works from 2014, and to cut it off completely in 2018 is an absolutely unacceptable proposal to Lithuania. We see decommissioning of the nuclear power plant as a continuous and scrupulous process, which in terms of technological and nuclear safety aspects can be carried out only when there are sufficient funds to complete the process,” he said.

The Lithuanian Energy Ministry, in hopes of changing the tight EC position, employs the tragedy of the Chernobyl nuclear disaster, claiming that postponing Ignalina NPP dismantling will hike its decommissioning costs and may put in jeopardy nuclear safety at the plant.

For the continuation of the plant decommissioning work during 2014-2020, Lithuania initially asked for 900 million euros, however, an EU 2014-2020 budget draft was only for 650 million euros for decommissioning nuclear power plants in Slovakia, Bulgaria and Lithuania together. To convince the European institutions to review the EU 2014-2020 budget draft in Lithuania’s favor, Lithuania has recently appointed a special envoy to lead the decommissioning talks with the EC.