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Russia ups to EUR 1bn claim over Bulgaria nuclear deal

11 September 2012, 10:37 CET
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(MOSCOW) - Russia has raised to one billion euros ($1.3 billion) its compensation claim against Bulgaria over Sofia's decision to drop a deal for a Russian firm to build a new nuclear power plant.

"The increased damages claim now amounts to no less than one billion euros," Russia's Atomstroiexport said of the claim made with the International Court of Arbitration.

The new claim is a sharp increase on the previous sum of 58 million euros ($75 million) Atomstriexport had sought at the Paris-based court from Bulgaria's national power company over the deal for the Belene power plant.

Bulgaria said in March it had decided to cancel the deal with Atomstroiexport to build the Belene 2,000-megawatt nuclear power plant on the Danube as it could not afford to pay, a move that angered Moscow.

The price of the plant was estimated at about 6.0 billion euros ($7.7 billion) plus interest on eventual credits Sofia would have to take to fund the deal.

Astomstroiexport said the new damages claim had been forced by the Bulgarian government's decision to scrap the deal entirely as Sofia was "refusing to compensate for the sustained losses and expenses."

"The claim by Atomstroiexport includes the cost of all the works carried out on the project, the cost of equipment, losses and so forth," it said.

The first agreement on the construction of the power station by Russia was signed with Bulgaria in 2006 with the contract inked in January 2008. But the project was dogged by constant price-haggling.


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