Ukraine’s state-owned Energoatom is set to receive $800 million to complete two VVR-1000 nuclear plants. The European Commission has approved a loan of $585 million on behalf of Euratom, and the European Bank for Reconstruction and Development (EBRD) has granted a $215 million loan. Khmelnitsky (K2) and Rovno (R4) are intended to make up the capacity shortfall caused by the final closure of Chernobyl on 15 December. Loans from export credit agencies, Russia and local contributions will make up the total cost of $1.48 billion, which has been estimated as the completion cost.

The project relies on a number of conditions that include the closure of Chernobyl, safety assurances, a report that Ukraine can operate its nuclear facilities according to Western safety standards, G7 and European Commission technical assistance and the Ukraine government’s allowing sufficient independence to the country’s nuclear regulator.

  Ukraine still relies heavily on nuclear generated electricity which accounts for half of all power produced by the nation. According to President Kuchma, the shutting down of Chernobyl power plant will not cause a shortage of power in Ukraine. Kuchma said five nuclear reactors were not operating in Ukraine because of lack of fuel last winter. “We have more than enough facilities and we are only short of funds to purchase nuclear fuel” he added.