Ukraine will have to raise an estimated $250 million this year in order to buy nuclear fuel for its five nuclear power stations, according to a statement from the president of the state nuclear generating company Energoatom reported by Reuters.
It will be the first year that the company has had to fund all of its supplies of nuclear fuel. A deal under which Russia supplied some Ukrainian nuclear fuel as compensation for the country’s agreement, in 1994, to give its nuclear arms expired at the end of last year.
Nuclear power stations supply nearly half of the electricity demand in the Ukraine. Energoatom is expecting to have problems raising the cash necessary to keep these generating plants operating. However, the company is hoping to be able to strike some barter deals, possibly with Russia.
The company is hampered by a continuing difficult financial situation, created by the fact that only seven per cent of its own income is in cash. The remainder consists of barter deals, promissory notes and IOUs.