GREENPEACE WELCOMES STOP TO CHERNOBYL REPLACEMENT REACTORS

30 November 2001

London - Greenpeace welcomed yesterday’s decision of the Ukrainian President Leonid Kuchma to pull out of the international financing deal for the completion of two Ukrainian nuclear reactors to replace those destroyed in Chernobyl.

The Ukrainian withdrawal has been made official by President Kuchma yesterday during his visit to Moscow declaring, that the conditions for a loan from the European Bank for Reconstruction and Development (EBRD) were unacceptable. The EBRD is the leading institution in the financing of the 'K2R4' reactors, unit 2 at the Khmelnitsky nuclear power plant and unit 4 at the Rovno nuclear power complex.

Yesterday’s final approval had been seen by many observers as nothing more than formality. With the collapse of the loan arrangements between Ukraine and the EBRD, Euratom loans of $US585 million are also now in doubt. The Euratom loans were approved by the European Commission last year. Greenpeace today called on the European Commission to formally abandon its loan proposals for the project.

"This is the end for what would have been two highly dangerous reactors in a country with an appalling nuclear safety and environmental record. This is good news for Ukraine, its neighbouring countries and the world." said Greenpeace spokesperson, Tobias Muenchmeyer who has been campaigning on the issue for a number of years. He was banned last year from entering the Ukraine where he has family.

Ukraine’s decision came as a surprise as EBRD President Jean Lemierre had put the final approval for the controversial US$ 215 million loan on the agenda of yesterday’s Board session. The project got initial approval on December 7th last year when Ukraine threatened the EBRD to delay the closure of the Chernobyl nuclear power plant.

"The K2R4 loans have been highly embarrassing issue for the EBRD with six years of negotiations, manipulations and the spending of US$ 40 million in ‘preparation costs’ to promote this nuclear project," said Muenchmeyer.

The Ukrainian government announced its intention to complete the K2R4 reactors anyway with financial and technical support from Russia which despite grandiose plans has been unable to complete many of its own half built reactors. Between 1993 and today only one reactor (Rostov 1) has been completed.

"This is the right time for the EBRD to change tracks and to promote and finance energy efficiency projects in Ukraine to help the country towards a sustainable energy sector." Said Muenchmeyer.

Tobias Muenchmeyer, Greenpeace's expert on Ukrainian nuclear issues, was declared persona non grata by the Ukrainian Foreign Ministry in May 2000 and has been banned from entering Ukraine ever since, although he has family in Ukraine. No reason has been given why Muenchmeyer is not allowed to enter Ukraine anymore. Greenpeace is campaigning to overturn this undemocratic decision which strikes at the heart of free speech.

FOR FURTHER INFORMATION PLEASE CONTACT:

- Tobias Muenchmeyer +49 1708666052 or Jon Walter +31 6 212 969 20