Russia is to provide up to $225 million credit to Ukraine for construction of two new reactors: unit 2 at Khmelnitski and unit 4 at Rovno.

Construction of the two VVER-1000 reactors began under the Soviet system, and both had neared completion, but work stopped several years ago. Ukraine has argued that the reactors should be completed to replace the power supplied by the Chernobyl plant: after months of discussion the European Bank for Reconstruction & Development agreed recently that completing the reactors was acceptable on economic and safety grounds and agreed to help finance the construction (NEI, January 2001, p6). The EBRD agreement requires the reactors to be backfitted with Western-style safety systems.

The Russian loan includes $120 million in the form of equipment for the Russian-designed reactors. The remainder will be in the form of fuel for the first cores.

Credit repayments will begin in six years and will continue for 16 years at 6% interest.