NEK AND ATOMSTROYEXPORT START A LEGAL BATTLE

The National Electricity Company (NEK) has sent a letter to the Court of Arbitration in Paris, requesting the deadline of October 15, in order to get acquainted in detail with the documentation on the case brought by Atomstroyexport against it for €58 mln, stated officials from the public provider. According to the Russian company, this is the cost of the equipment produced for Belene Nuclear Power Plant (NPP), which was not paid out by NEK. 

In response, the Bulgarian company said that the contractor for Belene NPP had not paid for old equipment dismantled from the site, amounting to € 61 mln (interests included). In the coming days, NEK will name the attorney company that will defend its interests in Paris. Meanwhile the public provider will prepare the documents for filing a reciprocal claim against the Russian side with the Court of Arbitration at the International Chamber of Commerce in Geneva. The claim will be for €61 mln and will be submitted in September. 

The company's officials explained that they were forced to undertake this move, since the deadline of NEK's proposal, according to which Atomstroyexport had to withdraw its claim had expired on August 16. Along with this, NEK has proposed to Atomstroyexport the claims between the parties to be squared, and by the end of September a timetable for the settlement of the mutual financial claims to be drafted. 

The initiated by Atomstroyexport arbitration proceeding might compromise the relationship between the two parties and the Belene NPP project as a whole, stated the company's letter to the Russian side. The withdrawal of the claim on the basis of the NEK's proposal would be a proof that the Russian side is interested in the further implementation of the project. 

The financial working groups established on July 13, 2011 will continue their work, says the message from NEK.