[Press release] EBRD and European Commission ignores public opposition to new nuclear projects

Citizens of the Ukraine oppose the completion of two nuclear reactors at Khmelnitsky and Rivne power plants, known collectively as the K2R4 project. Eleven public hearings conducted throughout the Ukraine unanimously called for a major review of the country's energy policy. Despite this clear public opposition, the European Commission and European Bank for Reconstruction and Development (EBRD) intend to financially support these controversial projects.

The report 'The Facts Can Not be Beaten', summarises the results of the public hearings and was released today by the CEE Bankwatch Network in Kiev and has been sent to the EBRD and European Commission.

In 1998 the Ukrainian government approved the Rule (1) which grants a legal base for public hearings on the use of nuclear energy as key element of the decision-making process. In accordance with this rule public hearings on energy policy issues were held in 11 cities of Ukraine (2). There were more attempts to organize hearings in other places that failed due to opposition from local authorities (3). "It is up to citizens and public organizations to initiate these hearings, but it is the responsibility of local administrations to conduct the meetings," says co-author of the report Sergiy Fedorynchyk of 'Green World' association, "however, on numerous occasions authorities deliberately prevented the hearings from happening."

The hearings reached three major common conclusions:

Authorities do not provide sufficient information to the public concerning energy sector problems and the causes of these problems.
Nuclear energy will not be able to satisfy Ukrainian energy needs, and creates new problems such as management of radioactive waste and dependence on Russian sources of nuclear fuel.
The government should avoid large scale projects, such as the K2R4 project and concentrate on energy efficiency and development of the renewable sources.

The public hearings confirm the results of an earlier independent public opinion poll by SOCIS - Gallup International in April 2000 which concluded that completion of K2R4 is supported by only 14% of the Ukrainian Public.

Surprisingly the European Commission continues to ignore the position of Ukrainian public, while simultaneously claiming that it is investing significant funds to develop democracy in Ukraine. On Wednesday Commissioners adopted communication on nuclear energy in Eastern Europe which stated support for the completion of K2R4.

The Memorandum of Understanding between G7, EU and Ukraine on closure of the Chernobyl nuclear reactors states that the international community will finance energy alternatives according to the least cost principle. K2R4 does not fulfill this condition as the reactors are far from being a least cost option. An independent panel of experts established by the EBRD in 1997 concluded that: "... K2R4 are not economic. Completing these reactors would not represent the most productive use of 1bllion USD at this time." Today the cost of the project has already spiralled to an estimated 1.72 billion USD.

"We are appealing to the common sense of the European Commission and the EBRD," says Yury Urbansky of the CEE Bankwatch Network, "by keeping K2R4 as an option we simply delay implementation of more safe, economically sound and publicly accepted projects in the energy efficiency field."

Notes for editors:
(1) Rule "About the order how to conduct the public hearings on use of an atomic energy and radiation security ", authorized by the Cabinet of Ministries Statement 31122 from 18.07.98.
(2) Hearings were held in Mykolajiv, Siverskodonetsk, Chortkiv, Iziaslav, Pyriatyn, Lugansk, Nizhyn, Nikopol, Slavuta, Artemivsk, Cherkasy
(3) Hearings we're refused in Kyiv, Dubno, Khmelnytsky, Zaporizhzhia, Vinnitsa, Ivano-Frankivsk, Zhytomyr.

For more information contact:
Petr Hlobil
CEE Bankwatch Network
mobile +420 603 154349
email: energy at bankwatch.org

Olexi Pasyuk
CEE Bankwatch Network
tel +380 44 2386260
email: opasyuk at bankwatch.org