Bulgaria continues to be among the world's strongest supporters of nuclear energy production, although many countries have started to substitute that type of production for alternative sources. The nuclear power station situated on the Danube shore near the town of Kozloduy produces 48% of the total electricity output in Bulgaria. At the end of the 20th century Bulgaria's authorities developed plans aimed at constructing a second NPP in Belene. However, the Belene NPP project has never been fulfilled in light of the multiple problems regarding the nuclear security worldwide. In 2012 Bulgaria's National Assembly even put a moratorium on that project. However, the state authorities had already ordered the construction of two new nuclear units from Russia. In June this year the International Court of Arbitration in Geneva judged that Bulgaria had to pay Rosatom EUR 620 million for the nuclear equipment which has already been manufactured. Moreover, Bulgaria has to pay interest rate worth EUR 167,000 per day. The Bulgarian authorities are now contesting that amount of interest rate.

Thus, Sofia is now facing the dilemma should it pay for that equipment or not, should it use the nuclear reactors in its nuclear power plant, should it continue building the second NPP in Belene, or abandon the project. Bulgaria's Premier Boyko Borissov even paid a special visit to Iran hoping that he would manage to sell those nuclear units and pay the Russian company the huge amount of money judged by the court in Geneva. However, Teheran did not give a clear answer whether it would buy the nuclear reactors in question. Meanwhile, a working group between Bulgaria and Russia's Rosatom was established. It aims at overcoming the contradictions and obscurity between both countries. The Bulgarian authorities even came up with four options, including the establishment of a public-private partnership. During the first sitting of that group held several days ago the Russian side exerted strong pressure on Bulgaria to pay as soon as possible, following Premier Borissov's words that Bulgaria had to pay in short terms. However, Bulgaria has contested the amount of interest rate judged by the International Court of Arbitration, because it was calculated on another interest rate due to a technical problem. However, according to the national legislation this is unacceptable and the final amount is yet to be reduced.

However, Bulgaria will have to find this money and pay its debt. EUR 620 million is huge money, taking into consideration the limited potential of the country's economy. The state budget can't pay such amount of money. The Bulgarian Energy Holding does not have this money in its bank accounts either. The electric companies are unable to borrow loans, because they have already accumulated huge debts and no commercial bank would be willing to extend even a single Euro to them. It became clear after Premier Borissov's visit to Iran that it would be extremely difficult for Bulgaria to find a buyer for its new nuclear reactors. It can only find a way out of the problem through borrowing a new loan on the international financial market or on the local money market. This may be the wisest and cheapest decision which can be practically fulfilled in short terms.

It is hard to tell whether the reserves in this year's state budget would allow Bulgaria to pay EUR 620 million. According to financial experts, it would be easier for Bulgaria to take a new loan, although this would be a very difficult task as well, because the country's National Assembly adopted a program which sets maximum thresholds to the country's public debt. The issue is very delicate and complicated and time is pressurizing Bulgaria, because it has to pay interest for its delayed payment. Brussels can also interfere in that problem. However, Bulgaria would most probably pay its debt in instalments. The state authorities explained that they would take the decision in the coming months after a comprehensive analysis of the available options.

English version: Kostadin Atanasov