Ukraine overdue on $10 mln for shares in JV with Russia's TVEL
KYIV. Nov 14 (Interfax) - Ukrainian state company Nuclear Fuel has not managed to finance on time its $10 million contribution to the charter capital of a nuclear fuel fabrication plant being built in Ukraine under a joint venture with Russian nuclear fuel company TVEL, a market source told Interfax.
He said the shareholders of Nuclear Fuel Production Plant (NFPT), Nuclear Fuel and TVEL, which each supposed to contribute $10 million to the venture's charter capital by October 31. The $10 million TVEL deposited in the venture's account on October 30 will be returned to the Russian company according within the time allotted by Ukrainian law.
The shareholders will then have to again organize a new share issue. A new shareholder meeting is scheduled for November 22, and the agenda includes increasing the venture's charter capital with a new share issue funded by additional contributions. However, the size of the share issue is not indicated.
Nuclear Fuel officials contacted by Interfax were unable to comment on the situation.
The deputy director of strategic policy and investment in the nuclear energy sector of Ukraine's Energy and Coal Industry Ministry, Pyotr Chernov told Interfax that the Ukrainian partner plans to meet its obligations to increase the plant's charter capital by the end of this year. "Until then, there is no need to discuss any other factors," he said.
The shareholders of NFPT decided on July 16 to increase the company's charter capital from UAH1.5 million to 161.5 million UAH with a new share issue of UAH160 million to existing shareholders in proportion to their stakes. Nuclear Fuel owns 50% plus one share in the venture and TVEL holds 50% minus one share.
The project to build the nuclear fuel plant in Ukraine is being financed 70% with borrowing and 30% by the Ukrainian and Russian shareholders. The estimated construction cost is UAH2.362 billion (almost $300 million), the price of the production technology is UAH1.112 billion and the cost of infrastructure development is estimated at UAH225.75 million.
The Ukrainian government in September 2010 approved the results of a tender to select the technology to build the nuclear fuel plant that was won by TVEL. The agreement on construction was signed in October 2010, and the process of registering the joint venture was completed in 2011.
The overall cost of the project will be $462 million, according to a feasibility study approved by the government in June 2012. The plant will have capacity to produce 800 fuel assemblies per year.
The plant is supposed to start producing nuclear fuel elements and assemblies, as well as zirconium and stainless steel components in 2015, and fuel powder and pellets in 2020.
The official exchange rate for November 13 was UAH7.993/$1.
