In a written interview to BNS, Merten, who recently visited Lithuania, claims that the Baltic NPP under construction in the Russian Kaliningrad region, very close to Lithuania, is an economic, not a political project: unlike oil or gas pipelines, nuclear utilities cannot be halted with a single push of a button.
Merten says he discussed the key energy projects with Lithuania's Parliamentary Speaker Vydas Gedvilas and Prime Minister Algirdas Butkevičius a few weeks ago.
"It is no secret that comments were made by Lithuania's officials including members of the Seimas about our failure to provide the necessary information to the Lithuanian side about our projects and our extremely closed behavior. During the meeting with Gedvilas organized via official channels, I assured him that we were open to cooperation and willing to provide all necessary information to members of the Seimas. We are interested in building the most transparent and responsible relations with our partners in Lithuania, first of all in connection to Baltic NPP in the Kaliningrad region and decommissioning of Ignalina NPP," one of Rusatom Overseas' top executives told BNS.
During the meeting with Lithuania's prime minister, Merten said he inquired about the government's plans about individual energy projects including Kruonis Pumped Storage Plant but stated no specific proposals were discussed.
"I also informed the prime minister that Nukem has ensured financing of its shareholder Atomstroyexport in order to prevent halting of extremely important tasks pertaining to Ignalina NPP decommissioning. It turns out today that Atomstroyexport, which is interested in meeting of Nukem's commitments in the project, is de facto crediting the work performed in Ignalina NPP under closure, as the European Union suspended the financing project last December," Merten said.
Asked about the connection between Rusatom Overseas and Nukem, he explained that Rosatom's subsidiary – NIAEP-Atomstroyexport – held the controlling stake in the German enterprise Nukem Technologies since 2009. As integrator of Rosatom's international economic operations, Rusatom Overseas represents Nukem's interests in Lithuania.
"During the meeting, I told Butkevičius that a consortium of German companies was doing the work at the site since 2006, and Rosatom had nothing to do with one of them, GNS. Nukem Technologies is doing its scope of the work and GNS is doing its work. The state-run corporation Rosatom and its structures are responsible owners. Today we're doing everything possible to settle the problems that emerged over the past years and we aim to see the conflict between Ignalina NPP and the German consortium, which led to the halt of the financial assistance from European donors, settled by March 31, 2013. Furthermore, as I've already said, the Russian side designed more than 100 million euros worth of follow-up work at the site at virtually its own expense so that the technological processes could continue alongside with settlement of accounts with contractors. Besides, we think that Ignalina NPP should meet its commitments envisaged in the agreement. It is necessary to seek compromise to achieve a harmonized position, which is a precondition for resumption of financing by the European Commission," said Merten.
In response to a question about the claim made by the Lithuanian side that the 2004 agreement with Nukem stipulated a certain specification of spent fuel containers certified by the State Nuclear Power Safety Inspectorate, whereas there are attempts to replace them with different containers, which are said to be less safe, the Rosatom executive said the issue was "beyond the responsibility of Nukem."
"The containers are supplied by the German company GNS, Nukem's partner in the project consortium. GNS maintains that the containers fully correspond to the specifications envisaged in the agreement and facilitate safe storage of spent nuclear fuel," said the vice-president of Rusatom Overseas.
Asked whether he saw a threat of the Lithuanian side terminating the contract with Nukem, Merten emphasized that Nukem was strongly determined to fully meet its obligations envisaged in the agreement: "We expect the Lithuanian side to do the same. However, our contractual documents envisage a possibility of terminating the contract and the possibility to settle conflicts in court."
In Merten's words, the Baltic NPP being built in the Kaliningrad region by Rosatom is a pilot project of nuclear plant construction in Russia, which envisage participation of foreign investors (up to 49 percent of the shares can be offered to foreign companies.)
"Foreign companies interested in purchasing electricity generated by the future nuclear utility may buy shares in the company, thus ensuring uninterrupted power supplies from the future nuclear plant for their needs. If Lithuania is interested in securing guaranteed supplies of cheap electricity, we are willing to discuss it with our partners in Lithuania. Additionally, we are ready to start the most open and partner-like relations by informing the Lithuanian society about security of the Baltic NPP and, of course, we are willing to invite Lithuanian suppliers to contribute to the building of the infrastructure of the object under construction," said the Russian company's executive.
Asked whether Rosatom would want to participate in Visaginas NPP project, Merten stated that the company he represents had never been invited to consider the project.
"We have a huge package of orders from abroad – 19 power blocks. They mainly come from global companies exporting all technologies of nuclear reactors. However, we are considering other cooperation offers. For instance, the Finnish company Fennovoima has announced its intentions to invite us to talks," Merten said.
In Merten's words, the meetings in Lithuania did not address power links between Lithuania and Kaliningrad. He said power supplies from the Baltic NPP were possible in various directions – to Poland, to Lithuania, to Germany, and Rosatom is carrying out relevant consultations. However, discussing specific results is premature.
In response to fears voiced by some Lithuanian politicians and the society about political, not just economic background behind the nuclear plant being constructed by the Kremlin-operated Rosatom next to Lithuania, Merten stated that "unlike oil or gas pipelines, nuclear utilities cannot be halted with a single push of a button."
"First of all, fuel is used for years, i.e., supplied fuel does not burn on the same day and it is used for years. Secondly, supply contracts are sometimes signed five years before the planned start of supplies. If you refuse to sign the contract, it will simply go to a different supplier, this means that the market is diversified. This is economic, not political logic. (…) In my opinion, the Baltic NPP involves more political preferences for Lithuania than it does assumed political risks," Merten said.
