98/381/EC, Euratom: Council Decision of 5 June 1998 concerning the Community contribution to the European Bank for Reconstruction and Development for the Chernobyl Shelter Fund
Date: 1998-06-05
Institutions: Council of the European Union
Subjects: EBRD, EU aid, Ukraine, environmental protection, international aid, nuclear safety

17. 6. 98

EN

Official Journal of the European Communities

L 171/31

COUNCIL

COUNCIL DECISION

of 5 June 1998

concerning the Community contribution to the European Bank for Reconstruc-
tion and Development for the Chernobyl Shelter Fund

(98/381/EC, Euratom)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 235 thereof,

Having regard to the Treaty establishing the European
Atomic Energy Community, and in particular Article 203
thereof,

Having regard to the proposal from the Commission (1),

Having regard to the opinion of the European Parlia-
ment (2),

Whereas a Memorandum of Understanding (MOU) was
signed on 21 December 1995 between the governments
of the G7 countries and the Commission of the European
Communities and the government of Ukraine on the
closure of the Chernobyl nuclear power plant by the year
2000;

Whereas Article III(4) of the MOU provided that Ukraine
and the G7 will continue to cooperate in the development
of a cost effective and environmentally sound approach to
the shelter for Chernobyl IV, including the definition, as
soon as possible, of technical and cost options as the basis
for reviewing financial requirements;

the Commission,

Whereas
TACIS
programme, participated actively in the development of
such an approach which resulted in the definition of the
‘shelter
(SIP) endorsed by the
Ukrainian authorities;

implementation plan'

through

the

Whereas at their Denver Summit of June 1997, the G7
Heads of State and Government and the President of the
European Commission decided to add to the commit-
ments undertaken in the MOU with Ukraine and
endorsed the setting up of a multilateral funding mech-
anism to assist Ukraine in transforming the existing
Chernobyl sarcophagus into a safe and environmentally
stable system, with measures as described in the SIP;

(1) OJ C 364, 2. 12. 1997, p. 16.
(2) OJ C 138, 4. 5. 1998.

Whereas the implementation of the SIP will be placed in
the context of the MOU between the G7 and Ukraine on
the closure of Chernobyl by the year 2000;

Whereas, for the purpose of implementing the SIP, the
Chernobyl Shelter Fund has been established at the Euro-
pean Bank for Reconstruction and Development (EBRD)
and will be administered by the EBRD;

the Community pursues a clear policy of
Whereas
supporting Ukraine in its efforts
to eliminate the
consequences of the nuclear accident which occurred on
26 April 1986 at the Chernobyl Nuclear Power Plant and
is thus willing to contribute to the Chernobyl Shelter
Fund; whereas
through its
contribution no liability whatsoever for any resulting
damage;

the Community assumes

Whereas due account will be taken by the Fund of the
fulfilment by Ukraine of
its undertakings under the
Framework Agreement, signed with the EBRD on 20
November 1997;

a

financial

Whereas
amount, within the
reference
meaning of point 2 of the Declaration by the European
Parliament, the Council and the Commission of 6 March
1995, is included in this Decision for the entire duration
of the programme, without thereby affecting the powers
of the budgetary authority as they are defined by the
Treaty;

Whereas the contribution will be taken from existing
TACIS credits and will thus not imply any supplementary
budgetary expenditures from the 1998 and 1999 budgets;

Whereas EBRD procurement policies and rules will apply
the Chernobyl
to grants made from the resources of
Shelter Fund, with the understanding that procurement
shall
in principle be limited to goods and services
produced in or supplied from the countries of the contri-
butors or the countries of EBRD operations; whereas
these rules are not identical to those applied for opera-
tions directly financed through the TACIS programme,
which can notably for this reason not cover the present
contribution;

L 171/32

EN

Official Journal of the European Communities

17. 6. 98

is however appropriate to ensure that no
Whereas it
discrimination is made between operators of individual
Member States of the European Community with regard
to procurement arrangements relating to grants made
from the Chernobyl Shelter Fund, irrespective of whether
the Member States have concluded individual agreements
with the EBRD or not;

Whereas the Community contribution to the Chernobyl
Shelter Fund with the EBRD shall be administered by the
European Commission in accordance with the principles
of sound and efficient management;

Whereas this contribution will contribute to the achieve-
ment of the Community’s objectives in particular in rela-
tion to nuclear safety; whereas the Treaties do not provide
for the adoption of this Decision powers other than those
of Article 235 of the EC Treaty and 203 of the EAEC
Treaty,

HAS DECIDED AS FOLLOWS:

Article 1

1.
The Community shall contribute to the Chernobyl
Shelter Fund at the European Bank for Reconstruction
and Development (EBRD), in accordance with the rules
of this Fund, an amount of up to ECU 100 million to be
paid over the two years 1998 and 1999.

2.
This contribution to the Fund shall be administered
by the Commission in accordance with the Financial
Regulation of 21 December 1977 applicable to the
general budget of the European Communities (1) in force,
with particular regard for the principles of sound and
efficient management.

The Commission will

take all necessary steps to
3.
ensure that, with respect to procurement arrangements
relating to grants made from the resources of the Fund,
no discrimination is made between operators of indi-
vidual Member States.

Article 2

1.
The financial reference amount for the implementa-
tion of this programme for the period 1998 and 1999
shall be a maximum of ECU 100 million.

The annual appropriations shall be authorised by the
the financial

2.
budgetary authority within the limits of
perspective.

Article 3

1.
The Commission will forward all relevant informa-
tion to the Court of Auditors and will request from the
EBRD any supplementary information that the Court of
Auditors may wish to receive, as regards the financial
operation of the Chernobyl Shelter Fund to the extent
that it is related to the Community’s contribution.

2.
The Commission shall submit, on a yearly basis, a
progress report on the implementation of the Chernobyl
Shelter Fund to the European Parliament and the
Council.

Done at Luxembourg, 5 June 1998.

For the Council

The President

G. BROWN

(1) OJ L 356, 31. 12. 1977, p. 1.