24.2.2022
EN
Official Journal of the European Union
L 45/1617
COMMISSION BORROWING-AND-LENDING OPERATIONS — BORROWING-AND-LENDING OPERATIONS GUARANTEED BY THE UNION BUDGET (BY WAY OF INDICATION)
VII.
EUROPEAN UNION GUARANTEE FOR EURATOM BORROWINGS TO IMPROVE THE DEGREE OF EFFICIENCY AND SAFETY OF NUCLEAR POWER STATIONS IN THE COUNTRIES OF CENTRAL AND EASTERN EUROPE AND THE COMMONWEALTH OF INDEPENDENT STATES
1.
Legal basis Council Decision 77/270/Euratom of 29 March 1977 empowering the Commission to issue Euratom loans for the purpose of contributing to the financing of nuclear power stations (OJ L 88, 6.4.1977, p. 9).
2.
Description Pursuant to Decision 94/179/Euratom (OJ L 84, 29.3.1994, p. 41), the European Union extends the scope of Euratom borrowings under Decision 77/270/Euratom to the improvement of the degree of efficiency and safety of nuclear power stations in the countries of central and eastern Europe and the Commonwealth of Independent States.
The maximum amount of Euratom borrowings for the Member States and third countries remains fixed at EUR 4 000 000 000.
In 2000, the Commission decided on a loan for Kozloduy in Bulgaria (EUR 212 500 000) and the last instalment was in 2006.
In 2000, the Commission granted a loan to K2R4 in Ukraine but reduced the loan amount to the EUR equivalent of USD 83 000 000 in 2004.
K2R4 was granted a loan of EUR 39 000 000 (first tranche) in 2007, USD 22 000 000 in 2008, and USD 10 335 000 in 2009 under the 2004 Commission Decision.
In 2004, the Commission decided on a loan for Cernavodă in Romania (EUR 223 500 000).
A first instalment of EUR 100 000 000 and a second one of EUR 90 000 000 were disbursed in 2005 and the last one of EUR 33 500 000 in 2006.
In 2013, the Commission decided to grant a loan to Energoatom, Ukraine, of EUR 300 000 000 for safety upgrades of nuclear power plants.
The loan will be provided in cooperation with the EBRD, which provides another EUR 300 000 000 loan in parallel.
The conditions precedent to the initial availability of the loan have been assessed as fully met in 2015 and the loan was declared effective.
On 27 May 2015, the Commission authorised disbursements under the Euratom loan to Energoatom in the amount of up to EUR 100 000 000, subject to Energoatom having drawn the loan amount granted by the EBRD in an amount not less than EUR 50 000 000.
These loans benefit from State guarantees which cover 100% of the amounts outstanding at year end.
The first tranche of EUR 50 000 000 was disbursed in May 2017 and the second tranche of EUR 50 000 000 was disbursed in July 2018.
A third tranche of EUR 100 000 000 was disbursed in July 2020.
3.
Effect on the budget Since the entry into force of Council Regulation (EC, Euratom) No 2728/94 of 31 October 1994 establishing a Guarantee Fund for external actions (OJ L 293, 12.11.1994, p. 1), subsequently amended by Council Regulation (EC, Euratom) No 480/2009 (OJ L 145, 10.6.2009, p. 10) and Regulation (EU) 2018/409 (OJ L 76, 19.3.2018, p. 1), any defaults are covered by that fund within the limit of the amount available.
The effect on the budget is thus limited to: — one annual payment to or, exceptionally, from the Guarantee Fund to maintain its target amount of 9 % of the guaranteed operations, — activation of the budget guarantee should the debtor default.
From 1 January 2007, loans with Bulgaria and Romania cease to be external actions (see Regulation (EC, Euratom) No 2273/2004 of 22 December 2004 amending Regulation (EC, Euratom) No 2728/94 establishing a Guarantee Fund for external actions (OJ L 396, 31.12.2004, p. 28)) and are therefore covered directly by the Union budget and no longer by the Guarantee Fund.