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European Commission Blocks Dukovany Nuclear Power Plant Tender, Citing Potential Subsidies to Korean Firm

Strategic Insights

— 1 min read

The European Commission has stepped in to block the tender for the construction of new units at the Dukovany nuclear power plant in the Czech Republic, citing potential foreign subsidies received by the Korean company KHNP, which won the tender. The commission is investigating whether these subsidies may distort the EU's internal market. French ambassador Stephane Crouzat defended EDF's decision to defend its interests in the project, stating it's not unusual for large-scale projects to involve disputes. Environment Minister Petr Hladik sees the timing of the commission's letter as suspicious, as it was sent by the French vice-president.

Key Takeaways:

  • The European Commission is investigating whether the Korean company KHNP, which won the tender for the Dukovany nuclear power plant, has received foreign subsidies that may distort the EU's internal market.
  • The commission is asking the Czech Republic to postpone the signing of the contract for the construction of two new nuclear units and to cooperate until a final decision is taken.
  • French ambassador Stephane Crouzat defended EDF's decision to defend its interests in the project, stating it's not unusual for large-scale projects to involve disputes.
  • Environment Minister Petr Hladik considers the timing of the commission's letter to be suspicious, as it was sent by the French vice-president.
  • The commission has asked for information from CEZ Group, the Dukovany power plant, and the Korean firm KHNP, but the parties have so far "not provided sufficient information in response to these requests".
  • The EU executive stresses that it "does not prejudge the final decision", but is currently preparing a decision to open an in-depth investigation.

Statistics:

  • The Czech Republic's Dukovany nuclear power plant is set to receive two new units, which will be constructed alongside the existing units.
  • The tender for the new units was won by the Korean company KHNP.
  • The European Commission has asked the Czech Republic to postpone the signing of the contract for the construction of the new units.
  • The commission is currently preparing a decision to open an in-depth investigation into the potential foreign subsidies received by KHNP.

Sources:

  • CTK news agency, "French ambassador sees nothing unusual in EDF's defense of its interests in the Dukovany tender", May 12 (no author mentioned)
  • European Commission press release, "European Commission opens formal investigations into potential state aid to Korean and Japanese companies" (no date mentioned)

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