Bohdan Ustymenko: How NABU Disrupts a Power Unit Launching at the Rivne NPP
The audacious missile strikes of the Russian aggressor on Ukrainian power facilities this year have disabled almost all domestic thermal power plants (TPP) and central heating power plants (CHPP), which provide light and heat to millions of the Ukrainians. Catastrophic damage to the Trypilska TPP near Kyiv has already significantly affected the life and business of several regions in Ukraine.
Experts say that this is only the beginning because, in the future, there is a threat of a complete blackout for the City of Kyiv and the Kyiv Region. In such conditions, nuclear energy is the main source of electricity in Ukraine, so all available nuclear power plants (NPP) must be carefully protected and, of course, developed. One of these NPPs is the Rivne NPP. It produces and supplies electricity not only to a significant part of the western Ukraine but also to the central part of the country. In particular, it provides electricity to Kyiv and its suburbs. It would not be a mistake to say that power availability in the homes of the capital and Kyiv Region residents depends significantly on the Rivne NPP operation, especially if taking into account the problems at the Trypilska TPP. Therefore, in the matter of energy security, the Rivne NPP will play one of the leading roles.
However, there is one ’but’. This is the National Anti-Corruption Bureau (NABU). It seems that during the war, the Ukrainians should mobilize their resources not only at the front but also in the rear. After all, Ukraine will be able to defeat the enemy only by uniting. But does everyone want it? It turns out that everyone except... the NABU. Is it necessary to fight corruption during the war? Yes! Is it necessary to break the corruption schemes and arrest the corrupted officials? By no means, yes! But should the shutdown of businesses, enterprises, especially state-owned ones, be tolerated or perceived as a norm? I'm sure not. Especially during the war, especially when it comes to extremely important state facilities, such as nuclear power plants.
Individual parasites from the NABU in these conditions harm not only domestic enterprises, foreign businesses, the state, and the international image of Ukraine. Such damage in conditions of martial law created a potential threat to the energy supply of the entire country, especially today, when there is an acute power shortage in the country, and it is important to generate enough electricity to avoid outages for the Ukrainians. And now, let's go into more details.
Rotor for the Rivne NPP
At the beginning of May 2022, the Czech Company, Enerpower, and the Ukrainian Energoatom signed a Contract on the overhaul of the turbine generator rotor for the Rivne NPP. It is worth saying that most of the electricity in Ukraine is obtained at power plants that use turbo generators. And if you have faulty equipment, you can only sweeten the salt.
Last summer, Enerpower received an advance of EUR 1,145,000 from Energoatom. At the same time, the Czech Company involved the well-known Company EthosEnergy Poland S.A. (Poland) as a Contractor. According to the Contract, after advance payment to Enerpower, EthosEnergy Poland S.A. had to start the corresponding works. Due to the war in Ukraine and missile attacks on infrastructural and industrial facilities, the vast majority of insurance companies refuse to insure the risks that may be incurred to foreign contractor companies. Such a situation ultimately leads to the withdrawal of foreign contractors from the Ukrainian market. Under such conditions, single companies remain on the market, and agree to complete certain exclusive works at their own risk.
In the fall of 2023, the rotor from the Rivne NPP was temporarily taken to Poland to the EthosEnergy Poland S.A. plant. For the transportation of this cargo (42.2 tons), specialists carried out extremely complex and unique logistics processes for this particular case. Special permits from the three states (Ukraine, Poland, and the Czech Republic) were issued, a complex route was agreed upon, and a rare special vehicle was used for transportation. In addition, significant customs fees were paid when crossing borders. But, as it often happens, "trouble came from nowhere," and the entire amount of the advance, which Energoatom transferred to Enerpower to the account at Monetabank a.s. NABU detective V. Malyi blocked without any reason, thereby, jeopardizing the launch of the first power unit at the Rivne NPP. What is this but legal arbitrariness during the war?
NABU against electricity
According to the NABU detectives, during the conclusion and execution of the already-mentioned contracts, some illegal actions have allegedly took place. But what do we have as a result? The rotor of the Rivne NPP is now located in Poland at the site of the Contractor Company's plant. Since the Polish plant did not receive an advance due to the NABU actions, the repair work did not even begin. Moreover, the Polish plant charges payments for the storage of nuclear equipment and other fines. Enerpower is even ready to terminate the contract with Energoatom. However, since Enerpower's account has been blocked due to NABU's actions, Energoatom cannot return the money. Paradoxically, it is also impossible to return the equipment to the Rivne NPP due to the need to pay the Polish plant for storage of the rotor, customs clearance at the border and its delivery to Ukraine.
But the most critical point is even not that. Non-fulfillment of the terms of the Contract between Enerpower and Energoatom regarding the overhaul of the rotor entails a disruption of the terms of planned preventive maintenance and disruption of the restoration of Power Unit 1 of the Rivne Nuclear Power Plant (!!!), which in conditions of martial law and constant missile attacks on energy facilities can lead to the biggest energy disaster during the entire time of the Russian Federation's full-scale invasion of Ukraine.
Dark times
In fact, due to the NABU actions, Energoatom has been suffering losses today. Due to the criminal actions of the Russians, the Ukrainian power system has already lost 8 GW of capacity; the NABU arbitrariness increases these losses by another 440 MW. That is, it increases the power outages duration for industry and the population and the risks of blackouts. NABU actions also cause financial losses to Ukraine in several dimensions: on the one hand, due to the Power Unit downtime, according to various estimates, the country loses up to EUR 1 million per day. In addition, due to NABU's blocking of Enerpower's account, the foreign company cannot return to Energoatom the advance of EUR 1,145,000. Energoatom cannot complete the foreign currency circulation control procedure, which is carried out by the national Ministry of Economy, within the stipulated period. And if the mentioned procedure is not completed in time, Energoatom will simply be obliged to pay a fine of EUR 1,000 per day. Moreover, in case of violation of the import payments deadline (180 days), Energoatom is obliged to pay a penalty of 0.3% of the value of the service not received for each day of delay, which will amount to about EUR 3,500 per day (!).
What's next? As a result, such a faulty NABU investigation, which obviously does not have any legal prospects, and the account blocking letter of the NABU's detective have already caused and continue to cause significant losses to both the Ukrainian and foreign businesses every day. Moreover, in conditions of martial law, this created a potential threat to the power supply of the entire country, especially today, when there is an acute power shortage in the country and the need to generate electricity, at least in order to stabilize the situation with power supply in the homes of the Ukrainians. Is there at least something reasonable or positive in this situation? Obviously not. But now, the words said by Winston Churchill a century ago about "unnecessary war" take on a completely different meaning, having nothing to do with the battle on the battlefield.
"Despite all efforts and sacrifices...we still have not gained peace and security, and we face dangers greater than those we have overcome. This is the highest point of the tragedy of humanity."
Bohdan Ustymenko - international lawyer