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Bulgaria's NEK to repay early 601.6 mln euro of state aid

Bulgaria's NEK to repay early 601.6 mln euro of state aid Photo: Cultural Heritage in Migration

SOFIA (Bulgaria), March 10 (SeeNews) - Bulgaria's National Electricity Company (NEK) will repay early 1.18 billion levs ($666.8 million/601.6 million euro) of financial aid it was granted by the state in 2016 in order to compensate Russia's Atomstroyexport for the delivery of equipment for the scrapped Belene nuclear power plant project, the government said.

NEK will reimburse the financial aid to the energy ministry by March 31 this year, ahead of the originally agreed deadline of December 2023, the government said in a statement on Wednesday.

The reimbursement has been made possible by NEK's strong financial results, according to the statement.

In the nine months to September 2021, NEK booked a net profit of 278.3 million levs, compared to just 596,000 levs in the comparable period in 2020, its most recent financial statement shows. Sales revenue surged 45% year-on-year to 1.59 billion levs on the back of higher electricity prices.

In 2016, the International Court of Arbitration in Geneva ruled that NEK must pay an adjusted 601.6 million euro ($664.1 million) including interest for the equipment already manufactured by the Russian company for the Belene project, which the Bulgarian parliament decided to cancel in 2013.

(1 euro = 1.95583 levs)

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