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Nuclearelectrica BoD mandated to terminate negotiations with China's CGN for Cernavoda Units 3 and 4

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The Board of Directors of the National Company Nuclearelectrica SA (SNN) was mandated to initiate procedures for the termination of negotiations with China General Nuclear Power Group (CGN), as well as of the legal effects of the Memorandum of Understanding concluded in 2015 for the construction and operation of the Cernavoda Nuclear Power Plant Units 3 and 4.

Thus, the Ordinary and Extraordinary General Meeting of Shareholders of June 12, 2020 has decided to repeal the Strategy for the continuation of the project for the Cernavoda Nuclear Power Plant Units 3 and 4 by organizing an investor selection procedure (2014) as well as of the revised Strategy for the continuation of the project for the Cernavoda Nuclear Power Plant Units 3 and 4 by organizing an investor selection procedure (2018), reads a document published on the website of the Bucharest Stock Exchange.

The Ordinary and Extraordinary General Meeting of Shareholders also decided to mandate the SNN Board of Directors "to initiate procedures/steps/actions for the termination of negotiations with CGN, as well as for the termination of the legal effects (by agreement of the parties, denunciation, etc.) of the following documents: Memorandum of Understanding on the development, construction, operation and decommissioning of the Cernavoda NPP Units 3 and 4, and of the Investor Agreement in preliminary form.

In late May Minister of Economy Virgil Popescu said that this move was necessary because the cooperation with the Chinese company for the construction of Cernavoda Reactors 3 and 4, begun seven years ago, had seen no progress.

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