Azernews.Az

Russian state-run company Inter RAO is dissatisfied with the terms of operating Armenia's Metsamor nuclear power plant and is seeking to terminate a relevant agreement, Russia’s Kommersant newspaper reported.

"The only alternative is the state-run energy corporation Rosatom. However, currently the company is more interested in the construction of a new power generating block in Armenia than management of the existing one," the newspaper said.

State-run holding Inter RAO UES has launched talks with Armenia on altering the terms of operating the Soviet-era Metsamor power plant, a source close to the company told Kommersant. The source said Inter RAO deems atomic energy its "non-core activity with sharply increased risks". Inter RAO declined a formal comment on the issue.

The Metsamor plant was built in 1970. After the devastating Spitak earthquake in 1988, the plant's operation had been suspended, but in 1995, despite international protests, it resumed, and even a second reactor was launched.

Given a slew of minor earthquakes in this area in the past 10 years as well as the intensification of seismic readings cited by researchers, a potential major accident at Metsamor would have a dire impact on not only Armenia, but also other countries in the South Caucasus and Middle East regions.

A source familiar with the situation said Inter RAO and Rosatom started negotiations on a possible transfer of Armenia's nuclear power plant to the state corporation's control. The source said that Inter RAO would like to soon give up managing the power station, which would grant the company a certain amount of funds.

Inter RAO does not consider it important which entity could take over management of Metsamor, be it Rosatom or the Armenian side, the source added, but believes the facility should be operated by an entity specializing on nuclear energy.

It is not yet clear whether or not Inter RAO will manage to reach agreement with Rosatom. A source in the state corporation reportedly said that Rosatom is not interested in managing the existing unit at Metsamor. Primarily, the company deals with the project of building a new unit at the power station with the capacity of over 1 GWt, which is to be completed by 2017. Investments in the project were previously estimated at $4-5 billion.