Romania’s National Uranium Company (CNU) will benefit from a state aid of some RON 440 million (EUR 97 million) for restructuring, according to a memorandum the Government adopted yesterday.

The aim is to restructure the company’s economic activity.

Granting the state aid is conditioned by the implementation of a restructuring plan approved by the Energy Ministry, which is the company’s main shareholder. The European Commission also has to approve the financial support scheme before it is implemented.

The costs for implementing the restructuring program amount to about RON 941 million (EUR 207 million), RON 440 million of which represent restructuring aid. The Government will grant a state aid of RON 62 million (EUR 13.6 million) in several installments between 2017 and 2022. The state will also subsidize the company’s production costs and will convert into shares some of the company’s debt to the state budget.

In December 2015, the nuclear power producer Nuclearelectrica terminated the contract with CNU for the supply of powdered uranium dioxide for the nuclear power plant in Cernavoda. Instead Nucleareletrica closed a deal with the Canadian company Cameco to import uranium.

editor@romania-insider.com