Westinghouse, Ukraine Near Deal on Nuclear Fuel for Reactors
A U.S.-based energy company and Ukraine are on the verge of signing a deal that would lessen Russia's influence and give the West greater leverage on the former Soviet republic.
Westinghouse Electric Co. of Pennsylvania said on Thursday it is in negotiations to extend its contract with Ukraine energy operator Energoatom to supply nuclear fuel for reactors, a deal that would bolster the country's commitment to long-term cooperation with the West.
The talks come after the Obama administration has extended the welcome mat to the interim Ukraine government as Kiev looks to strike deals with Western partners. In March, Ukraine's Prime Minister Arseniy Yatsenyuk met with President Barack Obama before meeting with Westinghouse officials in Pennsylvania.
"Westinghouse is currently in discussions with Energoatom to agree on an amended fuel supply contract," Westinghouse spokesman Hans Korteweg said.
Ilona Zayets, a spokeswoman for state-owned Energoatom, said the two sides are in final negotiations on the deal, adding that Energoatom hopes to sign the contract next week.
Ukraine's turbulent pivot westward comes with many challenges. The country is highly dependent on Russia for energy supplies and trade, which increases the vulnerability of its economy. It is a scenario that exists in several countries on the EU's eastern flank.
On Thursday, the head of Russia's state-run gas giant, OAO Gazprom, OGZPY +3.16% said Ukraine will have to pay more for natural gas after a discount agreement was torn up by Russian President Vladimir Putin. That followed Gazprom's decision Tuesday to raise prices by 44%.
The interim government in Kiev, which came to power earlier this year after public protests and violence, has reached out to the West for alternatives and last week signed several parts of a long-sought association agreement with the EU.
