About changes in the payment terms under Bushehr NPP project

21.02.2007 // Press service of Atomstroyexport

Uncoordinated changes of the payment terms under Bushehr NPP project may have negative consequences for Atomstroyexport

The head of the Financial Department of Atomstroyexport Natalia Sannikova says that, if the Iranian bank changes the terms of the credits issued for the payment of the obligations under the contract for completing the construction of the 1st unit of Bushehr NPP, particularly, if it changes the currency of payment (from USD to EUR), Atomstroyexport will have problems with identifying the currency received from the Iranian counter-agent (if it is different from the currency stipulated by the contract) and with transferring its currency incomes to current account in the authorized bank. In its turn, the authorized bank will have problems with the operation ID. Currency of payment can be changed only through mutual agreement: if the sides have signed a relevant addendum to the contract and have made relevant changes in the letters of credit issued by the Iranian bank to Atomstroyexport.

Atomstroyexport has furnished the Iranian side with all documents necessary for coordinating the payment terms and is ready to sign them as soon as possible. As a result of the above-mentioned violation, Atomstroyexport may be charged by the currency control authorities with the failure to timely transfer its currency revenues to the authorized bank. This is a violation of Article 19 of the Federal Law “On Currency Control,” says Sannikova.

In line with the Code of Administrative Violations of the Russian Federation, Atomstroyexport may face a fine equivalent to the sum the company has failed to transfer.
 
Atomstroyexport builds NPPs in different countries and acts in line with Russian and foreign laws. During their forthcoming meeting the Russian and Iranian sides are going to work out a complex of measures for solving the financial problems under Bushehr NPP project.

Atomstroyexport is building the 1st unit of Bushehr NPP in line with the contract of Jan 8 1995 and addendum 1 of Aug 29 1998 on the basis of the Aug 25 1992 Russian-Iranian inter-governmental agreement on the construction of NPP in the territory of Iran.