US signs draft agreement to oust China from Romania nuclear project

The United States and Romania initialled a draft intergovernmental agreement on October 9 that would dislodge China as the financier for two new reactors at Cernavoda Nuclear Power Plant. US Secretary of Energy Dan Brouillette and Romania’s Minister of Economy, Energy and Business Development Virgil Popescu signed the agreement to cooperate on the “expansion and modernization” of Romania’s only nuclear power plant.

The US Energy Department said that the historic agreement would lay the foundation for Romania to gain access to “US expertise and technology”. A multinational team will take over the work to build two new reactors for the Cernavoda Nuclear Power Plant and refurbish the existing reactor. During the signing event, the US Ambassador to Romania Adrian Zuckerman said that the agreement is a tremendous step forward for democracy.

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China's ouster

In June, Bucharest broke off its agreement with China General Nuclear Power Corporation (CGN) on the two new reactors amid growing distrust with Chinese investments. Romanian government pledged to find a financier among EU or NATO allies and finally found its new partner in Washington to build the reactors.

“The communist party’s control of every Chinese company, domestically and abroad, poses an existential danger. Romania no longer has to fear such danger as it terminated its agreement with CGN...to rebuild Cernavoda,” said Zuckerman in his opening remarks, published on Embassy website.

The US envoy said that CGN was indicted for its corrupt business practices like Huawei and other communist Chinese companies. He further stated that a “great clean American company” is now leading this $8 billion project, with assistance from “clean” Romanian, Canadian and French companies, calling it energy independence. 

“This, my friends, is the paradigm for the future. This is happening due to President’s Trump’s leadership and his team implementing his vision,” Zuckerman added.

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