Russians and Americans jostling for Temelín

Participants in the call for tender to build the new reactors at Temelin are pretending that it’s just business [the contract is estimated at between 8 to 12 billion euros]. They’re not interested in the politics, or only marginally. “The less the political interference, the less the lobbying, the better for the decision-making,” says the vice president of the Russian company Rosatom, Kirill Komarov.

The Americans are talking up a similar line: “We're just trying to ensure that those who do make the decision have full and accurate information at their disposal,” says the vice president of Westinghouse, Mike Kirst.

The reality, however, is more colourful. Adding the reactors to the Temelin plant is a strategic contract worth billions of euros. And that’s why it’s so important for the companies mentioned, as well as for politicians in the highest offices to land it.

A report last year from the Czech counterintelligence agency, BIS, confirms that Temelin is a major issue that goes well beyond companies’ balance sheets. The interests of the Russian intelligence services, the agency reported, were dominated by the economic issue. Russian intelligence officers could be met “at various social events, where they attempted to strengthen old contacts and make new ones.”

Czech Republic’s dependence on Russian oil and gas

About the activities of American or perhaps the French secret services, the BIS report, understandably, does not write anything [French group Areva, a candidate for the tender, was dismissed on October 5 because it did not meet the legal requirements, according to the Czech national electricity board]. Thanks to smooth diplomatic relations, the U.S. and France can get a lot of information through official channels more easily than the Russians can.

All the parties, however, are hooking up with lobbyists, PR agencies and contacts in politics and business circles. The lobbying extends into the highest levels of politics. U.S. Ambassador to Prague Norman Eisen does not deny the commitment of his government. “Westinghouse is getting as much support as it can, not only from the American embassy but from the entire U.S. government.” His Russian colleague Sergey Kiselev and French Ambassador Pierre Lévy take similar positions on the Temelin tender.

Czech considerations of energy security, however, put Rosatom’s bid at a disadvantage. The main argument is that, considering the Czech Republic’s dependence on Russian oil and gas, it’s precisely Russia that should not be building a major new source of energy.

Analyst Jakub Kulhanek of the Association for International Affairs (AMO) sees business interests taking centre stage. “Russian diplomats confirmed to me that we were in Russia’s geopolitical viewfinder mainly because of the plan to build a U.S. radar station in the Czech Republic. Temelín is a different kettle of fish. Strengthening political influence may play a role, but mostly this is about business and big daydreams of profits,” Kulhanek says.

Temelin is also a question of profit

In his view, Russian President Vladimir Putin’s foreign policy is mainly geared to promoting business relations. If Russia were to succeed in being awarded the contract, it would be great advertising for Rosatom and could make it easier for the company to pick up more contracts around the world. “The current Russian energy strategy is for Rosatom to become, after Gazprom, another jewel in the crown that would compete with Western firms,” says Kulhanek.

But Temelin is also a question of profit, prestige, and the route ahead to new contracts in Central Europe for the Americans as well.

It is the government, which has shown no preference, that will have the last word when it comes to announcing the winner. Who Czech President Václav Klaus, with his continued influence on the government, would like to see win the contract to build the new reactors at Temelin is not hard to deduce.

In a 2009 visit to Russia he said that “it’s good that a major Russian company is trying to participate in keeping nuclear energy going in the Czech Republic.” In his meeting last year with the then Russian President Dmitry Medvedev, Klaus said that the Russians were still offering a relatively high proportion of opportunities for Czech companies as subcontractors.

Klaus is considered a good friend of Russia. The oil company Lukoil, for example, has sponsored the Russian edition of Klaus' book “Blue Planet in Green Shackles”. As his successor in the presidency, Klaus, moreover, would like to see Miloš Zeman, whose presidential campaign is being financed in part by another Russian energy giant, Gazprom. Zeman is also being backed by Russophile lobbyist Miroslav Šlouf.

Energy policy

Going its own way can cost Prague dearly

“The Czechs may pay dearly for their recalcitrant attitude towards European trends in energy policy,” writes Czech economist Michal Šnobr in Hospodářské Noviny.

The third-largest exporter of electricity in Europe (after Germany and France, in 2011), the Czech Republic is pressing on with the building of two new reactors without taking into account events in neighbouring Germany (which aims to scrap nuclear power completely by 2022) the country that is most important for the Czech exports.

As if the European Union did not exist when it comes to energy policy, “it maintains the illusion of purely national competencies,” laments the business daily, which explains that Community policy, the diplomacy of the major European countries, and ideology are playing increasingly important roles in this sector.

If, under pressure from Germany, the European Commission were to decide to stop the construction of nuclear reactors, or if new reactors cease being profitable, who will be responsible, and who will pay? asks HN. Its conclusion —

The Czech government should cool its nuclear fanaticism, reflect on how to stick to its nuclear policy within the European Union, and stop playing nuclear poker with the EU with a weak hand.