February 7, 2014 / 11:17 AM / 4 years ago

EVN to claim up to 251 million euros for Russian plant

VIENNA (Reuters) - Austrian energy group EVN plans to claim up to 251 million euros ($341 million) in damages for the cost of building a Russian plant that has not gone into operation.

EVN, which built the plant through its German project company WTE, said on Friday the city of Moscow had not met its financial obligations after commissioning the sodium hypochlorite facility, used for drinking water purification.

A spokesman said EVN would invoke a German federal guarantee for foreign direct investments and therefore did not need to make any financial provisions for the plant.

“The Federal Republic of Germany has indicated its intention to continue applying diplomatic and political pressure - as it has in the past - at the highest levels in an effort to prompt the government of the city of Moscow to comply with its obligations,” EVN said in a statement.

It said Germany was also trying to persuade Moscow to meet its obligations in respect of other projects, in particular the construction and operation of the MPZ1 waste incineration plant, in which EVN has invested about 575 million euros.

EVN shares fell 0.4 percent to 11.20 euros by 1106 GMT. ($1 = 0.7353 euros)

Reporting by Georgina Prodhan; Editing by Michael Shields

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