EU Scrutinizes Czech $18bn Korean Nuclear Contract Over Subsidy Concerns

The European Commission has raised concerns over a $18 billion contract awarded to South Korea's KHNP to build two nuclear reactors at the Czech Republic’s Dukovany plant, questioning potential foreign subsidies under the EU Foreign Subsidies Regulation. This scrutiny follows a complaint by France's EDF, the losing bidder, which has led to legal challenges and a regional court injunction halting the contract signing. While the EC insists it is enforcing EU competition rules without favoritism, EDF denies accusations that its motive is to block the project entirely, asserting its participation in ongoing investigations. Czech authorities and KHNP maintain confidence in their compliance with bidding rules and express frustration over delays impacting the project, which is critical for the Czech Republic’s energy transition. The Czech government is also taking steps to manage financial risks by acquiring a majority stake in the plant’s construction subsidiary. The dispute highlights tensions between competition regulation, national energy strategies, and geopolitical interests within the EU framework.