TED Case Studies

Bulgarian Nuclear  Power  Plant  KOZLODUY
 
 
Case Number: 486
Case Mnemonic: BULGARNK
Case Name: Bulgarian Nuclear Power Plant Kozloduy
 
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I. Identification

1. The Issue

Following a signed agreement between the European Bank for Reconstruction and Development (EBRD) and the Bulgarian Government of 1993, Bulgaria must close the old and considered dangerous Units 1-4 of the Kozloduy Nuclear Plant by the end of 1998. The agreement was signed under certain conditions, including installation of new power generating facilities and modernization of Units 5 and 6. At talks due to be held in Sofia in March 1998 Bulgaria will try to convince the EU and the G-7 countries to withdraw their immediate demand for the closure of four 440 MW reactors of the Kozloduy N-Plant. The talks will be attended by representatives of the World Bank, EBRD and the Energy Directorate of the EU. Bulgaria will present the latest results from reactor tests, as well as programs for the modernization of the units.

2. Description

The 1986 Chernobyl disaster and the political changes in Eastern Europe since 1989 allowed the Western media and experts an unprecedented insights into the dangerous state of the region's nuclear infrastructure. Six Soviet nuclear power plants have an "abnormally high accident likelihood," according to the Most Dangerous Reactors, a May 1995 report by the Office of Energy Intelligence, an arm of the U.S. Department of Energy (DOE). These are Chernobyl (Ukraine), Metsamor (Armenia), Kozloduy (Bulgaria), Ignalia (Lithuania), Kola (Russia), and Bohunice (Slovakia) (see Table 1). According to the DOE they pose significant safety and environmental risks, because of inherent design deficiencies, deteriorating economies, political turmoil and weak regulatory oversight.

Table 1.

Name Reactor Model Net Output Initial Criticality Commercial Start Current Status
Bohunice 
(Slovakia)
Unit 1 
VVER-440 V230
408 MWe 11/1978 4/1979  
  Unit 2 
VVER-400 V230
408 MWe 3/1980 1/1981  
  Unit 3 
VVER-440 V230
408 MWe 8/1984 5/1985  
  Unit 4 
VVER-440 V230
408 MWe 8/1985 3/1986  
Chernobyl 
(Ukraine)
Unit 1 
RBMK-1000 
925 MWe 8/1977 5/1978 Shut Down 1996
  Unit 2 
RBMK-1000
950 MWe 5/1979 -- Permanently Shut Down 8/1991
  Unit 3 
RBMK-1000
925 MWe 6/1981 6/1982 Operational
  Unit 4 
RBMK-1000
950 MWe 4/1984 -- Permanently Shut Down 4/1986
Ignalia 
(Lithuania)
Unit 1 
RBMK-1500
1380 MWe 10/1983 5/1985  
  Unit 2 
RBMK-1500
1380 MWe 12/1986 8/1987  
Kola 
(Russia)
Unit 1 
VVER-440 V230
411 MWe   12/1973  
  Unit 2 
VVER-440 V230
411 MWe   2/1975  
  Unit 3 
VVER-440 V213
411 MWe   12/1982  
  Unit 4 
VVER-440 V213
411 MWe   12/1984  
Kozloduy 
(Bulgaria)
Unit 1 
VVER-440 V230
400 MWe 6/1974 12/1984  
  Unit 2 
VVER-440 V230
400 MWe 8/1975 12/1975  
  Unit 3 
VVER-440 V230
400 MWe 12/1980 1/1981  
  Unit 4 
VVER-440 V230
400 MWe 4/1982 8/1982  
  Unit 5 
VVER-1000
910 MWe 11/1987 9/1988  
  Unit 6 
VVER-1000
910 MWe 6/1991 12/1993  
Metsamor 
(Armenia)
Unit 1 
VVER-440 V270
411 MWe 12/1976   Shut Down
  Unit 2 
VVER-440 V270
411 MWe 12/1979   Operating
Source: INSP
 
The Reactors

The Nuclear Plant at Kozloduy consists of six reactors of Soviet design: units 1 to 4 are VVER 440-230 reactors and units 5 to 6 are VVER 1000-320. The VVER's are the Soviet counterpart of western Pressurized Water Reactor (PWR) designs. Like all nuclear units based on light water technology, the Soviet VVER design uses water to cool the reactor and to generate steam. Water also acts as moderator, slowing down the neutrons to increase the chances of fissioning. The moderating effect of the water also adds to safety since a water loss slows the nuclear chain reaction.
 
A. VVER 440-230, developed by the Soviets before 1970.
 

Principal Strengths:*

Principal Deficiencies:*  B. The VVER-1000 design was developed between 1975 and 1985 based on the requirements of a new Soviet nuclear standard that incorporated some international practices, particularly in the area of plant safety.

 

Principal Strengths:*

Principal Deficiencies:*          * Source: INSC
 
Plant History
 
Kozloduy 1 and 2 - also VVER 440/230's - have been called the "timebomb of Europe." As a result, various "assistance" programs have been undertaken since 1990 to help improve their safety for the remainder of their operation. In 1991 the European Union allocated nearly $14 million to the Kozloduy reactors 1 to 4 in Bulgaria. The assistance included training Bulgarian personnel, cleaning and maintaining the facilities, repairing electrical wiring, establishing testing and inspection programs and providing spare parts. The improvements cover many areas. General housekeeping has been brought up to scratch, and previously neglected maintenance and repair work has been completed. Improved conditions for the operating personnel, together with training and the provision of previously nonexistent documentation, have gone a long way towards restoring morale. Management at the site has been strengthened, as has the Bulgarian regulatory authority. Several nuclear experts that have visited the plant since believed that it is safer and a 1992 assessment by the International Atomic Energy Agency (IAEA) noted that the international assistance had improved the safety of the Bulgarian reactors. At the government level, Bulgaria has enacted nuclear legislation and has ratified the Vienna convention on third-party liability and associated protocols with the Paris convention.

Many Bulgarian representatives as well as representatives from Russia and other Eastern European countries were critical of the EU programs. In their view EU's process for delivering assistance is too cumbersome. Some also believe that the programs are commercially motivated, providing benefits to Western contractors rather than improving nuclear safety in the recipient countries.

Unit 1 of Kozloduy Nuclear Plant, considered the most dangerous, was closed in February 1995 for safety testing. The G-7 ambassadors to Bulgaria on 21 September handed a letter to then Deputy Minister Kiril Tsochev demanding that the unit be permanently shut down, because it poses a security threat to the region.  Tsochev said that the memorandum was based on outdated analyses and does not take recent improvements to the reactor into account. Two Bulgarian parliamentary committees - on power supply and environment- met to discus the G-7 request. The committees concluded that Bulgaria's nuclear regulator - the Committee on the Peaceful Use of Atomic Energy- should have the final say on Unit 1's restart. The unit was restarted in October 1995, despite Western insistence to keep it closed.

The reactor was again closed in 1996 for safety upgrades and test. After a year of work, experts from Siemens and Gidropres (the Russian conductors of the plant), concluded that block 1 of Bulgaria's Kozloduy Nuclear Power Plant can function for at least eight more years. Tests of the reactor's pressure vessel, funded under the European Commission's PHARE program, were carried out to investigate the vessel's ability to withstand sudden cooling, and the multinational team of experts has concluded that the reactor can restart without annealing. It was reconnected to the grid on January 20, 1998.


Many international organizations have advocated the shutdown of the Kozloduy Nuclear Plant. Two of  Bulgaria's neighbors, Romania and Greece, have repeatedly stated their fears about the risks posed by Kozloduy.

" The Demokritos research center has established that if a severe accident were to occur in Kozloduy, the lives lost in Greece alone would reach 132,000...Greenpeace has completed a study that proves that Kozloduy is in essence unnecessary in fulfilling the energy needs of Bulgaria, and that alternatively, Bulgaria could use electric energy, the safer solution."
 
 
 

The facts however somewhat contradict this conclusion. The Bulgarian government is seeking to strike a reasonable balance between safety and meeting domestic consumption. Bulgaria is more than 70 % dependent on external energy sources, according to the European Commission. Oil, gas and nuclear fuels are all imported mainly from Russia. Bulgaria's energy sector accounts for 15% of GDP. In its work program, the current government defines the energy sector as a national priority. The Kozloduy Nuclear Power Plant produces around 40% of Bulgaria's electricity and is of vital importance to the county's domestic needs. Bulgaria recognizes the need to comply to EU requirements in order to proceed with its application for full EU membership. On 18 December 1995, the French European Affairs minister had warned that Bulgaria's chances of entering the EU were jeopardized by keeping Kozloduy in service. (see OMRI Daily Digest, 19 December 1995).

 Bulgaria is making considerable efforts to adapt EC energy efficiency and environmental norms. Under the 1993 Nuclear Safety Account Agreement, managed by EBRD Bulgaria undertook to cease operating the reactors 1-4 as soon as alternatives for energy supply would be available. But these are not yet found. A big step in the right direction was made on May 21, 1997, when the unfinished Russian-designed Belene second nuclear power project was killed by a Bulgarian governmental decision, which stated that the plant was technically unsound and economically unviable. It had been considered as a good investment by several western nuclear construction companies, which were hoping they could make profits on upgrading and completing the reactor with Western money. The Bulgarian government, however, stated that energy efficiency is its priority in the energy program, and that a consistent national energy efficiency program in the course of 20 years can save over 1500MW and afford the closure of the four old units of Kozloduy.

 In the parliamentary control session of the National Assembly on 21 February, 1998 the Bulgarian vice premier Evgeni Bakurdjiev announced that the government is not planning to close units 1-4 before the end of their designed lifetime (2005, 2012). He expressed his hopes that the EU will reconsider the agreement of 1993, in light of the positive efforts that Bulgaria has made in the direction of improving the safety of Kozloduy. Some members of Parliament voiced their concerns that behind the pressures for the decommissioning of the old reactors stand some Western commercial interests. There are many other reactors of the same type in Europe ( for example in Russia and Slovakia) but the EU pressures against their host countries are not the same.

 "The reactors are safe and we are ready to prove it," said the managing director of NEC (National Electric Company, which is responsible for the operation of the Kozloduy nuclear plant) Ivan Hinovski. NEC is preparing a three-year program, estimated to cost around $100-150 million, for upgrading the safety of the four small units.

Bulgaria faces the difficult task of proving the safety of Kozloduy to the European experts. NEC introduced its three-year program to the experts from EU, the World Bank, EBRD, and the Fund for Nuclear Safety at the seminar, held in Sofia in March 1998. On March 13, 1998 the Bulgarian press reported that the director of NEC, Ivan Shilishki, announced that an understanding was reached with the EBRD for the gradual decommissioning of the reactors 1 to 4 of Kozloduy by 2004-2005 at a discussion, sponsored by the Bulgarian-English Chamber in London. The Bulgarian government assured the experts from the Bank that it will be a guarantor for the investments of $300 million for the upgrading of units 5 and 6 of the Nuclear Plant.
 

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                 Keyword clusters

                           (1)  : Trade Product   = Utilities [UTIL]
                           (2)  : Bio-geography   = Temperate [TEMP]
                           (3)  : Environmental Problem  = Pollution [POLA]
 

4. Draft Author:    Silvena Krasteva Nikolova

04/10/98

II. Legal Clusters

5. Discourse and Status: DISagreement and IN PROGress

6. Forum and Scope: BULgaria and Regional

7. Decision Breadth: 1

The decision itself to close the Nuclear Plant will directly affect only Bulgaria, but the risk of a nuclear disaster is faced by Bulgaria's neighbors too.

8. Legal Standing: Treaty

III. Geographic Clusters

9. Geographic Locations


 
 

           a.  Geographic Domain : Europe

         b.  Geographic Site       : Eastern Europe [EEUR]
 
         c.  Geographic impact   : Bulgaria
 
 
 

Source: U.S. Department of Energy

10. Sub-National Factors: NO

11. Type of Habitat: TEMPerate

IV. Trade Clusters

12. Type of Measure: Regulatory Standard [REGSTD]

Bulgaria's accession to the European Union depends on the country's compliance with EU standards. The agreement signed in 1993 with the EBRD calls for the closure of the four units in Kozloduy by 1998. "We have outlined very clearly we expect Bulgaria to comply with the timetable," spokeswoman of the European Commission Louswies van der Laan told Reuters reporters on April 1, 1998. Delays in decommissioning the Soviet made reactors might hinder Bulgaria's chances of joining the European Union, van der Laan said, adding that the situation would be reviewed in December. However Reuters reported the same day that a senior Commission official told them that, given the slow pace of progress, the EU executive did not expect the reactors to close on time. "So long as they are unable to finance alternative energy sources, the management of radioactive waste, the cost of decommissioning and attendant social and regional costs, these countries will continue to find it difficult to respect the deadlines for closures to which they have committed themselves." the Commission said.

13. Direct v. Indirect Impacts: DIR

The decision of the Nuclear Fund whether Bulgaria could operate the four units of Kozloduy till 2004 will directly impact the Bulgarian energy sector and trade in electricity and the capacity of the Bulgarian economy to satisfy the country's domestic needs. The European Union's requirements that Bulgaria shuts down units 1 to 4 of the Kozloduy Nuclear Plant puts the country in a very unfavorable position compared with the rest of the candidates for a full EU membership. Liquidating 30 % of the Bulgarian energy production will slow the economic development of the country,and instead of making the country more attractive to the West and the EU, it will throw Bulgaria into the category of the poorest countries.

14. Relation of Trade Measure to Environmental Impact

                   a. Directly Related to Product           : NO

               b. Indirectly Related to Product         : YES     NUCLear

               c. Not Related to Product                 : NO

               d. Related to Process                        : YES    UTILity

Nuclear energy is essential for Bulgaria, because it provides more than 40 % of the electricity produced by the country's utility, the National Electric Company. Many times thermal plant inefficiencies, fuel shortages and inadequate rainfall for hydropower have accounted for the risen share of nuclear power supplies to nearly 50%.

15. Trade Product Identification: UTILity

Nuclear energy is essential for Bulgaria, because it provides more than 40 % of the electricity produced by the country's utility, the National Electric Company. Many times thermal plant inefficiencies, fuel shortages and inadequate rainfall for hydropower have accounted for the risen share of nuclear power supplies to nearly 50%.

16. Economic Data

As noted above, Bulgaria heavily depends on its nuclear power supply. Taking into account the current state of the economy in the country, it will be disastrous for the energy sector to close the 4 reactors of Kozloduy. One estimate has suggested that the closure of Unit 1 only would cost $1.5 billion, which Bulgaria cannon afford right now. It costs Bulgaria $500,000 a day to import 600 MW of electricity. At NGO forums, environmentalists say that the West must provide funds for the shutting of the dangerous reactors but the government has concluded that it is economically more feasible to invest money in the upgrading the safety of those units ( as mentioned above, there is a three year plan for this, estimated to cost roughly $100 -150 million). Of course, a price cannot be put to people's lives, which could be jeopardized in a case of a nuclear disaster, but the Bulgarian government believes that  the Kozloduy Nuclear Plant does not pose one and is safe to operate.
 

17. Impact on Trade Competitiveness: LOW

The nuclear power plant at Kozloduy fulfills only domestic needs, so in case of closure of the 4 older units domestic electricity prices would be most affected. They will rise considerably and this will have very hard social implication on the life of ordinary Bulgarians, who can hardly afford to pay their electricity bills even now.

An option voiced by some Western experts, that most Central and Easter European countries have either adopted or are seriously considering, is to use Western financing to build more reactors than are actually needed, and to export the excess energy to Western Europe for the Plants' lifetimes. This however, makes Central and Eastern European countries into nuclear proxies, leaving them to deal with the excessive costs - and risks - of operating nuclear power plants, while countries that have chosen not to use nuclear power for safety and financial reasons benefit from inexpensive energy imports.
 

18. Industry Sector: UTILity

19. Exporters and Importers: MANY and BULgaria

V. Environment Clusters

20. Environmental Problem Type: [POLA], [POLL], [POLS] 

In case of a nuclear disaster, high radiation level would affect the waters, the land, the air, as well as the flora, fauna and human population of the region. As Chernobyl case shows, this could result in an immense ecological damage, the ramifications of which are experienced years later. In its report on the Most Dangerous Reactors the U.S. Department of Energy stated that "a major radiation release from this sprawling nuclear complex on the Romanian border could affect the health of tens of thousands of people in the region. Secondary fallout could occur in nearby Romania, Yugoslavia and Greece."

21. Name, Type, and Diversity of Species: MANY

Virtually all species would suffer damages in case of a major nuclear incident.

Bulgaria has a relatively large number of plant and animal species, reflecting the country's location adjoining several of the great Eurasian biogeographic zones. The greater part of the plant and animal life is central European, mixed with a type that blends Arctic and Alpine characteristics in the high mountains. Steppe species are most characteristic in the northeast and southeast, while the south is rich in sub-Mediterranean species.

22. Resource Impact and Effect: MEDIUM- HIGH and SCALE

23. Urgency and Lifetime: LOW and 100s of Years

Since the Bulgarian government believes that the Kozloduy Nuclear Plant is safe, there is no urgent or near threat for the lives of any species. However, in the unlikely case of an incident, it is possible that under a prolonged exposure to radiation some species become extinct. The lifetime is difficult to assess, since some of the effect of nuclear pollution become obvious years later.

24. Substitutes: LIKE products and energy CONServation


The production of electrical energy in Bulgaria is delineated  as follows: 42 % by nuclear, 38% by thermal, 14 % by independent suppliers and 6% by hydroelectric power plants. Bulgaria's thermal plants are coal-fired but the country's large deposits of brown coal are of quite low quality. The bulk of coal reserves are lignite and most hard coal has to be imported. Bulgaria has modest water resources too - the runoff coefficient is low and marked by uneven distribution. Due to decreased rainfall in recent years, the uncertain flow of rivers and the priorities given to agriculture, hydropower generation is only operating at 50 % of the design figure. A paucity of natural resources and the existence of uranium naturally shifts attention to nuclear power (see Table 2).
 
 Every form of energy generation has advantages and disadvantages as shown in the table below.
 
     Table 2.
  Advantages Disadvantages
Coal
  • Inexpensive 
  • Easy to recover (in U.S. and Russia) 
  • Requires expensive air pollution controls 
  • Significant contributor to acid rain and global warming 
  • Requires extensive transportation system
Nuclear
  • Fuel is inexpensive 
  • Energy generation is the most concentrated source 
  • Waste is more compact than any source 
  • Extensive scientific basis for the cycle
  • Easy to transport as new fuel 
  • No greenhouse or acid rain effects 
  • Requires larger capital cost because of emergency, containment, radioactive waste and storage systems 
  • Requires resolution of the long-term high level waste storage issue in most countries 
  • Potential nuclear proliferation issue 
Hydroelectric
  • Very inexpensive once dam is built 
  • Government has invested heavily in building dams, particularly in the Western U.S. 
  • Very limited source since depends on water elevation 
  • Many dams available are currently exist (not much of a future source [depends on country]) 
  • Dam collapse usually leads to loss of life 
  • Dams have affected fish (e.g. salmon runs) 
  • Environmental damage for areas flooded (backed up) and downstream 
Gas/Oil
  • Good distribution system for current use levels 
  • Easy to obtain 
  • Better as space heating energy source 
  • Very limited availability as shown by shortages during winters several years ago 
  • Could be major contributor to global warming 
  • Expensive for energy generation 
  • Large price swings with supply and demand 
     Source:  The Virtual Nuclear Tourist
 
 

This illustrative cost comparison table compares nuclear versus coal specific item cost for similar age and size plants on a $ per Megawatt-hour (10$/Mw-hr = 1 cent/kw-hr) (see Table 3)
 
                    Table 3.

Item Cost Element Nuclear Coal
    $/Mw-hr $/Mw-hr
1 Fuel 5.0 11.0
2 Operating & Maintenance - Labor & Materials 6.0 5.0
3 Pensions, Insurance, Taxes 1.0 1.0
4 Regulatory Fees 1.0 0.1
5 Property Taxes 1.0 2.0
6 Capital 9.0 9.0
7 Decommissioning & DOE Waste Costs 5.0 0.0
8 Administrative 1.0 1.0
Total   30.0 29.1
 

The authors of this table ( The Virtual Nuclear Tourist )reached the conclusion that throughout the world, we need every energy source we can get - including nuclear. Nuclear has a number of advantages that warrant its use as one of the many methods of supplying an energy demanding world. Even with conservation efforts, energy demand has been and will continue to increase.
 
A good summery of the problem of alternative energy sources, faced by countries that rely on nuclear energy is given in the Contemporary Review in 1992: "After Chernobyl several countries, such as Sweden and Switzerland, voted to phase out nuclear power as soon as practicable. But when they looked into alternatives they realized that they were even less attractive. Coal is seriously polluting and is contributing to the acid rain and to the greenhouse effect. Oil will become more expensive and it is politically undesirable to rely on it. Hydroelectric power is already used to the practicable limit in most European countries, and the renewable source such as wind and solar are not large-scale credible. So the resolutions to phase out nuclear power have been quietly forgotten."
If economically stable countries like Sweden and Switzerland cannot afford to switch to alternative sources, how can one expect a country like Bulgaria, in a time of political and economic transition, to be able to deal successfully with this problem.
 

VI. Other Factors

25. Culture: NO

26. Trans-Boundary Issues: YES

Bulgaria is experiencing pressure from almost all its immediate neighbors, especially Romania and Greece, and many international organizations like EU, the World Bank, EBRD and other Western European countries to shut down the Kozloduy Nuclear Plant. Their concerns are of a possible incident, an environmental disaster which would affect the whole region.

27. Rights: NO

28. Relevant Literature

Lewis, H. W. "The Accident at the Chernobyl Nuclear Power Plant and Its Consequences." Environment  Nov 1986.
Thompson, Gordon. "What Happened at Reactor Four," Bulletin of Atomic Scientists. Aug/Sep 1986.
"Electricity: East Meets West?." OECD Observer. Apr 1994. n 187. pp. 30-31
Greenpeace. Background Brief: US Tax Dollars Create Nuclear Hazard in Eastern Europe, Washington D.C., Greenpeace,
         Feb 1994.
Leslie, John. "Survey of World Nuclear Industry." The Financial Times. 17 Nov 1993.
Agenda 2000, European Commision Opinion on Bulgaria's Application for Membership of the European Union. at
        URL:http://europa.eu.int/comm/dgla/agenda2000/en/opinions.htm
Bulgaria: Phusical and Human Geography. at URL:http://www.vmei.acad.bg/freevoice/bulgaria.htm
The Bulgarian Newspaper Kontinent Online. at URL:http://www.tetracom.com/cgibin/php.cgi/kontinent
Halverson, Thomas. "Ticking Time Bombs: East Bloc Reactors." at
        URL:http://www.bullatomsci.org/1993/ja93/ja93Halverson.html
Bulgaria - Electrical Power generating Equipment. at URL:http://iepnt1.itaiep.doc.gov/eebic/country/bulgaria/power.htm
Dangerous Sovier Reactors. Worldview Articles from the Natural Resources Defense Council. at
        URL:http://mail.igc.apc.org/nrdc/bkgrd/nusureac.htm
Nucler Safety and the G7 - A Contraduction in Terms? at
        URL:http://www.greenpeace.org/~comms/nukes/chernob/rep01.html
Bulgaria: Belene N-Project Cncelled. Wise News Communique. at URL:http://antenna.nl/~wise/nc473.html#4682
Petition to Close the Kozloduy Nuclear Plant. Greenpeace Mediterranean Press Release. at
        URL:http://www.greenpeace.org/~comms/97/nuclear/press/reactnovember10.html
EU Insists Bulgaria Must Not Delay Nuclear Closure. CNN News. 1 Apr 1998.
Gonyeau, Joseph. The Virtual Nuclear Tourist. at URL:http://www.cannon.net/~gonyeau/nuclear/why.htm
Kanala, Roman. "EC and Bulgaria to Improve Kozloduy NPP." at
        URL:http://ecolu-info.unige.ch/archives/envcee96/0011.html
Energy Missing From Sofia Agenda. The Bulletin. Autumn 1995. at URL:http://www.rec.hu/REC/Bulletin/Bull53/energy.html
Nuclear Energy. The Bulletin. Winter 1995. at URL:http://www.rec.hu/REC/Bulletin/
INSP. Profiles of Nuclear Reactors. at URL:http://insp.pln.gov:2080/?profiles/ceec/bulgaria_intro#nuclear
U.S. Department of Energy. Office of Energy Intelligence. Most Dangerous Reactors - A Worldwide Compendium of Reactor
        Risk Assessment. May 1995.
U.S. Department of Energy. Office of Nuclear Energy Science and Technology. International Nuclear Safety Program. at
        URL:http://insp.pnl.gov:2080/inet/rc/rc_fr.html

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