Russian energy company Inter RAO UES and Armenia's Energy and Natural Resources Ministry have signed an agreement to dissolve the contract for trust management of CJSC Armenian Nuclear Power Plant (NPP) ahead of schedule, an Inter RAO source said, according to Interfax.

The contract was terminated early because Inter RAO has fully performed its obligations to settle the NPP's debts, including for fuel supplies, the source said.

The Armenian government adopted the decision to terminate the agreement with Inter RAO on March 1. Plans to dissolve the contract's validity ahead of schedule first emerged last November.

The agreement, finalized in November 2003, was set to last five years, but it was later extended to September 2013. The document stipulates that Inter RAO will ensure that the NPP operates safely and without interruptions, as well as supply fresh nuclear fuel for the refueling station.

Armenian Energy and Natural Resources Minister Armen Movsisyan previously said that Inter RAO would no longer manage the Armenian NPP's finances starting on January 1 of this year, since its services are no longer needed and since the authorities are in the position to manage the NPP on their own.

"When the NPP accumulated $40-$50 million in debt for nuclear fuel supplies in 2003, Inter RAO helped to pay it off and ensured an uninterrupted supply of fuel. The Armenian NPP has been financially stable for the past few years and is in the position to pay for a fresh batch of nuclear fuel. This is why there is no need for a managing company," Movsisyan said.

The NPP has two VVER-440 reactors with capacity of 815 MW. The first reactor was launched in 1976 and the second in 1980.

The plant was shut down in early 1989 for political reasons, and in 1995 the second reactor with 404 MW capacity was restarted. The Armenian NPP accounts for around 40% of the electricity produced in the country.