German utility RWE AG said its decision to withdraw from the Belene nuclear project in Bulgaria was purely related to financing issues and didn't have anything to do with any safety concerns.

"We have terminated the joint venture agreement with NEK because of problems financing the project," said Stephanie Schunck, spokeswoman for RWE's power generation unit RWE Power, as cited by the Wall Street Journal.

Schunck also said that it is now up to the Bulgarian state to decide if the Belene nuclear reactor project will be realized or not.

RWE's withdrawal from the Belene project comes after months of speculation that RWE would shelve the plans due to the issues with the Bulgarian state in arranging the necessary financing. Recent press reports said the Bulgarian state was looking for further investors and was considering to reduce its stake to around 20%.

RWE's involvement in the Belene nuclear project also drew criticism from environmental groups given that the reactor would have been located in an earthquake prone area.

RWE owned a 49% stake in the joint venture that was planning to build a 2-gigawatt EUR4 billion reactor near Belene.

NEK owns the remaining 51% in the joint venture.

The failure of the Belene power plant project marks a setback for RWE nuclear strategy. The company is Europe's largest corporate emitter of carbon dioxide and nuclear power generation could help it improve its carbon footprint.

Chief Executive Juergen Grossmann Monday said one of the company's main strategic goals is to retain nuclear energy in its asset portfolio.

RWE is also pursuing nuclear new build projects in the U.K. where it has teamed up with its rival E.ON AG (EOAN.XE).

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