The Baltic states and Poland are struggling to settle the political, commercial and environmental problems involved in their joint plan for a €7bn ($10bn) nuclear power station, aimed at easing expected regional electricity shortages and reducing dependence on Russian energy.

The 3,200-megawatt plant would be built at the site of an ageing Soviet-era nuclear power station at Ignalina, Lithuania, which is due to close in 2009 in line with European Union requirements.