Plans to build two nuclear reactors in Romania at a cost of £3.4 billion have been approved.

Six foreign companies including French power provider GDF Suez and steel firm ArcelorMittla will be taking part in the project.

They will collectively have a 49 per cent stake in the reactors, with the rest owned by Romanian body Nuclearelectrica.

The government has hailed the impact that the new facilities are likely to have on the eastern European country.

Speaking to Reuters, finance and economy minister Varujan Vosganian commented: "This is a very great step to increase Romania's energy security."

He added that project should be completed in about seven years' time.

This marks the latest step in a move towards developing nuclear energy in many eastern European countries.

Vince Novak from the European Bank for Reconstruction and Development, recently claimed that governments in the region are becoming increasingly keen to invest in nuclear power.

He recently told the International Herald Tribune that there is very "strong interest" in building new power plants across eastern Europe.