Updated April 7, 2008

   Russia and the USA

have finally signed an agreement about atom for peace after they have been negotiating for several years. Now the American market is open for the Russian uranium and atomic equipment as well.

However, nuclear fuel supplies

are lim ite

d till 2020, and the Russian engineers do not consider the USA market prospective.

    Director general of Rosatom State Corporation Sergey Kirienko and the US ambassador to Russia William Burns have signed an agreement about the co-operation in the atom for peace area. The document discussion has been started in 2006 and it becomes the legal basis for the economic relations of the countries in this area and actually opens the American nuclear power market for the Russian companies.

Until now the supplies of

the Russian nuclear fuel to the USA have been restricted, and equipment and materials have been supplied in terms of specific contracts.

So, for instance, Russia could not import natural ur anium from the USA till an agreement was signed.

"Today all i have been dotted, and an agreement opens up enormous space for our possibilities. Both parties will benefit from the o

pportunity of legal co-operation", Sergey Kirienko declared.

   The Russian producers of equipment for nuclear industry have skeptically treated the new prospects. In Power Machines Company (supplies turbines for nuclear power plants (NPP) and Atomenergoprom (controls the supplier of boiler equipment) explained "they are always pleased with new contracts", however, underlined they did not even discuss the possible supplies of equipment to the US markets. Both companies unofficially consider th at

supplies of the Russian equipment to the US NPPs are improbable (though they do not eliminate a co-operation with the American companies in the Third World countries), and a new agreement is first of all important for nuclear fuel supplies.

   However, exactly in the area of uranium supplies an agreement envisages the whole range of restrictions.

In particular, Russia can independently enter the US market with its nuclear fuel only in three years and with quite small volumes. In 2011 the country can supply only 16,6 tons uranium (it is less than one fuelling for 1000 MW NPP), in 2013 the volumes up by 485 tons. On the whole, the USA consumes around 20 000 tons of uranium a year, i.e. the Russian supplies total just around 2,5% of the market. In 2014 Russia can supply the 20% needs of the American NPPs (without consideration of new reactors), and beginning from 2020 all restrictions will be removed.

   By the formal feature these restrictions will not improve, but worsen Russia's positions at the American market. So, since 1994 the Russian nuclear fuel is supplied to the USA only within the framework of HEU- LEU agreement (highly enriched uranium; low enriched uranium) – this is the processed uranium from a nuclear weapon. According to the official data, more than 44% American NPPs use it. But these are not direct supplies. Within the agreement framework all uranium is bought by the intermediary United States Enrichment Corporation (USEC) at a fixed price, which is considerably lower than a market one.

Direct supplies have been limited not only in terms of an agreement absence about atom for peace – since the 1990th in the USA have been applied high antidumping duties concerning the Russian uranium, which have not imposed on fuel only within the framework of HEU- LEU agreement. However, last autumn Russia succeeded to contest judicially the measures, and the process of their remove was started, which should complete in 2011. In 2013 the HEU- LEU agreement expires.

   As a consequence, though with restriction of market volume, beginning from 2011 Russia can supply a fuel to the USA at higher prices. Moreover, it is a uranium, not processed from a nuclear weapon, but produced at the enriching works of Atomenergoprom (amalgamated with Rosatom), that increases the supplies revenues, as said Rosatom representatives.

On the other hand, to the moment of the American market opening for Russia it is planned to launch three new works to enrich uranium in the USA. USEC has already started to construct the production which is planned to put into operation in 2012. GLE comp any h as already found a place to construct the works with laser enrichment technology. French Areva declared also it would construct an enterprise for uranium enrichment costing $2 billion in the American Idaho state.

The company plans to launch it in 2014.

   Industry analysts consent the restrictions imposed within the framework of an agreement about a tom for peace will still permit Russia

to increase earnings from the operation at the US market. So, Mikhail Stiskin from Troika Dialog marks that a considerable positive effect would give the transition to market prices.

The current discrepancy between the market and HEU- LEU is not suppressed as well, but in 2006 Techsnabexsport has estimated the profits not received because of the agreement at $1,1 billion. An analyst also considers that despite the increasing rivalry at the US market Russia's raw material "will be called-up at the market and problems with the realization will not arise".

Actuality March 20, 2008

   The Russian Atomenergoprom and the Japanese Toshiba Corporation will construct the nuclear power plants. Atomenergoprom head Vladimir Travin and Toshiba Corporation president Atsutoshi Nishida signed the agreement about the collaboration in the peaceful use of nuclear energy area. The agreement does not have the framework character yet.

Although the experts are sure that it is the first step towards the complete transnational alliance establishment which will become the leading player at the global market.

About the benefit of unions with the Russian nuclear scientists

   Atomenergoprom and Toshiba are ready to conquer the world market and to construct the nuclear power plants (NPP) in the Third World countries.

However, the Russian and Japanese companies wait when the bilateral intergovernmental agreement about the peaceful use of nuclear energy comes into effect.

   By now the world nuclear market has been divided between three transnational alliances: French-German Areva-Siemens and two American-Japanese – Toshiba-Westinghouse

and GE-Hitachi. The main intrigue is who among these majors joins the Russian Atomenergoprom. In the experts' opinion, it would automatically mean the substantial superiority of one player above the other two.

And now this superiority distinctly stands out.

   "New alliance will make nervous all international corporations in the nuclear area, because it will, probably, become the strategic one and is already the largest in the world", considers the first commission deputy chairman of the Federation council for natural monopolies Valentin Mezhevich. "The Russian corporation and Toshiba amalgamated their capacities and provided itself more competitive advantages in the nuclear engineering, NPP equipment production, NPP construction and nuclear-fuel cycle".

Trillion for all

Volume of orders at the nuclear power energy market grows every day.

More than $1 trln is on the scale in the nearest years.

   The world interest to the nuclear power energy grows for several reasons (some countries, for example the USA, begin considering to continue NPP construction after the 25-years break). First and foremost, prices for oil and gas tied to the oil products continue to grow and that makes their use rather expensive. Secondly, some countries' attempts to create more effective and cheap alternative power energy sources did not succeed yet. Thirdly, safety technologies on NPP almost eliminate the accident possibility.

   As the result many countries began the reconsider their power energy in the nuclear generation favor. In particular, the USA and China are going to construct more than 100 reactors, India – around 40, Great Britain – over 10.

The new power plants are to appear in Lithuania, Poland, Turkey, Finland, Bulgaria and other countries.

In the analysts' opinion, in the nearest and medium-term perspective the volume of orders for power units can attain 600. Thus, as the average cost of one power unit with 1 GW capacity is $2 bln, the potential volume of orders will exceed $1trln. As the comparison: it equals the aggregated annual military budget of all world countries and Russia GDP.

Synergy in nuclear

   Toshiba Corporation is the Japanese producer of nuclear reactors and specializes in boiling water reactors' technology used mainly in Asia. In 2006 the corporation purchased 77% stocks of the American Westinghouse Electric Company.

It is one of the leading suppliers of nuclear fuel, services and technologies for the pressurized water reactors. Westinghouse constructed most nuclear power plants in the USA.

   "Toshiba does not have the complete nuclear fuel cycle today.

And Russia has the substantial stake by all its segments, including the world market", explains the director general of Russia Energy Efficiency Union Semen Dragulsky. "Moreover, equipment production technology and engineering of NPP construction are now-how which Japanese have and the Russian companies do not". Also, the Japanese are able to construct NPP power unit for 36 months, while the Russian construction term is five years.

The collaboration with Toshiba brings the noticeable benefit taking into account Rosatom obligations to construct over 20 power units in Russia by 2020.

It its turn, Russia can construct the storage for low enriched uranium in Japan which almost 100% depends on the nuclear fuel supplies now.

   Moreover, there is already the concrete project for NPP construction. Atomenergoprom and Toshiba can construct Primorsk NPP (it is included to the general scheme for power energy objects location by 2020 approved by the government recently). The point is that it would be more comfortable to supply the large equipment there from Japan for logistic reasons.

   The experts do not eliminate that the joint venture with Toshiba for the NPP equipment production can appear in Russia. Last year was established the joint venture between Atomenergomash JSC and French Alstom for the low speed turbines production for nuclear industry.

Actuality February 14, 2008

Federal Bio-Medical Agency

of the Russian Federation elaborated

the concept of the federal target program for development of nuclear medicine. Valentin Uyba, the agency head, reported about this.

According to him, the new project is scheduled for the period from 2010 to 2015 and includes construction of four centers of nuclear medicine in Dimitrovgrad, Tomsk, Yekaterinburg and Dubne.

Realization of the program will demand large expenses, Uyba underlined.

So, construction of center in Dimitrovgrad will cost the treasury RUR 26 bln, and the center in Tomsk – RUR 34 bln.

Currently, the best terms for creation of nuclear medic ine center are in Dimitrovgrad – local enterprises produce all types of radioisotopes, moreover,

there already operates the medical center, and construction of new building for the new medical establishment is already almost ready.

It is planned to put the sec ond center in operati

on in Tomsk on the basis of the Tomsk Institute of Nuclear Physics.

"New centers will include all spectrum of nuclear technologies, including neutron irradiation, positron emission tomography, brachytherapy, open and close types of nuclear therapy, when an ionizing source penetrates with sore tissue", Valentin Uyba reported.

According to him, creation of centers

of nuclear medicine will allow to increase efficiency of oncologic diseases treatment.

Currently, similar establishments do not exist in Russia, separate technologies of nuclear medicine are used only in large oncologic clinics, marked the head of

the Federal Bio-Medical Agency.

In Russia

the nuclear industry has caught its second wind.

In the program of branch development till 2020 planned such quantity of power units that was put into operation in Russia for the whole Soviet period.
In woods near Voronezh construction of the first nuclear power plant for the last 15 years was started in Russia. Now it is still hard to believe, but

its first block will give electric power in 2012.

Ilya Copytov, Senior Executive Vice-President of Federal State Unitary Enterprise “Atomenergoproekt”, says, “It differs by higher capacity and essentially new approaches in the branch of safet

y. Essentially, at the same time it is an evolutionary project which is based on the whole oper

ating experience of nuclear stations of the previous generations. But it also takes into account all recommendations of international organisations, achievements of the Russian science and techniques of last years”.

At the first stage, two blocks will be constructed, then probably two more. Gradually, they will replace power units of the Novovoronezhsky nuclear power plant (NPP) which will reach the end of their service life. But the power will be much higher. It will suffice for the whole Mid Black Earth Region.

And it is only the first swallow of the big plan for expansion of atomic energy industry of Russia. The head of Rosatom reported to the President of Russia Vladimir Putin about implementation of the program.

Sergey Kirienko: “Here, in the obligatory program there are 26 new power units of high power. Power of each block is 1150 megawatt.

Here, we have to put in operation 26 blocks till 2020″.
– Vladimir Putin: “Till 2020. And how many blocks were put during the whole Soviet period?”
– Sergey Kirienko: “30″.

It is no coincidence that the President so captiously asked the head of Rosatom. He initiated this large-scale program. The growing national economy demands more and more energy. If there is no energy,

there will be no growth.
Presently the contribution of nuclear stations to the whole energy sector of Russia is just about 16 %. According to the plan of the President, the nuclear power plants have to produce already a quarter of the whole electric power of Russia by 2020.

And further the atomic energy industry share will reach 30 %.
For tod ay it is

a strategic task. Constructors of Beloyarsk NPP 4th block near Yekaterinburg felt that.

Recently its major elements arrived at last. These are storage containers for sodium, liquid metal, which in this reactor is used as the heat-carrier.

Now construction will speed up.

Valery Lushin, the chief of assembly industrial department of Beloyarsk NPP 4th block, says, “This stage is important because it is the first large equipment of the reactor.

We have brought a container of sodium, a drain container of sodium and the second container we will assemble”.

Safety and reliability of nuclear reactors must be above suspicion. According to Kirienko during last 5 years there have not been registered any deviations from the standards of the international scale of safety for the nuclear power plants at the Russian ones.

The law of state corporation came into force. It is aimed to create conditions for development of nuclear branch and its modernization.

The new corporation will unite civil and military nuclear complexes of Russia under the sole management. This, according to experts, will allow Russia to defend its interests on the international market more successfully.

And also it will provide financing of scientific researches in nuclear sphere. And nobody has any doubt that Russian scientists of this sphere always have something new.

The probable future of Russian power industry fits in a small suitcase. This is the reduced copy of nuclear installation for production of fuel from water.
Nikolay Kodochigov, the design manager of I.I. Africantov OKB Mechanical Engineering (OKBM), says: “We take water, we use the heat of nuclear high-temperature reactor, and we get hydrogen and oxygen. If hydrogen is burnt, we get water. The circle closed up.

The ecology completely does not suffer at all, and thus, we create the new artificial energy resource”.

By word of mouth everything is simple. Recently it would be called a fantasy. Scientists assure that the reactor is made so, that all processes in it simply stop, if any disturbance. So it is completely safe.

Modular gel reactor with the gas turbine has to produce both current and hydrogen fuel, which in the future may replace oil and gas. The term of project realization is 2017.

Russia and Australia made intergovernmental agreement about collaboration

in area of the use of atomic energy

in peaceful aims.

This agreement bears the signatures of the head of Rosatom Sergey Kirienko and minister for foreign affairs of Australia Alexander Dauner which were made in the presence of the president of the Russian Federation Vladimir Putin and the prime minister of Australia Govarda John.

In addition, the president of Russia and the prime minister of Australia adopted two joint statements, one of which on the questions of change of climate

and energy.
According to the head of Rosatom Sergey Kirienko, “the agreement allows to bring in uranium for processing on the territory of Russia that will not only provide us by raw materials but also will strengthen the competitive advantages of our processing complex”.
The day before Kirienko ruled out “even theoretical possibility” of transmission of uranium to those countries which would use him not in peaceful aims.

“In obedience to this agreement, transmission of uranium to the non-nuclear countries which can use it not for peaceful aims, is even theoretically ruled out”, he emphasized. “Russia never supplies with uranium the countries which do not participate in the mode of non-proliferation, and all international agreements make absolute warranty and rule out the use of uranium not in peaceful aims”, explained Kirienko.

Australia has 40% of world reserves of uranium, and 40% of processing powers are concentrated in Russia.

This week the secretary of state of the USA Condoleezza Rice said that Washington did not have a concern as for “uranium transaction” between Russia and Australia.

“It’s not a problem for us”, she said reminding that Russia even without

that has already powerful nuclear forces.