AtomEnergoProm decree in final stages
Tuesday, 17 April 2007
World Nuclear News has learned that a draft of a presidential decree to create Russia's vertically integrated giant, AtomEnergoProm, is in the final stages of preparation. President Vladimir Putin is expected to sign the document in coming days.
After consulting senior Moscow sources, World Nuclear News has learned that a draft of a presidential decree to create Russia's vertically integrated giant, AtomEnergoProm (AEP), is in the final stages of preparation.
The draft has been agreed by the Russian government, and President Vladimir Putin is expected to sign the document in coming days. The new firm could operate by the end of this year.
As Russia gains acceptance as a market economy, its nuclear industry remains a significant resource not yet fully market oriented. Putin seeks to solve this through the creation of AEP as the amalgamation of the country's most significant nuclear enterprises, principally:
Alexey Grigoriev of Tenex, attending the World Nuclear Fuel Cycle 2007 conference in Budapest, explained to World Nuclear News that AEP will be a vertically integrated holding company for the various 'daughters', the top level of which would be the companies listed above. At the level below would be the daughters' individual subsidiaries. AEP would also be a JSC rather than a traditional state-owned enterprise. This distinction would be very strongly written in the decree.
The head company will fully belong to the state, as well as its 'daughters'. However, for the daughters' subsidiaries - the 'granddaughters' - private ownership will become possible.
Under this arrangement investment should be more attractive to other Russian businesses as well as those abroad, and officials hope this will help spur AEP to achieve Putin's targets for nuclear's share of electricity to grow to 25% or 30% by 2030.
"For example, private investors may well be involved in uranium extraction," said Sergei Kiriyenko, head of the Federal Atomic Energy Agency (Rosatom). He added that the first example of a private company cooperating profitably with an AEP daughter is the joint venture deal between AEM and Alstom to supply the non-nuclear turbine generator part of future nuclear plants.
Legislation was changed in February to allow certain entities other than the Russian state to own nuclear materials. One of the next steps in the development of AEP will be the compilation of a list of companies able to own those materials for civilian nuclear power purposes. Another thing very strongly written in the draft decree is that the President would have control over the list. Much work lies ahead for officials in checking the completeness, fairness and necessity of companies listed, as this list will be a major part of a simultaneous change occurring in the Russian nuclear industry: the clear separation of the civilian nuclear power sector and the military defence complex.
The creation of such a giant would certainly mean changes in the global market balance. AEP will have the distinction of encompassing the full nuclear fuel cycle, nuclear design and construction and engineering, and the key business of power generation itself.
Grigoriev concluded that AEP would not have the pretense of ambitions for a very big share of the world's competitive nuclear market, simply an equal position - in line with the other main market players.
Further information
WNA's Nuclear Power in Russia information paper
WNN: Alstom forms joint venture with Russia's Atomenergomash
WNN: Russia aims for 20% of world construction market
WNN: Putin approves nuclear industry reform bill
World Nuclear News has learned that a draft of a presidential decree to create Russia's vertically integrated giant, AtomEnergoProm, is in the final stages of preparation. President Vladimir Putin is expected to sign the document in coming days.The draft has been agreed by the Russian government, and President Vladimir Putin is expected to sign the document in coming days. The new firm could operate by the end of this year.
As Russia gains acceptance as a market economy, its nuclear industry remains a significant resource not yet fully market oriented. Putin seeks to solve this through the creation of AEP as the amalgamation of the country's most significant nuclear enterprises, principally:
- AtomEnergoMash (AEM), nuclear power plant construction.
- AtomStroyExport (ASE), nuclear power plant construction abroad.
- Rosenergoatom, nuclear power operations.
- Technabsexport (Tenex), uranium extraction and enrichment.
- TVEL, uranium extraction and nuclear fuel production.
Alexey Grigoriev of Tenex, attending the World Nuclear Fuel Cycle 2007 conference in Budapest, explained to World Nuclear News that AEP will be a vertically integrated holding company for the various 'daughters', the top level of which would be the companies listed above. At the level below would be the daughters' individual subsidiaries. AEP would also be a JSC rather than a traditional state-owned enterprise. This distinction would be very strongly written in the decree.
The head company will fully belong to the state, as well as its 'daughters'. However, for the daughters' subsidiaries - the 'granddaughters' - private ownership will become possible.
Under this arrangement investment should be more attractive to other Russian businesses as well as those abroad, and officials hope this will help spur AEP to achieve Putin's targets for nuclear's share of electricity to grow to 25% or 30% by 2030.
"For example, private investors may well be involved in uranium extraction," said Sergei Kiriyenko, head of the Federal Atomic Energy Agency (Rosatom). He added that the first example of a private company cooperating profitably with an AEP daughter is the joint venture deal between AEM and Alstom to supply the non-nuclear turbine generator part of future nuclear plants.
Legislation was changed in February to allow certain entities other than the Russian state to own nuclear materials. One of the next steps in the development of AEP will be the compilation of a list of companies able to own those materials for civilian nuclear power purposes. Another thing very strongly written in the draft decree is that the President would have control over the list. Much work lies ahead for officials in checking the completeness, fairness and necessity of companies listed, as this list will be a major part of a simultaneous change occurring in the Russian nuclear industry: the clear separation of the civilian nuclear power sector and the military defence complex.
The creation of such a giant would certainly mean changes in the global market balance. AEP will have the distinction of encompassing the full nuclear fuel cycle, nuclear design and construction and engineering, and the key business of power generation itself.
Grigoriev concluded that AEP would not have the pretense of ambitions for a very big share of the world's competitive nuclear market, simply an equal position - in line with the other main market players.
Further information
WNA's Nuclear Power in Russia information paper
WNN: Alstom forms joint venture with Russia's Atomenergomash
WNN: Russia aims for 20% of world construction market
WNN: Putin approves nuclear industry reform bill
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