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Russian corporate fusion continues

Wednesday, 14 November 2007

More steps were taken this week in the restructuring of Russia's entire nuclear industry. Shares in dozens of companies were transferred to new champion AtomEnergoProm, while a bill to create a nationwide umbrella company was approved.

A bill was approved by the Duma on 13 November which would create a state company named Rosatom (the same name as the existing Federal Atomic Energy Agency). The bill is to be reviewed by the Federal Council before submission to President Vladimir Putin in December.

The new Rosatom company would assume many of the roles currently taken by the existing Rosatom agency, overseeing the commercially-focused nuclear power industry as well as Russia's extensive military complexes. As a company, the new Rosatom will hold shares in AtomEnergoProm and the state enterprises currently owned by the Rosatom agency. It would also control some scientific organizations and nuclear safety and radiation authorities.

Meanwhile, consolidation of the commercial nuclear industry into AtomEnergoProm has continued. The gigantic new company now holds 100% of the shares of 12 firms and controlling stakes in five more. In total it holds stock in 34 different entities including TVEL, Tenex, Atomredmetzoloto, Sevatomenergoremont, Mospromtekhmontazh Mosspetsatomenergomontazh, Tsentroenergomontazh, Energospetsmontazh, Sevkavenergomontazh, Atomspetskonstruktsiya, the OLenKur Sports Center and RFNC-VNIIEF Catering.

Some 55 more entities are to be added to AtomEnergoProm's books. These will be joint stock companies to be formed from state concerns following an upcoming presidential decree.

The result will be the largest nuclear company in the world, which will research, design, build, operate, maintain and decommission nuclear power plants while mining, converting, enriching and fabricating nuclear fuel for them in Russia and abroad.

Further information

Federal Atomic Energy Agency (Rosatom)

WNA's Nuclear Power in Russia information paper

WNN: AtomEnergoProm appointments
WNN: AtomEnergoProm established, board named
WNN: Putin signs AtomEnergoProm decree