Martin Shakkum, Chairman of State Duma Committee on Industry, Construction and High Technologies

— Timely and correct restructuring of the nuclear power industry is key prerequisite for its development and strengthening of its positions in Russia and in the world

On Dec 6 the State Duma deputies approved the first reading of the bill “On the Reformation of the Nuclear Power Sector.” The bill was presented by the head of Rosatom Sergey Kiriyenko. The bill regulates property and stock ownership and management relations between organizations of the nuclear power energy complex of the Russian Federation. Some experts have commented on the situation.

“One of the key goals of the bill is to stabilize the structure of the native nuclear power industry so it can efficiently work under market economic conditions. Today, the native nuclear power generating companies operate as both unitary enterprises (enrichment, generation, applied science) and state-owned JSCs (uranium extraction, fuel production, construction). The ownership regime difference between unitary enterprises and JSCs make it hard for the Government to carry out common state development strategy and investment and technical policies. Moreover, unitary enterprises cannot serve as a basis for an effective holding structure similar to the biggest foreign rivals like AREVA, URENKO, Westinghouse-Toshiba,” says Martin Shakkum.

He says that, to some extent, the future structure of Rosatom reminds the hierarchic system of the well-known Soviet Sredmash. On the other hand, the Sredmash hierarchy was based on administrative subordination and did not much need a legal basis, while the future structure of Rosatom will be based on market holding interdependence of the participants in the nuclear industry “pool.”  

Shakkum believes that the reformation of Rosatom is essential for the resolution of the new tasks and problems arising in the sphere. On Oct 6 the Russian Government approved the federal target program “Development of the Nuclear Power Complex of Russia in 2007–2010 and till 2015.”

“This program suggests constructing 10 big NPPs in Russia, i.e. almost redoubling nuclear power generation capacities. In this context, Russia is facing an increasing problem of uranium shortage. The current uranium production can hardly cover the half of the nuclear power industry demand. The shortage is covered due to the Soviet-time reserves. This shortage will keep growing, while the reserves are not limitless. Hence, Rosatom’s key task today is to prospect and develop new uranium fields,” says Shakkum.

That’s why, the timely and correct restructuring of the nuclear power industry is a key prerequisite for its development and strengthening of its positions in Russia and in the world in the face of harsh rivalry by foreign transnational corporations.