03.07.2007 // Rusnovosti.ru

Interview of Head of Rosatom Sergey Kiriyenko to 107 Minutes program of Russian News Service

Rustam Arifjanov: I am Rustam Arifjanov. And today our guest is the Head of the Federal Agency for Nuclear Energy Sergey Kiriyenko. Good evening, Mr. Kiriyenko.

Sergey Kiriyenko: Good evening.

R.A: The leading story today is, certainly, the meeting of Vladimir Putin and George Bush in the United States. Perhaps, this is one of their last meetings as presidents. People say they are friends; perhaps, they will meet afterwards but no longer as presidents. Political experts, including people from the accompanying delegations, say that the key topics of the meeting are Kosovo, ABM problems and also nuclear power engineering. What do you think, will they discuss this subject or not? Have you prepared anything for discussion?

S.K.: I think everything is possible. In any case, nonproliferation of nuclear weapons is a priority for both presidents. This concerns the Iranian nuclear program, but not only. The Iranian nuclear program is the first precedent, but I am afraid — not the last. Today, more and more countries are beginning to say that they are going to develop nuclear power engineering in their territories. But, unfortunately, today’s nuclear power technologies have a birthmark, a kind of birth injury: they are all of double purpose. Uranium enrichment and nuclear waste treatment technologies can help you produce not only peaceful nuclear energy but also nuclear weapons. In Jan 2006 President Putin suggested a way to prevent this possibility. President Bush appeared with a similar initiative a month later, in Feb 2006. Today, we all are trying to integrate these initiatives. So, I think that the presidents may well discuss possibilities of cooperation in nuclear power engineering: how to make nuclear energy accessible to all countries, but, on the other hand, how to guarantee the safety of the world. Let’s wait a bit and see.

R.A.: I think you know much already, don’t you? I am just back from Kazakhstan. People there are widely discussing the international uranium enrichment center, the project you are planning in Angarsk, Irkutsk region. They say that Kazakhstan will have a 10% stake in the authorized capital of that center. Who else? Russia — 90%, Kazakhstan – 10%…

S.K.: Yes, this project has two founders and I think this is right. This is the project of Russian President Vladimir Putin and Kazakh President Nursultan Nazarbayev. This is their joint project as President Putin was the first to mention the center – he did it at the EurAsEC summit in St.Petersburg last year – while President Nazarbayev was the first to actively support his initiative. So, it is the joint initiative of Russia and Kazakhstan. Today, Russia has a 90% stake in the center, Kazakhstan – 10%. They are the two founders of the center. And now that the center has been founded – the inter-governmental agreement was signed in May during Putin’s visit to Kazakhstan, the incorporation documents were signed last week – we are ready to admit any country wishing to take part in this project. Do we have requirements? Yes, we do. That country should be ready to develop nuclear power engineering but should also be committed not to create double-purpose technologies in its territory. I mean uranium enrichment. If it agrees, it is welcome to come and buy a stake in our center. We took 90% not to keep it but to have what to sell. We plan that each potential buyer will be able to get 10%, at most.

R.A.: Do you already have buyers or is it a secret?

S.K.: At least, two countries have already said that they wish to join the project and are already starting to prepare documents: Armenia — the Armenian President has said that Armenia is ready to join the international center and we are already preparing necessary documents – and Ukraine – their delegation visited Angarsk just 10 days ago and they also said that Ukraine wants to be in the project. We are planning to complete this process this year. There are 3–4 more countries who want to join, but this is a political decision and we are waiting for their governments to say it officially. We are open without any restrictions.

R.A.: I am not sure if my next question is political or not. I try to avoid political questions but once you mention nuclear energy you go into politics. Concerning Ukraine. You have just come back from France, where you have agreed with Alstom to set up a joint venture. You are going to produce turbines we have never produced before. But, if I am not mistaken, such turbines were produced in Ukraine, in Kharkiv. So, why haven’t we agreed with our brothers Ukrainians?

S.K.: You are not mistaken. But, to be more precise, they produced similar but not the same turbines. Today, we want to work with the best. Alstom is one of the best in the low-speed turbine production, they have the most advanced technologies. It is the first time we have got such technologies. We are not buying a finished turbine, we are importing the best available technologies and are setting up a production in Podolsk. We will have controlling interest in that company: Rosatom – 51%, Alstom – 49%. It means that everything will be here in Russia: tax revenues, investments, new jobs. It will be a Russian turbine produced on the basis of the best existing technology in the world.

R.A.: You mean that you have preferred the French because they are better than the Ukrainians?

S.K.: First, because they are better. But, to tell the truth, we tried to agree with Ukraine some 1.5 years ago. I even went there last spring. But, at that moment, the Ukrainian authorities had made no decision on the future of Turboatom. We needed high-quality turbines, and, in order to comply with our criteria, that plant needed serious investments. Today, the situation has drastically changed: Ukraine is forming a concern Ukratomprom and we already have excellent relations with them. So, we will try to involve Turboatom in our program: they might supply components. Perhaps, you are right: had Ukraine been ready for such a project a year ago, we would probably have no need to set up a JV with Alstom.

But we already have this project and we will develop it. We can’t wait. We have a very serious presidential program: from this year on, we should start launching, at least, two new reactor projects a year. So, we had to choose. We have Power Machines company. They are our good partners. But, first, they do not produce low-speed turbines and, second, you can’t negotiate prices and terms when you have just one producer. Today, we have Power Machines, a JV with Alstom and partnership with Turboatom, we are ready to cooperate with the latter but on a bit different terms. Today, we have got an excellent opportunity to set up a JV. Last year we offered Ukraine the same – to set up a JV here – but they said that they would work at their own plant only. They refused, Alstom agreed and it was certainly better for us.

R.A.: Mr. Kiriyenko, you are so busy now, everything is boiling and seething in your industry. Suddenly, you have decided that you need more NPPs. Suddenly, you have decided to build a JV with the French rather than with the Ukrainians. What is going on? Is there something wrong with our other energy sectors?

TO BE CONTINUED

                                                                                                  Interview by Rustam Arifjanov, Russian News Service