SECTION 4. MINATOM'S ACTIVITIES IN RUSSIA AND AT THE INTERNATIONAL SCENE

1. Russia Reports Progress in Removing Nuclear Fuel from Decommissioned Submarines (ITAR-TASS, 27 September 2001)

    The Russian navy has decommissioned a total of 183 nuclear submarines at the end of their service life. Sixty per cent of the nuclear submarines destined for scrap are in Murmansk and Archangel Region. At the same time, "radioactive nuclear fuel has not been removed from 80 per cent of the submarines that retain but are gradually losing their buoyancy to corrosion." This warning was given by Nina Yanovskaya, director of the Russian Atomic Energy Ministry's inter-sectoral coordinating scientific and technical centre for nuclide production (ICC Nuclide) at today's St Petersburg conference, entitled "Radiation safety: ecology and nuclear power."

The Russian Atomic Energy Ministry has adopted a strategy for speeding up the removal of nuclear fuel from reactors on submarines that are so dilapidated they have only low buoyancy. In 1999, Nina Yanovskaya said, nuclear fuel was removed from eight reactors in the Russian north and Far East. Last year nuclear fuel was removed from 16 submarines and the programme for removing it from another two "went on into 2001." This work will have been done on 21 nuclear submarines by the end of this year. It is necessary to maintain this level in order to complete unloading the reactors of all the Russian navy's decommissioned nuclear submarines by 2007, the ICC director said in conclusion. (http://www.itar-tass.com/)

2. Unified Electrical Systems (UESR): "It Is Not Our Duty to Support the Nuclear Energy Industry" (Bellona Foundation, 28 September 2001)

    Last Friday, the Russian Deputy Prime Minister Victor Khristenko presided over a meeting on organising the Administrator for the Trade System (ATS) into the wholesale market of electric power. A compromise was reached during the meeting between the company Rosenergoatom, controlling all nuclear power plants in the Russian Federation, and the Russian joint-stock company Unified Electrical Systems (UESR).

The compromise involves that UESR will have 50% of the votes in the Supervisory Council. 50% is less than UESR asked for (about 80%), but it is higher than the ATS regulation, prepared by Rosenergoatom, required (25%).

The paperwork required to launch ATS should be completed in two months, and it is not clear whether the armistice between the energy jumbos will be sustained.

Today UESR covers 80% of the electric power market (the Federal Wholesale Market of the Electric Power (FOREM)). T he remaining 20% belong to Rosenergoatom).

In the beginning of September, Rosenergoatom stated that UESR, controlling 75% of the Russian energy infrastructure, limits the access of "cheap electric power from nuclear power plants to the wholesale market." The company's representatives also accused UESR of hampering Rosenergoatom's export of electricity to Georgia and Ukraine.

In an interview with Bellona Web, the head of the UESR press service, Yury Melikhov, said:

"The company [Rosenergoatom] intentionally reduced the grid capacity for its nuclear power plants in order to raise the prices on electricity later. As concerning their threats, we are sure that they will not go to court, despite of the harsh PR-campaign . Furthermore, Rosenergoatom, when realising the futility of their claims, withdrew the plea that we allegedly hampered nuclear energy export to Georgia and the Ukraine. As to the accusations, they are far-fetched and baseless. It is necessary to remember that it is not UESR's duty to sustain the production of nuclear energy."

On the other hand, Rosenergoatom officials say they were not aware that the repairs on several power plants would be finished ahead of schedule, and consequently producing more kilowatts of energy than what was expected. The company's officials also said that they substantially assisted the thermal stations in saving large amounts of fossil fuel.

The energy production plan for the nuclear power plants for the last quarter of 2001, approved last week, suggests a production of 41,2 billion kWh. That is 3,1 billion more than the original plan provided by the government in May 2001.

In compliance with the agreement between Rosenergoatom and RWE Trading GmbH (Germany), the supply of electricity to Georgia was supposed to begin in July 2001, but UESR refused to provide grid management services and energy transport.

Mr. Melikhov explained that the conflict began when Rosenergoatom failed to meet the requirements given by the export legislation. UESR says that the governmental decree issued 12.07.96 N793 stipulates that the energy export can be carried out only by UESR or by the de facto non-existing Ministry for the Foreign Economical Relations.

On September 8th, shortly before the negotiations on creating ATS, the government approved Rosenergoatom reorganisation. In particular, Leningrad Nuclear Power Plant, being earlier in direct subordination to the Ministry for Nuclear Energy (Minatom), joined the concern.

There is a great probability that Rosenergoatom slowly will transform into a giant. RBC news agency reported that on September 25th, Ashot Madoyan, the director of the Research Institute for Ecological Problems of Energy Industry, said that the new structure of the company will comprise, apart from the Russian nuclear power plants, also the Armenian nuclear power plants. The Armenian nuclear power plants will become "half Russian." Mr. Madoyan said that the respective decision was taken at the intergovernmental level. He pointed out, that this way Armenia would partly pay off its national debt to the Russian Federation. (http://www.bellona.no/)

3. Russia To Resume Building Ural Nuclear Plant In 2004 After Two Decades On Hold (Interfax, 3 October 2001)

    The construction of the South Urals nuclear power plant, which was phased out in 1987-1989, will be resumed in 2004 rather than in 2005, as was originally planned, General Director of the plant Vladimir Morozov has told Interfax.

The construction will be financed completely from the federal budget, and its resumption was pushed forward after the Russian Atomic Ministry amended the programme of the development of the atomic industry sphere for the period up to 2015, the general director said.

The South Urals nuclear plant is to be put into operation before 2015, Morozov said. The midterm programme up to 2005 envisions the commissioning of the Kursk and Kalinin nuclear power plants.

The South Urals nuclear plant is to consist of three 800-mWt power units. The projected cost of the construction of the first unit is R2.828bn in 1991 prices, and an estimated cost of building each of the following two units is R1bn. (http://www.interfax.ru/)

4. Atomic Energy Minister Calls On Scientists To Develop Improved Security Devices (RFE/RL, 4 October 2001)

    Atomic Energy Minister Aleksandr Rumyantsev said in an interview published in "Nezavisimaya gazeta" on 3 October that he wants scientists to develop improved tools for the defense against terrorism and that he would like to see Russian and American scientists work together on such projects. (http://www.rferl.org/)

5. Russia Taking Additional Security Precautions At Iranian Reactor Site (ITAR-TASS, 10 October 2001)

    Atomic Energy Minister Aleksandr Rumyantsev told ITAR-TASS on 9 October that the 1,000 Russian workers at the nuclear power plant construction site at Bushehr in Iran are taking extra security precautions in connection with the U.S. actions in Afghanistan, but he stressed that there are no plans to stop the construction at present. "We will have to recall the specialists and ask Iran to delay the contract only if the hostilities broaden and endanger human lives," Rumyantsev said. (http://www.itar-tass.com/)

6. Russian Official Upbeat On Small Nuclear Power Stations' Design (Interfax, 10 October 2001)

    Russia has designs for 35 small nuclear power stations, including 30 on land and five or six floating ones, Aleksandr Polushkin, deputy executive director of Rosenergoatom concern, told Interfax on Wednesday [10 October].

The first 70 MW floating station will most likely be built in Severodvinsk at a cost of 100m-120m US dollars, he said.

The station will be installed in a barge, where a crew of 60 will stay in shifts of four months, Polushkin said. Nuclear waste will also be kept on the barge, he said.

Rosenergoatom is negotiating the construction of the stations with Primorye, Kamchatka and Chukotka authorities, Polushkin said. Private capital will only be allowed to provide repayable credits for the construction, he said.

The licensing of the Severodvinsk construction is to be completed in the first quarter of 2002, Polushkin said. The construction of one such station will take four to five years, he said.

Small nuclear power stations reach the breakeven point in nearly 10 years compared to 14 - 20 years for large stations, Polushkin said. In Kamchatka and Chukotka, small nuclear power stations offset construction costs, he said.

Floating nuclear power stations are guarded as stringently as the large ones, Polushkin said. Rosenergoatom will see to it that all precautions and security procedures are observed, he said.

Terrorists will not be able to penetrate the nuclear power stations' security systems, Polushkin said. (http://www.interfax.ru/)

7. Putin Pleased with Iranian Ties as Moscow Offers Tehran Plans for New Nuclear Reactor (RFE/RL Newsline, 18 October 2001)

    President Putin said on 17 October that Russia is pleased with the development of bilateral ties with Iran, ITAR-TASS reported. The same day, Russian officials presented the Iranian government with a feasibility study for the construction of another nuclear reactor in Iran, Russian and Western agencies reported the same day. (http://www.rferl.org/)

8. Nuclear Waste May Be Transported To Russia This Week (Ecodefence, 18 October 2001)

    Minatom wants to transport spent nuclear fuel from Bulgaria immediately, demonstrates no attention to the terrorism' threat and violates Russian legislation.

Import-export branch of Russian Ministry of atomic power (Minatom), "Tehsnabexport" company, is trying to organize the transportation of high-level nuclear waste from Bulgaria to Russia this week, said ECODEFENSE! environmental group in its statement today. Paying no attention to the threat of terrorism, Minatom sent special train that able to carry spent nuclear fuel to Bulgaria. Presently, train is waiting near Bulgarian Kozloduy nuclear plant for "Tehsnabexport" managers to receive necessary license from Russian nuclear control body Gosatomnadzor (GAN), Health Ministry and other governmental bodies, as well as transit permission from the state of Ukraine. Attempt to organize this transportation is so secret that Minatom did not even ask for the license and permissions in advance.

According to contract, signed by summer 2000 between Kozloduy nuclear plant and "Tehsnabexport", about 41 ton of spent nuclear fuel must be delivered to Krasnoyarsk-26, closed city where the spent nuclear fuel storage is located. Bulgaria must pay about $620 per Kg of spent fuel. Such price was declared "unprofitable" by the previous head of Minatom Evgeny Adamov who claimed Russia can make its profit if the charge for spent fuel storage and reprocessing will be lifted to $1000 per Kg. (http://www.ecodefense.ru/)

9. Russia, India to Sign Nuclear Power Plant Contract in Weeks (ITAR-TASS, 19 October 2001)

    Russia and India will sign a nuclear power plant construction contract late October or early November, Russian Deputy Atomic Energy Minister Yevgeny Reshetnikov told ITAR-TASS in an interview Friday.

Pre-contract negotiations are practically over and nearly all necessary documents have been drafted. The agreement is expected to be signed when a group of Indian specialists visits Moscow, presumably late October, he said. Under a future contract Russia will help India build a nuclear power plant having two water-cooled VVER reactors. One unit is scheduled to go operational in 2005 and the other, in 2006, Reshetnikov said. The Russian Atomic Energy Ministry will provide equipment and selected specialists, while most construction work be done by India on its own.

According to the Russian official, the nuclear power plant will be built on credit. The value of the contract is not disclosed.

According to analysts, construction costs of one reactor may lie within a range of 1.5 billion dollars to 2.5 billion dollars, depending on the region's seismicity, construction site condition and terms of reference. (http://www.itar-tass.com/)