SECTION 4. MINATOM'S ACTIVITIES IN RUSSIA AND ON THE INTERNATIONAL SCENE. DEVELOPMENT OF THE NUCLEAR POWER INDUSTRY

1. Russia To Renew Nuclear Fuel Export To USA (RBC, 27 March 2002)

    The Russian Atomic Energy Ministry plans to restart the export of nuclear fuel to the USA in April 2002, head of the ministry Alexander Rumyantsev declared at a press conference today. He was quoted as saying that during the next month the USA and Russia would sign all necessary documents to renew the export of low-enriched uranium (LEU) to the USA. The agreement envisages exports until the year 2013 with an annual export volume worth $500m. Rumyantsev pointed out that difficulties with exports had begun when the new US administration came to power. However as a result of the negotiations conducted in December 2001-February 2002, the parties agreed on restarting the export.

Rumyntsev said that in 2001 about 5,000 tons of equipment was sent to the Busher nuclear power station in Iran. Moreover, Russia and India signed a memorandum on cooperation in constructing a nuclear power station in India. Additionally, the Atomic Energy Ministry plans to participate in a tender on constructing a nuclear power station in Finland in 2002. The head of the ministry pointed out that the economic growth of the enterprises of the Atomic Energy Ministry in 2001 was 15 to 20 percent more than it was planned. (http://www.rbc.ru/)

2. Russia To Boost Nuclear Power Output 5.6 Per Cent In 2002 (Interfax, 27 March 2002)

    The Russian nuclear energy sector plans to increase its output by 5.6 per cent to 144bn kilowatt hours in 2002, the Atomic Energy Ministry announced on Wednesday.

In 2002 its output amounted to 136.4bn kilowatt/hours, which was 4.7 per cent more than in 2000. (http://www.interfax.ru/)

3. Burying Death (Izvestia, 27 March 2002)

    Only temporary nuclear waste storages exist in Russia today. According to Izvestia, Simushir Island, one of the Kuril Islands, may soon become the first place in the country with a permanent nuclear waste storage center. That desolate and almost uninhabited island is regarded to be a seismic zone. However, scientists believe that there is no better place to bury nuclear waste. (http://www.strana.ru/)

4. US Dismayed By Russia-N.Korea Project (Reuters, 29 March 2002)

    A Russian move to build a nuclear power plant for "axis of evil" state North Korea after already constructing one in "co-axis' Iran could threaten Moscow's improving relations with the United States, a senior U.S. official said on Thursday.

"For the Russians to do this is a very, very bad sign and would add one more burden to the relationship on non-proliferation and one more important topic we've got to get straight with them," he told Reuters.

Russian Nuclear Energy minister Alexander Rumyantsev told a news conference in Moscow on Wednesday Russia would complete a nuclear power plant reactor in Iran despite U.S. opposition.

And, in what would be an expansion of Russian nuclear activities, he said Moscow was also considering a tentative North Korean request for a similar plant.

"Now is it (Russia-Iran nuclear cooperation) enough to derail the (U.S.-Russia) relationship? Not if the Russians don't expand cooperation and proliferation with this and other countries," he said in an interview.

If the status quo holds, "it's possible it would simply be a continuing problem," said the U.S. official, who spoke on condition of anonymity.

However, if Russia "expanded their (nuclear) cooperation ... it would be a big problem," he added.

Rumyantsev predicted the $800 million Iranian plant at Bushehr would be finished in the year 2005.

As for the North Korean project, "We are holding discussions and trying to find out whether it would be economically feasible," he said.

"But these are only discussions without any specific foundation," Rumyantsev added.

If Iran ended its nuclear weapons program, Washington might withdraw its objections to Russia completing the Bushehr power plant. But "that's a big if" to be dealt with only in the future, a senior U.S. official said.

Despite the differences, Rumyantsev told reporters Russia viewed U.S. concerns with "great attention" and hoped for a compromise that could benefit Russia economically.

While non-proliferation concerns may be raised when Bush meets Russian President Vladimir Putin in Moscow May 23-25, U.S. officials said their current focus is on ensuring a harmonious summit that would enshrine an agreement that would slash both sides' offensive nuclear weapons. (http://www.reuters.com/)

5. Russian Atomic Energy Minister Stresses Need for Balanced Power Market (BBC Monitoring Service, 31 March 2002)

    The restructuring of the Russian nuclear industry is going on in parallel with the reorganization of the country's power market. Some industry operators fear that they will not be granted free and equal access to the new power market. However, as Russian newspaper Izvestiya reports, Russian Atomic Energy Minister Aleksandr Rumyantsev says he will defend the industry's interests and is happy with the way negotiations are proceeding with the head of Unified Energy Systems of Russia, Anatoliy Chubays. He also spoke of plans to set up a storage facility for low-level radioactive waste on the seismically active island of Simushir, adding that he thought environmentalists would eventually accept this decision.

The nuclear industry operators had earlier repeatedly expressed indignation over the fact that Anatoliy Chubays' department had discriminated against nuclear-generated electric power. No organizational changes will take place in this area until Russian electric power generation has been restructured, but yesterday Rumyantsev stated that "the nuclear industry operators are living in harmony with Anatoliy Chubays and we are coming to an arrangement that our electric power will also be taken for export. I hope that this year the proportion of our electric power in export deliveries will increase".

Rumyantsev stated that the construction of the storage facility on the island of Simushir is technically perfectly possible: "Because in Japan, as you know, there is also a seismically active zone and everything works fine. We are even prepared to reproduce Japanese technology on Simushir. We might even acquire technologies from Japan and conclude a long-term contract for the construction work. We could, of course, also do this ourselves, but we are prepared to show the world community that we have invited the most experienced people for construction in this zone. It is possible to create on the island of Simushir a storage facility for low-level radioactive wastes but not for spent nuclear fuel. And this would be a substantial relief for the economies of South Korea, Japan, Taiwan, and maybe the coastal regions of mainland China. In principle this idea is absolutely correct but the Greens will not let us do this. I have the feeling that they will acquiesce in the construction site there and that will be that." (http://www.monitor.bbc.co.uk/)

6. Russia Approves Draft Nuclear Agreement with Vietnam (BBC Monitoring Service, 1 April 2002)

    The Russian government has approved the draft of an intergovernmental agreement with Vietnam on cooperation in the peaceful use of nuclear energy.

The government information department reports that the Atomic Energy Ministry was instructed to hold talks with Vietnam and sign the agreement on behalf of the government.

In the framework agreement, the sides are expected to cooperate in fundamental and applied nuclear energy research, studies in designing, building and operating nuclear power plants, the safe operation of the research reactor in Dalat, Vietnam, prospecting and development of uranium deposits, handling of radioactive wastes, nuclear safety, and the production and application of radioisotopes. (http://www.monitor.bbc.co.uk/)

7. Russia to Dump Radwaste in Volcano (Bellona, 2 April 2002)

    Atomic Minister Alexandr Rumyantsev announced that Russia would be willing to except low active radioactive waste for permanent burial on a seismically unstable volcanic island in Russia's far eastern Kuril chain from Taiwan.

Speaking in Izvestiya Thursday, Rumyantsev casually said that Russia would be willing to work with Japanese engineers to build on Simushir Island - home to the active 1539 meter Milna volcano - a permanent radioactive waste burial facility that would be capable of withstanding the island's shifting and jarring earth. The volcano is one of several such volcanoes on the island chain located off the northern coast of Japan add south of Kamchatka

Simushir is an uninhabited island except for a periodically staffed weather station, but one administration official, speaking on the condition of anonymity, said, "It would have been appropriate of them to inform us - we have heard nothing."

"Society is far from informed on these matters and so is not prepared to make any judgment on the issue but panicked gossip," said Minatom spokesman Yury Bespalko in a telephone interview Monday.

"These are top people - Russian and Japanese teams - working to assure the safety of this endeavour. The Japanese have experience with storing waste under favourable seismological circumstances. But we are building more than a metro tunnel here, so it will be beyond the grasp of most people."

Later in the interview, Gagarinsky [press officer of the Kurchatov Institute] backed off slightly, and admitted that designs for permanent waste storage in the Kuril Island chain had been considered. When asked if those plans are materializing, he said "The Kurchatov Institute supports the notion of a permanent waste storage facility - be it somewhere else in Russia or in the Kuril islands." (http://www.bellona.no/)

8. Russia's Nuclear Power Sector Set to Expand (BBC Monitoring Service, 2 April 2002)

    The Russian Ministry of Atomic Energy is planning to build nuclear power stations in Russia with a total capacity of about 40 GW, and abroad with a total capacity of up to 10 GW, by the year 2020. By the year 2010 power generation at already functioning nuclear power plants will increase from 22 GW to 30 GW, officials of Rosenergoatom [state-run atomic energy concern] said today at the Russian Fuel and Energy Complex forum, which opened in St Petersburg.

If the share of atomic power stations in the total generating capacity of Russian power plants does not at present exceed 11.5 per cent, then by 2010 it will rise to 20 per cent, and then to 28-30 per cent.

Investments in the construction of new nuclear power plants up to 2010 will total R250bn, while R160bn will be invested in the reconstruction of existing power units and the extension of their service lives, the Rosenergoatom officials noted. (http://www.monitor.bbc.co.uk/)

9. Russia to Loan 45m Dollars to Ukraine for Nuclear Power Plants (BBC Monitoring Service, 10 April 2002)

    Russia will loan 45m dollars to Ukraine this year to let it finalize the construction of the Rivne and Khmelnytskyy nuclear power plants, Russian Prime Minister Mikhail Kasyanov said after talks with his Ukrainian counterpart Anatoliy Kinakh on Wednesday [10 April].

The loan will be used to finance last equipment supplies and the final phase of building work, Kasyanov said. (http://www.monitor.bbc.co.uk/)

10. Russia Considers Second Bushehr Reactor (UPI, 11 April 2002)

    The good news from the Moscow visit of Iranian Foreign Minister Kamal Kharazi is that Russia has decided not to sell Iran three more nuclear reactors. The bad news is that Russia's Atomstroieksport group has opened negotiations to sell a second, to be built alongside the controversial Bushehr reactor that Russian technicians are supposed to complete early in 2005. Russian sources say that President Vladimir Putin personally vetoed to the Iranian request for the three extra reactors. On the shore of the Persian Gulf, near the port of Bandar Abbas, Bushehr is to be protected by a dense network of anti-aircraft and anti-cruise missile defenses for fear of Israeli pre-emptive strikes, similar to the 1981 attacks that destroyed the Iraqi reactor at Osirak. (http://www.upi.com/)