Dmitry Baranov, senior expert of Finam Management

– Siemens-Rosatom cooperation may have very positive effect for both companies

Rosatom State Nuclear Energy Corporation is ready to pass from one-time projects with Siemens from large-scale partnership in the field of peaceful use of nuclear energy, Prime Minister of Russia Vladimir Putin said during a meeting with Chairman of Siemens Peter Löscher on Feb 3 2009. To remind, last week the Supervisory Board of Siemens decided to sell the company’s 34% stake in German-French Areva NP to the holder of the controlling interest, Areva SA.

Siemens’s secession from Areva NP is bad news for Areva because Siemens’s experience, knowledge and achievements could have made that JV one of the world’s leaders in the field of production of nuclear power equipment. Siemens wanted to actively use its potential, to diversify its activity and to earn more money from it. But its plans failed because of variance with its partner.

Now, Siemens has all chances to make its plans true: it has started to cooperate with Rosatom. Now, having lost a big partner like Siemens, Areva may face serious problems – not only financial but also technological as Siemens had lots of technologies it might offer to the JV. But now these technologies will most probably be used under joint projects with Rosatom.

Possible cooperation between Siemens and Rosatom will have a very positive effect for both companies. By consolidating their strengths they may become the leaders of the world nuclear market and will be able to support and complement each other on different markets.

For example, Siemens can help us to enter Western European markets while we can usher them into the markets of the Middle East, South-East Asia and Eastern Europe. Siemens is interested in Russia because we are actively building nuclear power plants not only at home but also in other countries. This is exactly what Siemens wants (and wanted from Areva) – a more active role on the world market. Russia and Rosatom can offer Siemens such a role. 

The companies will also complement each other technologically: Siemens is strong in production of control and management systems and auxiliary equipment while Rosatom is good at all aspects of nuclear energy production. So, this partnership can make the parties the world’s leaders.