Vasily Konstantinov, Vice President of TVEL OJSC

– The terms of this contract benefit both companies

TVEL OJSC and NNECG Energoatom have signed a contract for supply of nuclear fuel to Ukrainian nuclear power plants in 2009. The companies have signed such contracts each year for 12 years already. The peculiarity of this year’s contract is that part of the fuel will be produced with the use of Ukrainian uranium.

The terms of this contract are beneficial for both companies. They not only preserve the commercial nature to the cooperation between TVEL and Energoatom but will also pave the way for a new long-term contract to be implemented after 2010. During the meeting the parties discussed the key parameters of their new contract so as to sign it, presumably, in the next few weeks. 

Besides, the parties exchanged views concerning the project to set up a joint production of nuclear fuel based on Russian technologies. This project is being carried out by TVEL in cooperation with Ukrainian partners. It reflects the commitment of both parties to cooperate effectively on a long-term basis. It should be noted that the production will be located in the territory of Ukraine. This will not only solve the problem of production of fuel assemblies for the Ukrainian nuclear power plants but will also help Ukraine to resolve a number of social problems by creating new jobs.
 
Note

During a meeting in Moscow today President of TVEL OJSC Yuri Olenin and President of NNECG Energoatom (Ukraine) Yuri Nedashkovsky signed a contract for the supply of nuclear fuel to Ukrainian nuclear power plants in 2009. Part of the fuel will be produced with the use of Ukrainian uranium.

In the near future TVEL and Energoatom are planning to sign a long-term contract for supply of nuclear fuel to Ukrainian nuclear power plants after 2010.

Olenin and Nedashkovsky also discussed the possibility of building in the territory of Ukraine a joint venture for production of fuel assemblies of Russian design. This is required by the long-term fuel supply contract.

The companies have signed such contracts each year for 12 years already.

The cooperation of TVEL OJSC and NNEGC Energoatom was established in 1996, when TVEL won an international tender for supply of nuclear fuel for WWER reactors of Ukrainian NPPs. IN 1997 the parties concluded contracts for delivery of fuel assemblies till 2010, inclusive.

TVEL Corporation is one of the world’s leaders in nuclear fuel production. It is part of Atomenergoprom OJSC, an integrated holding consolidating the civil assets of Russia’s nuclear industry. TVEL supplies nuclear fuel to 74 reactors of different types in Russia and 14 countries of Europe and Asia. The fuel manufactured by TVEL is used by nuclear power plants of Armenia, Bulgaria, Hungary, Germany, China, Lithuania, the Netherlands, Slovakia, Ukraine, Finland, the Czech republic, Sweden, Switzerland. In fact, each 6th reactor in the world uses fuel fabricated by TVEL. The Corporation also supplies nuclear fuel for 30 research reactors in Russia and abroad and to ship reactors of the Russian Navy.

NNEGC Energoatom is the key nuclear operator of Ukraine. It was set up Oct 17 1996 by the Cabinet of Minister and is subordinate to the Ministry of Fuel and Energy of Ukraine. Four nuclear power plants, ARS, «Atomkomplekt», «Scientific and Technical center», «Atomenergomash» and «Administrative department» are the separated entities (structural units) of NNEGC Energoatom. In line with the Law of Ukraine «On Nuclear Energy Utilization and Radiation Safety» Energoatom is entrusted with the functions of the operating body in charge of all Ukrainian NPPs. Besides, Energoatom is engaged in construction of new power units and rehabilitation of those in operation, purchase of the fresh (new) nuclear fuel and removal of radioactive waste, establishing the national infrastructure of spent fuel and radioactive waste management, physical protection of nuclear facilities, retraining, qualification upgrading, resolution of the social problems of the employees, etc.