Vasily Konuzin, analyst of Alemar IFC

– Today Rosatom is the biggest consumer of Russia’s machine building industry

In 2009 the financing of the production of equipment for nuclear reactors at St.Petersburg plants will total 20.2bln RUR, Director General of Rosatom State Nuclear Energy Corporation Sergey Kiriyenko said while visiting Baltiysky Zavod in St.Petersburg Apr 21 2009. The amount of contracts concluded with seven machine building companies of St.Petersburg in the last three years totaled 94.4bln RUR: 1.3bln RUR was paid in 2007, 12.8bln RUR in 2008. Kiriyenko said that in the future the financing will be increased as Rosatom needs additional equipment for its nuclear power plants.

This very big money. It can be compared with the investments of the Federal Network Company (20bln RUR). Rushydro’s investments are much smaller – 8bln-10bln RUR.

Today, Rosatom is the biggest consumer in Russia. For example, in late 2008 the amount of contracts of Power Machines was $3.24bln, of which 60% (45bln RUR) were contracts with Rosatom and the rest – contracts worth no more than 3bln RUR each.

The construction of one unit of a thermal power plant costs 20bln RUR but our power generating companies prefer placing orders abroad. For example, OGK-2 has made a $200mln contract with General Electrics for Sredneural GRES. OGK-1 is cooperating with Siemens on the 1st unit of Perm GRES (16bln RUR), OGK-4 has ordered equipment worth 26bln RUR from South Korea.

The biggest contract our thermal power plants make with domestic companies is 3bln RUR – these are mostly orders for re-equipment. Thus, today Rosatom is the biggest consumer of Russia’s machine building industry.