Dmitry Baranov, senior expert of Finam Management

– Borrowing of loans by Atomenergoprom is a justified step

In the autumn 2009 Atomenergoprom OJSC will place a bond loan worth over 100bln RUR, Director General of Rosatom State Nuclear Energy Corporation Sergey Kiriyenko said while speaking at the State Duma. He said that they were considering ways to use the loan for the needs of nuclear companies.

Borrowing of loans by Atomenergoprom is a justified step. First, it can borrow more money than individual companies and on much better terms. Second, it can better control the spending of the funds. Third, Atomenergoprom can lend beneficiary companies exactly as much as they need. Unlike many other industries, the nuclear sector is actively developing despite the crisis. The industry is receiving stable financing. So, here money can be borrowed on better terms.

One more factor that may interest investors is that the money will be spent on modernization and development rather than repayment of debts and payment of wages. That is the money will pay off and even give profit.

The Government is right to spend money on the development of the nuclear industry despite the crisis as the industry is developing. That is, it is a good place for conservative investors preferring to invest against low risks and for long periods. This particular loan will be spent not on one specific project but on the whole complex of activities: from mining of uranium and development and introduction of new technologies to research and contracts in the field of machine building. The latter direction implies support of related industries, which will be good for the whole economy. Even though some of the domestic projects are being postponed, the money may be used under foreign projects. The people who are ready to invest money in the nuclear industry will invest in one of the most promising sectors of the national economy. So, they should consider this possibility.

Note

Atomenergoprom OJSC (Atomny Energopromyshleny Kompleks) is a state holding that is supposed to comprise 89 nuclear companies and to cover the whole range of nuclear services: from uranium mining to NPP construction and electricity production. Atomenergoprom’s companies will have a total of 175,000 employees and an annual production of 200bln RUR (5.5bln EUR). Atomenergoprom is one of the biggest players on the world market: it has a 40% share in the world’s uranium enrichment services, 17% in nuclear fuel production, 8% in uranium mining, 28% in NPP construction (10 reactors). The director of Atomenergoprom is Vladimir Travin, the chairman of the board of directors – Sergey Kiriyenko.