Denis Demin, investment analyst, Deputy Managing Director of Lenmontazhstroy IC

– The results of 2008 are quite positive

State Atomic Energy Corporation «Rosatom», the sole shareholder of JSC Atomenergoprom, approved Atomenegroprom’s 2008 annual report and accounting statements.  The annual report structure meets the requirements of the Federal Financial Risks Service, includes information directly related to JSC Atomenergoprom and does not contain consolidated financial data for subsidiaries and affiliates. The Company’s annual report is available at www.atomenergoprom.ru.

The results of 2008 are quite positive. Atomenergoprom was quite active both in the framework of the national program and on the international markets. The holding is actively optimizing its industrial-corporate structure. The very decision to form Atomenergoprom was aimed at attaining synergy and efficiency and the first results of this step can already be seen. As any big company embracing dozens of enterprises and constantly enlarging its presence, Atomenergoprom will continue to face certain management risks. Monopoly control over suppliers and contractors can help Atomenergoprom to enhance its current efficiency but its policy to bring them all under one owner may prove quite expensive in the longer run. There are enough anti-monopoly laws to help the holding to effectively fight abusive monopolists and the consolidation instrument should better be left for control of cash flows.

In 2008 Atomenergoprom strengthened its positions on the market due to favorable economic conditions in the first half of the year. This year the energy production may drop a bit following the decline in energy consumption. But, in any case, the cheap energy of NPPs will be in high demand among manufacturing and power companies and will help Atomenergoprom to increase its share on the home market in the coming years.

Atomenergoprom is no less active on the foreign markets. Presence on the international markets of raw materials, technologies and engineering services is an essential prerequisite for high competitiveness in the world.

For the moment, it is economically more expedient for Atomenergoprom to carry out external activities as internal activities still depend on huge capital investments.