Dmitry Baranov, senior expert of Finam Management

– Contract for purchase of Nukem Technologies by Atomstroyexport has opened a new page in the history of Russian-German relations

NUKEM GmbH, Alzenau, has signed a contract to sell its subsidiary company NUKEM Technologies GmbH to the Russian ZAO Atomstroyexport, the world’s leading uranium trader said in a press release on August 14. NUKEM Technologies is active worldwide in engineering, management of radioactive waste and decommissioning nuclear facilities, and with these activities is “an outstanding match” for the portfolio of Atomstroyexport. The management of NUKEM GmbH is certain that it has selected a viable and strategic future investor for its subsidiary. CFO Dirk Martens said, “Atomstroyexport offers our colleagues in the engineering business the chance to further develop their activities and markets. So jobs at NUKEM Technologies are secured and can be expanded in connection with the global renaissance of nuclear energy.”

The contract for the purchase of Nukem Technologies by Atomstroyexport has opened a new page in the history of Russian-German relations and has confirmed the high level of mutual confidence. Only states trusting each other can sell one another companies engaged in nuclear power engineering. But not only politics matter here. This deal has a very important economic component: Atomstroyexport is Russia’s leader in NPP construction abroad and is interested in enlarging its offer. Nukem specializes in processing radioactive waste and decommissioning nuclear power plants, i.e. it will complement Atomstroyexport’s product line and will give the company additional income.

By purchasing Nukem Technologies, Atomstroyexport has carried forward Rosatom’s strategy to enlarge international cooperation with the world’s leading nuclear companies. Now Rosatom is partner not only to Toshiba and Siemens but also to Nukem. It should be noted that such international ties enhance Rosatom’s chances to get new contracts worldwide as now we can act as key partner for any country wishing to develop own nuclear power plant and can enroll as sub-contractors the world’s leading nuclear companies.

But this deal is important not only for Atomstroyexport. It will allow Nukem to preserve Nukem Technologies and its staff and technologies. The German company will get money for development and access to new markets. Presently, Russia is building five nuclear reactors in different countries and is negotiating for building more. This is a big market and it is certainly attractive for Nukem Technologies in terms of both presence and income.