Dmitry Baranov, a leading expert of Finam Management MC:

 — Establishment of the consolidated company between Russia and Kazakhstan will be really very profitable for both the parties.

On July 5 in Astana within the framework of RF President Dmitry Medvedev’s working trip to Kazakhstan General Director of Rosatom State Corporation Sergey Kirienko and President of Kazatomprom NAC Vladimir Shkolnik signed two instruments: the Memorandum on integration and cooperation in peaceful use of nuclear power and the Joint statement on uranium enrichment center project . The Memorandum on integration and cooperation in peaceful use of nuclear power describes step-by-step establishment of a consolidated Russian-Kazakhstan company. It comprises the following statement: “The parties confirm their adherence to integration principles and by taking successive steps aimed at establishment of the consolidated company on a parity basis in the nuclear sphere will try to ensure its positioning at the global nuclear fuel cycle market as a strong joint player and use the market conditions for further integration”. The Memorandum stipulates establishment of the company that will sell natural and low-enriched uranium and other products and services of their joint enterprises to final consumers as the first step towards establishment of the consolidated company. It is emphasized in the Memorandum that “integration process of nuclear power industry of Kazakhstan and Russia is considered by the parties as means of joint participation in the process of global redistribution of spheres of influence at the world market of nuclear fuel cycle via forming international alliances”. By signing of the Joint statement on uranium enrichment center project the parties confirmed their intention to develop the project of establishment Uranium Enrichment Center in the territory of Russia by means of participation of the Kazakhstan party in the capital of Ural Electrochemical Integrated Plant (UEIP). The instrument confirmed the principle of agreed sales and marketing policy pursued by the parties –the parties agreed to sign the Agreement on uranium enrichment center project marketing policy within 2 months.

Dmitry Baranov, a leading expert of Finam Management MC:

This event is indeed very important both for our country in particular and generally for stabilization and development of relations between Russia and Kazakhstan. The two countries are gradually approaching the establishment of a consolidated company in the nuclear sphere to be the leading player at the global market of nuclear fuel cycle and they mean to use the market conditions for further integration. Establishment of Russian-Kazakhstan entity that will sell natural and low-enriched uranium and other products and services of their joint enterprises to final consumers is the first step towards establishment of the consolidated company. Apart from fulfillment of organizational tasks this entity will give an option of getting considerable budgetary recharge of Russia and Kazakhstan, ensuring development of domestic nuclear power industry, preservation of their competitive advantages as compared to other countries and keeping pace with the world technology leaders.

Establishment of the consolidated company between Russia and Kazakhstan will be really very profitable for both the parties. It’ll not only cement political, economical and social ties between our states but promote them for a new level, give them impulse for development. Kazakhstan assisted by Russia will be able to strengthen its position among the leading world players in the nuclear power industry, establish high-tech production facilities that will replenish the republic budget, new vacancies will appear, power supply problem of the republic will be solved. As for Russia, it can use uranium deposits of the republic not only to supply fuel to the future NPP in Kazakhstan itself and to the world market but to Russian NPPs as well.

It is safe to say that the process of integration and interaction between Russia and Kazakhstan in the nuclear sphere will continue for the mutual benefit of the two states and their people.

Reference: On December 7, 2006 the parties signed the Integrated program of Kazakhstan – Russian cooperation in peaceful use of nuclear power. On November 20, 2009 Roadmap of supplementary measures for implementation of this Integrated program was signed.