Yevgeny Shago, Analyst of Ingosstrakh-Investments Management Company:

 — Keep in mind that construction of facilities abroad will create additional demand for the Russian fuel later on.

On July 14 the Turkish parliament ratified the Russian-Turkish agreement on construction of the first NPP in the country. The agreement was signed on May 12, 2010 in Ankara. Russia and Turkey hereunder will cooperate in the field of construction and operation of the NPP in Akkuyu in south Mersin province. After entry of this agreement into effect the Russian party will start the creation of the project campaign. The future NPP capacity is expected to be 4800 mW that is equal to 14% of todays capacity generated by Turkey.

Yevgeny Shago, Analyst of Ingosstrakh-Investments Management Company:

International markets entry makes it possible to develop the home nuclear mechanical engineering which during the 90s and early 2000s was down because of lack of orders and a number of enterprises actually went into liquidation. Thus, if the soviet industry was capable of producing more than 5 reactors per year, now the only enterprise remained, namely, Izhorskiye Zavody, can produce one, after modernization – two reactors per year.

Export also contributes to technologies development, foreign customers, as opposed to Russian, demand modern process solutions making enterprises modernize the equipment and maintain their products at least at the level of French and Japanese competitors which can’t but have an impact on domestic supplies in the future. Keep in mind that construction of facilities abroad will create additional demand for the Russian fuel later on.

The Turkish NPP is designed more for their own purposes than for export. This electric power will be able to substitute the expensive gas generation at the Turkish market and provide opportunities of consumption growth under conditions of rapid economic development.