Nikolai Podlevskikh, Head of analytical department of IC “ZERICH Capital Management”:

 — Armenia will get money’s worth and obtain reliable sources of energy

On July 29 in Erevan the Armenian government meeting was held which approved conclusion of the agreement with the Russian government “On Cooperation in Construction of New Nuclear Power Units in the territory of Armenia”.

Nikolai Podlevskikh, Head of analytical department of IC “ZERICH Capital Management”:

The contacts between Russia and Armenia after the collapse of the USSR have always been rather close. Apart from purely economic cooperation the parties are connected by military and strategic partnership. Armenia has rather close relations with the USA too. There is a strong Armenian expatriate community in the USA, and in recent years the USA-Armenian interaction has become more active. But it will be the Russians who will construct the NPP.

The VVER units of 1,060 mW being erected by Russia are reliable and time-tested units with the competitive value of the ultimate cost. In this respect by taking such a decision Armenia will get money’s worth and obtain reliable sources of energy.

The Russian party will have the opportunity to profit both by the power unit construction and its operation and nuclear fuel import. In case of long-term operation the second and the third constituents of the earnings may exceed the profit from the construction. Besides, there is another long-term advantage, namely, maintaining the position at the market and closer relations with the Armenian power system.

Power unit construction has not only a major economic constituent but also a significant political component. It is our belief that after the events that happened two years ago the USA position in Transcaucasia has become much weaker whereas the Russian position has consolidated. An additional point is that the second strong player of the region — Turkey – has recently taken the position independent from USA and is becoming closer and closer to Moscow. In this respect the preference given to Moscow also seems quite reasonable.