Alexander Ignatyuk, analyst of Energocapital Investment Group:

 — The time for active promotion of the end products on the worlds markets has come

According to the Kremlin press service information, Russia and the Republic of South Africa signed several trade and economic agreements in the Kremlin on August 5 in accordance with the results of negotiations between the Russian President Dmitry Medvedev and President of the Republic of South Africa Jacob Zuma. In particular, Russian Tekhsnabexport OJSC and South African ESCOM Holdings Ltd concluded a contract for supply of enriched uranium products. The term of the contract is 10 years. The supplies will be commenced in 2001. This Agreement will have made it possible for Russia to occupy 45% of the South African low-enriched uranium market by 2018.

Alexander Ignatyuk, analyst of Energocapital Investment Group:

The long-term contract for supply of uranium products to RSA is another step towards Rosatom turning into one of the largest transnational corporation. Indeed, formation of the company resource base has been almost completed, now the time for active promotion of end products on the worlds markets has come.

Besides, Russian position in the situation with RSA was supported by business reputation Uranium One hold, a strong player at the South African uranium market.

It should be noted that low-enriched uranium to be delivered under the above agreement is equal to 10% of turnover with RSA and it’ll make it possible to expand the Russian presence at the RSA uranium market.

It’s of particular importance in view of the fact that RSA is a high developing country suffering from power shortages and experienced in nuclear power plants operation. In other words, Rosatom has taken a serious step towards possible construction of new NPPs in this state. If RSA resumes expanding the nuclear power program Rosatom will be able to offer parallel funding with dual ownership of the power plants or allowance of credit for construction of Russian NPPs which implies fast return of the Russian investment in the Russian economy.