Ekaterina Tripoten’, Sovlink Investment Company Analyst:

 — The new contract is a platform for cooperation in the nuclear power field

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 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 2011. This Agreement will help Russia to occupy 45% of the South African low-enriched uranium market by 2018.

Ekaterina Tripoten’, Sovlink Investment Company Analyst:

The new contract is a platform for extension of cooperation in the nuclear power sphere. The RSA has the only nuclear power plant on the African continent. Supplies of low-enriched uranium are supplies of a high-tech product, rather than simple raw. This contract provides up to 10% of the total trade turnover between our two countries.

The NPP construction in this country, if Russia will manage to get the rights for this project, not only promises further fuel supplies to South Africa, but it will also provide jobs for Russian power mechanic engineers and professionals of the construction sector.

Credit financing of a country in order to carry out construction works is a popular procedure, and if Russia works out this mechanism (that is what Russia is trying to do by negotiating with India on the second stage construction at Kudankulam NPP) it will be able to offer such option to South Africa.