Dmitry Kumanovsky, Head of Analytical Department of Lenmontazhstroy IC:

 — The increasing competition in the nuclear power industry is forcing Russia to fight for new contracts in a more active way

On August 20, Russia and Armenia signed an intergovernmental agreement on cooperation in the construction of nuclear power units in Armenia. The agreement was signed following the results of negotiations of Russian President Dmitry Medvedev and his Armenian colleague Serzh Sargasyan in Erevan.

Dmitry Kumanovsky, Head of Analytical Department of Lenmontazhstroy IC:

The delivery of the intergovernmental agreement on the construction of a nuclear power unit in Armenia once again proved the decision of Rosatom State Corporation to become a large participant of the global nuclear market, which can offer integrated solutions including production and installation of all large plant units (reactors, turbines and NPP equipment) as well as personnel training.

This shall increase the diversification of Rosatom activity and decrease the dependence on electric power production in Russia; the spread of Russian technologies will give opportunity to raise money at the most profitable markets of NPP service maintenance, fuel supplies and disposal.

The increasing competition in the nuclear power industry is forcing Russia to fight for new contracts in a more active way, by means of top level political arrangements and methods of economic assistance.

That is why the creation of a joint venture with Armenia for the NPP construction, co-financing (20% on each party) and cooperative search for investors for the rest 60% will significantly reduce Russia’s risks and at the same time will create a base for penetration of Russian businesses to Caucasus and closer integration with Russia in economic and political spheres.