OREANDA-NEWS. September 28, 2011. Fuel Company of Rosatom TVEL (Russia) and the State Concern “Nuclear Fuel” (Ukraine) hereby inform of the intermediate results of the construction project of nuclear fuel plant that is being implemented in Ukraine. It’s almost a year since the project has been launched.

In September 2010 by the decision of the Cabinet of Ministers of Ukraine TVEL, JSC became the winner of the project technology and partner choice competition. In the furtherance of this decision the partners have signed a framework agreement on cooperation and outlined a plan for top-priority events. The Russian company won the competition thanks to the advantage of its proposition in comparison with that of the competitor. In particular, TVEL, JSC offered to transfer all the nuclear fuel manufacturing technologies from nuclear fuel elements filling and fuel assembly to the production of medicine and powder to the joint venture. The Parties can state that currently only one company in the world has a reference and licensed technology to manufacture nuclear fuel for reactors of Russian design. Besides, the Russian partner suggested that the joint venture shall have an access to the partial financing of the project, to duly put production sectors into operation. In addition TVEL, JSC expressed its readiness to instruct the Ukrainian specialists as well as to ensure the qualified production. The Russian Party is ready to provide the plant with uranium enrichment service to the full extent and on a long-term basis. It shall be made on attractive commercial terms.
On the official settlement of the agreements the Parties set about working on the practical part of strategic, scale and infrastructure project implementation. In particular, in June the Parties initialed the documents of incorporation of the joint venture. In July the package of documents was submitted to Anti-Monopoly Committee of Ukraine for the joint venture registration issue in Ukraine to be agreed upon. The conciliation process is currently at the finishing stage. To ensure that the registration meets the deadline – the end of 2011, the decision has been made, to simultaneously start the procedure of the transaction approval with the securities issue commission. The package of documents shall be submitted to this organization for consideration not later then the end of September. On 9 September the Parties held the first constituent meeting, signed relevant minutes and officially settled the foundation agreement. We are unambiguously confident that the joint venture that will be registered in accordance with the place chosen for the plant site shall be set up before the end of the year.

In August 2011 the Inter-Departmental Commission of Ukraine suggested Smolino settlement of Kirovohrad oblast as a plant construction site. This very site shall be included in TEO (feasibility study). Hopefully, this site will be approved by the special act of the Cabinet of Ministers of Ukraine before the end of the year and simultaneously with the project feasibility study acceptance.

The Parties had the greatest difficulties at the initial stage of feasibility study development, since they had problems submitting the initial technical data to Ukraine. The problems arose because of some discrepancies in the legislation of the two countries. The problem was solved thanks to the choice of GSPI, OJSC (Russian State Special Design Institute) as a subcontractor for feasibility study development. It’s important to note that the Russian Institute with the State enterprise UkrNIPIpromtechnologies have so far jointly developed about 80 per cent of feasibility study divisions that they were ordered to develop. The works shall be completed upon the receipt of initial site data that is being actively prepared for at the moment. GSPI, OJSC received the accreditation in Ukraine. The procedural matters are currently being settled so as to get the necessary licenses for the project works execution.

The Parties are currently transferring the project into an active investment phase. Preliminary talks with the Russian and Ukrainian financial institutes were held concerning their interest in the project and their possible involvement herein. A number of banks have recently affirmed their readiness to start on-site consultations in the nearest future so as to specify models and terms of the project financing.

Within the passed period the Parties have specified the list of organizations that may take part in the Russian technologies assessment that shall be submitted to the joint venture. Preliminary consultations were held with the above-mentioned organizations. The assessment procedure shall be held in accordance with the norms and regulations of Ukrainian legislation.

Any problems that we face during the project implementation are being successfully solved, the terms are being observed. The difficulties that we have to overcome are typical of all projects with the same scale.

Within the framework of the project implementation the Parties assume the plant in Ukraine shall be efficient at the most in terms of its profitability and payback and also the prime cost of the output. To satisfy these demands the plant shall have optimal quantity of orders. The plant that is set up as a joint Ukrainian-Russian venture shall meet the highest international standards and excel all its counterparts.

TVEL, JSC having a full range of advanced, high and innovative technologies and paying special attention at priority science development, shall follow the plant operation; systematically enhance the technologies and technological processes that shall enable the plant to develop in perspective. At the following stages of the plant operation its production may be supplied to the markets of third countries.