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06.02.2012 14:49

Russia Prepares Privatization of State Nuclear Giant Rosatom

Russia has compiled a plan for the reorganisation of each state holding company and their subsequent entry into the market

AUTHOR: publics.bg

© rosatom.ru

Having spent five years combining its nuclear power, engineering and research enterprises into the single entity of Rosatom, the Russian government now sees privatisation of the firm as part of a plan for industrial modernisation.

Rosatom is just one of several vertically integrated state holding companies Russia established to "discourage the decline of the more intellectual sectors of national industry" in the post-Soviet era, wrote Vladimir Putin in the Vedomosti newspaper on 30 January.

Currently in the role of prime minister, Putin served the maximum two terms as president from 2000 to 2008 and is now campaigning to return to that position in March 2012. He used the lengthy article to set out a range of government targets for Russia to develop its infrastructure, innovation and private enterprise while curbing corruption and improving the legal and investment environment for business.

Accordingly, Russia has "compiled a plan for the reorganisation of each [state holding] company and their subsequent entry into the market."

However, its civil nuclear assets - for example nuclear fuel, reactor technology, supply chain, power plant operation, services and waste management - are to become a "public liability company" with its shares "subsequently sold off."

Rosatom director general Sergei Kiriyenko told the Regnum news agency: "The civil part of nuclear industry has already been developing with partnerships in mind. He added that he interpreted Putin's task as an "encouragement to continue developing partnerships in nuclear industry on prospective projects with not only state investments but also with the increasing share of private investment to be considered."

Rosatom had a preliminary agreement with Siemens to partner in nuclear energy in 2009, but this faltered and in 2011 it signed with Rolls-Royce to consider possibilities "for mutually beneficial cooperation in a comprehensive series of activities in Russia, the UK and third countries.", World Nuclear News reported.

And while Rosatom has a domestic supply chain, its subsidiary Atomenergomash nevertheless forged a joint venture with Alstom for nuclear power plant steam turbines.