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Russia Signs Nuclear Cooperation Agreements with Asian Nations

The recent talks between Japanese Prime Minister Taro Aso and Russian Prime Minister Vladimir Putin have culminated in an intergovernmental civilian...

Released Wednesday, May 20, 2009

Russia Signs Nuclear Cooperation Agreements with Asian Nations

Researched by Industrial Info Resources (Sugar Land, Texas)--The recent talks between Japanese Prime Minister Taro Aso and Russian Prime Minister Vladimir Putin have culminated in an intergovernmental civilian nuclear cooperation agreement between the two countries. The agreement will lead to cooperation in engineering, construction and operation of light water reactors, nuclear fuel cycle services, mining and prospecting of uranium, ecological control and nuclear safety, and the processing and treatment of radioactive waste. The rapidly developing cooperation between Russia and Japan regarding the peaceful uses of nuclear power will now be given a firm legal basis.

The agreement will officially last for a period of 25 years but will be open ended unless either party decides to terminate it. According to Sergey Kiriyenko, Director General of Rosatom State Nuclear Energy Corporation (Moscow, Russia), Russia will now be able to continue supplying Japan with low-enriched uranium. The agreement has opened doors to several billion-dollar projects. Kiriyenko added that the agreement was in line with the nonproliferation regime.

Putin announced during the meetings that Russia plans to build 28 large nuclear power units by 2022. The new reactors will add to the existing 32 reactors in the nation that were set up during the Soviet regime. Several other business- and banking-related agreements were also signed during the talks between the two nations. The talks involved discussions on international issues, the economy, energy, and the existing territorial dispute regarding the South Kuril Islands. Putin remarked that the two countries could sort out the South Kuril Islands territorial issue with stronger economic ties. Russia and Japan have not signed the official peace treaty of World War II because of this territorial dispute. Japan is currently Russia's third largest Asian trading partner and is also involved in the development of two of Russia's large-scale energy projects, Sakhalin I and Sakhalin II.

In another development last week, Russia signed a memorandum of understanding with Bangladesh to enhance cooperation between the two nations on the peaceful uses of nuclear energy and to develop a nuclear power plant with a capacity of 600-1,000 megawatts (MW) in Rooppur in the Pabna district of Bangladesh. The agreement was signed by Rosatom and state-owned Bangladesh Atomic Energy Commission (BAEC) (Dhaka, Bangladesh).

According to Yafez Osman, Minister of State for Science and Information and Communication Technology Architecture of Bangladesh, it would probably take about five years to set up the proposed nuclear power plant. The cost of the project is estimated to be between $1.5 billion and $2 billion. Osman clarified that the memorandum is a preliminary agreement and would be converted into a state-level agreement only if negotiations proceeded smoothly. Bangladesh has already signed similar agreements with China and the U.S. Osman said that Bangladesh would finalize the power plant deal with whichever nation offered the best technology at a good price.

The Deputy Director General of Rosatom, Nikolai Spasskiy, who acted as the Russian signatory of the memorandum of understanding, said that Russia was keen to design and help Bangladesh set up its first nuclear power plant. He was confident that since Russian technology was proven, obtaining funds for the project would not be a problem for Bangladesh. As a next step, a high-powered team from Bangladesh will visit nuclear power plant sites in Russia to enable the government to proceed further with the agreement.

The Rooppur nuclear power project was conceived in 1961, and since then, several feasibility studies have been conducted, all of which have established the project as economically and technically viable. The Pakistan Government at the time approved plants with capacities of 70 MW, 140 MW and 200 MW, in 1963, 1966 and 1969, respectively. Another feasibility study was conducted in 1978-79 by the Bangladeshi Government, following which a 125-MW power plant was recommended. A follow-up study was conducted in 1986-87, which recommended the setting up of two 300-MW units.

During the period between 1999 and 2003, pre-implementation activities were also conducted on the site by BAEC with support from other national organizations and the International Atomic Energy Agency (IAEA) (Vienna, Austria). The Site Safety Report of the nuclear power project was prepared as per IAEA recommendations and finalized in 2002. Further investigations and amendments are currently under way. The Implementation Committee conducted several meetings and decided that as a first step, a 600-MW nuclear power plant would be set up and that a second unit would follow at the same site. The government of Bangladesh approved an annual development program for the period of 2008-11 to facilitate the preparatory work required to set up a medium-size nuclear power plant.

The Director General of the IAEA has received requests from the Bangladesh Delegations to the General Conference of the IAEA to provide support and assistance for implementation of the government's decision. The IAEA has assured Bangladesh of the agency's support and assistance in finalizing the Site Safety Report, preparing the bid document, updating the National Action Plan for the project, and undertaking capacity building for implementation of the project. The IAEA will also provide all expert services under its Technical Assistance program and has already approved a Technical Cooperation program for the nuclear power project to be initiated during the period 2009-11. The Bangladeshi government expects to have the power plant in operation by 2017.

In another part of Asia, as part of the intergovernmental discussions between Russia and Mongolia, Rosatom and the Mongolian Agency for Atomic Energy (Ulaanbaatar, Mongolia) signed a memorandum of understanding for the training of nuclear specialists. The Prime Minister of Mongolia, Sanj Bayaar, has suggested that a joint venture project between the two nations to develop uranium mines in Mongolia be finalized soon. According to Sergei Schmatko, Russia's Minister of Energy, documents for the project are almost ready for signing. In 2008, the two nations signed a high-level agreement that involves the identification and development of Mongolia's uranium resources. Russia had also indicated interest in setting up nuclear power plants in Mongolia.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.
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