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TVEL Wonders at Ukrainian Fuel Deal
The Russian TVEL corporation has sent the Ukrainian Energoatom a letter requesting an explanation of the country's future nuclear fuel purchasing policy. That question arose after Energoatom signed a supply agreement with the American company Westinghouse without a tender. TVEL is also concerned about guarantees of the safety of the American fuel. Issue of sales is already understood, however. Ukraine is not under any obligation to hold tenders for fuel purchases, because such purchases are specifically excluded from legislation on state purchases, because it considers that method unprofitable. However, Russian fuel costs half the price of the American product.
Energoatom signed a contract with Westinghouse on March 30 for fuel supplies to the third block of the South Ukrainian nuclear power plant in Nikolaev Region and to two blocks of Rovenky and Kmelnitsky power plants. All of those blocks are Russian-made VVER-1000 models. If tests at the South Ukrainian plant are successful, 630 fuel assemblies will be delivered under the contract. There are a total of 2781 nuclear fuel assemblies in use in Ukraine.
Russia has been a monopoly supplier of nuclear fuel to Ukraine until now. Energoatom and TVEL concluded a contract in 1997 that remains in force until 2010. The price of those fuel supplies is reconsidered annually. It is not made public. According to unofficial information, the price of one fuel assembly from TVEL is $500,000, and one American assembly costs no less than $900,000. Energoatom press secretary Ilona Zayats explained to Kommersant that “It is a matter of energy security. After the gas wars, Ukraine must seek not the cheapest supplier, but the maximum number of potential partners.” In addition, the price for Westinghouse supplies is fixed. The price of uranium rose sharply between 2000 and 2007, and then fell by 50 percent.
www.kommersant.com
All the Article in Russian as of Apr. 10, 2008
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