Grigory Noginsky, Subcommission for nuclear energy of the Commission for Natural Monopolies of the Federation Council
Release Date: 2009-06-23
Could you please introduce yourself to our international audience, European, American and Asian, and tell us how you came to head the nuclear portfolio in Russia´s Federation Council?I graduated in 1980 and entered the Ministry of Mid-range Machinery which at the time was in charge of the Soviet Union nuclear sector. After having worked for quite some time in the enterprises of the Ministry, in 1987 I was transferred to the city of Sosnovy Bor, where the first Leningrad nuclear power station with a RBMK reactor was in operation.
Later on, I joined the Council of the Leningrad Region and, once a deputy of the Regional Council, I was introduced to the Federal Council. As you can see, I have dedicated the last 20 years of my life to the country’s nuclear energy sector.
You know the sector from within and now you are working on the new legislative frame. Could you tell us how advanced the nuclear regulatory framework is and whether it fully allows for the nuclear sector to flourish in this country?
The nuclear energy sector was the responsibility of the Ministry of Mid-range Machinery but it wasn’t progressing as desired until 2006, when a radical reform spearheaded by a Presidential decree created Rosatom, a unified State Corporation, to implement a new strategy for the development of the nuclear energy sector until 2020.
Once the structure and the strategy were both in place, the legislative bodies begun to work on the development of the sector. By law, all state unitary enterprises were converted into joint stock companies, which were in turn included in the assets of 100% state-owned Rosatom. So the legislation has made the sector more integrated, as well as more attractive for investors. Now, we have a fully integrated company with one clear center, whose main purpose is to become the main player on the nuclear power market – both for energy and for production of nuclear materials and fuels.
Within the Russian Federation energy basket, which is mainly dominated by hydrocarbons, which role do you then foresee for the nuclear energy sector?
Our main purpose now, especially as we draw the lessons of the current economic and financial crisis, is to diversify and stop being a country over-dependent on hydrocarbons. The accent is being put on nuclear energy because the sector is a ‘steam engine’ for the development of the country’s economy, as it involves all the advanced scientific researches, as well as manufacturing etc. World giants like Siemens are interested in cooperation with Rosatom in joint ventures, to cooperate on operational systems for the nuclear stations, for example. French Alstom is also setting up a joint venture to produce turbines in Kaluga. We are going to see the Russian nuclear energy sector increasing its weight particularly in the area of construction, machine building, and the production of materials for all nuclear processes as well.
Are you saying that nuclear is or can be the basis of the Russian economy?
Well, I would not say it’s the basis of it. I think there are, let’s say, 3 basic economic sectors, and nuclear is one of them alongside shipbuilding and aviation. These three high tech sectors shall move the economy forward. The Oil and Gas sector used to be ahead, but I think in the next few years it will lose its current position and move to a second place.
In this sector so tightly controlled by the State, what will be the role of private business as nuclear energy gains importance?
If we speak about machine building in the sector, most of it is already private. If we take reactor construction, for example, it’s very much private as well. United Machine-building Plant is a private organization. Leningrad Power Machines producing turbo generators is also privately owned, and today they belong to Russian steel and mining giant SeverStal. The construction sector is almost all in private hands. Of course, the Rosatom Corporation itself, the power stations, they belong to the State, but everything else related to that is 90% private. As far as I know the Baltic nuclear power station which is going to be built in Kaliningrad will be constructed on a public-private basis. Of course it won’t be a private station with private investors benefitting from the energy exports, but there will be some kind of private-state partnership. Maybe at some point in the future in Russia we will come to the idea of having private nuclear stations like they have in the US, or maybe not…maybe it’s not even necessary. In any case, this is rather a formality, because if we take the example of French Areva, we can see that it’s not private at all as more than 95% of it belongs to the state.
There are plans to construct two new nuclear power stations per year starting from 2014, but it has been a long time since a power station was built in Russia… How easy it is to get back on track?
Not exactly, the construction of Kalininsk Block was in fact finished about four years ago. So, yes, the experience is still fresh in our memories…
Are these massive construction plans going ahead in the current context of drop of electricity consumption and financial crisis?
The Federal Task Program for the development of the sector calls for the construction of 2 new power stations annually from 2014 and 4 stations annually starting from 2016. But within the current crisis and considering the current 10% drop in energy consumption it all seems a little bit unrealistic. The situation right now is as follows: The plan for this year is to bring online the power station in Rostov. In 2011, the nuclear power station in the city of Udomlya. Sosnovy Bor and Novovoronezh will follow in 2013. So, by 2016, 6 more blocks shall be put into operation.
There’s yet another thing I would like to stress. As the crisis hit, we re-estimated the state of a number of old nuclear stations. Let’s take the power station in Leningrad; it should have been closed in 2003. And Block 1 of the Kursk Power Station should have been closed in 2004. But we have developed a project and their operating life has been extended for another 15 years. Some stations underwent modernization of their turbo aggregates which helped to increase their capacity up to 1,1 mln/kwt. So, as you can see, the work being done goes very far indeed, and not only in the direction of investments in new units.
Are they safe enough? In terms of legislation, what has been done to guarantee their safety?
In 1987 I myself headed the reconstruction works at the Chernobyl Nuclear Power Station. So after the Chernobyl accident, all the science and research was concentrated on achieving absolute safety and, today, we can say that all our nuclear power stations are absolutely safe. New safety systems have excluded the human factor, and all power stations are equipped with simulators for staff training. We have paid great attention to safety issues. Let me reassure you that if safety of Russian nuclear stations wasn’t guaranteed, the Chinese wouldn’t be prolonging the contracts with us, same thing with our Indian customers. And I would like to say that safety is the number one priority in Russia today.
There’s much concern about safety now also because you are building nuclear floating stations… Do you think the technologies are advanced enough to guarantee absolute safety in the rough conditions of the Arctic seas?
Well, what will be the difference between the floating stations and submarines? In my opinion, there is not much difference in terms of safety. What we need is to legally guarantee the safe transportation of the station, to deal with any possible external threats such as terrorist attacks, pirates, etc., and the safe transportation from the Baltic Plant to the target destinations.
Does such legislation already exist?
We are actively working now on this legislation, and the floating station itself will not be launched for another three years.
There seems to be a revival of nuclear energy across the world…
Everyone has realized that hydrocarbons are not reliable, and renewable energy sources are not a serious alternative in my view. So nuclear energy has no competitor, that’s one thing. Another factor for the revival of nuclear is that both governments of many countries and the business circles have come to the realization that that it’s a huge business. So there’s much competition for the Chinese and other markets. It’s a huge market, where the Japanese, the French and the Americans want to advance their positions.
Do you expect Russia to take a leading position? Because, for instance, in aviation we have the Europeans, the Americans…and only then the Russians, very much behind…
I think in aviation we will never reach the level of Airbus and Boeing, so it’s important just to find a certain niche, say, in the domestic market. As for the nuclear sector, Russia is already taking a leading position. We have joint ventures with French Alstom and German Siemens and Japanese Mitsubishi which will enable us to occupy stronger positions in the sector and become the world’s leader. I believe it’s definitively a real possibility.
As a nuclear power and exporter of nuclear technologies, how is Russia fulfilling its responsibilities in avoiding nuclear proliferation?
All the contracts under which Russia supply nuclear fuel to other countries are drawn up in a way that they guarantee that the used fuel will not be converted, for instance, to weapon-grade plutonium and, within the terms of the contract, shall be returned to us. So, all the noise the Americans make about the Iranian nuclear program is politically driven, because everything is clearly spelled out in the contracts and all the fuel will be returned. Russia has also proposed the creation of an integrated fuel tank in the city of Angarsk in Siberia, where all the fuel would be enriched, stored, taken out and brought back, for all the countries who wish to participate in the project. The nuclear center is already under construction.
Looking ahead, what would the nuclear sector in Russia look like in 10 years time?
Well, if I now characterize the sector as almost a leader in the world, in 10 years I am sure it will be an absolute leader boasting the safest nuclear power technologies.
Thank you, Senator Nogisnky, for sharing your views on Russia’s nuclear development with us.
| Company: | Subcommission for nuclear energy of the Commission for Natural Monopolies of the Federation Council |
| Position: | Head of Subcommission |
| Country: | Russian Federation |