1. Over 40 Years at the World Market «New Russian initiativesin the nuclear energy and the global nuclear renaissance» V.A.Smirnov, Director General JSC «Techsnabexport» October, 17, 2006 Australia, Sidney

2. TENEX Forecast of the World Nuclear Association of the increase of the installed nuclear capacities in the «leading countries» (excluding Russia) by 2020 according to the upper scenario

3. TENEX Assessments of potential deficit of electricity generating capacities in Russia – generating capacities shortage, 2010 – generating capacities shortage, 2020 – generating capacities shortage, 2030 North-west region Central region Mid-Volga region Northern Caucasus Urals Demand for additional generating capacities in Russia: 2010 – 36 GW 2020 – 131 GW 2030 – 237 GW Siberia Eastern region Decommission of generating capacities by 2030, Gwt 45 – economical reasons 65 – technical reasons Total demand for new generating capacities by 2030 – more than 300 GWt

4. TENEX Scenarios for nuclear generating capacities development in Russia

5. TENEX Main parameters of Federal Program “Development of Russia’s Nuclear Energy & Industrial Complex between 2007 and 2010 and Prospects until  2015”. • NPPs’ total installed capacities by 2015: 33GW. Share of nuclear generation will increase up to 18.6 per cent of total. • Program is financed as follows: • 1, 471.4 bln roubles (US$ 54.5 bln), with a breakdown as follows: • 674.8 bln. roubles (US$ 25 bln.) - federal budget disbursements • 796.6 bln. roubles (US$ 29.5 bln.) – funds by nuclear industry’s organizations Kola NPP Kaliningrad NPP Leningrad-2 NPP IPS Noth-West IPS, Center Kalinin NPP Kursk NPP Novo-Voronezh NPP Nizhny Novgorod NPP ОЭС Урала Balakovo NPP Perm NPP IPS, Mid-Volga Beloyarskaya NPP Volgodonsk NPP Yuzhno-uralskaya NPP IPS, Siberia IPS, North Caucasus IPS, East Accepted by UES of Russia Severskaya NPP UES of Russia to cover shortages DalnevostochnayaNPP regions Primorskaya NPP investors

6. TENEX Nuclear Fuel Cycle requires development to keep pace with NPP rate of construction mining enrichment fabrication

7. TENEX DEVELOPMENT OF GLOBAL FUEL CYCLE INFRASTRUCTURE: Natural Uranium Uranium Enrichment 2005 г. 2020 г. 2005 г. 2020 г. 7% 30 % 100 % 37 % 93 % 63 % 70 % demand~65thousand tons demand~103thousand tons demand~45mln. SWUs demand~75mln.SWUs The increase of uranium primary production is required The development of centrifuge capacities is required Demand for natural Uranium and SWU are indicated as per WNA, based on upper scenario

8. TENEX TRADE RESTRICTIONS IMPOSED ON RUSSIN URANIUM PRODUCTS : • the trade restrictions have been in place in the US and Euroatom countries for more than 15 years • the trade restrictions look ridiculous in the current market situation and they are in conflict with market economy principles • utilities support the elimination of the trade restrictions for Russian uranium products

9. TENEX IT IS REQUIRED TO SECURE NUCLEAR NON-PROLIFERATION REGIME Growth of nuclear energy use Growth of risk for the breach in the non-proliferation regime

10. TENEX RUSSIAN INITIATIVES TO ESTABLISH AN INTERNATIONAL URANIUM ENRICHMENT CENTER : President of the Russian Federation’s initiative on the peaceful use of nuclear energy, January 25, 2006, St. Petersburg. «… Russia is firmly committed to expanding cooperation on global energy security within the framework of the Eurasian Economic Community. One of the priorities in this area is to develop cooperation in the peaceful use of nuclear energy…We need to create the prototype of a global infrastructure that will give all interested countries equal access to nuclear energy, while stressing reliable compliance with the requirements of the non-proliferation regime, of course. ..The creation of a system of international centres providing nuclear fuel cycle services, including enrichment, on a non-discriminatory basis and under the control of the IAEA, could become a key element in developing this new infrastructure…» Report delivered by the head of Federal Nuclear Energy Agency, September 19, 2006, Vienna «…The first International Uranium Enrichment Center will be established in the territory of the Russian Federation, in Angarsk…»

11. TENEX The followings are required for sustainable and efficient development of nuclear industry: • consolidation of efforts and involvement of all participants on a mutually beneficial basis; • internationalization of nuclear fuel cycle; • secured access for interested countries to nuclear fuel cycle products and services without the breach of non-proliferation regime.

12. TENEX • THANK YOU FOR ATTENTION!