OREANDA-NEWS. November 11, 2010. At the 7th meeting of the Economic Cooperation Committee of the Russia-Ukraine Interstate Commission held in Kiev under the chairmanship of the Prime Ministers of the Russian Federation and the Ukraine TVEL (FC), a Rosatom fuel company, and Nuclear Fuel, a Ukrainian state concern, signed and agreement for construction of a plant that will produce nuclear fuel for VVER-1000 reactors in the Ukraine.

The agreement was signed by Yuri Olenin, TVEL FC President, and by Tatiana Amosova, Nuclear Fuel General Director.

TVEL Fuel Company was recognized as the partner of the Ukrainian party based on the results of a tender. The corresponding decision was passed by the Ukrainian Cabinet of Ministers on September 22, 2010.

The agreement signed on October 27 became a basic document for both of the companies and a landmark for their further activities connected with taking the first steps towards the implementation of the project. In particular, the parties clarified the key terms and parameters for the plant that are based strictly on TVEL's bid.

The parties fixed their arrangements that a plant having capacity of 400 tons of uranium per year can be put into operation already in 2013 provided that the Ukrainian party accelerates with the selection and approval of the construction site subject to the prescribed procedure, and with its feasibility study and project development. The agreement also emphasizes the importance of obtaining licenses and authorizations, needed for plant construction, qualification and operation, from the Ukrainian competent authorities in due time.

In the near future the parties will agree on, sign and approve an outline plan of project implementation activities at the nuclear agencies of the two countries, and will proceed with the creation and registration of a joint company, in which a stake of 50% plus one share will be owned by the Ukrainian authorized organization.

The document reinforces TVEL’s intention to transfer technologies of all nuclear fuel production stages by 2020, provide technological support of plant operations, including introducing leading-edge technologies, train personnel and qualify the plant. In addition, TVEL will give the Ukrainian party access to partial financing of the project. TVEL also stated its readiness to supply all nuclear fuel components and parts that will be missing until localization is completed, and to provide uranium enrichment services from Russia.

The agreement also provides for an opportunity for the plant to supply its products to third-party states in the future.