Nuclear Alliance
2009/02/12
Smooth Transition
At the end of January, the Siemens Corp. gave notice of its withdrawal from the German-French Areva NP consortium, where it had been active since 2001 in nuclear power production.[1] Simultaneously, it accelerated talks with the Russian state-owned Atomenergoprom that consolidates all of the civilian companies in the Russian nuclear branch under one leadership. The implementation of this new nuclear alliance is proceeding exceptionally rapid and evidently had been long since planned and prepared. "The withdrawal from the partnership with the French Areva had yet to be announced, and the Munich company was already beyond the sounding out" phase, wrote the press.[2]
New Orientation
Only a few days after the decision to withdraw from the German-French Areva NP, the entire board of directors of the Siemens Corp. held their quarter-annual meeting - in Moscow. Just previously, Board Chairman Peter Loescher had particularly stressed the company's interest in a close cooperation with Atomenergoprom. A subsequent meeting between Loescher and the Russian Prime Minister, Vladimir Putin, laid the groundwork for further concrete talks concerning a German-Russian nuclear alliance. Putin offered the German company a nuclear "partnership at eye level." The time is ripe for a "full-fledged partnership." He added that the previous cooperation "could possibly take on a new orientation."[3] Siemens' board chairman, Loescher, showed his great satisfaction at the offer: "we have been doing business in Russia for over 150 years and have established excellent and reliable partnerships. We would like to enhance them."[4]
Civilian-Military
In the meantime, it is no longer merely a question of cooperation with the state-owned Atomenergoprom, founded in 2007, which consolidates the civilian companies of Russia's nuclear branch. With the Moscow meeting, the future cooperation was raised to the level of also including a military component. It was agreed to discuss cooperation between Siemens and the Russian nuclear energy administration, Rosatom. Rosatom is under the direct control of the Russian government and directs both the civilian and the military nuclear sector, from nuclear weapons to the construction and sale of new nuclear power stations. Since the 1990s, Siemens has been working together with Rosatom, for instance, at the nuclear power plants in Slovakia's Mochovce and Bohunice and the Belene project in Bulgaria. Late in 2007, the German company signed its first framework agreement with Rosatom setting the terms of its future cooperation in nuclear projects.
Nuclear Submarines
It cannot come as a great surprise that Siemens has now achieved the perspective of participating in military nuclear projects. The majority of the company's projects for Russia have so far been focused on the civilian sector. Siemens is constructing Russia's first high-speed train, scheduled to be functional between Moscow and St. Petersburg by the end of the year, and is hoping to obtain considerable amounts of contracts in the energy sector, in traffic projects and also repression technology, in connection with the 2014 Winter Olympics in Sochi. At the same time Siemens' share in the turbine producer, Power Machines, since 2007, extends into the nuclear and even the military sectors. Power Machines, where the German company is in charge of technical direction, is a subcontractor for the Russian nuclear economy and produces important components for nuclear submarines and the arms industry.[5]
Good Perspectives
Through the German-Russian nuclear alliance, Siemens hopes to secure a privileged access to the international nuclear market, considered as very lucrative, particularly in light of the 400 new nuclear power stations projected to be built, worldwide, by 2030.[6] Russia, with its 32 nuclear reactors is already one of the world's largest producers of nuclear power generated electricity. By 2015, an additional 10 new nuclear power stations are scheduled to be incorporated into the grid and another 10 to go into construction. Rosatom, Siemens' future partner, is also one of the most significant exporters of nuclear power stations, intending, in the medium term, to build two reactors per year overseas.[7] At the moment, alongside a very controversial nuclear power plant in Bulgaria, the Russian nuclear industry is constructing, reactors in the People's Republic of China, in India and in Iran, finishing construction of the Bushehr nuclear power plant, that Siemens had begun. Recently an additional contract for the construction of a nuclear power plant also arrived from Belarus. Talks are taking place on the construction of Russian reactors in Kazakhstan, Armenia, Morocco, Turkey and India. There are prospects for further contracts. Sweden wants to allow new reactors to be built, Poland plans at least four new reactor complexes, the People's Republic of China has an extensive plan for nuclear power.[8]
Strategic Partnership
Siemens and Rosatom are further accelerating the development of their alliance. Last week, just a few days after the meeting in Moscow, Rosatom's General Director, Sergei Kiriyenko, arrived in Berlin, seeking reassurances of the German government's approbation and announcing finalized agreements for the end of April or the beginning of May. Kiriyenko explained that the objective is a "strategic partnership" covering at least 25 years. Together with Siemens, the intention is to become the leader on the world market in the construction of nuclear power stations.[9] Besides the French Areva, the main rivals are the US-American-Japanese joint ventures, Toshiba/Westinghouse and General Electric/Hitachi. As kickoff for the German-Russian nuclear alliance, Moscow is suggesting that a measure be undertaken at a very symbolic location. The Russian Minister of Energy, Sergei Shmatko declared, Siemens should take its first step together with Russian companies by building a nuclear power plant in Kaliningrad, the former Koenigsberg.[10]
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