The day before the Day of Nuclear Industry Worker Rosatom received a small but nice present from United States Court of International Trade. American justice has confirmed as in the case with Eurodif that Russian contracts for uranium enrichment are services rather than goods and they can't be subject to USA's antidumping legislation.
There were only few who doubted in favorable decision from the Court concerning the case "Techsnabexport against the United States". American system of judicial legislation didn't leave any hope to Russian opponents - US Department of Commerce, USEC corporation and local nuclear trade union. French SWUs don't differ from Russian ones, and uranium enrichment at Rosatom's enterprises doesn't differ from analogous work in France.
Although the process of juridical investigation has not been completed yet (there will be new meetings of the Parties in the court, including US Supreme Court), full overcoming artificial obstacles for Russian enrichment in USA is not far off. It is too important, if to remember that only 6 years are left till the end of HEU-LEU agreements.
Today the only way for the Russians to sell their uranium enrichment services in USA is "Megatons to megawatts" deal, which is almost unprofitable for us. Any attempts of Techsnabexport to conclude direct contracts with American generating companies will immediately meet with a barrier duty of 116% that make us noncompetitive in comparison with USEC and Europe enrichment companies.
Nevertheless, although with large losses, the notorious HEU-LEU agreement allows Russia to present on USA market amounting to neither more nor less a quarter of the world market. This "loophole" will be closed in 2013. Moscow doesn't want to continue "Megatons to megawatts" agreement, and all hints that there are up to 800 tons of "excess" high enriched uranium at Russian storages, aren't considered in Russia.
Future closing of HEU-LEU agreement is undoubtedly true act. But how to stay on rich and promising US market? Here September decision of US Court of International Trade should help to Russian nuclear specialists.
Is there a sense to continue to take part in American fuel cycle? It is known that our country consumes uranium 6-7 times more than it mines. And to compensate forthcoming deficit in uranium, Russian politicians achieved to Canberra. Of course, there is a sense, but only on condition that Rosatom restricts its sell in America by SWUs rather than uranium raw.
Now Russian separate work capacity is about 24, 8 million SWUs and it will continue to increase gradually (up to 30 million SWU in 2020). We spend no more than 4 million SWU for own NPPs, even taking into account the adopted Federal Target Program for nuclear power development, this figure will increase up to 6 million. We spend approximately the same amount of SWUs for supplying our units built abroad.
The rest free capacities will not operate or will serve orders of foreign companies. The first option is very bad both with economic and political viewpoints - because in this case domestic administrators can rise a question about expedience of supporting so large park of centrifuges. Therefore Russian nuclear specialists have to battle for foreign orders, and huge American market - with needs of above 11 millions SWUs - would come at a good time.
So the current decision of US Court of International Trade is very important. Now it is necessary not to relax and follow the case of protection of Russian SWUs to its logical end.
SOURCE: Vladimir Rychin, AtomInfo.Ru
DATE: October 18, 2007