Results of Activities in the Reporting Period

Contraction and Sales

In the reporting period the Company once again confirmed its reputation of a reliable supplier. Full and timely execution of contract obligations by the Company is of paramount importance not only for the Company's business, but also for the safe and sustainable operation of nuclear power plants that utilise Russian NFC products and services.

On the picture: EUP shipping on board in the port of St. Petersburg

In addition to impeccably executing the existing contracts, in 2011 the Company maintained focus on preparing and negotiating new long-term contracts for supplies of uranium products with an emphasis on developing links with end users, i.e. foreign energy companies. In 2011 JSC "TECHSNABEXPORT" secured 11 new contracts and prolonged two contracts already in force.


new contractst concluded in 2011

At the end of the year the Company's portfolio of 10-year export contracts equalled about USD 18 billion, while the Company's total portfolio of contracts with contractual horizon up to 2025 and further is estimated at over USD 25 billion.


portfolio of export contracts until 2025 and further

The fact that the Company is able to ensure sustainable supplies of enrichment services to meet over a third of demand of Western design reactors and the growing portfolio of long-term contracts means that it has retained a stable position in the world uranium market.

In the early 2000s in order to improve its competitive ability JSC "TECHSNABEXPORT" decided to adjust its logistic system of uranium products supply and gradually change delivery basis from FOB St. Petersburg port to DDU, DDP or book transfer in a place determined by the client (usually where their reprocessing or fabrication facility is located). Since 2008 this approach has been implemented in the majority of new contracts for supplies of uranium products.

In cases when, according to the contract terms, the client provides JSC "TECHSNABEXPORT" with natural uranium for processing purposes, instead of previously used basis for receiving natural uranium DES St. Petersburg port, new contracts provide transfer of natural uranium on an ExW or FCA basis where the client's material is stored.

Dynamics of Export Contracts Based on Delivery Basis

  Number of shipments under the Company's contracts on DDP/DDU terms
  Number of shipments under the Company's contracts on FOB terms

The structure of the Company's export business is geographically diverse; however, the EU-15 countries have traditionally been dominant.

Geographical Distribution of the Company's Exports

American Region


share of supplies to the American region in the Company's total export

In the reporting year the Company continued the activities aimed at strengthening the position of Russian products and services in the American uranium market. The supplies to the countries of the American region in 2011 accounted for 33% of the Company's total export.

Under the Amendment to the Suspension agreement of 01 February 2008 two new contracts worth USD 800 million were signed with PSEG Nuclear LLC company and the largest American energy company operating the NPPs, Exelon Generation Company LLC.

On the picture: Signing of a contract with PSEG Nuclear LLC at Atomexpo 2011, June

In the reporting year JSC "TECHSNABEXPORT" secured 13 direct contracts with contract horizon until 2025 with ten American energy companies worth about USD 5.5 billion, which means that a significant part of the quota, approved under the Amendment to the Suspension agreement, for the supplies of uranium products to the US market in 2011-2020 has been fulfilled.

In March 2011 JSC "TECHSNABEXPORT" signed a long-term contract with USEC Company for the export of uranium enrichment services until 2022. The deliveries under this contract will start in 2013 and it is expected that they are going to reach half the volume of supplies under the HEU-LEU Agreement by 2015.

On the picture: Signing a long-term contract with USEC in March 2011

In July 2011 the first commercial supply of EUP was delivered under the long-term contract with the Exelon company, which had been signed in 2009.

On the picture: The First Consignment to be Transported to Exelon Company

JSC "TECHSNABEXPORT" fully executed on time the current long-term contract to meet 100% demand of a Mexican CFE company in enriched uranium product.

In 2011 JSC "TECHSNABEXPORT" set up the fifth foreign affiliate of the Company, TENAM Corp., aimed at encouraging new direct contracts with American energy companies and business development in North and South America.

European Region


share of supplies to the European region in the Company's total export

The European region has traditionally been the Company's largest target market. The Company's NFC export to the European region in 2011 accounted for 44% of total exports.

In the reporting year the Company negotiated six new contracts and prolonged two existing contracts with European clients, worth in total USD 1.6 billion. Among the Company's clients are EU-15 energy companies, including EDF (France), RWE, E.ON, EnBW (Germany), Vattenfall, OKG (Sweden), TVO (Finland), ENUSA (Spain), Synatom (Belgium), AXPO AG (Switzerland).

The construction in the European region was carried out in partnership with the Company's distribution subsidiaries Internexco GmbH (Germany) and Tradewill (UK).

Due to the fact that the majority of the European energy companies have introduced corporate social responsibility that obliges them to work only with suppliers that conform to the international standards (DIN EN ISO 14001:2009, DIN EN ISO 9001:2008, UN Global Compact provisions, etc.), the Company not only fully meets these requirements, but even imposes these requirements on its suppliers.

JSC "TECHSNABEXPORT" holds regular meetings with the European energy companies in order to inform the clients about the status and development of the quality management and environmental management systems in the industry as a whole and in the Company in particular. Suppliers are audited on a regular basis to ensure that they conform to the international standards in environmental management, quality management, social responsibility and other international standards.

During 2011 the Company's European clients carried out two audits of suppliers: the EnBW company (Germany) audited JSC AECC (Angarsk), and the AXPO AG (Switzerland) audited JSC SCP (Seversk).

Together with JSC "TVEL" an introductory visit to JSC SCP (Seversk) was organised for the EDF management; seminars on burial of liquid radioactive waste were held at JSC SCP for the representatives of EDF (France) and AXPO AG (Switzerland).

Asia-Pacific Region and Africa

Before the earthquake in Japan in 2011, which led to the Fukushima accident, the Asia-Pacific region was one of the fastest growing markets with ambitious plans for increasing the share of nuclear energy in the total volume of energy. This situation determined the activities of the JSC "TECHSNABEXPORT" in this region, aimed at securing contracts not only for the existing demand, but also for the new power plants scheduled for contracting.

By the end of 2011 the export portfolio of JSC "TECHSNABEXPORT" contained long-term contracts with seven out of ten Japanese energy companies for the uranium products with contract horizon until 2021. The Fukushima NPP disaster, however, called for restructuring of contractual agreements with a number of energy companies. Nevertheless, JSC "TECHSNABEXPORT" signed two new contracts with Japanese companies in the reporting year. A certainty with regard to the prospects of development of the nuclear energy industry in Japan and, correspondingly, the prospects of extending Russian presence in the Japanese uranium market can appear after the new energy policy is approved in Japan.

Ratification of the 2011 Russian-Japanese inter-governmental agreement on cooperation in peaceful use of nuclear energy creates objective premise for extending the Russian share in the Japanese market, both through expanding the current areas of cooperation and developing new areas, including reprocessing of regenerated uranium and supplying higher-level products, for example, uranium dioxide.

In the reporting year the long-term contracts with the People's Republic of China, Republic of Korea and Republic of South Africa were continued. The events in Japan did not have a big impact on the plans for developing nuclear energy in these countries. The Government of the PRC decided to carry out additional security audits of the reactors planned for construction, which resulted in a shift in the project implementation periods. Thus, in 2012 the premises of continuing successful cooperation with the companies in this region continue to exist.


share of supplies to the Asia-Pacific region and the Republic of South Africa

As of the end of 2011 JSC "TECHSNABEXPORT" share of exports to the Asia-Pacific region (Japan, the Republic of Korea, PRC) and the Republic of South Africa accounted for about 23% of total export volume.