Results of Activities in the Reporting Period

Implementation of Engineering Projects

Under the Agreement dated 18 December 1992 between the Government of the Russian Federation and the Government of the Peoples' Republic of China on construction of a gas centrifuge plant in China and additionally the Protocol dated 6 November 2007, JSC "TECHSNABEXPORT" signed a contract (hereafter – the Contract) on 27 August 2008 with the Chinese Nuclear Energy Industry Company (CNEIC) for providing technical assistance in the 4th construction stage of a 500 thousand SWU/year gas centrifuge plant in China.

The scope of JSC "TECHSNABEXPORT" obligations under the Contract includes designing the primary manufacturing facility, supplying key technological and auxiliary equipment, providing consulting services during installation and commissioning, providing designer supervision and training Chinese experts in Russia.

On the picture: GCP in Hanzhong, where the 4th construction stage was commissioned under the contract between the Company and CNEIC

500

thousand swu/year
volume of the 4th construction stage of the gas centrifuge plant, commissioned on July 5, 2011

On 5 July 2011, nine months ahead of schedule, the 4th construction stage of a 500 thousand SWU/year gas centrifuge plant was commissioned. The certificate of experimental operation completion and commissioning for production was signed by JSC "TECHSNABEXPORT" and Chinese Nuclear Energy Industry Company (CNEIC). The signing of this document meant the beginning of the guarantee period of plant operation, which, according to the contractual obligations of the Russian party, equals three years.

100

Russian companies involved in the execution of the contract with CNEIC

Over 100 Russian companies, equipment manufacturers and service providers, have been involved in the contract execution, including JSC "Chief Institute "VNIPIET", JSC "VPO "Tochmash", JSC "KMP", JSC "PA "Electrochemical Plant", JSC "UEIP" and JSC "AECC".

After the 4th construction stage of the gas centrifuge plant was commissioned, the Russian party has fulfilled its obligations under the inter-governmental Agreement of 18 December 1992.