Results of Activities in the Reporting Period

Fulfilling Obligations Under the HEU-LEU Agreement

The HEU-LEU Agreement, also known as Megatons to Megawatts, is an Agreement between the Government of the Russian Federation and the Government of the United States of America, about utilising highly-enriched uranium from nuclear weapons, signed on 18 February 1993.

According to the HEU-LEU Agreement, Russia was to supply the US with low-enriched uranium (LEU) extracted from 500 tons of highly-enriched uranium (HEU) from nuclear warheads during 20 years (until the end of 2013).

The first shipment of LEU to the United States took place in May 1995.

The agreement provides for irreversible dismantling of about 20 thousand warheads.

Executive agents of the Agreement are JSC "TECHSNABEXPORT" on the Russian side and USEC Company on the American side.

10.5

usd bln
currency earnings transferred to the federal budget during contracted period

As a result of fulfilling the HEU-LEU Agreement with USEC, carrying out the Contract for supply of natural component (LEU feed material) with a Group of western companies (Areva, Kameco, Nukem), as well as implementation of the programme for transporting unsold LEU natural component to Russia, the HEU-LEU Agreement execution has reached 88%. The total value of the agreement, which was initially estimated at USD 12 billion, exceeded USD 14 billion by the end of 2011 after fulfilling a range of contracts and agreements signed within the framework of the HEU-LEU Agreement. This estimation includes USD 10.5 billion currency earnings transferred to the federal budget and estimated value of uranium assets represented by natural uranium hexafluoride, which had been earlier imported into Russia or are owned by the Russian Federation in the United States, worth over USD 3.5 billion.

According to the preliminary estimate of the total earnings under the HEU-LEU Agreement, including supplies of LEU, LEU feed material and return of unsold LEU feed material to Russia until the end of 2013, the Russian side can earn up to USD 17 billion with over USD 13 billion then due to the federal budget of the Russian Federation.

The Scheme of Executing Inter-Governmental HEU-LEU Agreement