Nuclear Reactor Exports

Over the past few years Russia has been involved in attempts to sell nuclear power plants to India - controversially in the wake of the Indian nuclear bomb tests in May 1998. Russia found that its attempts to raise US$15 billion 'bailout' from the International Monetary Fund for non power related investments, were challenged by the US because of Minatom's insistence in pressing ahead with Indian nuclear exports deal, which would involve US$2.5 billion below-market financing by Russia for 85% of the work. Other controversial reactor export deals involve Iran, for which Minatom agreed in November 1998 to prepare technical documentation related to three new plants, after ministerial discussions in Iran. Russia has also completed a pact with the Ukraine in September 1998 to finish two VVER plants, which will involve some US$180 million in Russian financing. The Russian credits were said to be at much more favourable rates than the European Bank for Reconstruction and Development (EBRD). Russian ministers have said they want Minatom to be exporting up to half its goods and technologies by the beginning of 2000.

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