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ORDER OF THE CABINET OF MINISTERS OF UKRAINE

of November 9, 2016 No. 943-r

About approval of the Concept of the State target economic development program of nuclear industry complex for the period till 2020

1. Approve the Concept of the State target economic development program of nuclear industry complex for the period till 2020 which is attached.

2. To the Ministry of Energy and Coal Industry together with other interested central executive bodies to develop and submit to the Cabinet of Ministers of Ukraine the draft of the actions plan on implementation of the Concept of the State target economic development program of nuclear industry complex for the period till 2020.

Prime Minister of Ukraine

V. Groysman

Approved by the Order of the Cabinet of Ministers of Ukraine of November 9, 2016 No. 943-r

The concept of the State target economic development program of nuclear industry complex for the period till 2020

Determination of problem to which solution the program is directed

In 2015 on nuclear power plants of Ukraine 87627400000 are made. KW · h that constitutes 53,54 of percent of total production of the electric power.

Now in Ukraine 13 atomic VVER1000 reactors and two - the VVER-440 type are operated.

Providing domestic nuclear power plants with nuclear fuel is performed by JSC TVEL (Russia) and the Westinghouse company (Japan, the USA).

Expenses on purchase of nuclear fuel constitute about 40 percent of the price of the electric power developed on nuclear power plants.

For requirements satisfaction of the Ukrainian nuclear power plants in nuclear fuel the cost of uranium and services in production of nuclear fuel, including zirconium components, constitutes about 350 million US dollars a year (more than 50 percent of cost of nuclear fuel), zirconium components - about 60 million US dollars a year.

Need of development of nuclear industry complex using modern technologies is caused:

the leading value of nuclear power plants in energy balance of Ukraine;

dependence on foreign suppliers of nuclear fuel;

dependence on one supplier of nuclear fuel more than for 75 percent;

availability of source of raw materials of uranium and zirconium;

availability of the uranium mining industry and trial base of production of zirconium products;

availability of scientific and technical personnel potential.

For today in Ukraine there are industrial capacities on:

to production of uranium ore and production of concentrate of natural uranium in the amount of about 40 percent of requirement of nuclear power plants;

to production of zirconium ore and production of zirconium concentrate of 100 percent of requirement of nuclear power plants;

to production of ion-exchange pitches in the amount necessary for satisfaction of requirement of uranium production;

to trial production of dioxide of zirconium which is intermediate product of production of zirconium alloys;

to pilot production of zirconium hire;

to production from stainless steel of components for the heat-generating assemblies (heads and shafts) according to the license agreement with JSC TVEL.

At the same time in Ukraine there are no industrial capacities on:

to conversion and isotope uranium enrichment;

to production of zirconium hire, including zirconium sponge, alloys and pipe procurement;

to production of nuclear fuel.

Analysis of origins of problem and reasons for need of its decision by program method

The international experience testifies to exclusive role of the state in creation of nuclear and fuel cycle. In the USA, the Russian Federation, Great Britain, France, China, India creation of nuclear and fuel cycle was financed by target programs within military budgets. Some countries developing nuclear power engineering (the Republic of Korea, China, India, Brazil, Argentina) aim at the development of nuclear industry complex of means from the target allowance to the electricity tariff.

Now in world nuclear industry there are three main models of the organization of the nuclear industry:

state and exclusive model with the centralized form of government (People's Republic of China, the Russian Federation, France, India);

the non-state market model with the free market and the competition is entered after achievement of investment appeal of the companies of nuclear and fuel cycle (the USA, Great Britain);

the mixed model where at different proportion there are elements of the specified models, is applied in Japan, Germany, Finland.

The problem of steady providing nuclear power plants with nuclear fuel is connected with the fact that the nuclear power engineering and the nuclear industry of Ukraine arose and developed as component of nuclear industry complex of the former USSR. The companies located in the territory of the Russian Federation were producers of nuclear fuel for reactors in the territory of Ukraine.

After the collapse of the USSR in the territory of Ukraine there were separate companies of nuclear and fuel cycle. Ukraine has complete cycle of production and conversion of uranium ores, trial production of dioxide of zirconium which is intermediate product on production of zirconium alloys and hire. Except production capacities, in Ukraine there are also scientific and technological centers which can carry out tasks on designing of the companies for separate stages of nuclear and fuel cycle, development of production technologies of nuclear fuel and its components, scientific and project maintenance of production of concentrate of natural uranium, zirconium alloys and hire, carrying out doreaktorny testing of constructional materials and fuel elements and ensuring technical support for licensing of loadings of active zones. However in Ukraine completely there are no production capacities on production of nuclear fuel.

The complete dependence from the foreign supplier of nuclear fuel leads to significant risks on providing nuclear power plants with fuel. The self-produced organization of nuclear fuel will provide their decrease.

During 2009-2013 the State target economic program "Nuclear Fuel of Ukraine" approved by the resolution of the Cabinet of Ministers of Ukraine of September 23, 2009 No. 1004 was carried out (The Official Bulletin of Ukraine, 2009, No. 74, the Art. 2530) (further - the Nuclear Fuel of Ukraine Program) which was intended:

increase in production volume of concentrate of natural uranium up to 1880 tons per year;

creation of complete cycle of zirconium production with release of zirconium hire of 170 tons per year;

creation of production of components for the heat-generating assemblies by capacity of 620 sets in year;

creation of nuclear fuel production (since conversion of the enriched uranium hexafluoride before production of the heat-generating assemblies) and construction of the first priority of the plant on production of the heat-generating assemblies by capacity of 220 tons of uranium a year.

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