The list of economic sanctions against Russia was extended on Friday 24 February. However, it “forgets” once again nuclear power, from which the power in Moscow continues to derive substantial revenue. This underlines the dependence of Europeans and Americans on the giant Rosatom.
The Russian group, which covers the entire cycle, is a major player on the international nuclear scene, with recognized skills. It is also the most active. It has developed 38 reactors in Russia, as many abroad, to which must be added 34 in projects (including 24 under construction), in eleven countries such as India, Iran, Bangladesh and Egypt.
Russian reactor construction sites continue in Europe
In Europe, five Member States operate 19 Russian-made reactors: six in the Czech Republic, five in Slovakia, four in Hungary, two in Finland and two in Bulgaria. And the list will grow, with several ongoing projects, despite the war in Ukraine.
In Slovakia, unit 3 of the Mochovce plant was connected to the network in January and unit 4 will be next year. In Hungary, the project for two VVER-1200 reactors has not been called into question. In November, European justice even rejected a complaint filed by Austria on the financial arrangement of this plant, financed by Budapest on the basis of a loan from Moscow.
Since the war in Ukraine, only Finland has decided to terminate the agreement signed with Rosatom for the construction of the country’s third nuclear power plant, Hanhikivi. But this decision could cost him dearly. In a first opinion delivered in December, an international court of arbitration qualified as illegal this breach of contract.
Almost half of uranium enrichment is done in Russia
In 2020, Russia was the world’s seventh largest producer of uranium. Sufficient weight to weigh on world prices, especially since until the invasion of Ukraine, Russia was also the passageway for uranium from Kazakhstan, the world number one, to Europe and the United States. Under American pressure, Kazatomprom had to find a new trade route, via the Caspian Sea and the Black Sea.
Rosatom is even more predominant in uranium enrichment, with almost half of the world market. Its size is nearly twice that of number two, Urenco, an Anglo-German-Dutch company, and nearly four times larger than number three, the French Orano (ex-Areva).
According to data from the European Commission, 20% of the uranium used in 2020 came from Russia.
The United States are very large customers of Rosatom
Reducing this dependency cannot happen overnight. ” New suppliers must be found, who do not always have the appropriate fuel, and the capacities available to manufacture it. But the most complicated thing is to make the technical modifications to the reactors “, underlines an expert of the sector. Electricians are still dependent on original equipment manufacturers.
In December, Bulgaria signed a supply agreement with the American Westinghouse and the French Framatome to replace Rosatom fuel. But only from 2025, the time for each of the parties to be ready.
The biggest importers of Russian enriched uranium are the United States, which covers 20% of its needs with Rosatom. Terrapower, the company financed by Bill Gates, the founder of Microsoft, has thus delayed the tests of its small nuclear reactor for at least two years because the only source of supply of moderately enriched uranium (haleu) is Russian, underlines the French Nuclear Energy Company (Sfen), in a note. It recalls that ” nine of the ten advanced reactor projects currently funded by the U.S. Department of Energy require gas ».
Less impact for France
France also has links with Rosatom, which is the main customer of the Arabelle turbines, manufactured in Belfort and taken over by EDF from the American General Electric. Since 2018, the electrician has also had a contract to supply enriched uranium, which made a bit of noise last year, denounced in particular by Greenpeace, when drums arrived by boat in Dunkirk.
This is reprocessed uranium (URT), from spent fuel from French nuclear reactors, which had been sent to Rosatom, in Seversk, to be enriched. The enriched reprocessed uranium (URE) then returns to France, to be used only in the Cruas plant (Ardèche).
But EDF does not import natural uranium from Russia and could very well do without this enrichment contract with Rosatom. After a call for tenders, it had been signed before the war in Ukraine, for economic and industrial reasons, and not for lack of technological mastery. When the prices of natural uranium are high, EDF has an interest in drawing on its stocks of URT (25,000 tonnes and increasing by 1,000 tonnes per year). The group would also like to have its 1,300 MW reactors certified so that they can consume URT.
Orano wants to increase the capacity of its Tricastin plant
The enrichment process for this URT could be carried out in the Orano plant in Tricastin (Drôme), but would require the deployment of a specific workshop with a series of dedicated centrifuges. Too complex, it was then judged.
The deal has changed and Orano is planning to increase the capacity of its enrichment plant, Georges Besse 2, in Tricastin by a third, for a billion investment. The objective is to capture some of Rosatom’s customers, who are looking for a new supplier. The decision should be made this year.