1. 11 International Cooperation in the Nuclear Fuel Market as a factor of increasing the Security of Supply Moscow, 2009

2. Contents I.Our vision of global prospects II.Security of nuclear fuel supply III.Proposals on international cooperation

3. I. Our vision of global prospects

4. 1 Large-scale plans on nuclear power generation development China – six-fold by 2020 India – five-fold by 2020 more than 50 new countries are willing ….to build NPP’s Financial crisis Lack of internal investment resources due to fall of Uranium prices Limited access to external credit resources Growth of demand for uranium, SWU and fabrication services Disbalance of demand and supply of nuclear fuel cycle services Need for security of nuclear fuel supply Risks of failures in the supply chain Global Prospects Correction of uranium mines, enrichment and fabrication capacities development plans

5. II. Security of nuclear fuel supply

6. 2 Package supply 1. No additional expenses for utility related to separate contracting (additional personnel, logistics expenses, etc.) Transfer of risks of uranium and SWU procurement and of change in commercial terms of procurement when switching to new fuel, to the FA supplier Opportunity for the utility to get cumulative discounts Uranium + conversion + enrichment + fabrication

7. 3 State Corporation «Rosatom» JSC «Atomenergoprom» JSC «Atomredmedzoloto» JSC «TENEX»Concern «Energoatom» JSC «MSZ» Electrostal JSC «NCCP» Novosibirsk JSC «ChMP» Glazov NPP..… Uranium mining Conversion and enrichment JSC «TVEL» Fabrication NPP operation JSC «MZP» Moscow Vertical Integration 2. VNIINM Moscow

8. 4 Backup enterprises «Mashinostroitelny Zavod» (MSZ) Electrostal, Moscow region: 1. Fabrication of fuel for power reactors of Russian design. 2. Fabrication of fuel for PWR and BWR reactors in Western Europe.. 3. Fabrication of fuel for research reactors. «Novosibirsk Chemical Concentrates Plant» (NCCP) Novosibirsk: 1.Fabrication of fuel for power reactors of Russian design. 2.Fabrication of fuel for PWR reactors in Western Europe and USA (TVS-K). 3.Fabrication of fuel for research reactors. 3. Total capacity (in pellets) 1800 THM/year

9. 5 Fuel for reactors of Russian design (VVER, RBMK) Fuel for Fast Reactors Fuel components (pellets) VVER, PWR, BWR, PHWR Fuel for reactors of Western design (PWR, BWR) RepU feed materialNatural uranium Competences in fabrication of different types of nuclear fuel 4. Own FA design for PWR 17х17 (TVS-K) RepU Fuel (in cooperation with AREVA)

10. III.Proposals on international cooperation

11. 6 Nuclear fuel fabrication Joint Ventures International regional fabrication center at NCCP Regional plant on FA assembly in the partner’s country Proposals Inter-regional levelLocal level Pellets (optional)

12. 7 IRFC On the basis of NCCP Current and future NPP operators Inputs of the parties Current activity Outcome TVEL Production capacities Competences Package FA Original technologies of nuclear fuel fabrication Orders for 2-3 reloads/year for maintaining the competence, Components (optional) Other fabricators Competences International regional nuclear fuel fabrication center (IRFC) at NCCP – closing the ICUE 1. ICUE EUP Fabrication technologies renewal Security-of-Supply Bank of technologies

13. 8 Advantages of IRFC Risks reduction in a supply chain Secured EUPProximity to South- East Asia markets Higher resistance to country-related risks Development of nuclear fuel fabrication technologies Higher resistance to industrial risks

14. 9 Regional plant – partner choosing criteria Significant reactor park (8 and more units) Adherence to Russian reactor and fuel technologies Proximity to new nuclear fuel markets Long-term contracts for nuclear fuel supply aimed at return on investment Regional plant 2.

15. 10 Regional plant Regional plant TVEL Pellets Zr- parts (optional) Technology renewal Service, Training Package supply Insurance of supply National utilities; Utilities in other countries Parties’ contributions Current activity Outcome Is formed on the partnership basis of JV Equipment Fabrication technology FA fabrication (from pellets to FA)

16. 11 Advantages of a Regional Plant Scientific and technical efficiency Economic efficiency Fuel supply to utilities domestically and abroad within the region Guaranteed obtaining new designs Transfer of vertical integration advantages for the partner’s country Guaranteed EUP Guaranteed components and pellets (as an option) Simplifying the issues of licensing new nuclear fuel as far as the plant is located in the same country as NPP

17. More than five countries have shown interest in the project «Regional plant»

18. We invite all interested parties to cooperation! JSC «TVEL» «Atomexpo», 2009