The multi-million investments will come to Ukraine. The agreement on investments was reached on the sidelines of the US-Ukraine business forum of high level, held in Washington earlier this week. The main purpose of the event was to bring the Ukrainian Government and the American business together and create the conditions for closer cooperation. The Westinghouse energy company was among those, who immediately confirmed seriousness of their intentions to work with Ukraine and suggested specific areas for the development of partnership. Danny Roderick, President and Chief Executive Officer, Westinghouse, tells about that as well as about new opportunities and potential of cooperation with Ukraine in an interview with Ukrinform.
- On Monday, you took part in the US-Ukraine business forum in Washington, and met with the Ukrainian delegation. What issues did you discuss, and did you reach any agreement?
- Westinghouse is preparing to bring additional assistance to Ukraine in various forms, which were discussed with the Ukrainian delegation. We believe that with our international experience and advanced technologies, Westinghouse can provide support to increase operating efficiency of the existing reactors that the country so heavily relies upon today. It is vital that Ukraine is provided all available best practices to ensuring the effective, efficient and safe use of nuclear energy.
- As we know, the Ukrainian Government is going to terminate a contract with Russia for building a plant producing nuclear fuel (Kirovohrad region) and to denounce an agreement for construction two more reactors at the Khmelnitsky Nuclear Power Plant. Does Westinghouse consider the possibility to join this project, and has the Ukrainian side already made such offers?
- Currently there is a surplus of capacity of nuclear fuel production in the world, so the construction of a new fuel plant in Ukraine won't bring great economic benefits for the country. However, if the country decides to make this investment, Westinghouse would consider involvement. In parallel, Westinghouse is beginning a set of qualification efforts to allow different parts of the nuclear fuel process be done inside Ukraine. We believe it is currently more important to concentrate on an existing Ukrainian production, which is underutilized, but has a remarkable performance and technological potential. It may be used for producing parts of fuel assemblies; this business could be moved to Ukraine without a need to construct a new production facility.
- In your opinion, is it possible to implement the project of the plant (near Kirovohrad) in such a way as to produce fuel assemblies not only for VVER-1000, but also for VVER-440, to fill Ukraine's needs in nuclear fuel?
- It is technically possible but not economically sensible. Ukraine operates 13 VVER-1000 and two VVER-440 type reactors. A VVER-440 fuel assembly (FA) is composed of 126 fuel rods. A VVER-1000 FA has 311-312 fuel rods. But more importantly, the lengths of the fuel rods are very different, i.e. VVER-1000 fuel rod length (approx. 4000 mm) and VVER-440 fuel rod length (approx. 2600 mm). This would require two separate assembly lines or considerable re-tooling when switching back and forth between the two fuel types. It would be especially un-economical considering Ukraine only operates two VVER-440 reactors. Instead, Westinghouse and several EU and Ukrainian partners are developing the capacity in our facilities in Sweden to provide alternatives from existing suppliers.
- Last year, Ukraine bought from Westinghouse nuclear fuel at $39.3 million, which represents less than 7% of total purchases. As we know, this year two sides signed a contract. How can Westinghouse increase fuel supply in Ukraine over the short and medium terms (until 2020)?
- Westinghouse is preparing to significantly increase its supply of fuel to Ukraine beginning next year. We are confident of success and will continue to supply at ever increasing amounts through 2020. Any further details are not able to be provided at this point in time.
- Did the Ukrainian authorities propose to Westinghouse to construct new nuclear power units? If so, are you ready to do it, and what projects can be implemented in this case - the Soviet or the American ones?
- This was not discussed.
- What joint projects of Westinghouse and Ukraine existing now are able to attract financing in the Ukrainian nuclear industry? Is Westinghouse ready to invest in Ukrainian nuclear power plant, and infrastructure, as well as to supply modern equipment to improve them?
- We are investing into Ukraine, and I see great potential in this country. The more I learn about Ukraine, the more interested I become in your country. Westinghouse invests into companies, into training and education, in order to increase the local potential, including human potential. We also invest into infrastructure, which helps developing industry and creates new jobs.
There are a number of financing options: direct financing, financing through export and loan agencies, indirect financing with the help of countries, which have demonstrated a desire to help Ukraine get through this period of economic restructuring, and traditional financing through banks. We are looking at all possible options and are trying to choose the one with the lowest interest rate; we are also trying to implement projects in a way that their price can be as low as possible and maximize local work and content.
Yaroslav Dovhopol, Washington
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