The Cabinet of Ministers at its June 27, 2023 meeting approved a plan to transform the state-owned NNEGC Energoatom into a joint stock company with 100% of its shares owned by the state, the company reported in Telegram.
“This is another step in fulfilling Ukraine’s international obligations to bring the management of state-owned enterprises in line with the best international standards of corporate governance,” the NAEC commented.
According to the Ministry of Economy of Ukraine, during June-July 2023 a complete inventory of the property of the enterprise should be conducted and a company for an independent assessment of the property should be selected.
In November, the act of property assessment should be approved, drafts of government decisions on the approval of the transfer act of the property in the charter capital of the JSC should be prepared;
The issue of Energoatom shares is scheduled for December, while the process of transforming the state-owned enterprise into a JSC is expected to be completed by March 2024.
As reported with reference to Peter Kotin, president of Energoatom, NAEC expects to complete corporatization of the company, according to optimistic estimates, in six months, according to pessimistic estimates – in a year.
“There are a lot of processes going on right now and the main one is to conduct an inventory of all assets as well as to collect creditors’ appeals. This is not an easy procedure,” he said in mid-June.
At the same time, he specified that with regard to the Zaporizhzhia NPP occupied by the Russian invaders “we will use the preliminary, pre-war inventory data for now, and then (when the plant returns under the control of Ukraine – IF-U) we will adjust”.
At the beginning of May the Cabinet of Ministers started the procedure for reorganization of the state enterprise by means of its transformation into the National Atomic Energy Generating Company Energoatom JSC, 100% shares in the authorized capital of which belong to the state and are not subject to privatization or alienation by other means.
The Cabinet of Ministers also created a commission for Enerhoatom’s transformation and approved its composition, set a two-month deadline for lenders to file their claims against the company, and formed an inventory commission.
Before that, on March 17, 2023, President Vladimir Zelenski signed the law “On the peculiarities of formation of the joint stock company NAEK Energoatom.
“Energoatom” is the operator of all four operating NPPs in Ukraine. It operates Zaporizhzhya, Pivdenno-Ukrainian, Rivne and Khmelnitsky plants with 15 power units equipped with water-water power reactors, with a total installed electric capacity of 13.8 GW. The 6GW ZNPP has been under Russian occupation since May 4, 2022.
NNEGC Energoatom expects to complete corporatization of the enterprise, according to optimistic estimates, in half a year, according to pessimistic estimates, in a year, said the president of the company Petr Kotin.
“Energoatom’s corporatization is moving at quite a fast pace. According to pessimistic estimates, it will take us a year to be fully corporatized. On the optimistic side, half a year. There are many processes going on now; one of them is the stocktaking of all assets and collection of creditor claims. This is not an easy procedure,” said Mr. Kotin in his interview to journalists during visit of one of the NPPs.
At the same time, he specified that with regard to the Zaporizhzhya NPP occupied by the Russian invaders “we will use preliminary, pre-war inventory data for the time being, and then (after the return of the plant under Ukrainian control – ER) we will adjust.
As reported, at the beginning of May the Cabinet of Ministers reorganized the state enterprise by transforming it into the National Nuclear Energy Generating Company Energoatom, 100% of the shares in the authorized capital of which belong to the state and are not subject to privatization or alienation in any other way.
As noted by the Prime Minister of Ukraine Denis Shmygal, it will improve the efficiency of management, attract additional funds for new projects and strengthen energy independence.
The Cabinet of Ministers also created a commission for Energoatom’s transformation and approved its composition, set a two-month deadline for lenders to file their claims against the company, and formed an inventory commission.
Before that, on February 6, 2023, the Verkhovna Rada of Ukraine passed the draft law 8067 on corporatization of the state-owned enterprise Energoatom during the second reading.
The corporatization of Energoatom is stipulated by the loan agreement between the company and the European Bank for Reconstruction and Development (EBRD) and the guarantee agreement “The Integrated Generalized Program of Nuclear Power Plants Units Safety Enhancement,” ratified by Verkhovna Rada.
“Energoatom is the operator of all four operating nuclear power plants in Ukraine. It operates Zaporizhzhya, Pivdenno-Ukrainian, Rivne and Khmelnitsky power plants with 15 power units, equipped with water-water power reactors, with total installed electric capacity of 13,8 GW. The 6GW ZNPP has been under Russian occupation since May 4, 2022.
NNEGC Energoatom expects to complete corporatization of the enterprise, according to optimistic estimates, in half a year, according to pessimistic estimates, in a year, said the president of the company Petr Kotin.
“Energoatom’s corporatization is moving at quite a fast pace. According to pessimistic estimates, it will take us a year to be fully corporatized. On the optimistic side, half a year. There are many processes going on now; one of them is the stocktaking of all assets and collection of creditor claims. This is not an easy procedure,” said Mr. Kotin in his interview to journalists during visit of one of the NPPs.
At the same time, he specified that with regard to the Zaporizhzhya NPP occupied by the Russian invaders “we will use preliminary, pre-war inventory data for the time being, and then (after the return of the plant under Ukrainian control – ER) we will adjust.
As reported, at the beginning of May the Cabinet of Ministers reorganized the state enterprise by transforming it into the National Nuclear Energy Generating Company Energoatom, 100% of the shares in the authorized capital of which belong to the state and are not subject to privatization or alienation in any other way.
As noted by the Prime Minister of Ukraine Denis Shmygal, it will improve the efficiency of management, attract additional funds for new projects and strengthen energy independence.
The Cabinet of Ministers also created a commission for Energoatom’s transformation and approved its composition, set a two-month deadline for lenders to file their claims against the company, and formed an inventory commission.
Before that, on February 6, 2023, the Verkhovna Rada of Ukraine passed the draft law 8067 on corporatization of the state-owned enterprise Energoatom during the second reading.
The corporatization of Energoatom is stipulated by the loan agreement between the company and the European Bank for Reconstruction and Development (EBRD) and the guarantee agreement “The Integrated Generalized Program of Nuclear Power Plants Units Safety Enhancement,” ratified by Verkhovna Rada.
“Energoatom is the operator of all four operating nuclear power plants in Ukraine. It operates Zaporizhzhya, Pivdenno-Ukrainian, Rivne and Khmelnitsky power plants with 15 power units, equipped with water-water power reactors, with total installed electric capacity of 13,8 GW. The 6GW ZNPP has been under Russian occupation since May 4, 2022.
The Cabinet of Ministers at a meeting supported a decision that gives start to the procedure of transforming the state-owned company NAEK Energoatom into a joint stock company, the government portal reported with reference to Prime Minister Denis Shmygal on Tuesday.
“Energoatom is one of the largest operators of nuclear power plants in Europe, the company is strategically important for the energy security of the state. We`re bringing it in conformity with international standards of corporate management. At the same time the state retains 100% ownership of the plant,” he said.
According to Prime Minister, eventually it will increase the efficiency of management, will attract additional funds for implementation of new projects and will strengthen energy independence.
As reported, the Verkhovna Rada of Ukraine on February 6, 2023, supported the draft law 8067 on corporatization of the state-owned enterprise Energoatom, which provides for the transformation of Energoatom from a state-owned enterprise into a joint stock company with 100% state-owned shares.
Energoatom’s corporatization is envisaged by the loan agreement between the company and the European Bank for Reconstruction and Development (EBRD) and the guarantee agreement “Complex Generalized Safety Upgrade Program for Nuclear Power Plants,” ratified by the Supreme Council.
“Energoatom is the operator of all four operating nuclear power plants in Ukraine. It operates the Zaporizhzhya, South Ukraine, Rivne and Khmelnitsky plants, with 15 power units equipped with water-water power reactors, with a total installed electric capacity of 13.8 GW.
NNEGC Energoatom President Petr Kotin and U.S. Holtec International President and CEO Chris Singh on April 21 signed an agreement on cooperation in the deployment of small modular reactors (SMRs), which provides for construction of up to 20 SMR-160 reactors, with implementation of the first pilot project and reaching minimum regulated reactor capacity and grid connection by March 2029.
According to Energoatom’s Web site on Saturday, Kotin signed the agreement in Kiev and Singh signed it in Camden, New Jersey, USA. Ukrainian Energy Minister Herman Galushchenko and Riaz Awan, Holtec International’s vice president of operations in Ukraine, also attended the ceremony.
“The construction of the SMR in Ukraine will not only contribute to strengthening the energy security of the state, but will also make it possible to replace the thermal power capacity destroyed by Russian attacks and achieve the goals of decarbonization. Ukraine has a significant human resource potential for the development of leading nuclear technologies and will make every effort, particularly in cooperation and with American partners, to oust the Russian nuclear industry from the world market. MMR is a powerful technology which will also allow us to decentralize generation,” Galushchenko said.
According to Energoatom’s president, the agreement with Holtec International “is based on 20 years of successful cooperation between the companies.” “It will enable the introduction of promising, safe, clean, reliable and efficient small modular reactor technologies and make Ukraine the world’s leading country in clean energy,” Kotin said.
The document also envisages the deepening of cooperation between the companies to strengthen the energy security of Ukraine. In addition, the agreement will contribute to the universal decarbonization of the Ukrainian energy sector, strengthen Ukraine’s energy independence and begin high-tech production of parts for SMRs in our territories.
“We are grateful to esteemed Energy Minister Galushchenko and the esteemed President of Energoatom, representing the government of Ukraine, for restoring your nation’s confidence in our company by choosing our extremely safe SMR-160 reactors and Holtec International as a partner to meet the country’s clean energy needs…We are committed to helping the Ukrainian people rebuild their energy infrastructure when Russian aggressors are driven from the country,” Singh said at the signing ceremony.
According to Energoatom, Holtec International, their longtime partner, served as the contractor for the Centralized Spent Nuclear Fuel Storage Facility, which went into operation in April 2022.
The SMR-160 is a 160-MW pressurized light-water reactor that uses low-enriched uranium as fuel and is flexible to produce process heat for industrial applications and hydrogen production.
“Energoatom is the operator of all four operating nuclear power plants in Ukraine. It operates 15 power units equipped with water-water power reactors with a total installed electric capacity of 13.835 GW.
NNEGC Energoatom President Petr Kotin and British Rolls-Royce SMR director for cooperation with partners Sophie McFarlene-Smith signed a memorandum of understanding on March 20 that envisages the construction of a power plant with small modular reactor (SMR) in Ukraine.
“Under the memorandum, Rolls-Royce SMR is committed to supporting Ukraine’s recovery by deploying a plant-based small modular reactor (SMR) power plant that will be capable of generating enough carbon-free electricity to supply a million homes for more than 60 years,” Energoatom said in Telegram on Tuesday.
Overall, the document provides an opportunity for the companies to work together to find future opportunities to deploy Rolls-Royce SMR small modular reactors (SMRs) in Ukraine as it begins to recover.
“Cooperation between Energoatom and Rolls-Royce SMR has reached a new level. Today we have signed an agreement that will give Ukraine the opportunity not only to start a high-quality post-war reconstruction of power infrastructure, but also to become one of the first countries in the world to attract promising small modular reactor technology to do so,” Kotin was quoted by the company as saying.
For his part, as Rolls-Royce SMR CEO Tom Samson noted, the British government supports Ukraine and its citizens.
“With Britain’s own nuclear technology, we can potentially help the people of Ukraine recover quickly and restore energy security and independence,” he stressed.
As reported, Ukrainian Energy Minister Herman Galushchenko said last week Ukraine plans to build up to 20 SMRs as part of a “green transition” to replace the thermal generation units destroyed during the war
In turn, Petro Kotin, president of NNEGC Energoatom, said that SMRs are very promising for Ukraine and at the moment the nuclear specialists jointly with the Ministry of Energy are developing many programs with different world companies which develop technology of small modular reactors.
In particular, Energoatom is currently cooperating in the SMR direction, in addition to the British Rolies Royce, also with the American Westinghouse offering its AP-300 reactor, NuScale and Holtec International, as well as with a couple more companies with which memorandums have been signed.
