As a result of a series of negotiations between the Russian company JSC Techsnabexport (100% subsidiary of JSC Atomenergoprom) and the United States Enrichment Corporation (USEC) with respect to the new mechanism of establishing the price per separative work unit (SWU) under the commercial implementation contract for supplies of low enriched uranium (LEU) to the USA within the framework of the Agreement between the Government of the USA and the Government of Russia on the use of highly enriched uranium extracted from nuclear weapons (the HEU-LEU Agreement dated February 18, 1993), the parties have succeeded in achieving an agreement on the new pricing formula to be applied from 2010 until the contract expiration date (2013).

According to the terms of the HEU-LEU Agreement, the new SWU pricing mechanism under the contract between JSC Techsnabexport and USEC is subject to approval by the Governments of Russia and the USA.

The compromise solution found by the parties will allow them to keep up the stable supplies of LEU and sales of natural uranium component of LEU under long-term commercial implementation contracts and perform in full the obligations under the HEU-LEU Agreement which provides for converting 500 MT of HEU extracted from weapons into LEU for subsequent use as fuel for nuclear power plants.

The Russian side hopes that the agreements achieve will impart a new stimulus to American power companies’ long-term contracting for Russian LEU (outside the HEU-LEU Agreement framework).

In September 2008, JSC Techsnabexport already managed to achieve an agreement on changing the price terms of another commercial implementation contract within the framework of the HEU-LEU Agreement – the long-term contract for sales of natural uranium component of LEU with the Western Companies (Areva NC, Cameco, Nukem), establishing a new mechanism for calculating prices for natural uranium to be supplied by the Russian side to the Western Companies in 2011-2013. The corresponding amendment to the executive contract has already been approved by the Governments of Russia and the USA.

On February 18, 1993, the Agreement on the use of highly enriched uranium extracted from nuclear weapons was signed between the Government of the Russian Federation and the Government of the United States. The Agreement provides for supplies to the USA of low enriched uranium (LEU) converted from highly enriched uranium (HEU) derived from nuclear weapons by Rosatom enterprises for use as fuel for US nuclear power plants (NPP).
On January 15, 1994, the Executive Contract implementing the Agreement (the HEU-LEU Contract) was signed between the authorized organizations – JSC Techsnabexport on the part of Russia and USED on the part of the US.

JSC Techsnabexport is the world’s largest supplier of nuclear fuel cycle products and services. The company has 45 years of experience in foreign trade and provides over 40% of the world market demand for uranium enrichment services for NPP needs. Techsnabexport exports isotopes, rare-earth metals and other products manufactured by Russian nuclear industry, and imports advanced technological, scientific and medical equipment. It has subsidiaries in Germany, Republic of Korea and Japan. JSC Techsnabexport is a part of JSC Atomenergoprom, an integrated company consolidating civil assets of the Russian nuclear industry. Atomenergoprom carries out the full nuclear power production cycle, from uranium production to NPP construction and power generation.

 PR Department of JSC Atomenergoprom