nuclear-news

South Africa’s Treasury advised against getting Russian nuclear reactors, but Putin is pushing for the sale

Vladimir Putin’s quest for a nuclear monopoly, Mail & Guardian, South Acfrica 17 OCT 2014 00:00 QAANITAH HUNTER  Somehow Russia has persuaded President Jacob Zuma into agreeing to a deal for a nuclear fleet that the treasury opposed. The Russians are coming. The nuclear deal with Russia is to dominate the agenda when the South Africa-Russia joint intergovernmental committee on trade and economic co-operation meets next month.

Even though the South African government insists it has not entered into the procurement phase for the nuclear fleet, it has become clear that Russian President Vladimir Putin managed to sway President Jacob Zuma and Energy Minister Tina Joemat-Pettersson into giving Russia the entirety of the deal.

Zuma and his most trusted Cabinet ministers went against the strict advice of the national treasury and his senior advisers when a nuclear energy “agreement” was signed with Russia last month.

Two sources who also advised against it revealed this week to the Mail & Guardian that an initial bid made by Russian nuclear company Rosatom last year was rejected by the treasury and a number of Zuma’s advisers. A third credible source who was close to the negotiations confirmed their version of events.

The treasury this week did not deny advising against the initial Russian proposal.

“Nuclear would be a substantial financial commitment and government can only make that kind of commitment after careful and thorough-going modelling and an affordability assessment,” said spokesperson Jabulani Sikhakhane.

He said they had yet to discuss how the treasury would pay for nuclear energy.

Exclusive rights
It has emerged that the Russians wanted exclusive rights to South Africa’s nuclear industry. This was substantiated by a statement made by Putin in March last year, ­following his visit to South Africa, saying his country did not want to merely build the nuclear plants but would bid to run the entire nuclear industry here.

South Africa plans to enhance its energy mix by creating 9.6 gigawatts of nuclear energy by 2030.

The M&G spoke to three highly placed sources – all of them indicated that:

• The initial Russian proposal was not affordable and the treasury rejected it;
• The technology proposed was sub standard and dangerous;
• It would exclude and be damaging to local industries; and
• Even public servants who seemed loyal to Zuma had concerns about it.

One source close to the nuclear talks said the signing of the agreement was a result of about two years of courting by the Russians……….http://mg.co.za/article/2014-10-16-vladimir-putins-quest-for-a-nuclear-monopoly

October 18, 2014 - Posted by Christina Macpherson | marketing, Russia, South Africa