Russia’s Rusatom Overseas in talks on ‘potential’ projects with Saudi Arabia

Rusatom Overseas, a subsidiary of the Russia’s state-run Rosatom, is in discussions with Saudi Arabia on several potential projects, a senior company executive told Argaam in an exclusive interview.

Last month, Rusatom Overseas announced the opening of a branch in the Kingdom.

“The primary objective of the branch is to intensify the works between Rosatom and King Abdullah City for Atomic and Renewable Energy (K.A.CARE) in terms of signed program implementation,” said Khashba Damey, vice-president for nuclear projects, Rusatom Overseas.

The company is seeking to discuss the establishment of joint ventures with Saudi authorities to promote joint products in the MENA region as part of the Vision 2030 program and National Industrial Development and Logistics Program e-mile plan.

“Rosatom intends to widely use Saudi subcontractors for the nuclear power plants (NPP) or other projects, which will lead to their own development and bring benefits to a wide range of industries involved in nuclear projects,” Damey disclosed.

While Rusatom Overseas has already received an investment license from the Saudi Arabian General Investment Authority (SAGIA) and commercial registry from the Saudi Arabian Ministry of Trade & Investment, the branch will start its full operation in the “nearest future”.

The branch will also aid in shaping the localization plan in order to utilize labour resources for large NPP project and to support Rosatom’s activities in other potential project negotiations within the Kingdom, he said.

As a subsidiary of Rosatom, the firm is responsible for promotion of the integrated offer for NPP and centers of nuclear science and technologies (CNST) construction projects in the global markets

In December 2017, Rosatom and K.A.CARE signed a cooperation roadmap for the peaceful use of atomic energy, which covers the activities necessary to implement the cooperation program.

“We believe that our constant presence in Saudi Arabia will have a positive influence on the further development of relations between Saudi Arabia and the Russian Federation in the sphere of nuclear power for our mutual benefit of the parties,” Damey noted.

Rosatom was shortlisted among other companies to submit bids for Saudi Arabia’s first nuclear project in July 2018.

“For the moment, Rosatom NPP offer [has] successfully passed the latest round of tender negotiations. We are waiting for further instructions and notifications from for K.A.CARE within the competitive dialogue procedure,” Damey added.

Saudi Arabia and Russia have been consolidating their nuclear and energy partnerships over the past few years. In 2015, the Kingdom signed an intergovernmental agreement with Russia on nuclear cooperation, followed by the Cooperation on Peaceful Use of Atomic Energy Program in October 2017.

Write to Parag Deulgaonkar at parag.d@argaamplus.com