ROSATOM STATE CORPORATION GETS UNDERWAY

UNCLAS MOSCOW 000408

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: KNNP ENRG PARM PREL RS
SUBJECT: ROSATOM STATE CORPORATION GETS UNDERWAY

REF: 07 Moscow 5408


1. (SBU) Prime Minister Zubkhov officially appointed Sergey
Kiriyenko Director General of the newly formed Rosatom State
Corporation on February 4. Natasha Klishina, head of the Bilateral
Cooperation Section of Rosatom's International Department, reviewed
with us February 5 the state of play in the transition from the old
to the new Rosatom.


2. (SBU) Rosatom will soon announce the formal "liquidation" of the
old structure, Klishina told us. The transition will take about 8-9
months. Rosatom officials tell us the next two or three months may
be the most intensive. Rosatom will send employees a two-month
"notice letter." The Corporation will offer many employees, but not
all, positions in the new structure. Klishina anticipated that all
current Rosatom Deputy Directors would carry on into the new
Corporation.


3. (SBU) Klishina observed that the transition was taking place
largely as envisioned last fall when the Duma passed the Rosatom
Corporation law (ref). Consolidation of the various civil
components of Rosatom under Atomenergoprom (AEP) was proceeding.
Klishina felt the new structure would serve, as intended, to improve
integration and competitiveness. Although the state budget will
fund Rosatom Corporation in the early years, Klishina affirmed that
the goal is for the Atomenergoprom to turn a profit and become
self-sustaining in the medium term. Ultimately, government funding
would support only the research and development functions of Rosatom
Corporation.


4. (U) The GOR released February 7 a preliminary organizational
chart of Rosatom Corporation. The chart shows four functional
groups: the nuclear weapons complex (composed of 15 enterprises);
nuclear and radiation safety, to include the handling of spent
nuclear fuel (7 enterprises); scientific, research and training
institutions (18 enterprises); and AEP. Under AEP fall 86
institutions and organizations related to the civilian nuclear power
industry.


5. (U) President Putin named the Rosatom Corporation Supervisory
Board in late 2007. The Board consists of the following members:


S. V. Kiriyenko (Director General of the Corporation)

S. S. Sobyanin (Head of the Presidential Administration)

S. E. Prikhodko (Assistant to the President)

I. I. Shuvalov (Assistant to the President)

L. I. Brichiova (Assistant to the President)

A. R. Belousov (Deputy Minster for Economic Development and
Trade)

I. V. Borovkov (Deputy Chief of Staff of the Government and
Head of the Military-Industrial Commission
of the GOR)

A. V. Bortnikov (Head of the Economic Security Service,
FSB)

V. N. Verhovtsev (Head of Department 12 of the Ministry of
Defense (Nuclear Weapons))

BURNS