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STATE ATOMIC ENERGY CORPORATION ROSATOM. STATE ATOMIC ENERGY CORPORATION ROSATOM. PERFORMANCE IN 2019 PERFORMANCE IN 2019 PERFORMANCE OF STATE ATOMIC ENERGY CORPORATION ROSATOM IN 2019 TABLE OF CONTENTS Report Profile 4 CHAPTER 7. DEVELOPMENT OF THE NORTHERN SEA ROUTE 122 7.1. Escorting Vessels and Handling Cargo Traffic along the Northern Sea Route 127 CHAPTER 1. OUR ACHIEVEMENTS 6 7.2. Construction of New Icebreakers 128 History of the Russian Nuclear Industry 8 7.3. New Products 128 ROSATOM Today 10 7.4. Digitization of Operations 128 Key Results in 2019 14 7.5. Activities of FSUE Hydrographic Enterprise 129 Key Events in 2019 15 7.6. Plans for 2020 and for the Medium Term 130 Address by the Chairman of the Supervisory Board 16 Address by the Director General 17 CHAPTER 8. EFFECTIVE MANAGEMENT OF RESOURCES 132 Address by a Stakeholder Representative 18 8.1. Corporate Governance 135 Financial and Economic Results 20 8.2. Risk Management 141 8.3. Performance of Government Functions 155 CHAPTER 2. STRATEGY FOR A SUSTAINABLE FUTURE 22 8.4. Financial and Investment Management 158 2.1. Business Strategy until 2030 24 8.5. ROSATOM Production System 164 2.2. Sustainable Development Management 28 8.6. Procurement Management 168 2.3. Value Creation and Business Model 34 8.7. Internal Control System 172 8.8. Prevention of Corruption and Other Offences 174 CHAPTER 3. CONTRIBUTION TO GLOBAL DEVELOPMENT 40 3.1. Markets Served by ROSATOM 42 CHAPTER 9. DEVELOPMENT OF HUMAN POTENTIAL 176 3.2. International Cooperation 55 AND INFRASTRUCTURE 3.3. International Business 63 9.1. Implementation of the HR Policy 178 9.2. Developing the Regions of Operation 194 CHAPTER 4. PERFORMANCE OF DIVISIONS 74 9.3. Stakeholder Engagement 205 4.1. Mining Division 76 4.2. Fuel Division 79 CHAPTER 10. SAFETY AND ENVIRONMENTAL PROTECTION 214 4.3. Mechanical Engineering Division 82 10.1. Nuclear and Radiation Safety; Occupational Safety and Health 216 4.4. Engineering Division 84 10.2. RAW and SNF Management and Decommissioning of Facilities Posing 228 4.5. Power Engineering Division 86 Nuclear and Radiation Hazards 10.3. Environmental Safety 234 CHAPTER 5. INNOVATIONS AND NEW PRODUCTS TO IMPROVE 90 THE QUALITY OF PEOPLE’S LIFE CHAPTER 11. PARTNERSHIP FOR SUSTAINABLE DEVELOPMENT 254 5.1. Research and Innovations 92 11.1. Public Reporting System 256 5.2. Business Diversification 102 11.2. Dialogues with Stakeholders 258 11.3. Incorporation of Stakeholders’ Proposals 259 CHAPTER 6. DIGITAL TRANSFORMATION 108 11.4. Statement of Public Assurance 260 6.1. Uniform Digital Strategy 113 Appendices 264 6.2. Participation in Digitization in Russia 114 Contact Details and Useful Links 284 6.3. Digital products 116 6.4. Internal Digitization 120 6.5. Technological Development 121 PERFORMANCE OF STATE ATOMIC ENERGY 2 CORPORATION ROSATOM IN 2019 3 REPORT PROFILE STAKEHOLDER ENGAGEMENT The Public Annual Report ‘Performance of State Atomic Energy The Report focuses on the history, achievements and long-term To improve transparency and accountability and to determine The Report incorporates key recommendations and requests Corporation Rosatom’ (hereinafter referred to as the Corporation development priorities of the Russian nuclear industry; this topic the materiality of information to be disclosed, the Report was voiced by stakeholder representatives. or ROSATOM) for 2019 (the Report) has been prepared on a vol- has been prioritized by the top management and representa- prepared in cooperation with stakeholders in accordance with untary basis and is intended for a broad range of stakeholders. tives of key stakeholders. international standards (AA1000SES, the GRI Standards, the For details on the Report and the process of determining its con- International <IR> Framework). To identify material topics to tent, see Appendix 1. be disclosed in the Report, ROSATOM conducted an opinion poll and held dialogues with stakeholders (in a remote format). STANDARDS AND REGULATORY REQUIREMENTS The Report has been prepared in accordance with the following The AccountAbility АА1000 Series of Standards (AA 1000 AP documents: 2018, AA1000 SES 2015); The Public Reporting Policy and the Public Reporting Standard The Conceptual Framework for the Development of Public of ROSATOM and its organizations; Non-Financial Reporting in Russia; The International Integrated Reporting Framework (Interna- The Recommendations of the Russian Union of Industrialists tional <IR> Framework); and Entrepreneurs (RSPP) for Use in Governance Practice and The Global Reporting Initiative Sustainability Reporting Stand- Corporate Non-Financial Reporting (basic performance indi- ards (GRI SRS, Core option); cators). PERFORMANCE OF STATE ATOMIC ENERGY 4 CORPORATION ROSATOM IN 2019 5 History of the Russian Nuclear Industry 8 ROSATOM Today 10 Key Results in 2019 14 Key Events in 2019 15 Address by the Chairman of the Supervisory Board 16 Address by the Director General 17 Address by a Stakeholder Representative 18 OUR Financial and Economic Results 20 1ACHIEVEMENTS 1953, the Ministry of Medium Machine-Building was established. 1990s, which were a challenging period for Russia, also marked HISTORY OF THE RUSSIAN NUCLEAR INDUSTRY In 1957, the Ministry was headed by Efim Slavsky, the famous ‘nu- a period of stagnation in the industry. But the nuclear industry To learn more about the history of the nuclear industry, visit the website at http://www.biblioatom.ru clear minister’, who held this position until 1986. Academicians survived and retained its unique research and production capa- Igor Kurchatov and Anatoly Alexandrov led the development of bilities and, most importantly, its human resources. In the 2000s, a programme to develop the nuclear power industry in the USSR, the commissioning of new NPP power units was resumed, with Research in the field of nuclear physics in the USSR dates back to 1945, a decree was signed on establishing a governing body re- which involved a wide use of nuclear energy in power generation, power unit No. 1 of Rostov NPP and power unit No. 3 of Kalinin the first half of the 20th century. In 1921, the Radium Laboratory sponsible for managing the work on uranium: the Special Commit- transportation and other areas of the national economy. NPP put into operation in 2001 and 2004 respectively. (now the Khlopin Radium Institute) was established under the tee under the State Defence Committee of the USSR. It is consid- Academy of Sciences. In 1933, the 1st Nationwide Conference on ered that this date marked the emergence of the nuclear industry. In 1954, the world’s first nuclear power plant, Obninsk NPP, was 2007 saw the establishment of State Atomic Energy Corporation Nuclear Physics was held in Leningrad. In 1939, Yakov Zeldovich, put into operation. In 1959, the world’s first nuclear icebreaker, Rosatom. The Corporation was assigned the powers of the now Yuliy Khariton and Alexander Leypunsky proved that a nuclear In 1946, a self-sustained nuclear chain reaction in uranium was Lenin, was put into operation. In 1964, the first VVER reactor with defunct Federal Agency on Atomic Energy (the successor to the fission chain reaction in uranium was possible. In 1940, Konstan- achieved in the F-1 reactor in Laboratory No. 2. F-1 was the first a capacity of 210 MW was put into operation at Novovoronezh Soviet Ministry of Medium Machine-Building). ROSATOM started tin Petrzhak and Georgiy Flyorov, researchers at the Radium In- nuclear reactor in the USSR and in Europe. In 1949, the USSR NPP. In 1974, the first RBMK reactor with a capacity of 1,000 MW to work painstakingly to consolidate disparate nuclear enterpris- stitute, discovered spontaneous fission of heavy nuclei (without conducted its first successful nuclear weapon test, followed by was put into operation at Leningrad NPP. By the end of the 1980s, es and industry institutes into an integrated and efficient mech- neutron bombardment), as exemplified by uranium. the test of the first Soviet thermonuclear bomb in 1953. In 1958, the total NPP capacity in the USSR reached 37 GW. Soviet atomic anism. The establishment of the Corporation opened up new the first Soviet nuclear submarine, Leninsky Komsomol, was scientists laid the groundwork for the future: they built incredi- opportunities for the development of nuclear power and science In the 1940s, the military ‘nuclear project’ gave powerful impetus built. The country’s ‘nuclear shield’ helped accomplish a global bly powerful particle accelerators, nuclear fusion facilities for re- and for a considerable expansion of its overseas footprint. To- to the development of the industry. On September 28, 1942, the objective: historians believe that the nuclear parity between the search on plasma compression and numerous other facilities. day, ROSATOM is a diversified corporation, one of Russia’s larg- State Defence Committee adopted a classified decree No. 2352ss USSR and the US helped to avoid the third world war, while nu- est companies and a global leader in the sphere of nuclear tech- on the Organization of Work on Uranium. In 1943, Laboratory of clear weapons became a means of peaceful containment. The Chernobyl nuclear disaster in 1986 hindered the develop- nology. For more information on ROSATOM’s performance and Measuring Instruments No. 2 of the USSR Academy of Sciences ment of the nuclear power industry. But at the same time, this achievements, see the public annual reports for the period from (now the National Research Centre Kurchatov Institute) was estab- Apart from the defence capability,
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