Annual Report 2012 Safety Efficiency Responsibility

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ANNUAL REPORT 2012

SAFETY EFFICIENCY RESPONSIBILITY

Rosenergoatom ANNUAL REPORT 2012 Rosenergoatom 4 Concern OJSC Concern OJSC 5

ANNUAL REPORT Rosenergoatom Concern Rosenergoatom OJSC Key Financial Concern OJSC 2012 and Business Indicators for 2010–2012, mln rubles

Item 2010 2011 2012

Registered capital 461,515 530,012 530,012

Revenue 210,223 201,405 200,526

Net exports revenue 90 232 324.4

Total deducted key tax 17,092.38 18,386.04 21,094.15 amounts payable to budgets, including to:

• federal budget 3,893.10 7,399.33 6,254.12

• local budget and 13,199.29 10,986.71 14,840.02 budgets of the Administrative Rosenergoatom Concern OJSC Subjects of the is the most effective generating Russian Federation company in the year 2012 Net profit 21,744 –2,913 –1,849 Rosenergoatom Concern OJSC has won the first place in the rating G“ enerating companies: Asset value 741,549 964,734 1,087,826 effectiveness in the market” completed by the specialists of Non-commercial partnership Net asset value 679,433 835,020 936,542 “Market council” based on the results of activity in the 2012. The rating of the generating companies’ Gross profit 121,588 92,050 76,115 effectiveness is calculated and published in the Automatized information system Total profit tax, charged 7,825.76 3,083.11 6,521.93 “Electricity and power markets” of Non-commercial and paid partnership “Market council”. The rating includes the information about the results of activity Dividends payable 847 0 0 total of 77 generating companies in Russia. Charitable spending 443 491 586

Investments in equity 136,554 201,778 146,230.5 Rosenergoatom ANNUAL REPORT 2012 Rosenergoatom 6 Concern OJSC Concern OJSC 7

Table of Contents

About this Annual Report 9 Section 5. Financial Situation and Performance 146 Business Geography 12 5.1. Key Financial Performance Figures 148 Address of the Chairman of the Board of Directors 14 5.2. Investment Activities 158 Address of the General Director 16 2012 Calendar of Key Corporate Events 18 Section 6. Sustainable Growth 162 6.1. Public Position on Sustainable Growth 164 Section 1. Overview 24 6.2. Environmental Impact 167 1.1. General Information 26 6.3. Human Resource Management 174 1.2. History 26 6.4. Labour Protection 182 1.3. Corporate Structure 28 6.5. Social Policy 185 1.4. Subsidiaries 29 6.6. Developing Areas of Presence 190 6.7. Charity and Sponsorship 195 Section 2. Development Strategy and Outlooks 30 6.8. Interaction with Stakeholders 196 2.1. Mission 32 2.2. Business Model 33 Conclusion on the Public Consultation Rosenergoatom’s 206 2.3. Key Strategic Goals and Initiatives 36 Annual Report Rosenergoatom

Section 3. Performance in Key Activities 38 Appendices 210 3.1. Position in the Industry 40 Details and Contacts 212 3.2. Electrical Power Production by Russian Nuclear Plants. 46 Table of Standard Components of Sustainable Growth Reports 213 Generating Capacity Guidance under the Global Reporting Initiative (GRI), RUME 3.3. Ensuring Russian Nuclear Plants Safety. 74 System of Public Reporting Indicators at Rosenergoatom 230 Radiation Impact on Personnel and Citizens Auditor’s Opinion on Non-Financial Reports 236 3.4. Developing Generating Potential 90 Statement by the Rosenergoatom Internal Control and Audits 238 3.5. Maintenance and Repairs of NPPs. 98 Department on the Results of an Internal Audit to Examine Implementation of Rosatom Production System Rosenergoatom’s Process of Generating Public Reports 3.6. Innovative Activities 102 Business/Financial Accounting Statements 240 3.7. International Activities 108 Auditor’s Report Certifying Annual Business 248 Accounting Statements Section 4. System of Management 112 Auditing Committee Statement on the Results of Review 250 4.1. Structure and List of Executive Management 114 of Financial and Business Activities of Rosenergoatom 4.2. Corporate Management System 128 Concern OJSC for 2012 4.3. System of Key Efficiency Ratios. 131 Report on the Concern’s Compliance with Provisions 251 Employee Evaluation and Remuneration of the Corporate Conduct Code recommended by the Federal 4.4. Internal Control and Auditing 134 Financial Markets Service 4.5. Risk Management 136 Active nuclear power units connected to the grid 258 4.6. Property Management 140 Installed Capacity and Electrical Power Generation 259 4.7. Quality Management 140 by Russian Nuclear Plants in 2012, by Power Sources 4.8. Purchase Management 141 and Geography (Regions of Russia) 4.9. Information Technology 143 Glossary 260 Abbreviations 264 2012 Rosenergoatom Concern OJSC 9

About this Annual Report

Description of the Report for electric power industry (GRI Electric Utility Sector addendum); This Annual Report • АА1000 series of standards published by the International Institute of Social and of Rosenergoatom Ethical Accountability; Concern OJSC (hereinafter – • Recommendations from the Internation- the “Concern”) for 2012, al Integrated Reports Council (IIRC); and for four previous • Recommendations of the Russian Union of Industrialists and Entrepreneurs years, is an integrated (RSPP) on managerial practices and cor- report that combines porate non-financial reports (Key Perfor- the usual Annual Report mance Indicators); • Rosatom Nuclear Energy State Corpora- and the sustained tion’s Public Accountability Policy; development report filed • Public Annual reports Standard of Ros- by the company. energoatom Concern OJSC; • Rosenergoatom Concern OJSC Ethics Code.

The Annual Report for Rosenergoatom This Annual Report discloses key perfor- Concern OJSC (hereinafter – the “Annual mance indicators of business activities for Report”) was prepared to meet the require- the period between January 1 and December ments of the following regulatory docu- 31, 2012, and describes the Concern’s out- ments: looks for growth aimed at efficient achieve- • “Corporations” Federal Act of December ment of strategic goals and building a basis 26, 1995, No.208-FZ; for long-term sustainable growth. There • “Corporate Accounting” Federal Act of have been no substantial changes from December 6, 2012, No.402-FZ; previous reporting periods in terms of the • Executive Order of the Federal Financial scope, boundaries, and methods adopted for Markets Service (FFMS) of Russia No. the Annual Report. 11-46/pz-n of October 04, 2011, “Approv- al of Regulation on information disclo- The structure of this Annual Report insure by issuers of securities”; cludes information on performance of the • Russian FCS Directive of April 4, 2002, Concern and its branch companies (NPP). No.421/р “Recommendation on applica- The Annual Report comprehensively dis- tion of the Corporate Conduct Code”; closes financial, economic, and production- • Russian FCS Directive of April 30, 2003, related information on the Concern’s key No.03-849/р “Methodological recom- activities, as well as their economic, environ- mendations on the structure and format mental, and social impacts. of Corporate Conduct Code compliance information in corporate annual Report Building Process reports”; • Sustainable Development Reporting Before this report was prepared, the con- Manual published by the Global Report- text of the Concern’s operations in 2012 ing Initiative organization (GRI, version was subject to examination. Just as before, G3.1), GRI industry-oriented addendum the safety of NPP operation remained one Rosenergoatom ANNUAL REPORT 2012 Rosenergoatom 10 Concern OJSC Concern OJSC 11

of the key issues on the international scale. tors (compared to 56 indicators in the 2011 Considering the context, “Safety of the Rus- Report). The GRI compliance level is А+, sian nuclear power industry” was selected to while the 2011 Report was level B+. More be the priority topic of this report. disclosed indicators and a higher compliance level were possible thanks to improve- The Annual Report was prepared to meet ments of the consolidated data gathering the requirements of the guidance on sus- system and the public reporting system in tainable growth reports by the Global Re- the Concern. porting Initiative international organization (GRI, version G3.1), and the technical proto- Disclaimer col. To ensure that the topic is relevant, the report realized the principle of stakeholder Information included in this Annual Report interaction. Stakeholder representatives contains, among other things, estimates were invited to discuss the report through and other forecast figures as an attempt to dialogs, public consultations and public af- describe future events or future financial firmation. Interaction with stakeholders was activities of the Concern. Such statements arranged as recommended in the Stakehold- are speculative by their nature, and may ulti- er Interaction Standard АА1000SES. mately differ from real-life events or results. Forecast information is disclosed before the Level of compliance of this Annual Report respective reporting period begins. Many with the GRI Manual (G3.1) – А+ existing factors may cause actual results to significantly depart from those stated in Disclosure of information in the Annual our assumptions or estimates. This includes Report corresponds to level А+, as con- general economic conditions, competitive firmed by an independent third party audit environment, risks related to the operations conducted by PricewaterhouseCoopers. inside and outside Russia, changes in tech- A+ nologies and the market situation in the Differences from the 2011 Annual report nuclear power industry, and other factors relevant to the Concern’s business. The main difference between the 2012 Annual Report and that of the previous year For additional updates is a greater number of disclosed GRI indica- on the activities, please visit tors: this Annual Report presents 99 indica- http://www.rosenergoatom.ru

GRI Application Level C C+ B B+ A A+ Mandatory Self-declaration Optional Third-party checked GRI checked Rosenergoatom ANNUAL REPORT 2012 Rosenergoatom 12 Concern OJSC Concern OJSC 13

FLOATING NPP Business Geography

BILIBINO NPP

KOLA NPP

LENINGRAD NPP2

LENINGRAD NPP

BALTIC NPP

KALININ NPP

SMOLENSK NPP BELOYARSK NPP

NOVO NOVO VORONEZH VORONEZH NPP NPP2 BALAKOVO NPP

KURSK NPP

ROSTOV NPP

In 2012 Installed capacity

Nuclear plants Power units in operation in operation

Nuclear plants Power units under construction under construction 177.3billion kWh 25.2GW of electric power generated Rosenergoatom ANNUAL REPORT 2012 Address of the Chairman Rosenergoatom 14 Concern OJSC of the Board of Directors Concern OJSC 15

Address of the Chairman of the Board of Directors

As is obvious from 2012 results, the Concern power unit No.4 of the Kalinin NPP was Rosatom State Corporation’s 2030 action successfully handled its key tasks assigned officially commissioned for operation strategy envisages further growth of nu- by the industry’s executive management, — the first of the post-Soviet era, built clear generation’s contribution to Russia’s and demonstrated considerable potential from scratch with considerable econo- total power production. I am confident that for further growth. my of government funds. Meanwhile, the Rosenergoatom Concern will continue its construction of nine new power units is progress into the future, with absolutely safe For example, the installed capacity use now underway, while construction of the and reliable operation of its nuclear plants. factor (ICUF) of our power units was 80.9%: world’s first floating nuclear thermal plant The unique potential created over dec- this coefficient rose by 10% during 2001- that will supply power to remote areas in ades of the nuclear sector’s existence, the 2012 due to targeted efforts to increase the Siberia and the Russian Far East remains a high professionalism, and modern, safe and efficiency of active power units. The entire unique project. robust equipment offer ample opportunities programme underway to increase electrical to implement new large-scale projects that generation by active power units, with ad- Based on declarations of intent, the com- will benefit the entire nation. justment for changes, is expected to ensure pany began developing materials in 2012 to Dear Colleagues and Friends, generation of an additional 87.6 billion kWh plan investments for the construction pro- Alexander Lokshin during the period 2007–2015. ject of Kursk NPP-2 and Smolensk NPP-2, Chairman of the Board of Directors, You are reading the 2012 Annual Report of both using VVER-TOI reactors – another Rosenergoatom Concern OJSC, Rosenergoatom Concern OJSC – the gener- In 2012, the Concern continued implemen- step forward in the evolution of NPP-2006 First Deputy General Director ating company of Rosatom State Corpora- tation of its vital programme to upgrade design. for Operation Management, tion. active power units and thus extend their Rosatom State Nuclear service life. Large-scale work secured a Ros- Having evaluated in a balanced and serious Energy Corporation We present for your examination informa- tekhnadzor license for extended operation manner the consequences of the Fukushima tion about operations of the largest busi- of power unit No.1 at Smolensk NPP. Docu- NPP disaster in Japan, the Concern took a ness in the electric generation division in ments were prepared to enable Rostekhnad- whole series of extra steps to ensure safety the nuclear power sector, and Russia’s big- zor in their decision as regards service life in emergencies, including purchasing ad- gest generating company, which celebrated extension for power unit No.4 of Novovo- ditional equipment. Peer audits of the Be- its 20th anniversary in the reporting year. ronezh NPP. As planned for 2012, the pro- loyarsk and Kola nuclear plants by WANO The Concern’s share of Russia’s total elec- gramme to extend the service life of power in 2012 confirmed again that such meas- trical generation is 16.8%, making the com- unit No.3 at Kursk NPP was accomplished. ures were efficient and that Russian nuclear pany a key player in guaranteeing the na- plants meet the most stringent international tional power security. Since its launch, the programme has in- safety standards. volved 18 power units. As of January 1, 2013, We regard the Concern’s performance as the total installed capacity made available One cannot overlook the Concern’s ever- part of the national development strategy by our efforts to extend the service life of growing role as a company that addresses for the entire nuclear power industry. Under these facilities was 10,848 MW. These ac- vital the social functions of a major employ- the strategy, the Concern sees its priorities tivities considerably improved the safety of er, creating new jobs for skilled workers and as increasing the share and raising the effi- the power units. considerably influencing the level of average ciency of nuclear generation in Russia, clos- wages in the Russian regions. The nuclear ing the nuclear fuel cycle, and international The largest post-Soviet programme to sector has become truly invaluable in estab- expansion, which includes maintenance of build new generating capacity for NPP is lishing a new and objectively higher stand- VVER power units outside of Russia. currently underway. In September 2012, ard of living for Russian citizens. Rosenergoatom ANNUAL REPORT 2012 Address Rosenergoatom 16 Concern OJSC of the General Director Concern OJSC 17

Address of the General Director

plants generated 177.3 billion kWh of elec- design of all power units now under con- tive edge on the power markets in Russia tric power, or 2.7% more than the 2011 figure. struction meet the world’s most stringent and worldwide. This is a new record in the history of both safety standards. the Concern and the Russian nuclear power Yevgeny Romanov industry. Trusted with the critical national role of sup- General Director, porting the nation’s power security, we con- Rosenergoatom Concern OJSC The repairs campaign of 2012 was complet- tinue to build and upgrading active power ed as planned. Total repair time was down by units. As the most momentous event of the 107 days, resulting in the additional genera- year, power unit 4 at the Kalinin NPP was tion of 1.5 billion kWh of electric power. commissioned for commercial operation, on time and with a savings of 7 billion rubles. Just as in previous years, in 2012 the company ensured the safe and reliable operation As a company that seeks the status of a of its nuclear plants as part of the nation’s global player and technology leader on Dear Colleagues and Partners, United Power Grid. No incidents were regis- global power markets, innovative break- tered that would have such consequences as throughs are of great importance to us. Offered for your perusal is the 2012 Annual radiation hazards or loss of nuclear materi- Today we are ready to offer R&D centres for Report of Rosenergoatom Concern OJSC. als and substances; just as we had no cases the sector specific orders for new technolo- of exposure of personnel to above-standard gies in the nuclear power industry. This work During the reporting year, our company radiation levels (18 mSv/year). In the past 14 is coordinated by our science and engineer- celebrated its 20th year in business. When years, none of Russia’s nuclear plants has ing centre, created within the Concern in it was created, the Concern consolidated had an event that qualified above Level 1 2012. nuclear specialists’ efforts to preserve the on the International Nuclear Event Scale industry and build a basis for a power break- (INES). This Annual Report will also describe the through into the future. Today, the Concern social policy that the Concern pursues re- has secured strong positions both in Russia Following the Fukushima events, the Con- garding its employees, as well as our policy and worldwide as a dynamic power generat- cern has made further progress in safety. on developing our areas of presence. Inter- ing company. Among other things, WANO supported the action with our employees, higher quality Concern’s initiative to create regional crisis of work, and better social guarantees are no Ensuring safety in the Russian nuclear centres. In February 2013, experimental op- less important to us than our efforts to in- power industry is the priority topic of the eration of a WANO regional crisis center crease business efficiency. 2012 Annual Report. The information in the began at the Concern’s crisis centre. The report clearly demonstrates how Rosener- centre is going to provide technical assis- The 2012 results confirm that the Concern goatom Concern OJSC as plant operator en- tance to foreign NPP in emergencies. has made serious progress. We seek good sures the safe, efficient and reliable opera- performance and we achieve it with knowl- tion of active nuclear power plants. We have purchased equipment for all active edge, a responsible attitude, professional- nuclear plants that ensures safe shutdown ism, and high discipline in production. This In 2012, the Russian nuclear power sector and aftercooling of their power units in the makes me confident that we are able to continued showing high growth rates in absence of external power and water supply. overcome the most challenging problems in key performance indicators. Our nuclear According to international experts, the our sector, working to build up our competi- Rosenergoatom ANNUAL REPORT 2012 2012 Calendar Rosenergoatom 18 Concern OJSC of Key Corporate Events Concern OJSC 19

2012 Calendar of Key Corporate Events

January On January 24, in Moscow, the Council of Managers of WANO April 23 to 27, Rostov NPP welcomed a follow-up peer audit 24.01 Moscow Centre held its 55th meeting. Vladimir Asmolov, 23–27.04 by the WANO to evaluate areas recommended for improve- WANO President and First Deputy General Director of Ros- ments after a comprehensive peer audit in March 2010. At the energoatom Concern, stated that the post-Fukushima panel final meeting the parties spoke of good progress of activities had proposed vital changes for dramatic reform of the WANO. to meet the recommendations of the previous audit at Rostov Yevgeny Romanov, member of the WANO Global Council of NPP. Managers and General Director of Rosenergoatom Concern, May also attended the meeting. On May 23, the 8th regular International science and technol- 23.05 ogy conference “Safety, efficiency and economics of the nu- January 23 to 27, Russia received the delegation of the Atomic clear power industry” (MNTK-2012) opened in Moscow, hosted 23–27.01 Energy Agency (AEA) OSART with a technical mission under by Rosenergoatom Concern OJSC. The conference addressed General Director Luis Echavarri, attended by Vladimir Asmolov, the most relevant tasks such as ensuring and improving safety First Deputy General Director of Rosenergoatom Concern of nuclear plant operation, increasing the installed capacity use OJSC. International experts visited Russia to examine various factor (ICUF), extending service life, and decommissioning of aspects of Russian activities in the nuclear sector in response power units, increasing business efficiency and determining op- to Russia’s request for membership in AEA OSART filed inO c- timized ways to develop the nuclear power sector. MNTK-2012 tober 2011. was attended by more than 700 participants, who represented Rosatom State Corporation, Rosenergoatom Concern OJSC, February On February 24, concreting of foundation slabs began on the IAEA, WANO, major Russian and international organizations 24.02 construction site of Baltic NPP to build the “nuclear core” of and businesses. the plant.

March Following successful certification of its quality management — After a successful procedure of quality management system system (QMS), Rosenergoatom Concern OJSC received a three- (QMS) certification the Concern received certificate No. РОСС year certificate of May 23, 2012, TIC 15 100 128018 issued by RU.0001.01АЭ00.77.11.0030 valid for three years. This is official TÜV Thüringen e. V. – a body for certification of systems and confirmation that as an operator, Rosenergoatom Concern OJSC personnel. meets all conditions needed for safe and efficient operation. It was thus officially confirmed that Rosenergoatom Con- cern OJSC has established a system of electric power gen- Rosenergoatom Concern OJSC created a branch company “Fa- eration compliant under the globally accepted standard ISO cilities Construction Management” to assume the functions of 9001:2008. construction client for building NPP power units. On June 15, unit No.4 of Kalinin NPP raised its capacity to 90% June April April 14 to 20, independent specialists representing the nu- 15.06 of the rated level. The capacity of power unit No.4 was raised 14–20.04 clear plants of Zaporozhye, Khmelnitskiy, Baltic, South Ukraine, to the rated level gradually during the experimental-production Rostov and Kola visited the Kalinin NPP for a follow-up peer operation stage. On June 20, at 12:45, power unit No.4 of Ka- audit by the WANO to evaluate correction construction of- linin NPP achieved 100% of its rated capacity. fered by the WANO experts after the peer audit in 2010. Balakovo and Rostov nuclear plants were declared winners On April 21, Baltic NPP began construction of a reactor build- in the contest “Best Nuclear Plants of 2011”, with Kalinin and 21.04 ing for power unit No.1. Work is done by Titan-2 Co. supervised Smolensk nuclear plants ranked second. by Rosenergoatom Concern OJSC branch company “Directorate of Baltic NPP Construction Project” and NIAEP as general con- On June 20, general contractor NIAEP began works on the tractor. Concreting of the foundation slab for the reactor build- 20.06 construction site of Baltic NPP to excavate the pit for the main ing was done professionally and on time. buildings of the power unit No.2 construction project. Rosenergoatom ANNUAL REPORT 2012 2012 Calendar Rosenergoatom 20 Concern OJSC of Key Corporate Events Concern OJSC 21

July — Rosenergoatom Concern OJSC created a branch company Sci- On September 25, at an official ceremony, the parties signed an ence and Engineering Centre expected to become the basis 25.09 acceptance statement for power unit No.4 of Kalinin NPP com- for development of competencies as a fully-fledged client for missioned for commercial operation. Sergey Kirienko, General nuclear fuel of the next generation. The director of the branch Director of Rosatom State Corporation, stated that completed company is Stanislav Antipov, who held the office ofG eneral construction of the fourth power unit at Kalinin NPP was an Director of FGUP Rosenergoatom Concern OJSC in 2005– important link in the chain of succession in construction of 2006. power facilities. “This means that now we are back to serial construction of nuclear plants. Power unit No.4 of Kalinin NPP is Rosenergoatom Concern OJSC finished installing additional highly important: this is the first unit built virtually from point equipment at its nuclear plants, for total value of 2.6 billion zero in the post-Soviet era”, said the CEO of the State Corpora- rubles; this is part of an action plan to mitigate consequences tion. “Construction of the power unit was completed ahead of of hypothetical unforeseen emergencies. The supply of addi- schedule with savings of government funds: We saved 7 billion tional equipment was part of special activities, planned in the rubles on the unit worth 76 billion”. spring of 2011 on the instructions of the Russian Federal Gov- ernment following the Fukushima nuclear plant events in Japan. October 3–5, Rosenergoatom Concern OJSC launched a com- October 03–05.10 prehensive emergency drill (CED-2012) at Kursk NPP. On July 27, General Director of Rosatom State Corporation ap- 27.07 proved the Declaration of intent to make investments into the The event was the first of large-scale drills to use mobile emer- construction of power units No.1 and 2 of Smolensk NPP-2. gency-response equipment that Rosenergoatom Concern OJSC purchased after the Fukushima disaster to make its nuclear plants August On August 5, comprehensive testing of Kalinin NPP power unit more resilient to extreme impacts. CED-2012 demonstrated that 05.08 No. 4 began as part of experimental-production operation. the quantity and capacity of mobile equipment in the Concern is sufficient to respond to any natural or industrial impact and main- On August 16, the Multimedia Art Museum in Moscow opened tain power units’ stability for an indefinite duration of emergency. 16.08 a photo exhibition “Nuclear Civilization”, organized jointly by Rosenergoatom Concern OJSC and the Moscow House of Pho- October 12 to 26, Kola NPP welcomed a WANO peer audit, tography as part of a programme of events to commemorate the 12–26.10 with representatives of Ukraine, Pakistan, the USA, the UK, the company’s 20th anniversary. Czech Republic, Slovakia and Hungary. For the first time, a peer audit involved experts from the WANO Atlanta Centre to ex- As assistance to the Turkey Nuclear Energy Agency (TAEK), amine the results of post-Fukushima measures taken by Kola IAEA representatives in August visited the site of Akkuyu NPP NPP. After the audit, the experts published a report that named (a branch company of Rosenergoatom Concern OJSC, with areas for improvement at the nuclear plant. Atomenergoproyekt as general designer); their objectives were to give an expert evaluation of the nuclear plant’s layout and On November 13, the nuclear plant rapid rescue (NPRR) team November to examine the engineering survey in progress. After the visit, 13.11 celebrated its 25th anniversary. Instructions to “form an inter- IAEA experts praised the organization and technical level of departmental team for NPRR” were issued following analysis of engineering survey at the site of Akkuyu NPP, emphasizing the Chernobyl events. In 25 years, the NPRR team has partici- their compliance under guiding documents and IAEA standards. pated in: 23 comprehensive drills, over 600 exercises, and three anti-terror drills. September On September 7, Rosenergoatom Concern OJSC celebrated its 07.09 20th anniversary. The Concern was created by Presidential Decree On December 5, Rosenergoatom Concern OJSC and the French December on September 7, 1992. According to Yevgeny Romanov, General Di- 05.12 Electricite de France (EDF) in Moscow signed an Agreement rector of Rosenergoatom Concern OJSC, creation of the Concern that made the Concern a full member of the Material Aging in 1992 consolidated efforts of specialists to preserve the sector Institute (MAI) – an international organization engaged in re- and became premises for a breakthrough into the future. search of aging processes in materials used in power units. August 31 to September 15, Beloyarsk NPP welcomed a peer 31.08–15.09 audit of the WANO, with experts from the USA, Germany, Ukraine, India, Slovakia, Bulgaria, Armenia, and Russia. The experts emphasized the vast experience accumulated during operation of the unique advanced type of fast neutron reactor unit at Beloyarsk NPP. This was the third comprehensive peer audit at Beloyarsk NPP, the previous ones came in 2001 and 2006. Rosenergoatom ANNUAL REPORT 2012 Rosenergoatom 22 Concern OJSC Concern OJSC 23 Rosenergoatom ANNUAL REPORT 2012 Rosenergoatom 24 Concern OJSC Concern OJSC 25 01 Overview

• General Information • History • Corporate Structure • Subsidiaries Rosenergoatom ANNUAL REPORT 2012 Section 1. Rosenergoatom 26 Concern OJSC Overview Concern OJSC 27

1 1 1.1. General 1.2. History Information

Rosenergoatom State-owned enterprise Open Joint- Concern OJSC is one Stock Company “Concern for Produc- tion of Electric and Thermal Energy at of the largest electrical Nuclear Power Plants” (Rosenergoatom generation companies Concern OJSC State-Owned Enter- in Russia, and Russia’s only prise) was established by Presidential Decree No. 1055 of September 07, 1992 entity that functions as On Operating Entity of Nuclear Plants a nuclear plant operator. of the Russian Federation.

As branch companies, Rosenergoatom The Decree ruled that Rosenergoatom Con- In accordance with the Federal Govern- By Directive No. 1235-r of the Federal Concern OJSC has integrated active nucle- cern State-Owned Enterprise (SOE)was a ment’s Directive No. 1207-r of September Agency for State Property Management of ar plants, project management of nuclear state-owned enterprise that independently 08, 2001, starting on April 01, 2002, with the August 11, 2008, Federal State Unitary En- plants under construction, plus Facilities and through outsourcing is engaged in all intention to improve operating efficiency terprise Rosenergoatom Concern was re- Construction Management, Science and En- stages of the life cycle of nuclear plants, as at nuclear plants, Rosenergoatom Concern organized to Energoatom Concern OJSC, gineering Centre, a science research center regards selection of construction sites, pro- SOE was reorganized into a generating com- which surrendered 100% of its stock to Ato- for NPP emergency response activities, a ject design, construction, commissioning, pany (Federal State Unitary Enterprise Ros- menergoprom OJSC. project design branch, and a technology operation, decommissioning, and other op- energoatom Concern) by merging with all branch company. Rosenergoatom Concern erating functions. nuclear plants, both in operation and under By Federal Government Resolution No. OJSC maintains a representative office in construction, and business entities for op- 1307-r of September 14, 2009, the Concern the People’s Republic of China. The same Decree ruled that the assets of eration support and science research. is entitled to use the word “Russian” in its nuclear plants currently in operation, under corporate name. In November 2009, the sole The core businesses of Rosenergoatom construction, project design, or abandoned, Apart from the functions of an operator, this stockholder of Energoatom Concern OJSC Concern OJSC are the generation of electri- are owned by the Federal Government and entity was now able to act independently on decided to add modifications into the Con- cal and thermal energy by its nuclear plants, assigned to Rosenergoatom Concern SOE the power market, and sell power generated cern’s Articles of Incorporation, related to and operating nuclear plants, sources of ra- who is fully in charge and control of them. by the nuclear plants to solvent users. its new name: Russian Concern for Produc- diation, and storage of nuclear and radioac- The idea was to use Rosenergoatom Con- tion of Electric and Thermal Energy at Nu- tive materials and waste, through procedures cern SOE as a platform to integrate all nu- To assist further development of the nuclear clear Power Plants (Rosenergoatom Concern legally regulated in the Russian Federation. clear plants, which under the decree had re- power industry and to restructure the nucle- OJSC). ceived the exclusive rights of self-governed ar power complex in the Russian Federation, The Concern is owned by two stockholders: business units. as instructed by Presidential Decree No. 556 In 2011, Rosatom State Corporation became Atomenergoprom (96.415%) and Rosatom of April 27, 2007, the Federal Government another stockholder of Rosenergoatom State Corporation (3.585%). During the 1990s, the nation as a whole was issued Resolution No. 319 of May 26, 2007, Concern OJSC, together with Atomenergo- in dire straights: recession, defaulting debt- under which Atomenergoprom OJSC was prom OJSC. ors, note-based shady deals with payments, incorporated in July 2007, of which Rosatom barter exchange, etc. Therefore, one of the State Corporation is the sole stockholder. main tasks facing Rosenergoatom Concern SOE during the period was to overcome the transition difficulties, and resolve the problem of non-payments. Rosenergoatom ANNUAL REPORT 2012 Section 1. Rosenergoatom 28 Concern OJSC Overview Concern OJSC 29

1 1 1.3. Corporate Structure* 1.4. Subsidiaries

Entity Declared corporate goal Central Administration of Rosenergoatom Concern OJSC AKKUYU NGS ELEKTRIK URETIM Generation and sale of electrical power from Akkuyu NPP (not currently in ANONIM SIRKETI process as the NPP has not yet been opened) Atomtekhexport CJSC Provider of engineering services for construction, commissioning, and Affiliates Affiliates – nuclear Affiliates – nuclear Representative operation of facilities for thermal and nuclear power industry inside and outside of Russia plants in operation plants under construction offices IKAO CJSC Civil construction, including buildings and structures of Responsibility Levels I and II under National Standard; functions of construction client Management Balakovo NPP Directorate Russian CONSIST-OS OJSC Design, manufacturing, installation, deployment, and maintenance of of construction of Baltic NPP representative systems for control, monitoring, and diagnostics, to assist technology- projects (under construction) Office in Lianyungan, based processes of industrial facilities, including NPP, wire and satellite (People’s Republic communication systems Beloyarsk NPP of China) Rusatom Service CJSC Central and systematic promotion of maintenance services for NPPs, Science through a Comprehensive Service Offer; promotion of Russian innovative Directorate developments for NPPs on international markets. and engineering center of Leningrad NPP-2 Bilibino NPP (under construction) FINPROMATOM CJCS Purchase of main production equipment for NPP power units; data gathering and analysis on power conservation at NPPs.

Ensuring operating ability of NPPs, primarily through works and services to Directorate Atomenergoremont LLC the operator during repair, retrofitting, and upgrade of NPP. for construction of the Kalinin NPP Directorate floating thermal nuclear of Novovoronezh NPP Atomenergosbit OJSC Supporting and ensuring reliable supply of electrical power (capacity) to power plant (under construction) enterprises of the nuclear sector, and to partner enterprises

Kola NPP Baltic NPP OJSC Incorporated to raise investment, including internationally, and finance the construction of Baltic NPP Science-Research Directorate of Nizhny Beloyarsk NPP-2 OJSC Investments in construction, machines, and mechanisms used to build Center for Emergency Novgorod NPP Beloyarsk NPP Power Unit No. 4; concrete mix transportation and pouring. Response at NPP Kursk NPP (under construction) All-Russian Research Institute for Addresses issues of NPP operation, higher reliability, longer service life, NPP Operation (VNIIAES) OJSC safety and economy of NPP, writing specifications requirements, concepts for new NPPs with VVER reactors Engineering Design Leningrad NPP Directorate Elektrogorsk Science Research R&D to raise safety and economic efficiency ofN PPs Branch Office of Voronezh NPP Centre for Nuclear Plant Safety (under construction) OJSC Novovoronezh NPP Dom Housing Complex LLC Hospitality services, transportation services Technology Branch Directorate Energoatominvest LLC Organizing passenger and cargo shipments, creating and operation of Office of Bashkortostan NPP public catering outlets, consumer services, retailing, advertising, and Rostov NPP (under construction) hospitality services, provided to Rosenergoatom Concern OJSC affiliates

Akkuyu NPP in the Republic of Turkey Smolensk NPP Directorate of Kostroma NPP (under construction) FIP Resource – Bulgaria

* As of December 31, 2012. Rosenergoatom ANNUAL REPORT 2012 Rosenergoatom 30 Concern OJSC Concern OJSC 31 02 Development Strategy and Outlooks

• Mission • Business Model • Key Strategic Goals and Initiatives Rosenergoatom ANNUAL REPORT 2012 Section 2. Development Rosenergoatom 32 Concern OJSC Strategy and Outlooks Concern OJSC 33

2.1. Mission 2.2. Business Model

Rosenergoatom Concern OJSC sees its mission as bringing Key partners Key processes Product Development Consumers Business results consumers the electrical and thermal power produced positioning 2 by Russian nuclear plants, with guaranteed safety 2 as its top business priority. • TVEL JSC • Operation of • Production of • Commission- • Major • Implementa- active NPPs electric and ing new NPP manufacturers tion of de- • FSUE GHK thermal power power units velopment • R&D and capac- and infrastruc- • Secure programme for The highest values for Rosenergoatom Concern OJSC • FSUE PO ity as base part ture suppliers nuclear indus- Mayak • NPP design & are national energy security, protection and safety of daily load trial complex placement • Design for • Electric power for citizens, and environmental protection. • NIAEP OJSC schedule power units resellers • Construc- • Construction VVER-TOI, tion of 9 large • SPBAEP OJSC of new genera- • End users BN-1200, KLT- power units In its main activities for NPP operation, Rosenergoatom tion units for • AEP OJSC 40S etc. and a floating NPPs Concern OJSC is guided by the following principles: thermal nuclear • Improvements • Sales of elec- plant to nuclear fuel tric energy • ensuring nuclear, radiation, engineering, fire cycle and environmental safety, and labour protection;

• unconditional compliance with Russian Federal Law, Key resources Sales channels observing Federal safety rules and regulations, and • 33 power units • National grid adherence to corporate standards; with installed • Atomenergos- capacity • business efficiency in generation of electrical bit OJSC 25.2 GW and thermal energy by nuclear plants; • ongoing improvements in corporate safety culture. • Human resources

As a corporate operator, Rosenergoatom Concern OJSC • Equipment assumes total responsibility for ensuring nuclear and • Nuclear fuel radiation safety at all stages of the NPP life cycle. • Investments, including federal budget Rosenergoatom ANNUAL REPORT 2012 Section 2. Development Rosenergoatom 34 Concern OJSC Strategy and Outlooks Concern OJSC 35

2 2

Machine hall of power unit No.3, Beloyarsk NPP Rosenergoatom ANNUAL REPORT 2012 Section 2. Development Rosenergoatom 36 Concern OJSC Strategy and Outlooks Concern OJSC 37

2.3. Key Strategic Goals and Initiatives

2 2 The strategy Strategic Goals Mid-term development of Rosenergoatom and Initiatives programme up to 2017 Concern OJSC is part 1. Ensuring safe, efficient, and reliable op- 4. Improving efficiency of capital construc- • Starting with the targets approved by * BOO is a project model under which and parcel of the eration of active NPPs, nuclear and ration projects, including: Rosatom State Corporation, the fol- the company that energy business strategy diation safety of nuclear power facilities, lowing figures are seen as mid-term key builds the facility will protection of employees, citizens, and • more efficient system of capital con- tasks through to 2017 later own and operate it;й of Rosatom State the environment. struction management; • revenues of 356 billion rubles.; Corporation, which • more efficient purchases by consoli- • labour efficiency of 4,500 MWh per an in turn rests 2. Raising the share of nuclear generation dated purchasing, efficient inventory employee; on the Russian Federal by increasing installed capacity and gen- management, and optimized logis- • EBITDA at 148 billion rubles. eration of nuclear power, with ensured tics; Energy Strategy safety levels, including implementation • implementing serial and batch con- Progress with the strategy in 2012: up to 2030 of construction projects to build nuclear struction under the VVER-TOI pro- plants (projects currently under con- ject: Kursk NPP-2, Smolensk NPP-2, • a set of steps to extend the service life struction include nine power units for Nizhny Novgorod NPP, and other. of power units was accomplished, en- NPPs, and a floating power unit). suring their stable operation (in 2012, 5. Growth of international operations: extended-life power units generated 69 3. Improving efficiency of nuclear plants, billion kWh); The Concern’s key development priorities with: • building nuclear plants abroad using • work was accomplished to reduce total are: increasing the share and improving effi- the BOO model: Build — Own — repair days (in 2012, total repair days ciency of nuclear generation in Russia, clos- • higher installed capacity use factor Operate; were reduced by 107, allowing genera- ing the nuclear fuel cycle, and international (ICUF) and load availability factor • exporting electric power; servicing tion of an additional 2.2 billion kWh); expansion, including services to power units (LAF) of nuclear plants; VVER power units abroad, includ- • R&D to raise the thermal capacity of VVER in other nations. • higher capacity, and longer service ing maintenance, repairs, upgrading, power unit No.4 of Balakovo NPP to life of active power units; document development, and per- 107–110%; • improving efficiency of repair rou- sonnel training. • activities undertaken to improve the re- tines; • source characteristics of the first-gener- • improving efficiency of fuel con- ation RBMK reactor (installed at power sumption; 6. Implementing the programme to close unit No.1 of Leningrad NPP) and support • lower operation cost, and cost man- the nuclear fuel cycle (CNFC): permissible limits of their safe opera- agement; tion; • completing the design of VVER-TOI, • implementing the Russian pro- • analysis of potential increase in electric and preparation to build nuclear gramme; power generation of nuclear plants by plants based on VVER-TOI. • building fast neutron (FN) reactors. increasing their base load (hydraulic ac- cumulation plants); • VVER-TOI design finished and ready for serial construction of nuclear power units. Rosenergoatom ANNUAL REPORT 2012 Rosenergoatom 38 Concern OJSC Concern OJSC 39 03 Performance in Key Activities

• Position in the Industry • Electrical Power Production by Russian Nuclear Plants. Generating Capacity • Ensuring Russian Nuclear Plants Safety. Radiation Impact on Personnel and Citizens • Developing Generating Potential • Maintenance and Repairs of NPPs. Implementation of Rosatom Production System • Innovative Activities • International Activities Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 40 Concern OJSC in Key Activities Concern OJSC 41

3.1. Position in the Industry

The Concern’s core business is generation of electrical and thermal gies of coal-burning, high-efficiency tive development in the sector, reduc- energy by nuclear plants. steam-gas units, next-generation con- ing construction costs of generating and trolled power grids, and other technolo- transmission capacity, promoting com- gies that make the sector more efficient; petition in the electric power sector and During 2012, the Concern showed technical stability, • ensuring robust, reliable, safe and con- related sectors, and also through crea- competitive ability, and good potential for further growth, trollable electric power systems, as well tion of a national system to control de- having achieved 177.3 billion KWh as record-high power as required quality of electric power; velopment in the electric power sector; • developing small-scale power produc- • reducing negative impact of the elec- generation in the entire history of Rosenergoatom tion in off-center power supply zones tric power sector on the environment by Concern OJSC. through more efficient use of local using optimized technologies. 3 power resources, development of grids 3 and networks, and reduced consumption In terms of development of non-fuel power of imported light petroleum products; generation, considerable (doubled) growth One of Rosenergoatom’s strategic goals as environmental efficiency of manufac- • building and implementing a price check of electric power production is expected a constituent enterprise of Rosatom State turing, transport, distribution and use of mechanism thanks to high-tech innova- from the nuclear plants. Corporation is the efficient production and power. sale of electrical power generated by its • To achieve the strategic development NPPs. goals of the electrical power sector, the Federal Government has set the follow- List of regions of presence In 2012, just as in previous years, the com- ing priority tasks: pany ensured one of its top priorities in • balanced development of generating Region NPP Number of power units Units under construction business: the safe and reliable operation of and grid capacity, ensuring the needed Saratov Oblast Balakovo NPP 4 NPPs at all stages of the life cycle. level of reliable supply of electric power both nationwide and in individual re- Sverdlovsk Oblast Beloyarsk NPP 3 (2 final shutdown 1 for decommissioning) Key trends in the electric power sector gions; • further growth of the Russian United Chukotka Autonomous Bilibino NPP 4 • The Concern comprises ten active nu- Power Grid, including by connecting and Okrug

clear plants with a total installed capac- merging isolated supply networks; Tver Oblast Kalinin NPP 4 25.2 ity of 25.2 GW. • extensive construction and upgrade of GW • According to Russia’s Energy Strategy main production assets in the electric Murmansk Oblast Kola NPP 4 up to 2030 approved by Federal Govern- power sector (power plants and net- ^ Kursk Oblast Kursk NPP 4 total installed ment Resolution No.1715-r of November works) to cover business and public capacity 13, 2009, strategic goals for development needs in electric power; Leningrad Oblast Leningrad NPP 4 of Russian of the electrical power sector include: • promoting competitive relations on nuclear plants Leningrad NPP-2 2 • ensuring power security for the nation retail markets of electric power, ensur- and its regions; ing that prices and tariffs of respective Voronezh Oblast Novovoronezh NPP 5 (2 final shutdown • meeting the needs of the economy and goods and services are economically for decommissioning)

citizens for electrical power (capac- justified; Novovoronezh NPP-2 2 ity) sold at affordable and competitive • leading development of nuclear, coal- prices that guarantee payback of invest- mining, and renewable resource-based Rostov Oblast Rostov NPP 2 2 ments in the electrical power sector; power (including hydraulic power), to Smolensk Oblast Smolensk NPP 3 • ensuring reliable and safe operation of make the sector less dependent on the Russian power grid under normal natural gas, and diversification of the na- Kaliningrad Oblast Baltic NPP 2 conditions and in cases of emergency; tion’s fuel-energy balance; Pevek, Chukotka Autono- FTNPP 1 • investment-based innovative upgrade of • extensive adoption of new environment- mous Okrug the sector to ensure high economic and friendly and high-efficiency technolo- Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 42 Concern OJSC in Key Activities Concern OJSC 43

Key Competition the sales of capacity from Power Unit No. 4 In 2012, the Concern sold electrical power Total additional sales of electrical The list and number of buyers of electrical Kalinin NPP began. under regulated contracts, on the day power from At present, Rosenergoatom Concern OJSC power and capacity from the Concern are market, on the balancing market, and under nuclear plants leads Russian and foreign generating com- not constant values; they do not depend In 2012, the tender procedure was used to unregulated contacts. Capacity was sold were panies on such indicators as installed capac- on the Concern’s preferences. The number, select capacity for sales during 2013. All ca- under regulated contracts and capacity sale ity and electrical power generation. list, and structure of users are determined pacity declared during the selection proce- contracts signed after tenders for price bids by the ECWM Commercial Operator (JSC dure will be sold in 2013 at market prices set for capacity, and sale contracts for capacity 1.49 The Concern’s electrical power generation compared Trading System Administrator of Wholesale through selection, and considering the FTS- from new facilities of nuclear plants. Pay- billion kWh to other Russian major generating companies in 2012, Electricity Market Transactions) every year, approved markup to ensure operation of NPPs. ments for electrical power and capacity sup- billion kWh as part of the central contract-signing cam- During 2102, electrical energy and capacity plied under regulated contracts, and capaci- paign on the ECWM (or more frequently, if were sold at free (unregulated) prices (except ty from generating equipment at nuclear and Generating company Production any serious changes are made to regulations electrical power and capacity sold to citizens). hydraulic electrical plants, were effected at Rosenergoatom Concern OJSC 177.3 that set the working procedures for the the tariffs set by the FTS for Rosenergoatom ECWM during the calendar year, and if such Sales Performance Concern OJSC for 2012. 0.8% 3 Mosenergo OJSC 101.3 changes require modification of contracts). 3 To observe the principles of proportion and Actual total sales of electrical power from Actual revenues from sold electrical power RusHydro OJSC* 96.5 fair distribution of contract counterparts, all nuclear plants in 2012 amounted to 177.29 and capacity in 2012 amounted to 198,416.04 under contracts where electrical power and billion kWh, whereof 177.12 billion kWh (or mln rubles. Extra proceeds compared to INTER RAO OJSC – Electric 32.1 capacity are sold at regulated prices, dis- 99.91%) sold at the ECWM, and 0.17 billion revenues stated in the 2012 budget were Generation tribution plans are subject to coordination kWh at the retail market (produced by Bili- 1,679.43 mln rubles (or 0.9% above the * Does not include subsidiaries and controlled businesses. between market players as the parties pre- bino NPP). Estimated generation by nuclear actual target). pare for the contract signing campaign. This plants as stated on the balance sheet of the

The Concern’s installed capacity compared coordination includes activities to optimise Russian Federal Tariffs Service was 175.80 After 2012, the average weighted annual to other Russian major generating companies in 2012, GW draft plans and consider the market players’ billion kWh, while total additional sales of selling price of electrical power from nu- respective interests. electrical power from nuclear plants were clear plants on the day market was 914.63 Generating company Installed 1.49 billion kWh, or 0.8%. rubles/MWh. capacity The demand for electrical power and capacity sold by the Concern on the ECWM Structure of electrical power sold Rosenergoatom Concern OJSC 25.2 is mainly regular, although certain depar- by the Concern at ECWM in 2010–2012 (million MWh) tures may be caused by either season-based RusHydro OJSC* 24.5 fluctuations in electrical power needs, or water-level conditions that affect genera- 148.15 INTER RAO OJSC – Electric 21.2 143.48 Generation tion of hydraulic electrical power sold to the National Power Grid. Mosenergo OJSC 12.3 Main Trends of Market Development 104.76 * Does not include subsidiaries and controlled businesses. Main Trends of Market Development Product Consumers In 2010, Rosenergoatom assumed responsibili- 62.79 ty for selling capacity on the wholesale market The product of Rosenergoatom Concern by signing 1,915 contracts with wholesale OJSC is used by all businesses and enti- market users, regarding its nine newly built 29.05 29.55 ties listed in Section 2 “Buyers of Electri- nuclear power units. The contracts will secure cal Power and Capacity” in the Registry of payments totaling about 4.4 trillion rubles 1.99 0.64 1.45 0.40 1.43 1.07 Subjects of the electrical power (capacity) (VAT excl.) from sold capacity of the new wholesale market (ECWM), and any busi- power units between 2011 and 2038. Under ness or entity officially recognized as part of one of such contracts in 2012 all relevant 2010 2011 2012 the ECWM trading system that transacts to certification procedures for the equipment purchase electrical power and capacity from of Power Unit No. 4 Kalinin NPP, to receive Regulated contracts Balancing market Day market Two-party contracts the ECWM. certificates from SO UPS were passed. In 2013 Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 44 Concern OJSC in Key Activities Concern OJSC 45

3 3

Bilibino nuclear power plant Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 46 Concern OJSC in Key Activities Concern OJSC 47

Sales of Thermal Power power supplies in the nuclear industry. In Power generation by NPP Commissioned in Russia, billion kWh Power Unit 4 2012, companies in the nuclear sector re- of Kalinin NPP Last year, the Concern consolidated fi- ceived 3.3 billion kWh, and work was done nancial flows from consumers of thermal for another seven companies to enter power generated by nuclear plants. Nu- the wholesale market to start their power Commissioned Commissioned Commissioned Commissioned clear plants signed supplementary agree- supply. Power Unit 4 Power Unit 1 Power Unit 3 Power Unit 2 ments under user contracts, which en- of Balakovo NPP of Rostov NPP of Kalinin NPP of Rostov NPP visaged payments to the same banking account. Accounts receivable for thermal power were transferred to the head office Extra proceeds compared 177.3 200 170.1 that will collect payments centrally. Start- to revenues stated in the 2012 budget were ing from 2013, all users of thermal power 147.6 163.3 will work with the Concern under the 158.3 172.7 same standard contacts for thermal power 134.9 148.6 162.3 3 supply that contain provisions needed to 150 3 1,679.43 154.7 protect the financial interests of the gen- mln rubles 119.2 128.9 143.0 erating company. 119.6 139.8 120.0 108.8 108.3 Product Market 100 As part of the ongoing programme to 103.5 97.8 99.3 centralize electrical power supply from 0.9% the nuclear sector, in 2012 Atomenergos- above the actual target bit continued its activities to centralize 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

FTS Balance Compliance

In 2012, the balance required by the FTS was 175.8 billion kWh; 3.2. Electrical Power Production the result was 100.8%. of the target. by Russian Nuclear Plants.

FTS balance compliance in electrical power generation Generating Capacity by Russian NPPs, %, mln kWh

110 Generation 107.6% 106.7% 104.7% 105 103.1% In 2012, the sector generated 177.3 billion 101.8% 100.3% 100 5,583.7 kWh, or 102.7% of the 2011 figure. Growth in In 2012, the sector generated 97.6% mln kWh actual generation compared to the previous 95 91.6% 91.2% 90.9% of electric power year was caused by: 90 generation billion kWh by power unit No.4 • 5,583.7 mln kWh of electric power 177.3 85 of Kalinin NPP 28,307.0 15 ,716.5 31,666.9 4,256.9 478.2 20, 29 ,046.6 292.5 13, 412.2 24, 9,945.8 1,67.8 (commissioned generation by power unit No.4 Kalinin Rostov Balakovo Beloyarsk Smolensk Kursk * Novovoronezh ** Leningrad *** Kola Bilibino **** 80 for operation of Kalinin NPP (commissioned in September 2012) for operation in September 2012); Non-compliance of the FTS balance was caused by: * extraordinary repair on power unit No.3; • canceled current repairs of power ** shutdown of power unit No.1 to restore resource characteristics of the graphite insert of the reactor; units No.1, 2 and 4 of Balakovo NPP 102.7% *** additional grid limits due to repairs of power lines of the North-West system of FSK UES OJSC; (18 days total). of the 2011 figure **** grid constraints due to reduced power consumption compared to target (lower consumption by Mayskoye Gold Mining Company LLC). Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 48 Concern OJSC in Key Activities Concern OJSC 49

Installed capacity use factor (ICUF), Load availability factor (LAF)

In 2012, the ICUF was 80.9%, or 0.3% below the 2011 figure; 23,222

LAF was 83.2%, or 0.4% above the 2011 figure.

Installed capacity use factor (ICUF) and load availability factor (LAF) dynamically, % Fact taget F TS balance 21,832

83.8 83.6 83.2 82.2 82.8 19,690 81.5 79.2 78.9 78.3 80 81.3 76.2 80.2 81.2 80.9 75.4 79.5 73.2 73.7 3 77.7 17,655 3 69.1 76.0 69.1 69.1 70 67.3 67.5 69.1 70.3 64.9 69.1 63.2 63.1 17,606

64.5 60 61.4

58.3 LAF 58.2 16,497 55.6 ICUF 52.6 53.4 50 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 18,285 Proportion of Generation

Nuclear generation as a proportion of Russia’s total generation of electrical

power reached 16.8% (16.6% after 2011). 19,301

Proportion of electrical power generation by Russian Grid Systems in 2012, %

177.3 172.9* 91 31.7 34.4 15.7 4.3 0.17 20,582 bln kWh bln kWh bln kWh bln kWh· bln kWh bln kWh bln kWh· bln kWh·

50 21,044

30 21,782

20 22,733

10 01.2012 02.2012 03.2012 04.2012 05.2012 06.2012 07.2012 08.2012 09.2012 10.2012 11.2012 12.2012 01.2013 01.2012 02.2012 03.2012 04.2012 05.2012 06.2012 07.2012 16.8 32.2 37.5 28.8 32.7 19.8 1.6 0.5 0 Russia European Central Volga NW South Urals East

Russia Grid Grid Grid Grid Grid Grid M W and F TS target in 2012, imeline of actual loads, 12,000 14,000 16,000 18,000 22,000 24,000 26,000 2,0000 T * Central Russia Grid, Volga Grid, NW Grid, South Grid Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 50 Concern OJSC in Key Activities Concern OJSC 51

Generating Capacity Balakovo NPP of the total electrical power generated 17.8% by the Concern.

Location: Balakovo NPP Balakovo NPP is a recognised leader in the is Russia’s largest Russian nuclear power industry – the plant Saratov Oblast, has won the title of “Russia’s Best NPP” sev- 12.5 km from the satellite city producer eral times (in 1995, 1999, 2000, 2003, 2005– 3 of Balakovo, and 145 km from of electrical power. 2009, and 2011). 3 the Oblast capital - Saratov. In 2012, Balakovo NPP Balakovo NPP is the winner of 14th “Eu- produced more ropean Quality Gold Medal” International than 31 billion kWh Contest. Saratov of electrical power, Oblast amounting to one 2012 operation results fourth of total electrical In 2012, Balakovo NPP produced 17.8% power generation in the of the total electrical power generated Volga Federal District. by the Concern.

Balakovo NPP active power units Performance of Balakovo NPP in 2012

Power unit No. Type of reactor Installed capacity, MW Launched on Indicators Unit Value 1 VVER-1000 1,000 28.12.1985 Electrical power produced mln kWh 31,666.9

2 VVER-1000 1,000 08.10.1987 Compared to 2011 % 97.7

3 VVER-1000 1,000 24.12.1988 Compared to FTS balance target % 104.7

4 VVER-1000 1,000 11.04.1993 ICUF % 90.1

Total installed capacity — 4,000 MW Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 52 Concern OJSC in Key Activities Concern OJSC 53

Generating Capacity Beloyarsk NPP of the total electrical power generated 2.4% by the Concern.

Location: Beloyarsk NPP The electrical power produced by Beloyarsk In terms of safety and reliability, BN-600 named after NPP amounts to about 10% of total electric is among the best nuclear reactors in the Sverdlovsk Oblast. power in the Sverdlovsk power grid. world. 3 km to satellite city of Zarechny; I.V. Kurchatov was Construction of power unit for No.4 Belo- 3 45 km to the Oblast capital - the pioneer The plant was built in two phases: phase 1 yarsk NPP continues; the unit will have a 3 Yekaterinburg. of large-scale nuclear was Power Units No. 1 and 2 with an AMB fast neutron reactor BN-800 rated for ca- reactor, phase 2 built Power Unit No. 3 with pacity 880 MW. power production a BN-600 reactor. After 17 and 22 years in in the USSR, and Russia’s operation, Power Units No. 1 and 2 were Beloyarsk NPP was named “Russia’s Best Sverdlovsk only nuclear plant shut down in 1981 and 1989 respectively, NPP” in 1994, 1995, 1997 and 2001. Oblast running power units and now remain in long-term conservation with defueled reactors; in terms of interna- Since its Power Unit No. 1 was launched, Be- of different types. tional standards, they are at Stage 1 of de- loyarsk NPP produced 155.9 billion kWh of commissioning. electrical power.

At present, Beloyarsk NPP runs one power 2012 operation results unit BN-600. This is the world’s largest power unit with a fast-neutron reactor. In 2012, Beloyarsk NPP produced 2.4% of the total electric power generated BN-600 uses high-concentration uranium by the Concern. dioxide fuel, but can also use combination fuel of uranium and plutonium.

Beloyarsk NPP active power units Performance of Beloyarsk NPP in 2012

Power unit No. Type of reactor Installed capacity, MW Launched on Indicators Unit Value 3 BN-600 600 08.04.1980 Electrical power produced mln kWh 4,256.9

Total installed capacity — 600 MW Compared to 2011 % 100.2

Compared to FTS balance target % 103.1

ICUF % 80.8 Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 54 Concern OJSC in Key Activities Concern OJSC 55

Generating Capacity Bilibino NPP of the total electrical power generated 0.1% by the Concern.

Location: Bilibino NPP The conditions of construction, operation, In 2009, Bilibino NPP came joint first along produces about 80% and maintenance, and the specifics of the with Balakovo NPP for “Best NPP Safety Chukotka Autonomous Okrug, location of the Bilibino NPP determine the Culture”. 4.5 km from the satellite city of the electrical power following requirements for the reactor unit 3 of Bilibino; km; 610 km from generated in the isolated and related equipment. Since its Power Unit No.1 was launched, Bili- 3 the capital of the Okrug – Anadyr. Chaun-Bilibino Power bino NPP has generated 8,9 billion kWh of ( ) The installed electric capacity of Bilibi- electrical power. Grid CBPG ; it is the only no NPP is 48 MW, simultaneously able to option and source supply up to 67 GCal/hour to its users. At 2012 operation results Chukotka of thermal power air temperatures as low as –50°С, the NPP Autonomous Okrug in the town of Bilibino. operates in heat-exporting mode and can In 2012, Bilibino NPP produced 0.1% export 100 GCal/h while the electrical gen- of the total electrical power generated eration capacity is reduced to 38 MW. by the Concern.

Bilibino NPP active power units Performance of Bilibino NPP in 2012

Power unit No. Type of reactor Installed capacity, MW Launched on Indicators Unit Value 1 1 EGP-6 12 12.01.1974 Electrical power produced mln kWh 167.8

2 2 EGP-6 12 30.12.1974 Compared to 2011 % 109.6

3 3 EGP-6 12 22.12.1975 Compared to FTS balance target % 90.9

4 4 EGP-6 12 27.12.1976 ICUF % 39.8

Total installed capacity — 48 MW Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 56 Concern OJSC in Key Activities Concern OJSC 57

Generating Capacity Kalinin NPP of the total electrical power generated 16% by the Concern.

Location: Kalinin NPP generates In addition, thanks to its location, Kalinin Kalinin NPP was named “Russia’s Best NPP” 70% of all electrical NPP is engaged in high-voltage transit of in 2002. Tver Oblast, 4 km from electrical power. The master circuit of its the satellite city of Udomlia; power in the Tver Oblast. switchyard ensures reliable supply of power Since its Power Unit No.1 was launched, Ka- 3 125 km from the Oblast capital – Tver. Kalinin NPP exports to users, with electrical energy exported in linin NPP has produced 417.4 billion kWh of 3 capacity to the Unified every operation mode of the nuclear plant. electrical power. Power Grid of Central Under the industry-level “Programme to 2012 operation results Russia, and then over Increase Generation of Electrical Power by Tver high-voltage power lines Active Nuclear Units during 2011–2015”, In 2012, Kalinin NPP produced 16% of the Oblast to Tver, Moscow, Power Units No. 1, 2 and 3 of Kalinin NPP total electrical power generated by the Con- are now preparing for production test opera- cern. St. Petersburg, Vladimir, tion at 104% of their designed capacity level. and Cherepovets. On September 25, 2012 an official ceremony opened power unit No.4 of Kalinin NPP for commercial operation.

Kalinin NPP active power units Performance of Kalinin NPP in 2012

Power unit No. Type of reactor Installed capacity, MW Launched on Indicators Unit Value 1 VVER-1000 1,000 28.06.1984 Electrical power produced mln kWh 28,307.0

2 VVER-1000 1,000 25.12.1986 Compared to 2011 % 120.8

3 VVER-1000 1,000 08.11.2005 Compared to FTS balance target % 107.6

4 VVER-1000 1,000 25.09.2012 ICUF % 87.4

Total installed capacity — 4,000 MW Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 58 Concern OJSC in Key Activities Concern OJSC 59

Generating Capacity Kola NPP of the total electrical power generated 5.6% by the Concern.

Location: Kola NPP – Kola NPP’s power generation is about 60% Currently, the power units of Kola NPP are Russia’s first of the total of electrical power generation in running in restricted mode due to reduced Kola Peninsula, the Murmansk Oblast. consumption and limited transit of electri- 11 km from the satellite city nuclear plant cal power. 3 of Poliarniye Zori; 170 km from beyond Kola NPP exports power to two power grids: 3 the Oblast capital – Murmansk. the Arctic Circle. Kolenergo (Murmansk Oblast), and Karelen- Since its Power Unit No.1 was launched, ergo (Republic of Karelia). Kola NPP has produced 359.0 billion kWh of electric power. Under the industry-level “Programme to Kola Increase Generation of Electrical Power by 2012 operation results Peninsula Active Nuclear Units during 2011–2015”, Kola NPP Power Unit No. 4 concluded its In 2012, Kola NPP produced 5.6% production test operation, and activities are of the total electrical power generated underway to obtain a license for commercial by the Concern. operation at 107% of its designed capacity level; Kola NPP Power Unit No. 3 is currently prepping for test operation at 107% of its designed capacity level.

Kola NPP active power units Performance of Kola NPP in 2012

Power unit No. Type of reactor Installed capacity, MW Launched on Indicators Unit Value 1 VVER-440 440 29.06.1973 Electrical power produced mln kWh 9,945.8

2 VVER-440 440 09.12.1974 Compared to 2011 % 94.2

3 VVER-440 440 24.03.1981 Compared to FTS balance target % 91.2

4 VVER-440 440 11.10.1984 ICUF % 64.3

Total installed capacity — 1,760 MW Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 60 Concern OJSC in Key Activities Concern OJSC 61

Generating Capacity Kursk NPP of the total electrical power generated 16.3% by the Concern.

Location: The Kursk nuclear The plant’s contribution to the installed Since its Power Unit No.1 was launched, plant is among capacity of all power plants in the region is Kursk NPP has generated 759.0 billion kWh Kursk Oblast, more than 50%, and it sells electrical power of electric power. 4 km from the satellite city the nation’s four to most manufacturers in the Kursk Oblast. 3 of Kurchatov; 40 km from nuclear plants 2012 operation results 3 the Oblast capital – Kursk. of equal capacity, Kursk NPP was named “Russia’s Best NPP” in 2009 in the industry-wide contest on In 2012, Kursk NPP produced 16.3% and it is a major node safety culture. In 2010–2011, third-party au- of the total electrical power generated in the Russian Unified ditors recognized the environmental man- by the Concern. Kursk Power Grid. It exports agement system at Kursk NPP as compliant Oblast most of its output with the requirements of Russian national standards and the regulation on mandatory to the Central Russia certification for environmental compliance. grid that serves 19 regions in the Central Federal District of Russia.

Kursk NPP active power units Performance of Kursk NPP in 2012

Power unit No. Type of reactor Installed capacity, MW Launched on Indicators Unit Value 1 RBMK-1000 1,000 12.12.1976 Electrical power produced mln kWh 29,046.6

2 RBMK-1000 1,000 28.01.1979 Compared to 2011 % 100.0

3 RBMK-1000 1,000 17.10.1983 Compared to FTS balance target % 100.3

4 RBMK-1000 1,000 02.12.1985 ICUF % 82.7

Total installed capacity — 4,000 MW Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 62 Concern OJSC in Key Activities Concern OJSC 63

Generating Capacity Leningrad NPP of the total electrical power generated 13.7% by the Concern.

Location: Leningrad NPP Leningrad NPP was the nation’s first plant to sian North-West up to the end of the 21st is a major producer use RBMK-1000 reactors. century. Leningrad Oblast, 5 km from the satellite city of electrical power With a view to the future decommissioning Since its Power Unit No. 1 was launched, 3 of Sosnovy Bor; 70 km from in the Russian of currently active power units, in August Leningrad NPP has generated 871.2 billion 3 the Oblast capital (St. Petersburg). North-West. 2007, work began to build Leningrad NPP-2. kWh of electric power. Substitute power units with upgraded water- The plant meets more moderated reactors (VVER), each with an 2012 operation results than 50% of the power installed capacity of 1,200 MW, will come Leningrad needs of St. Petersburg to replace the existing power units in Len- In 2012, Leningrad NPP produced 13.7% Oblast and the Leningrad Oblast. ingrad NPP with RBMK reactors; they will of the total electrical power generated serve as reliable sources of power for St. by the Concern. Leningrad NPP accounts Petersburg, Leningrad Oblast, and the Rus- for 28% of the fuel and power balance of the entire North-West region.

Leningrad NPP active power units Performance of Leningrad NPP in 2012

Power unit No. Type of reactor Installed capacity, MW Launched on Indicators Unit Value 1 RBMK-1000 1,000 21.12.1973 Electrical power produced mln kWh 24,412.2

2 RBMK-1000 1,000 11.07.1975 Compared to 2011 % 86.9

3 RBMK-1000 1,000 07.12.1979 Compared to FTS balance target % 91.6

4 RBMK-1000 1,000 09.12.1981 ICUF % 69.5

Total installed capacity — 4,000 MW Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 64 Concern OJSC in Key Activities Concern OJSC 65

Generating Capacity Novovoronezh NPP of the total electrical power generated 7.4% by the Concern.

Location: Novovoronezh NPP Novovoronezh NPP meets all the needs As a result of dedicated activities, Novovo- is one of the oldest of the entire Voronezh Oblast in electrical ronezh NPP power unit No. 5, originally of Voronezh Oblast, power, and up to 90% of Novovoronezh’s the second generation, now belongs to the 3.5 km from the satellite city entities in the Russian heating needs. third generation of nuclear plants. It is fully 3 of Novovoronezh; 45 km from nuclear power industry. compliant with modern Russian require- 3 the Oblast capital – Voronezh. Novovoronezh NPP Power The Novovoronezh nuclear plant was Rus- ments and IAEA recommendations, and its sia’s first NPP to receive water-moderated service life was extended by another 25-30 Unit No. 1 was launched energy reactors (VVER). During its 40-year years. on September 30, 1964, history, five VVER reactor power units have Voronezh and was the starting been built on the Novovoronezh site. Since its Power Unit No.1 was launched, No- oblast point in the history vovoronezh NPP has generated 472.4 billion For the first time in Europe, Power Units No. kWh of electric power. of the nuclear power 3 and 4 underwent a unique set of activi- industry not only ties to extend their service life by 15 years, 2012 operation results in Russia, but also with relevant licenses obtained from Ros- tekhnadzor. On September 22, 2011, follow- In 2012, Novovoronezh NPP produced in certain nations ing unique repairs and upgrades, Russia’s 7.4% of the total electrical power generated of Eastern first one-million kilowatt unit with a VVER by the Concern. and Central Europe. reactor was recommissioned.

Novovoronezh NPP active power units Performance of Novovoronezh NPP in 2012

Power unit No. Type of reactor Installed capacity, MW Launched on Indicators Unit Value 3 VVER-440 417 12.12.1971 Electrical power produced mln kWh 13,292.5

4 VVER-440 417 28.12.1972 Compared to 2011 % 158.3

5 VVER-1000 1,000 31.05.1980 Compared to FTS balance target % 97.6

Total installed capacity — 1,834 MW ICUF % 82.5 Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 66 Concern OJSC in Key Activities Concern OJSC 67

Generating Capacity Rostov NPP of the total electrical power generated 8.9% by the Concern.

Location: Rostov NPP is a major Rostov NPP is one of a series of uniform 16, 2010, power unit No.2 was commissioned power provider unclear plants designed with VVER-1000 and put in operation. Currently, construction Rostov Oblast, reactors that meet the requirements of pro- of power units No.3 and 4 is in progress. 16 km from the satellite city in Southern Russia. duction line construction. The plant’s entire 3 of Volgodonsk; 205 km from The plant accounts capacity was designed to cover the needs of Rostov NPP was named “Russia’s Best NPP” 3 the Oblast capital – Rostov-on-Don. for 40% of the total the unified power grid of the Northern Cau- in 2004 and in 2011; it has won the industry- casus. level contest for safety culture three times electrical generation since 2001. in the Rostov Oblast. Large-scale construction of the Rostov Nu- Rostov From Rostov NPP, clear Plant began in October 1979. Since its Power Unit No.1 was launched, Oblast electrical power Rostov NPP has generated 110.0 billion kWh In 1990, construction of the NPP was sus- of electrical power. is exported over PL pended, and the plant was left in stasis. In (Power Line) -500 to 2000, Gosatomnadzor issued a license to 2012 operation results the Volgograd Oblast continue construction of Rostov NPP Power Unit No. 1, with VVER-1000 reactor; in 2001, In 2012, Rostov NPP produced 8.9% and Rostov Oblast, a license was issued for operation of the of the total electrical power generated Krasnodar Krai power unit. by the Concern. and Stavropol Krai, and over two On March 30, 2001, the turbine-generator of Power Unit No. 1 was connected to the PL-220 lines to the Unified Power Grid of Russia, and on March town of Volgodonsk.

Rostov NPP active power units Performance of Rostov NPP in 2012

Power unit No. Type of reactor Installed capacity, MW Launched on Indicators Unit Value 1 VVER-1000 1,000 30.03.2001 Electrical power produced mln kWh 15,716.5

2 VVER-1000 1,000 16.03.2010 Compared to 2011 % 99.4

Total installed capacity — 2,000 MW Compared to FTS balance target % 106.7

ICUF % 89.5 Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 68 Concern OJSC in Key Activities Concern OJSC 69

Generating Capacity SMOLENSK NPP of the total electrical power generated 11.6% by the Concern.

Location: Smolensk NPP Smolensk NPP has won the industry-level GOST R ISO 14001-2007, and named Rus- is its community’s contest “Russia’s Best NPP” several times sia’s best NPP in “Physical Protection” nom- Smolensk Oblast, (in 1992, 1993 and 2011), and rose to the top ination. 4.5 km from the satellite city main employer, three in 1999. In 2000, the nuclear plant 3 of Desnogorsk; 150 km from a major business, ranked first in the contest “Russian Entity After 2010, Smolensk NPP was named “Rus- 3 the Oblast capital (Smolensk). and the largest of High Social Efficiency”; in 2006, it was sia’s Best NPP” and the best nuclear plant in named “Russia’s Best NPP” in the industry- safety culture. on the fuel level contest for safety culture; in 2007, it and energy balance was the first NPP in Russia to be awarded Since its Power Unit No.1 was launched, Smolensk of the region. an international compliance certificate in Smolensk NPP has generated 526.7 billion Oblast Every year, the quality management system under ISO kWh of electrical power. 9001:2000, and named Russia’s best NPP in the plant’s average social security and personnel management. 2012 operation results output is 20 billion kWh of electrical In 2009, Smolensk NPP received a compli- In 2012, Smolensk NPP produced 11.6% ance certificate in the environmental man- of the total electrical power generated power, or more agement system under national standard by the Concern. than 80% of the total electrical power generated by all Smolensk plants.

Smolensk NPP active power units Performance of Smolensk NPP in 2012

Power unit No. Type of reactor Installed capacity, MW Launched on Indicators Unit Value 1 RBMK-1000 1,000 09.12.1982 Electrical power produced mln kWh 20,478.2

2 RBMK-1000 1,000 31.05.1985 Compared to 2011 % 99.8

3 RBMK-1000 1,000 17.01.1990 Compared to FTS balance target % 101.8

Total installed capacity — 3,000 MW ICUF % 77.7 Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 70 Concern OJSC in Key Activities Concern OJSC 71

Report on Energy Efficiency

In 2012, the INTER RAO UES Energy Effi- certification of its buildings and structures The results of the study became the basis that once implemented will reduce power ciency Center conducted a study on energy in active nuclear plants that are Rosener- for an integrated programme for to save consumption by at least 3–5% or ones with efficiency, including thermal imaging and goatom branch companies. power and increase energy efficiency in a payback period no longer than 5–6 years. active nuclear plants – branch companies of Power saved through activities to reduce consumption and improve energy efficiency* Rosenergoatom; this programme was made As required by the Russian Federal Min- part of the programme for energy efficiency istry of Energy, the examination was basis Thermal power in the nuclear sector for 2012–2016. to issue an energy chart for Rosenergoat- om. The energy chart was registered with The programme contains activities for the Department for energy efficiency and Objective Actually used Used in 2010 Used in 2011 Used in 2012 Savings in 2012 in 2009, (conditions (conditions (conditions compared to energy efficiency in the nuclear sector, as upgrading in the Fuel and Energy Com- 000 Joules comparable to 2009), comparable to 2009), comparable to 2009), 2011 , defined in Rosatom State Corporation Exec- plex under the Federal Ministry of Energy, 000 Joules 000 Joules 000 Joules 000 Joules utive Order of December 24, 2010 “Central- record No.1920/E-007/O/2012. 3 izing Activities for Power Saving and Higher 3 Energy used for own 13,663.54 15,659.95 12,112.67 11,244.074 868.596 Energy Efficiency in the Nuclear Sector”. Plans are now in place for 2013 to im- needs plement activities of the integrated pro- When activities are selected to be included gramme for energy efficiency in active Ros- Economy of energy 1,976.38 2,720.84 1,656.57 1,631.25 25.32 in the programme, priority is given to ones energoatom nuclear plants. resources used for production Information on power resources used Water

Source Units 2010 2011 2012 Objective Actually used Used in 2010 Used in 2011 Used in 2012 Savings in 2012 of power in 2009, (conditions (conditions (conditions compared to 000 m3 comparable to 2009), comparable to 2009), comparable to 2009), 2011 , 000 m3 000 m3 000 m3 000 m3 Physical 000 rubles. Physical 000 rubles. Physical 000 rubles. (VAT excl.) (VAT excl.) (VAT excl.)

Energy used for own 1,071,916.19 1,360,000.74 924,169.23 903,146.83 21,022.40 needs Nuclear HGP, units 4,592 21,780,410.0 4,876 28,436,954.8 4,425 26,150,417.8 power (used as fuel) Economy of energy 8,942.31 7,659.13 8,220.26 8311.74 –91.48** resources used for production Petroleum — Not purchased Not purchased Not purchased

Electric power Gasoline (tons) 602 16,287 392 14,202 287 10,714

Objective Actually used Used in 2010 Used in 2011 Used in 2012 Savings in 2012 Diesel fuel (tons) 1,997 43,938 1,992 65,877 2,432 84,415 in 2009, (conditions (conditions (conditions compared to 000 Joules comparable to 2009), comparable to 2009), comparable to 2009), 2011 , 000 kWh 000 kWh 000 kWh 000 kWh Fuel oil (tons) 22,723 229,245 13,135 141,776 11,460 137,490

Energy used for own 10,637,679.40 10,189,023.61 9,826,445.10 9,128,669.1 697,776.0 Natural gas — Not purchased Not purchased Not purchased needs

Coal — Not purchased Not purchased Not purchased Economy of energy 94,813.60 96,395.55 87,715.00 87,100.73 614.27 resources used for production Shale oil — Not purchased Not purchased Not purchased

Peat — Not purchased Not purchased Not purchased * Economy of power resources was calculated as required in Rosatom State Corporation Executive Order of August 9, 2011, No. 1/676-П, using the Methodology for calculating savings made by reduced consumption of power resources at Rosenergoatom nuclear plants. ** More water was used for production in 2012 (conditions comparable to 2009) after new production facilities were brought online on power unit No.4 of Kalinin NPP. Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 72 Concern OJSC in Key Activities Concern OJSC 73

3 3

Spillage on the open reactor of power unit No.4 of Kalinin NPP, December 2010. Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 74 Concern OJSC in Key Activities Concern OJSC 75

3.3. Ensuring Russian Incidents at Russia’s active nuclear plants in 2012 Nuclear Plants Safety. NPP Incidents Total Radiation Impact Off scale INES Level on Personnel and Citizens 0 1 2 Balakovo 2 1 1 0 4

Rosenergoatom Concern OJSC sees safe operation Beloyarsk 0 0

of nuclear plants as its top priority. Activities Bilibino 1 0 1 in this area ensure protection of employees, citizens, and the environment, minimizes radioactive Kalinin 3+13* 0 3+13* 3 3 contamination, and prevents incidents and emergencies. Kola 2 1 0 3

Kursk 3 3 0 6

Rosenergoatom Concern OJSC holds Ros- have consequences such as radiation haz- Leningrad 1 4 1 0 6 tekhnadzor licenses authorizing operation ards or loss of nuclear materials and sub- of all its nuclear power units. Such licens- stances. Novovoronezh 2 6 0 8 es are issued based on positive results of expert audits and inspections of nuclear There were no failures of safety system Rostov 1 0 1 power units, carried out by government reg- components that might compromise safety. ulatory agencies. All power units are oper- In each case that called for reactor shut- Smolensk 1 5 0 6 ated under the terms of such licenses. down and unloading, all safety systems were * * fully available and ensured safe reactors All nuclear plants 12 24+13 2 0 38+13 Rosenergoatom Concern OJSC employees, switching to subcritical mode or the needed * Power unit No.4 of Kalinin NPP at stages of commissioning and experimental operation. whose function is to ensure the safety of level of capacity. nuclear energy, have passed examinations in Number of incidents by INES Scale at power units working safety and practical skills according All activities for safety improvements in commercial operation (dynamics) to regulated procedures, and are authorised planned for 2012 were implemented. by the government agency for safety regulation to perform their respective functions. For the past 14 years, there have been 197 The new incident Total no events that qualify above Level 1 registration rules have been in effect Level 0, and off-scael In 2012, Rosenergoatom Concern OJSC pur- on the INES Scale (International since 1998. Level 1 chased insurance to cover 100% of all types Nuclear Event Scale). 165 159 Level 2 of civil liability as required by Russian Fed- Level 3 eration law, and to meet the requirements 2012 had two incidents that qualified as Incidents during the units for the Concern’s subsidiaries to receive op- INES Level 1 (no threat to the general public 130 128 102 operation below capacity erational licenses for power units, hydraulic or the environment). Three such incidents 119 facilities, and dangerous industrial facilities. were registered in 2010, and two in 2011. 101 97 98 In 2012, none of the power unit operation During 2012, the 33 power units engaged in 83 88 79 86 licenses were suspended for non-compli- production at the Concern’s nuclear plants 81 76 69 67 ance. The nuclear plants worked reliably and had 51 incident records, 13 of them were at 65 51 unfailingly maintained required safety levels. power unit No.4 of Kalinin NPP that oper- 47 47 44 42 46 46 No incidents were registered that would ated below capacity. 38 45 40 38 40 37 41 29 36 29 27 28 34 28 9 13 8 12 4 3 2 3 2 3 3 2 4 2 3 3 2 2 1 1 1 1 1 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 76 Concern OJSC in Key Activities Concern OJSC 77

Fundamental Safety Principles As a component of the control system, standards and regulations effective in the Fundamental Safety Principles target and comprehensive safety audits Russian Federation, and international re- address the following tasks: quirements and standards.. LEGISLATURE SAFETY TECHNOLOGY • identify general problems and issues UNIT CULTURE UNIT (technology during operation; Activities to improve safety enablement of safety) • develop and implement across the Con- and resistance of Russian nuclear • Federal law • Setting priorities cern activities and recommendations at (principles PRINCIPLE OF LAYERED plants to extreme external impacts of responsibility); • Human factor PROTECTIONS a corporate level designed to raise NPP of natural and artificial origin safety; • System of standards • Reusability of safety • efficiently control timely implementa- In the lights of the events in Japan that and regulations; barriers tion of efforts to improve NPP safety caused the Fukushima nuclear emergen- • Existence • Multiple safety and stability; cy, the Concern analyzed the causes of the of the government’s barriers and levels: • identify and analyze good practices and emergency and conducted comprehensive licensing - preventable efficient working methods adopted by audits of Russian nuclear plants to estimate system KNOWLEDGE BASE emergencies; 3 (third-party - minimizing emergency the Concern’s NPPs that improve levels their resistance to similar worst-case sce- 3 regulation) OF PROCESSES consequences of NPP safety. narios. AND PHENOMENA (emergency management) At this time, the Concern is adopting new The Concern prepared and analyzed proba- approaches to nuclear plant safety audits, ble emergency scenarios for Russian nuclear which include the experiences of Electric- plants, and worked out activities to miti- ite de France (EDF) and recommendations gate consequences and minimize impact on Control of NPP Safety Assurance Protective barriers to stop radionuclides issued by the IAEA and WANO. These ef- citizens and the environment in the case of escaping the nuclear plant can include: the forts will make the safety control system a serious, unforeseen emergency. A sum- The Concern is implementing a whole range material of the fuel matrix, shells of fuel el- more efficient, and ensure better solutions mary was used in the analytic report that of internal and external activities to ensure ements, equipment of production circuits, to problems identified during audits at nu- included “Action Plan to Improve Safety proper compliance with both international the protective tight shell of the reactor clear plants. of Active NPPs” and “Activities to mitigate and Russian requirements for NPP safety. room, and biological protection. consequences of unforeseen emergencies In 2012, the Concern’s panel conducted at NPPs”. five comprehensive audits to examine Organization of NPP safety assurance control the situation with nuclear, radiation, In 2012, the Concern continued implement- fire, environmental, and engineering ing activities to ensure protection of nuclear General Director safety, at the nuclear plants of Belo- plants against extreme external impacts. of Rosenergoatom Concern OJSC yarsk, Bilibino, Novovoronezh, Kursk and Leningrad. Six target audits were The Concern did the following: used to assess safety at the nuclear • as a first action, unscheduled emergency plants of Balakovo, Novovoronezh, response drills for nuclear plant person- First Deputy Rostov, Kola, Smolensk and Kalinin. nel; General Director • targeted safety audits at nuclear plants; Rostekhnadzor conducted comprehensive • all nuclear plants adopted the “Person- safety audits at Balakovo, Beloyarsk and No- nel Action Charts for Unforeseen Emer- Deputy General Director – Deputy General Director – vovoronezh NPP. gencies”; Director for Production Deputy General Director – Director of Construction • project estimates were prepared for ad- and Nuclear plant Operation Inspector General Project Management Branch Company The WANO conducted peer audits at Belo- ditional project solutions; yarsk NPP and Kola NPP. • a programme devised to implement seis- mic protection systems for NPP nuclear Chief Engineers Chief Inspectors of nuclear Chief Engineers Experts of the International Nuclear Insur- power units that had none; of nuclear plants plants in operation and NPP of NPP construction ance Pool visited the nuclear plants of No- • requirements specifications written and in operation construction projects projects vovoronezh, of Balakovo, Rostov and Smo- arrangements made for additional analy- lensk with international audits. sis of unforeseen emergency scenarios; • safety analysis of nuclear plants under NPP construction NPP inspection All audits confirmed that the operation of construction and to be deployed. Production quality technical control division control division supervision division the nuclear plants meets the nuclear energy Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 78 Concern OJSC in Key Activities Concern OJSC 79

All active NPPs As the most important and large-scale Safety culture stricted access zoning), and sanitary check- Levels of commitment to safety culture were equipped activities among efforts to mitigate con- points with mandatory control at entry and with mobile anti-emergency sequences of hypothetical, unforeseen Safety culture is a set of characteristics exit points of the NPP acting as barriers to Commitment at the political level equipment emergencies in 2012, all active NPPs were and specific aspects of corporate activi- stop radionuclides escaping the nuclear plant. for total value of equipped with mobile anti-emergency ties and individual behaviour according • Declaration of safety policy equipment for total value of 2.6 billion to which safety issues as a top priority Nuclear plant design also envisages a radia- • Structure of management rubles. For example, all Russian nuclear for nuclear plants receives the level of tion control system (RCS) to ensure efficient • Resources plants received mobile diesel generator attention according to their respective systematic and continuous monitoring of • Self-regulation units (MDGU) - 66 units total, 35 mobile significance (INSAG-4). the integrity of protective barriers. 2.6 pumping units (MPU), and 80 units of billion rubles monoblock pumps. This equipment will Safety culture is fundamental for safety The radiation control system of a nuclear Commitment at the executive level be used in standby power supply circuits management at NPPs. The principles of plant includes automated data-metering and in cooling systems reactors and used safety culture exist at three levels: political, hardware complexes and related support • Defining responsibility nuclear fuel bays during unforeseen emer- executive, and individual. equipment. The system ensures collection 3 • Defining and enforcement 3 gencies. and processing of data on control param- of implementation practices Radiation Impact on Personnel eters that describe the radiation situation • Personnel qualifications and training In October 2012, Kursk NPP held a com- and the Citizens. Radiation Control within the restricted access zone of the • Incentives and penalties prehensive emergency drill (CED-2012), nuclear plant, on the site, in the protection which demonstrated for the first time the Just as in the previous years, in 2012 the nu- zone, and in the observation zone, in all op- operation of mobile equipment purchased clear plants had no incidents with radiation eration modes of the nuclear plant, includ- after the Fukushima events to make nuclear consequences. The actual volume of gas- ing standard and unforeseen emergencies, Commitment at the individual level plants more resistant to extreme impacts. aerosol and liquid emissions, as in previous and the plant’s situation when power units years, were far below the standard level of are shut down. • Critical position CED-2012 proved that the quantity and ca- permissible emission (PE) and permissible • Strictly regulated pacity of available mobile equipment is suf- discharge (PD) of radioactive substances. and balanced approach ficient in any natural or artificial emergency • Communication skills to maintain the power unit stable and avail- There are areas zoned inside buildings, struc- able for an indefinite time. tures and premises of the nuclear plant (re-

Information of mobile anti-emergency equipment supplied to Russian NPPs in 2012 Total activity of gas-aerosol emissions by NPP in 2012

NPP MDGU 0.2 MW MDGU 2 MW MPU Monopumps NPP Inert Radioactive Gas Iodine-131 Supplied (units) Supplied (units) Supplied (units) Supplied (units) TBq % PE MBq % PE

Balakovo 4 4 4 12 Balakovo Below detection threshold Below detection threshold

Beloyarsk 1 1 1 2 Beloyarsk 3.82 0.6 Below detection threshold

Bilibino 4 4 4 4 Bilibino 430.03 21.5 Below detection threshold

Kalinin 3 3 3 9 Kalinin 7.74 1.1 493.43 2.7

Kola 4 3 4 12 Kola Below detection threshold Below detection threshold

Kursk 5 4 5 9 Kursk 551.67 14.9 5038.77 5.4

Leningrad 5 4 5 9 Leningrad 56.50 1.5 22.68 0.02

Novovoronezh 4 2 3 10 Novovoronezh 15.20 2.2 482.00 2.7

Rostov 2 2 2 6 Rostov 4.77 0.7 Below detection threshold

Smolensk 4 3 4 7 Smolensk 57.39 1.6 162.86 0.2

Total 36 30 35 80

All plants 181 Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 80 Concern OJSC in Key Activities Concern OJSC 81

Hardware and software of the radiation con- • radiation monitoring to stop the spread waters). Laboratory methods are used to clear plants work to further reduce collec- trol system provide: of radioactive contamination: control of control the content of radionuclides in tive and average individual exposure doses • production radiation monitoring: radioactive substances that contaminate soil, water, precipitation, green plants, for personnel. measuring thestrength of exposure to personnel, clothes, vehicles and equip- water life forms, and locally-produced gamma rays and volume-based activ- ment by using stationary and portable foodstuffs. The figures for personnel exposure in 2012 ity of marker radionuclides to check the radiation control instruments; were comparable to those of the previous tightness of shells of fuel elements and • radiation monitoring of the environ- Radiation monitoring at nuclear plants is year, depending on the volume of repairs equipment of the main circulation loop, ment: enforcement of requirements done by NPP radiation control services ac- done at the nuclear plant. production environments (including to limit the NPP’s radiation impact on credited to meet the requirements of the before and after special water and gas citizens and the environment. Radiation Federal Agency for Technical Regulation and Results of radiation control at NPPs and sur- purification filters), aerosols and inert ra- monitoring of the environment is done Metrology. Organization of radiation control rounding areas in 2012 confirmed: dioactive gases in auxiliary rooms, venti- in the modes of continuous control (au- at a NPP (scope, frequency, control points, • the radiation situation at the nuclear lation and localizing systems, and single tomated) and periodical control (using personnel, record keeping) is established plants met standard requirements; or clustered marker radionuclide escap- portable devices, mobile laboratory in- by specific regulations that are coordinated • main exposure limits were observed at 3 ing the boundary of the nuclear plant; struments, and laboratory method). In with regional offices of the Federal Agency all nuclear plants; 3 • radiation monitoring of rooms and pro- the automated mode, radiation monitor- for Medicine and Biology. In addition, re- • there was no detectable impact of nu- duction premises of the nuclear plant: ing of the environment is done by the gional offices of the ФМБА practice inde- clear plant operation on external ob- measuring the strength of exposure to Automatic Radiation Background Con- pendent selective radiation monitoring of jects. gamma rays and volume-based activity trol System (measuring the strength of environmental objects and locally produced of radionuclides in the air indoors; exposure to gamma rays within residen- foodstuffs. • radiation dosimetry monitoring: doses tial communities) and АRCS (measuring of external and internal exposure of per- the intensity of gas-aerosol emissions Targeted efforts to implement a set of ad- sonnel; in the air, and liquid discharge to surface ministrative and technical activities at nu-

Radiation control system in a nuclear plant Collective radiation exposure of NPP personnel in 2011–2012, person-Sv/unit

Radiation control system in a nuclear 1,38 1,27 3,83 3,65 3,41 3,48 2,39 1,89 0,95 0,72 0,69 0,73 0,48 0,68 0,60 0,44 0,48 0,58 0,32 0,25 0,14 0,12 plant comprises

ARCS - ARBCS - AIDCS - Equipment Automated Automated Automated for operative radiation control radiation individual radiation control system (about background dosimetry (portable, mobile, 300 measuring control control system and movable instruments per system making for nuclear plant hardware for 2011 power unit of measurements personnel and radiation control), 2012 type VVER-1000 in the nuclear individuals who and laboratory or RMBK-1000), plant area (10 to visit the NPP analysis which operates 29 control points to conduct on the power installed in the works within the unit proper, or on NPP protection controlled access the nuclear plant zone, and inside zone of the premises residential nuclear plant communities within a 30-km radius around the nuclear plant)

All NPPs Kursk Smolensk Leningrad Novo- Bilibino Kola Kalinin Balakovo Beloyarsk Rostov voronezh Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 82 Concern OJSC in Key Activities Concern OJSC 83

Emissions of inert radioactive gas, percentage of permissible level The Concern has equipped nuclear plants nuclear fuel from nuclear plant sites for with RW processing complexes, with exist- processing or long-term storage, to central ing ones retrofitted, and new RW storage storage facilities of Federal State Unitary 25,8 25,7 21,0 20,5 17,7 17,0 17,0 18,1 18,0 18,8 21,5 facilities built on nuclear plant premises to Enterprise GHK. EGP ensure that nuclear plants remain environmentally safe for their entire service life. Preparing nuclear power units for decommissioning All activities that involve extraction, processing, and conditioning of RW accumulat- Decommissioning of nuclear power units ed and received at nuclear plants are done upon expiry of their designed service life 9,2 8,6 11,1 10,2 10,4 6,6 3,2 5,5 7,3 6,8 6,0 in conformity with the federal law. is a natural and necessary stage in their life cycle. These activities are carried out under RBMK Nuclear plants use the following methods nuclear power unit decommissioning pro- of RW processing and conditioning: deep grammes approved by Rosatom State Corpo- 3 evaporation, cementing, ion-selective puri- ration, and annual working programmes. 3 fication, combustion, pressing, melting, and 3,6 3,6 4,0 4,7 2,0 2,8 4,1 3,8 2,3 1,6 0,8 fragmentation. At this time, the project has been approved VVER to decommission power units No.1 and 2 of In 2012, the Concern’s nuclear plants re- Novovoronezh NPP. Supporting documents ceived into storage 3,563 m3 of solid radio- have been submitted to Rostekhnadzor to 0,8 0,3 1,3 1,0 1,8 0,4 0,3 0,6 0,8 0,5 0,6 active waste (SRW) (2.4% less than in 2011) receive decommissioning licenses for the and produced 3,715 m3 of liquid radioactive power units. BN waste (LRW) (2% less than in 2011). 1,326 tons of metal waste contaminated with ra- Maintenance was done to ensure the safe dioactive substances was exported from condition of units No.1 and 2 of Beloyarsk 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 nuclear plant sites and processed (Balako- and No.1 and 2 of Novovoronezh NPP; vo, Kalinin, Kola, Kursk and Smolensk NPP), equipment needed for their decommission- along with 120 tons of thermal insulation ing has been replaced and upgraded to the Ensuring Non-Proliferation mal energy. All such activities are registered in materials (Kalinin and Leningrad NPP). extent required. of Nuclear Materials the nuclear plant’s operating and accounting documents, and form the basis for reports pre- In 2012, the Concern’s nuclear plants carried Work plans (WP) have been developed to The nuclear non-proliferation mode at the sented to the federal registration and control out the following RW handling work: uninstall large equipment from the power nuclear plants is ensured by a system of gov- system and to Rosatom State Corporation. • Balakovo NPP: retrofitting RW storage units No.1 and 2 of Novovoronezh NPP, and ernment accounting and control of nuclear cells in a special building; to uninstall some of the equipment and in- materials within the Concern; the system For the purposes of nuclear fuel account- • Kalinin NPP: storage built for non-recy- dividual assemblies on power units No.1 and functions in total compliance with interna- ing and control at the places of storage clable protection containers (NPC); 2 of Beloyarsk NPP. tional and Russian regulatory acts, and is su- and use of heat-generating packs (HGP), a • Kola NPP: dump for very low activity pervised by Rosatom State Corporation and physical inventory of nuclear materials is waste (VLAW) built, SRW incinerator A feasibility study and decisions on dead- Rostekhnadzor. taken every year to determine the quantity upgraded; lines have been made to shutdown the available. • Kursk NPP: processing complex created power units Bilibino NPP. Decommissioning The system includes a whole set of admin- of liquid radioactive waste (PC LRW), programmes for power units No.1, 2, 3 and 4 istrative activities and technical means that During the entire history of the Concern’s storage for liquid and solid waste (HJ- of Bilibino NPP were updated, equipment ensure accounting, monitoring, detection, and nuclear plants, there has never been a case TO-II); was examined and retrofitted to ensure hy- registration of lost material, preventing un- of loss or theft of nuclear materials. • Smolensk NPP: phase one of radioac- draulic insulation on the low-activity radio- authorized actions with nuclear fuel at every tive waste processing complex put in active waste storage at Bilibino NPP. stage of its life at the nuclear plant, from the Handling Radioactive Waste operation. delivery of freshly-made fuel, until spent fuel and Spent Nuclear Fuel Leningrad NPP deployed equipment that is exported from the nuclear plant. The system The Concern approved RW quotas for NPP will improve production processes to export is based on timely registration of each delivery, The main direction in handling radioactive for 2013–2014. spent nuclear fuel (SNF) from power units, movement, and shipment of nuclear materi- waste (RW) is a further reduction in creat- to extract, sort, and transport low-activity als, and of changes in the quantity of nuclear ed primary RW, and conversion to a condi- The main direction in handling spent nucle- SRW for processing. Decommissioning pro- materials in the nuclear fuel as it is used in tioned state that is safe for temporary stor- ar fuel was to organise safe handling at nu- grammes for power units No.1 and 2 of Len- the reactor to generate electrical and ther- age at nuclear plants. clear plants and prepare to export all spent ingrad NPP were updated. Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 84 Concern OJSC in Key Activities Concern OJSC 85

2,400 drums of pressed SRW were trans- To protect nuclear plants against fires, in Structure of the industrial safety control system ported for processing and subsequent burial, 2012 the Concern purchased 12 fire engines, and placed at the temporary site of Kursk including four vehicles with high-output NPP. pumping units (up to 500 m3/h) that can be used in case of first-degree fires and un- Department for safety and production control As planned, work was done to create infor- foreseen emergencies (natural and human- mation databases for decommissioning of caused). power units No.1 and 2 of Novovoronezh NPP, power units No. 1, 2 and 3 of Beloyarsk Industrial Safety Central production NPP, power units No.1, 2, 3 and 4 of Bilibino control service NPP, power units No.1, 2, 3 and 4 of Len- As part of the activities to ensure nuclear Affiliates of Rosenergoatom ingrad NPP, power units No.1, 2, 3 and 4 of plant safety, the Concern pays much atten- Concern OJSC, Kursk NPP, power units No.1 and 2 of Kola tion to the industrial safety of the danger- operating nuclear plants Affiliates of Rosenergoatom NPP, and power unit No.1 of Smolensk NPP. ous industrial facilities used in the nuclear Groups for control Concern OJSC, 3 and analysis of industrial 3 plants. nuclear plants under construction Supporting documents were prepared to in- safety situation crease (to 3.2% of production cost) standard The Federal Registry lists 220 dangerous in- Employees with the function deduction to the decommissioning provi- dustrial facilities owned by the Concern. The of production control sion for nuclear power units, used as basis Concern has purchased insurance of liabil- for RF Government Resolution. ity for damage to third-party life, health, or property, or damage to the environment as a The Concern created a specialized branch result of an emergency. unit “Experimental Demonstration Center” and operate dangerous industrial facili- The priority objectives of the AMCS are: (EDC) to assume the functions of prepar- All employees who are involved in the op- ties, and to train personnel; • minimizing influence of the human ing and decommissioning of nuclear power eration of dangerous production facilities • technical supervision of equipment and factor on the PPETC; units. have been trained and certified by the re- structures at nuclear plants is organized • presentation of IDs by individuals en- spective Rostekhnadzor panels on issues of and implemented; tering secure zones, using a number of Fire Safety industrial safety. • technical certification of equipment is identification parameters, including bi- done in a timely manner as scheduled; ometrics; a rule requiring that at least In 2012, more than In 2012, the Concern ensured fire safety in All dangerous industrial facilities have the • activities have been implemented to two individuals must move within the the following key directions: required industrial safety declarations, plans extend the time of safe operation of restricted access zones; to prevent and eliminate oil and product equipment, buildings and structures at • limited number of persons authorized • improving the sector’s standards and spillages, and action plans to contain and nuclear plants; to access rooms, buildings, and secure 180 regulations related to fire safety; eliminate emergencies. • safety of production processes is moni- zones; firefighting activities were used • increased firefighting capability at nu- tored continuously. • automatic activation and deactivation of as required clear plants, as required under applica- To prevent industrial emergencies and inci- alarm systems in rooms and buildings; by applicable fire ble regulations; dents, and to ensure that the Concern’s per- In 2012, the Concern’s dangerous produc- • records of time and point of entry/exit, safety documents. • technical upgrade of automatic systems sonnel are ready to contain and eliminate tion facilities had no industrial emergencies. and tracking positions of personnel and for fire detection, extinguishing, and the consequences of emergencies and inci- visitors on the premises; public alerting; dents at dangerous industrial facilities, the Physical Protection • preventing possible entry with danger- • preparing nuclear plant personnel to re- Concern has organised and enforced control ous weapons, fire arms, explosives, radia- spond to fire emergencies; of the industrial safety situation. Audits by supervisory and monitoring agen- tion substances (materials) and other • implementing activities scheduled cies have confirmed that Rosenergoatom prohibited objects on the premises. under the “2008–2012 Plan to Improve The industrial safety system is based on or- Concern OJSC is engaged in systematic Fire Safety and Upgrade Firefighting ganization and implementation of industrial practical efforts to ensure the physical pro- Technical characteristics of the AMCS help Systems at NPP”; safety monitoring. tection and anti-terrorist protection of its units that guard and protect nuclear plants • inspections of fire safety during con- nuclear facilities. to ensure timely detection, blocking, and ap- struction of power units for nuclear To enforce rules and standards of industrial prehension of perpetrators, and enable reli- plants. safety: As important components of the physical able access monitoring of personnel, visitors • the Concern works to optimize the regu- protection system, the company has physi- and vehicles entering and leaving (including In 2012, more than 180 firefighting activi- latory base that includes activity guid- cal protection engineering tool complexes by rail and road) secure areas and sensitive ties were used as required by applicable fire ance and methodological documents, (PPETC), which include advanced access zones of the facilities. safety documents. which set out the procedures to identify monitoring and control systems (AMCS). Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 86 Concern OJSC in Key Activities Concern OJSC 87

3 3

Upper layer of the tower of power unit No.4 of Kalinin NPP under construction, 2009. Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 88 Concern OJSC in Key Activities Concern OJSC 89

Emergency Prevention Planning. The Concern’s Crisis Centre monitors in tors software. The resulting modeled data System for Prevention and Elimination of Emergency Readiness 24/7 real time mode some key parameters are sent to nuclear plant emergency centres, Emergencies (UPEE), and is in fact one of related to production, radiation, the environ- the Crisis Centre and the TSCs. Thus experts its most accomplished links. Our experience Emergency response is understood as ment, and fire safety. Data exchange organ- are able to analyze the emerging situation of peer involvement as observers in emer- concerted activities by the operator, ized between Rosatom SCC and TSC has under near-real conditions. gency drill exercises, and our knowledge of its executive bodies, local self-govern- created a single information space in which the systems of emergency readiness that ment, and other entities, to mitigate, all emergency responders can communicate. The Concern’s system for prevention and are used by international operators, demon- minimize, contain and eliminate conse- The forces available at each nuclear plant elimination of extraordinary situations and strate that the Concern’s current system to quences of a radiation-dangerous situ- to contain and eliminate emergencies and emergency response meets all require- prevent and eliminate emergencies is on par ation, plus measures to protect nuclear extraordinary situations are composed of ments for members of the Uniform National with the world’s best practices. plant personnel, the public, and the third-party rescue contractors and special environment corporate teams equipped with all necessary equipment and tools. In order to plan, ensure readiness, and im- 3 plement activities for the protection of per- To maintain and increase the required level 3 sonnel and nuclear plant premises against of skills in executive and operation person- emergencies of natural and industrial origin, nel, nuclear plants train them in protection in accordance with Russian Federal Law, methods and how to respond to extraor- Resolutions passed by the Federal Govern- dinary situations. Training is available from ment, and international recommendations schools of the Russian Federal Ministry of issued by the IAEA, the Concern has estab- Emergencies (including the Civil Defense lished a system to prevent and respond to Academy), from advanced training provid- emergencies. ers that are part of Rosatom State Corpora- tion, and emergency drill facilities that exist A finely-tuned mechanism of emergency at the nuclear plants. Emergency drills and interaction makes the Concern’s emergency exercises are emphasized as training activi- response system specific. ties. Following the Fukushima disaster, the Concern decided to increase the number of A total of The Concern’s Crisis Centre is a key compo- emergency drills held annually where per- nent in the structure of nuclear plant emer- sonnel can practice their responding skills in gency support. The structure also includes unforeseen emergency scenarios. Rosatom’s Situation Crisis Centre (SCC), Rostekhnadzor information analysis centre, The Concern’s Crisis Centre’s informa- and technical support centres (TSC) cre- tion systems enable the work of the Nu- ated in entities engaged in project design, clear Plant Rapid Response team (NPRR), 14technical support research management и and general design composed of leading specialists, experts in centres are now for nuclear plants, as well as in leading Rus- safety and response to extraordinary situ- in operation. sian institutes that research issues of nucle- ations. In 2012, the NPRR team marked its ar plant support. A total of 14 such TSCs are 25th anniversary - the, nuclear plant safety now in operation. system would be inconceivable without this service. The roles of the Crisis Centre and TSCs in ensuring higher emergency readiness of nu- In 2012, the NPRR team held: clear plants and better emergency interac- • a comprehensive emergency exercise at tion are established under federal standards Kursk NPP; and regulations, including regulation on the • emergency drills at NPPs in Smolensk, emergency declaration procedure, rapid in- Kalinin, Beloyarsk, Leningrad, Kursk and formation exchange, and urgent assistance Kola. to nuclear plants in radiation-dangerous situations (NP-005-98), and the Procedure for During these exercises and drills, the course Rosatom Situation Crisis Centre (Rosatom of an emergency situation is modeled using SCC) to alert the sector’s entities on current comprehensive simulators, with the radia- status of existing emergency situations. tion situation emulated by ARBCS indica- Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 90 Concern OJSC in Key Activities Concern OJSC 91

3.4. Developing Construction of new NPP power units in 2012 NPP Power unit Type Power unit Key outcomes Generating Potential of power construction unit deadline Horizons for growth of Russia’s nuclear power sector Beloyarsk NPP №4 BN-800 2014 Reactor building tested Novovoronezh №1 VVER-1200 2014 Reactor room. Dome covered with internal protection shell. are set forth in the 2030 National Energy Strategy NPP-2 (NPP-2006 Reactor building installed as designed and the 2020 Federal Master Plan for Deployment design) of Electric Power Facilities, with 2030 outlook. №2 VVER-1200 2016 Reactor room. Reactor shaft. Support beam built. (NPP-2006 Turbine building. Electric bridge crane assembled 180 (220) 32 design) + 220 + 6.3 tons (mechanical part)

Building new units for nuclear plants No. 1 and 2 of Tver NPP, No. 1 and 2 of Sev- Leningrad NPP-2 №1 VVER-1200 2015 Reactor building. Steel reinforcement of internal shell to Elev. 3 ersk NPP, No. 5 of Beloyarsk NPP. (NPP-2006 +34.00 3 In 2012, the Concern’s nuclear plants design) worked on the construction of nine new As stated in the declaration of intent, in №2 VVER-1200 2017 Tight shell built to Elev. +9.00 power units. Six of them are based on the 2012 activities began to prepare docu- (NPP-2006 NPP-2006 design – another step forward in ments in support of investments to build design) the evolution of the Russian nuclear power Kursk NPP-2 and Smolensk NPP-2 (VVER- sector. TOI design). Construction of these nuclear Rostov NPP №3 VVER-1000 2015 Voltage for own needs supplied. Dome as to designed plants is scheduled for 2015 and 2016, re- №4 VVER-1000 2019 Assembly of metal structures in Machine Room Aisle A On September 25, 2012, power unit spectively. No.4 of Kalinin NPP was opened for Baltic NPP №1 VVER-1200 2017 Fusion trap installed as designed (NPP-2006 operation with an official ceremony. Progress and main figures design) for construction and installation in 2012 The Concern’s activities to build new Activity Unit Done in 2012 №2 VVER-1200 2018 Concrete preparation for reactor building completed power units in 2012 were under general (NPP-2006 contracts signed with engineering compa- Earthworks 000 m3 3,426 design) nies NIAEP, SPBAEP, Atomenergoproyekt, FGUP GUSST No. 3 of Russia Specstroy, Reinforcement tons 65,165 Achievement of financial and business targets in 2012 steel and LLC Uralenergostroy Managing Com- installation pany. General contractors and their con- Item Unit TARGET FACT M3 tractors were selected to meet the re- Concreting 366,657 Financing billion rubles 156.05 156,51 quirements of the Uniform Industry Level Production tons 7,078 To year target (%) — 100,3 Purchasing Standard of Rosatom State pipelines Corporation. Increment of non-financial assets billion rubles 152.72 159,25 Metal tons 30,150 To year target (%) — 104,3 To achieve the sector’s strategic goals of structures putting new power units in operation in Capital investments engaged billion rubles. 129.29 133,63 a timely manner, and to implement new To year target (%) — 103,4 investment projects, Rosenergoatom cre- Cost of nuclear plant construction ated a new entity, Facilities Construction Management that currently acts as a client The NPP-2006 design remains the basis design is accomplished in 8 years, with the • batched assembly of the main circula- on construction projects of nuclear power for organized serial construction of Rus- second unit turned on 10 years after pro- tion pipelines (MCP) in the pre-assem- units sian-designed nuclear plants both in ject launch. The maximum expenditure to bly preparation shop (PAPS) directly Russia and abroad at this time. The cost of finance a two-unit NPP falls in the sixth on the construction site; In 2012, monitoring of selected construc- building this one-design two-unit nuclear year of construction. • welding done on four MCP loops at tion sites continued, or pre-project and/ plant is 43.4 billion rubles converted to the same time, making more than two or project activities were in progress for 2000 base prices, or 209.7 billion rubles as To build new power units faster, the welded joist at once, with higher qual- the following power units: No. 3 and 4 of priced in Q3 2011. Each power unit takes company has adopted new construction ity of welding; Leningrad NPP-2; No. 1 and 2 of Nizhniy 48 months to build. The power start of the methods within the Rosatom Production • the К-1000-60/300 turbine unit is de- Novgorod NPP; No. 1 and 2 of Central NPP; first nuclear power unit of the NPP-2006 System: livered as five large packs; Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 92 Concern OJSC in Key Activities Concern OJSC 93

Number of contractors and employees Diagram of upgrading management in active nuclear power units on nuclear plants under construction, 2012

Sector-level Integrated Progress NPP Number of main Employed, Including technical long-term reports on plans contractors total programs document program and programs with efficiency engineering workers points awarded by adopted criteria

Baltic NPP, 19 1,456 238 1,218 power units No.1 and 2 Solution of NPP operation problem

Beloyarsk NPP, 58 4,161 562 3,599 power unit No.4 3 3 Novovoronezh NPP-2, 24 5,130 1,084 4,046 Expert conclusion Expert conclusion power units No.1 and 2 on the Solution’s on the Solution’s economic technical Leningrad NPP-2, 6 2,541 150 2,391 efficiency parameters power units No.1 and 2

Leningrad NPP-2, 1 15 3 12 REA expertise temporary buildings and structures

Rostov NPP, 50 5,342 1,035 4,307 power units No.3 and 4 Draft Solution/Decision Comprehensive NPP on NPP operation problem long-term NPP retrofitting Total 158 18,645 3,072 15,573 retrofitting year programs (5 years) plans

• manufacturing and assembly of larger Objectives of upgrading Tech Panel’s minutes units of the reactor room protection nuclear power units: on NPP operation problem Target NPP NPP shell. • ensuring safe and stable operation technical upgrade of active nuclear plants that meet upgrade programs estimates – Number of contractors the criteria and requirements of ef- (3 years) year plans and employees on nuclear fective standards and regulations in plants under construction nuclear power use; NPP operation problem • higher output of electric and ther- Archiving (if resolved) or correction of operation In 2012, construction of Russian nuclear mal power by active nuclear power problems or programs (optimizing deadlines, plants involved 158 organizations, with units; work scopes, financial spending) 18,645 employees engaged in construc- • higher reliability and business ef- tion. ficiency of active nuclear plants making them more competitive on Upgrading and extending the ECWM. • optimized nuclear plant upgrading based Nuclear plant the service life of power units on evaluation of contributions from upgrade management The uniform engineering policy on nuclear planned activities to safety and business The Concern is upgrading active nuclear plant upgrading envisages: efficiency; The Concern manages upgrading of its nucle- power units as a matter of priority; this • building and implementation of long- • cutting the costs of nuclear plant up- ar plants based on industry-level regulations not only preserves nuclear plant capacity, term upgrading plans tied in with safety grading by implementing priority activi- and by enforcing procedures for long-term, but also makes power units safer and im- assessment and nuclear plant operation ties with the highest engineering perfor- mid-term and annual (current) operation proves performance. licensing; mance and business efficiency. planning.

Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 94 Concern OJSC in Key Activities Concern OJSC 95

Diagram: management of service life extension for nuclear plant power units Results of nuclear power years, and is calculated for each specific case unit upgrading in 2012 based on both engineering and economic Rosenergoatom Concern OJSC administrative documents factors. In 2012, power units were upgraded in the following key directions: Activities to extend the service life of active Document list General program for comprehensive examination for comprehensive examination • replacement of electric and thermo-me- power units in Russian nuclear plants start- chanical equipment, and instrumenta- ed in 1998. tion; Safety assessment Comprehensive examination • upgrade of main equipment: reactors, By the end of 2012, work had been done to By the end of 2012, work had been done turbines, electrical, instrumentation, extend the service life of 18 power units to extend the service alarms and protections, production sys- in nuclear plants, with a total installed life of Summary report on CE outcome tems, control and protection systems, air capacity of 10,848 MW. Rostekhnadzor conditioning, ventilation, and other, for licenses were received to operate those List List of elements List of elements higher reliability and longer intervals be- power units beyond their respective de- 3 of elements requiring additional with extended service life tween repairs; signed service life. 3 for replacement examination as a result of activities

S tage 1 • adopting new systems: chemical batch- ing, electric equipment diagnostics and At this time, investment projects to extend Decision to clear elements for monitoring, and others. service life are underway on nine power Consolidated plan of activities power units in nuclear operation as a result of activities units: power units No.3 and 4 of Kursk NPP; 18plants, with a total As part of activities to prevent and mitigate power unit No.4 of Kola NPP; power unit installed capacity of consequences of unforeseen emergencies, No.2 of Smolensk NPP; power units No.1 PRE-PROJECT STAGE nuclear plants adopted systems that monitor and 2 of Kalinin NPP; power units No.1, 2 10,848 hydrogen concentration in an unforeseen and 3 of Balakovo NPP. MW emergency, systems to maintain hydrogen Econominc efficiency estimate Project deisgn assignment concentration inside the active zone below Five service life extension projects are at the explosive point, and others. The nucle- the development stage: power unit No.4 of INVESTMENT PROJECT ar plants received mobile diesel generator Balakovo NPP (2014); power unit No.3 of units, pumping units, monoblock pumps for Smolensk NPP (2013), power units No.1 and emergency water supply, special equipment 2 of Kola NPP (2014), and power unit No.4 for emergency response and rescue at nu- of Novovoronezh NPP (2013). Program for power unit preparation for project design examination clear plants, and other equipment. As part of power unit service life extension IMPLEMENTATION OF ACTIVITIES INCLUDED IN INVESTMENT PROJECT Extending the service life projects now in progress, the scope of works of active nuclear power units planned for 2012 was accomplished. Stages (design, preparation, construction, estimates, maintenence, regulation compliance, inspections) Extending the service life of power units in Results of activities to extend service life of an active NPP beyond their designed service nuclear power units in 2012: Request to implement activities life is one of the most relevant tasks at the • Rostekhnadzor license received to op- current stage of evolution of the nuclear eration power unit No.1 of Smolensk Contract tender procedures Writing power sector in Russia, and the most effi- NPP for an additional period; the In-Depth cient direction for financial investments in • justification pack was prepared to Safety order to maintain generating capacity and enable the operator’s decision-making Contract signing Assessment make nuclear plants safer. on repeated extension of service life S tage 2 Report for power unit No.4 of Novovoronezh Contract exuction In accordance with effective standards and NPP; industry-level regulations, management of • The programme to extend service life Reports and statements nuclear power unit service life extension of power unit No.3 of Kursk NPP was uses the system shown on page 94. done as planned for 2012. The docu- Document pack submitted, request license, one year before expiry ment pack was submitted to Ros- of the current service live The economically justifiable extra service tekhnadzor requesting the license. life for nuclear plant power units is 15 to 30 Obtaining licence for project design examination Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 96 Concern OJSC in Key Activities Concern OJSC 97

NPP generating capacity preserved through extended service life

+4KUR 20,000 +SMO 42 % +1BAL of total installed capacity of nuclear plants

+1KLN 16,000 +4KOL

+3KUR

+3KOL +1SMO 12,000 +5NVO +3BEL 3 +4LEN 3 +2BEL +4LEN Capacity, M W Capacity, 8,000 +1KUR +4BIL +2LEN +3BIL +2KOL +1LEN +1,2BIL +1KOL 4,000 +4NVO +4NVO

440 880 2,320 2,784 3,796 4,808 6,808 8,408 9,848 10,848 11,848 13,288 16,288 0

2001 2002 2003 2004 2005 2006–2008 2009 2010 2011 2012 2013 2014 2015

Programme to Increase Power Generation In 2011, changes were made to the programme for higher power generation by The programme to increase power genera- active nuclear plants of Rosenergoatom in tion by active NPPs has the following main 2007-2015, due to changed conditions of objectives: power unit operation, specifically: • enabling additional generation of elec- • canceled activities to increase the ther- tric power; mal capacity of RBMK-1000 reactors by

• raising the factors ICUF and LAF. 5%; • work to restore resource characteristics In 2012, seven power units in nuclear plants of the graphite stacks in RBMK reactors. with VVER-1000 reactors ran at 104% of their rated capacity: Considering the above, once implemented, • power units No.1, 2, 3 and 4 of Balakovo the programme to extend power generation NPP; is expected by 2015 to generate an addition- • power units No.2 and 3 of Kalinin NPP; al 87.6 billion kWh of electric power. • power unit No.1 of Rostov NPP. Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 98 Concern OJSC in Key Activities Concern OJSC 99

Analysis of repair day reduction 3.5. Maintenance in nuclear power units and Repairs of NPPs. NPP Target, Fact, Fact, with RPS, Financial effect, Extra generation, Implementation days days days with RPS, with RPS, of Rosatom Production System mln rubles mln kWh

Balakovo 198 170.5 –27.5/–5 531.6/99.4 608.3/114.6 Repairs to NPP systems and equipment is a major component activity Beloyarsk 71 65 –6/–4 26.3/14.8 36.5/21.7 for Rosenergoatom Concern OJSC, intended to ensure safe and efficient Bilibino 272 258 –14/0 — — 3 operation of power units between repairs. 3 The main reserves in targets for generation of thermal and electrical power, Kalinin 152 139.5 –12.5/–8 311.1/200.1 277.9/178.6 and to raise the competitive ability of the nuclear power generation Kola 240 228 –12/0 19.2/0 28.6/0 industry lie in repair optimization. Kursk 226 228 +2/–1 5.4/7.4 –15.8/7.2

The 2015 repairs improvement strategy en- Implementing Rosatom’s Leningrad 207 211 +4/0 –47.6/0 –52.5/0 visages efforts to cut unrelated costs and Production System increase the technical level and efficiency of maintenance and servicing, with uncondi- Since 2009, the companies of Rosatom State Novovoronezh 170 176 +6/–3 –146.8/0 –133.8 tional enforcement of rules and regulations Corporation, including Rosenergoatom, in nuclear and radiation safety and opera- have implemented the Rosatom Production Rostov 106 88.5 –17.5/–8 337.1/127.0 330.3/150.4 tional and fire safety. System (RPS), designed to detect and optimize all types of loss. The target for repair Economic effect day reduction through implementation of Smolensk 221 191.5 –29.5/–17.5 372.6/280.3 446.8/337.3 of reduced repair days in 2012 the RPS was 43 days, while the actually achieved figure was 46.5 days. Additional Financial effect: 1,408.9 mln rubles. generation of electric power thanks to the Total 1,863 1,756 –107/–46.5 1,408.9/729 1,526.3/809.8 Extra generation: 1.5 billion kWh RPS amounted to 809.8 mln kWh, with 729 mln rubles received through higher financial efficiency. As part of this action plan, during 2012: benches to confirm its functional abilities The 2012 repair campaign in terms of elec- • a special project management team was and ensure safety of works on the reactor. tric power generation support and repair Resource Characteristics formed of representatives from NIKIET, cost cutting was executed fully and with of Graphite Stack Restored Kurchatov Institute, and major R&D en- The results of bench tests and measure- good quality. In 2012, 38 repairs of active in Power Unit No.1 of Leningrad NPP tities of the sector, and designers of aux- ments on power unit No.1 of Leningrad NPP nuclear power units were carried out, with iliary equipment; became the basis for a safety validation a total actual duration of 1,756 days (com- While in extended service life, power unit • R&D contracts and general contracts study that was presented to Rostekhnadzor, pared to a target of 1,863 days). Overall, No.1 of Leningrad NPP (RBMK-1000 reac- were signed with NIKIET for manage- whose experts examined it and issued an scheduled repairs in 2012 were reduced by tor type) revealed distortion of the graphite ment of resource characteristics of official permit to authorize restoring the re- 107 days, of which 46.5 days were due to the stack. To ensure further safe operation of power unit No.1; source characteristics of the graphite stack implemented Rosatom production system. the power unit, the company developed an • the necessary means to monitor and re- in power unit No.1 of Leningrad NPP. action plan to control the resource charac- store the graphite stack were developed. In 2012, there were 17 recorded cases teristics of RBMK-1000 reactors. At this time, all auxiliary equipment has of extraordinary repairs on power units, All auxiliary equipment developed for the been delivered to the power unit, assem- with a total duration of 86.8 days. project was tested and accepted at special bled and tested, and personnel have been Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 100 Concern OJSC in Key Activities Concern OJSC 101

Duration of repair campaigns by years, in days

Target FACT 2,324 2,309 2,296 2,300 2,221 2,171 2,152 2,152 2,146 2,109

3 3 2,017 2,001 1,986 1,961 1,938 1,921 1,896,5 1,873,5 1,863

1,800 1,756 1,646

1,300

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

trained and made ready to perform. The plan safety of further operation of the reactor, for 2013 is to restore the graphite stack in officially receive a license to operate power power unit No.1 of Leningrad NPP. unit No.1 of Leningrad NPP, and connect it to the grid. Experience gained from power Both Rosenergoatom and Leningrad NPP unit No.1 will be useful later on all other are facing the task for 2013 to accomplish power units with RBMK-1000. planned activities, prove reliability and Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 102 Concern OJSC in Key Activities Concern OJSC 103

VVER-TOI Floating thermal nuclear 3.6. Innovative Design power plant (FTNPP)

Activities In 2012, work on the innovative project In 2012, the Concern continued construc- VVER-TOI was concluded. tion of the world’s first floating nuclear power plant (FTNPP) with a capacity of 70 VVER-TOI Safety MW, with two KLT-40С reactor units. Innovative development of Rosatom State Corporation companies seeks to make The VVER-TOI project combines FTNPP is a new class of power sources their products and services more competitive active and passive safety systems to based on Russian technologies of nuclear ensure that the reactor core remains ship-building. The goal is to supply reliable on the nuclear power market by upgrading intact for at least 72 hours into any heat and power to remote areas in the Arctic existing technologies and retrofitting heavy unforeseen emergency under Circle and the Russian Far East throughout its production facilities. Improving current any scenario of events, while the pro- the year. The first FTNPP will be stationed 3 3 technologies and adopting innovative ones ject’s engineering solutions guarantee in the city of Pevek (Chukotka Autonomous that the reactor unit will enter a safe Okrug). is a prerequisite to development of the nuclear condition regardless of the combina- power system on the principles of safety tion of trigger events (natural and ar- The main floating power unit (FPU) “Acad- and sustainable growth. tificial) that cause loss of all electric emician Lomonosov” was built at Baltiysky power sources. Zavod (St. Petersburg). By the end of 2012, all power equipment had been built and de- VVER-TOI technology for nuclear plants is livered to the builder plant. Its workshops the sequel to NPP-2006 project, designed to assembled the steam-generating units of In 2012, All science research and experimental design • systematic adoption of scientific re- make Russian VVER technology competitive the reactors, and manufactured the metal- R&D received financing of initiated by the Concern are applied by nature search in production; conducting the on the international market, and aimed at sub- water protection (MWP) tanks; its steam- and with the purpose to address real-life cur- full innovative cycle of scientific re- sequent serial construction of nuclear plants turbine units were raised and mounted on 8,433.78 rent needs of its nuclear plants, and to identify search and experimental design; both in Russia and abroad. the FPU. The complete set of active zones future objectives in the Concern’s production • coordinating scientific research and en- was made for the first fuel load of the reac- mln rubles under the Concern’s and technology. gineering to support nuclear plant op- VVER-TOI project has realized the entire tors. integrated eration; range of engineering solutions that ensure nu- investment At present the Concern’s main priorities for • supporting an integrated system to con- clear plant safety, and rules out above-stand- The hull is now 90% complete. Work is un- programme. innovative development are: upgrading ap- trol research in science and technology ard escape of radioactive substances into the derway to make and install the onboard sys- plied technologies for project design and con- in order to ensure their high efficiency environment under external (natural and arti- tems. The floating power unit is scheduled struction of nuclear power units; extending and competitive ability; ficial) impacts combined with internal triggers to be commissioned in 2016. the service life of principal equipment through • working out a patent and license policy and additional failures. development and adoption of new materials; in intellectual activities. Fast-neutron reactors design of new reactors. The project carefully analyzed current char- R&D Financing Mechanisms acteristics and growth dynamics of foreign To date, the Russian nuclear sector has ac- Management of R&D competitors, leading to the conclusion that cumulated unique practical experience with and Innovation Based on “Rosatom State Corporation Long- by its technical characteristics the VVER-TOI creating and long-term successful operation Term Action Plan (2009–2015)”, approved is on par with the best nuclear plant designs, of fast-neutron reactors. They are expect- At present, the Concern places specif- by Federal Government Resolution No. 705 but is superior in economic performance and ed to enable the transition of the nuclear ic orders with science researchers of the of September 20, 2008, and local corporate integral safety. Further work on the project as- power sector to a closed fuel cycle that will sector to develop new technologies for the regulation of Rosenergoatom, annual action sumes that a non-variant part will be isolated ensure more efficient use of uranium re- nuclear power industry. This work will be plans are drawn up for scheduled R&D and from the base project; this part, in conformity sources, delivering a solution to the environ- coordinated by the Science and Engineering are officially coordinated and approved. The with the procedures of Rostekhnadzor, will be mental problems of handling spent nuclear Centre – a branch company created by the finally approved spending target is stated officially approved to be reproduced in a series fuel and radioactive waste. Concern in 2012 Rosenergoatom, and vested in the respective section of the Investment of project designs to build nuclear power with the following functions: Programme for the planning year. units with the VVER-TOI design used as basis. The programme “New technology platform: To date, it has been decided to implement closed nuclear fuel cycle and fast-neutron • developing and supporting a uniform ac- In 2012, R&D received financing of 8,433.78 the design at Kursk NPP-2, Smolensk NPP-2, reactors” has the following goals and objec- tivities policy of Rosenergoatom Con- mln rubles under the Concern’s integrated Nizhny Novgorod NPP, and NPP Akkuyu in tives: cern OJSC in science and technology; investment programme. Turkey. Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 104 Concern OJSC in Key Activities Concern OJSC 105

3 3

• promoting national security of the power • production support for the non-prolifera- Radiation resistance of the material of fuel unit is its assured ability to compete with supply, economy, and environmental pro- tion of fissionable materials. element shells of austenitic steel for fast- VVER-1200 power units. tection through development of the nu- neutron reactors was experimentally con- clear power sector by using fast-neutron Therefore, the technologies of fast-neutron firmed to the level ≥ 95 displacement per In 2012 design of the reactor’s active zones reactors in a closed fuel cycle; reactors and closed fuel cycle have great atom; this has created the basis for consid- continued, with further research into fine • reducing risks of power planning security innovative potentials, while commissioning erably higher elimination rate of nuclear optimized solutions for the engineering and through reduced dependence on fuel re- and operation of power unit No.4 at Belo- fuel. construction aspect of the power unit. sources; yarsk NPP with a BN-800 reactor unit is of Since 2009, 67% of total planned works has • cutting specific deferred costs of repro- special importance – the unit’s physical start BN-1200 been carried out – work is due to be com- duction and development; is scheduled for the end of 2013. pleted in 2015. • creating a basis for the nuclear power sec- In accordance with Federal Government tor’s transition to self-sufficiency in nu- These reactors will not have any active for- Regulation No.705 of September 20, 2008 clear fuel with minimized consumption of eign analogs until 2020. “Long-Term Action Programme of Rosatom natural uranium and the least radioactive State Corporation (2009–2015)”, Rosener- waste; Key Events of Work in 2012 goatom manages R&D to support design of • creating a prototype fast-neutron reactor power units with high capacity fast-neutron able to compete with VVER and of equal For the first time in Russia, production fa- reactors as the backbone component in the output, to build a series of fast-neutron re- cilities were established and began making closed nuclear fuel cycle. actors running on a closed fuel cycle; fuel elements for mixed oxide-uranium fuel • ensuring that the environmental charac- composition using pellet technology, able It is established that the power unit’s rated teristics of the nuclear fuel cycle are ac- to make up to 90 HGP sets annually for a capacity must be 1,200 MW. A key require- ceptable to the public and economy; BN-800 reactor. ment for the design of the BN-1200 power Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 106 Concern OJSC in Key Activities Concern OJSC 107

International Bulgaria Substantiation China Activities of lifetime extension Establishment for Kozloduy NPP Belorussia of representation office to units 5 and 6 render engineering services Designer supervision at the site of Tianwan NPP of the project by the utility, personnel training. Consulting services Project of Belorussian NPP to support operation envisages 2 units (VVER-TOI) of Chinese experimental of 1200 MW capacity each fast reactor (CEFR)

Elaboration of the documents on the first stage of Taiwan 3 NPP units to power uprating, 3 performance of maintenance activities of turbine facilities at Units 1 and 2

Involvement in commissioning activities at the second stage RUSSIAN units of Tianwan NPP FEDERATION

India

Participation in commissioning activities at Kudankulam NPP

Canada

Export Turkey of isotopic materials Vietnam Implementation of the project Participation Akkuyu NPP Iran in personnel training by the principle for NPP Ninh Thuan-1 “Build-Own-Operate”. Preparation and Ninh Thuan-2 The project envisages of Busher NPP Unit 1 construction of 4 NPP to commissioning units equipped with and operation VVER-1200 reactors of 1200 MW capacity each Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 108 Concern OJSC in Key Activities Concern OJSC 109

Cooperation with the IAEA During the reporting year, close attention 3.7. International Activities was also paid to enforcing the recommenda- With assistance from Rosatom State Cor- tions of the corporate peer audit conducted Rosenergoatom’s international poration, Rosenergoatom Concern OJSC is by WANO in 2011. The follow-up corporate actively involved in international activities peer audit is scheduled for 2013. activities seek to ensure that Russian under the aegis of the IAEA. nuclear plants are safe and reliable, by adopting best international practices. In 2012, the programme of missions to ex- Cooperation with Under its strategy of global expansion, amine operation safety (OSART missions) the Materials Aging Institute (MAI) was extended through to 2023, and the Rosatom State Corporation is increasing missions will be more frequent now. It was A new phase in cooperation with foreign or- its presence on foreign markets. decided that the next OSART missions will ganizations began when in 2012 the Concern visit Kola NPP (in 2014) and Novovoronezh joined the MAI – the Materials Aging In- NPP (in 2015). stitute established by Electricite de France 3 International cooperation became particularly intensive in 2012. In Russia and abroad, the (EDF). Being part of the MAI is important 3 Concern had about 250 international events attended by more than 3,000 people, includ- During the reporting year, examination of because one of the priority tasks the Con- ing 40 large-scale events, 9 international audits, 29 protocol meetings attended by Concern the Russian design NPP-2006 arranged by cern currently faces is extending the ser- executives, and some 160 awareness workshops and meetings. Eight agreements were signed the Concern to confirm its compliance under vice life of Russian nuclear plants, while the or renegotiated that regulate international operations. the IAEA safety standards. Examination was institute has united global leaders in nu- part of preparations for international expert clear power generation and gathered vast assessment of the VVER-TOI design. amounts of information on the issue.

The design of НВNPP-2 (NPP-2006) was Partnership with foreign businesses praised by the IAEA experts. Directions In 2012, the Concern continued cooperating Major international activities in 2012 for further joint activities were outlined. In with companies and strategic partners on a 2013, materials on the VVER-TOI will be regional scale. • Special event hosted by WANO: “Post-Fukushima Nuclear Power submitted to the IAEA’s expert panel. as Seen by Plant Operators” was part of the 4th international forum The company’s partnership with Electric- Atomexpo-2012. Cooperation with WANO ite de France (EDF, France) is now 18 years old, and is based on an annually approved • International practical science conference “Safety, Efficiency and The events at Fukushima in the spring of exchange programme in science and tech- Economics of Nuclear Power Industry” (MNTK-2012). 2011 returned the global community’s focus nology. This exchange includes meetings • Extraordinary meeting of the parties to the Convention on nuclear to the issue of making nuclear plants safer. between top executives, workshops, visits, safety (the Concern’s specialists participated in six subject groups, In 2012, leading international organizations, technical briefings, anti-crisis exercises, and and helped to write the Russian Federation’s National Report). including WANO, had a series of activities close relations between the nuclear plants to discuss post-Fukushima issues. For ex- of both nations. Cooperation is ongoing in a • The Concern took part in an emergency drill at Danpiere NPP ample, the Concern’s experts participated in number of directions. In 2011–2012, the par- (France) and worked in the Crisis Power Centres of Electricite de three WANO international project groups ties also exchanged experiences in imple- France (EDF). (“Serious emergency management”, “Radia- menting their post-Fukushima action plans. • International observers were involved in the comprehensive tion safety”, “Determining criteria for peer emergency exercise at Kursk NPP. audits”), trusted to enforce the recommen- The Concern’s cooperation with NAEK • Peer audits by WANO at Beloyarsk and Kola NPP. dations of the Mitchell Panel. (Ukraine) started in 1999, when the parties signed an agreement on cooperation • Follow-up peer audits at Rostov and Kalinin NPP. Steps were taken to create a WANO Re- in science and technology. Direct coopera- • International insurance inspections at Rostov and Smolensk NPP. gional Crisis Centre in Moscow for nuclear tion between Russian and Ukrainian nuclear plants with VVER reactors, based on Rosen- plants is also growing. • Comprehensive joint audits of Balakovo and Smolensk NPP by ergoatom’s Crisis Centre. Interaction be- supervisory agencies of Russia and France. tween the Concern and WANO will be made The Concern’s partnership with Iberdrola- • Meetings of managing panels and boards with key partners, such as more efficient after a shared information Generacion (Spain) is proceeding under a WANO, EDF, Energoatom (Ukraine), Iberdrola (Spain). field is created to highlight nuclear plant op- framework agreement signed in 2005. Practi- eration non-compliance, equipment failures, cal work is based on annually approved co- and nuclear plant performance. operation programmes. In 2012, the project Rosenergoatom ANNUAL REPORT 2012 Section 3. Performance Rosenergoatom 110 Concern OJSC in Key Activities Concern OJSC 111

was actively underway to adopt CheckPlus In Iran, the Concern is providing services to As a technical client, the Concern ultrasonic flow meters on feed water pipe- prepare the Busher NPP for launching and is involved lines, as recommended by the Spanish part- operation. in the Akkuyu ner after they analyzed the operational effi- NPP construction project (Turkey). ciency of power unit No.5 of Novovoronezh In China, the Concern is providing services This cooperation NPP in 2010. in engineering consulting, and carries out is based on a three-party scheduled preventive repairs on the Tian- investment Increasing Presence in Other Nations wan NPP that is now in operation. agreement signed between Rosatom State Corporation, Under the Rosatom State Corporation 2030 In Bulgaria, a project is underway to conduct Rosenergoatom, Action Strategy that envisages international comprehensive examination of power units and NPP Akkuyu expansion of the power business, and in- No.5 and 6 of NPP Kozloduy, as part of ac- Project Co., for a total value of creased exports of high-tech products, the tivities to extend their service life. Concern has been building its presence out- 3 side of Russia. In 2012, isotope materials worth 120 mln 3 rubles were exported to Canada. As a technical client, the Concern is in- 21.9 volved in the Akkuyu NPP construction pro- In the Czech Republic, the Concern’s future billion rubles ject (Turkey). This cooperation is based on depends on the tenders that Rosatom State a three-party investment agreement signed Corporation has placed for Temelin-2NPP between Rosatom State Corporation, Ros- construction project. energoatom, and NPP Akkuyu Project Co., for a total value of 21.9 billion rubles. NPP In India, the Concern expects to assist pre- Akkuyu – a branch company of Rosener- commissioning of Kudankulam NPP. goatom – has been established in Turkey, In Vietnam and Bangladesh, the Concern and plans for 2013 include creating the con- plans to provide support under Rosatom’s struction project’s directorate, and training regional plans for Ninh Thuan NPP and programmes for Turkish personnel. Ruppur NPP. Rosenergoatom ANNUAL REPORT 2012 Rosenergoatom 112 Concern OJSC Concern OJSC 113 04 System of Management

• Structure and List of Executive Management • Corporate Management System • System of Key Efficiency Ratios. Employee Evaluation and Remuneration • Internal Control and Auditing. • Risk Management • Property Management • Quality Management • Purchase Management • Information Technology Rosenergoatom ANNUAL REPORT 2012 Section 4. System Rosenergoatom 114 Concern OJSC of Management Concern OJSC 115

4.1. Structure and List Structure of the Concern’s managerial bodies, by gender and age of Executive Management Board of Directors Directorate Item, % Male Female Total Male Female Total

5 (100%) 0 5 (100%) 27 (97%) 1 (3%) 28 (100%)

up to 30 years old 0 0 0 0 0 0 Structure of the Concern’s bodies inclusive

of management and control 31 to 50 years old 1 (20%) 0 1 (20%) 1 (3%) 0 1 (3%)

51 and older 4 (80%) 0 4 (80%) 26 (97%) 1 (3%) 27 (97%)

General Meeting of Stockholders: Total 5 0 5 27 1 28 • Rosatom State Corporation • Atomenergoprom JSC In 2012, the Board of Directors had four • location: bldg. 13, 18 ul. Strominka, non-executive Directors (not employed by Moscow; Rosenergoatom). The Board had no inde- • license: No. 10-000-1-00264, issued by pendent directors (as defined in the Russian Russian FCSM on December 03, 2002. Board of Directors Auditing Committee Corporate Conduct Code and recommended by the FFMS). At the end of 2012, the Board Chief Executive Officer 4 of Directors had not formed any panels or 4 committees. The Concern’s Chief Executive Officer is its General Director, Yevgeny Vladimi- The structure of the Board of Directors is rovich Romanov, elected by the Sole General Director determined by Russian Federal law, and the Stockholder’s Resolution No. 15 of July 29, directors are designated based on the prin- 2011, for the term of 5 years, effective from ciples of the required balance of knowledge August 01, 2011. and skills, experiences, including competencies in production, administrative, environ- Auditing Committee Under the Federal Law On Joint-Stock The Concern’s Stockholders mental, and social issues. During the re- Companies, the management structure as of December 31, 2012: porting period, the Board had no change of In accordance with the Minutes No.2 of of Rosenergoatom Concern OJSC includes: 1. Atomenergoprom — 96.415%. directors. Atomenergoprom General Meeting of • General Meeting of Stockholders; 2. Rosatom State Corporation — 3.585%. Stockholders of June 29, 2012, the Auditing • Board of Directors; Information about Committee of Rosenergoatom was formed • General Director. Registered Capital the Auditor and Registry Keeper with the following members: Members of the Auditing Committee Control of financing and business activities Between January 01, 2012 and December 31, In accordance with the Minutes No.2 of is the function of the Auditing Committee 2012 the Concern’s registered capital re- General Meeting of Stockholders of June Pyotr Chairman of the Auditing and the Auditor of Rosenergoatom Concern mained unchanged, and was 530,011,527,000 29, 2012, Accountants and Business Advisers Anatolyevich Committee, Deputy head OJSC. rubles, according to its constitutive docu- Limited Liability Company (FBK LLC) was Stepayev of Management for Capital Investment Programmes in ments. designated as the Concern’s Auditor. Rosatom State Corporation Rosenergoatom has advisory collegiate bodies: the Directorate and the Central As of December 31, 2012, Keeping the registry of holders of registered Yelena Auditing Committee Member, Grigoryevna Advisor to Management for Committee. the Board of Directors was composed of: securities issued by the Concern is the func- Novomlinskaya Economics and Controlling, • Aleksandr Markovich Lokshin tion of Registrar R.O.S.T. Directorate for Nuclear Energy Information about the activities (Board Chairman); Complex, Rosatom State of Rosenergoatom is disclosed • Sergey Anatolyevich Adamchik; Details of the Registry Keeper: Corporation at the corporate website: • Kirill Borisovich Komarov; Liudmila Auditing Committee Member, http://www.e-disclosure.ru • Yevgeny Vladimirovich Romanov; • full corporate name: Registrar R.O.S.T. Nikolayevna Director of Economics and http://www.rosenergoatom.ru • Boris Georgievich Silin. Open Joint-Stock Company; Demidova Controlling, Rosenergoatom Concern OJSC Rosenergoatom ANNUAL REPORT 2012 Section 4. System Rosenergoatom 116 Concern OJSC of Management Concern OJSC 117

Aleksandr Markovich Sergey Anatolyevich Kirill Borisovich Yevgeny Vladimirovich Boris Georgievich Lokshin Adamchik Komarov Romanov Silin

Board Chairman, Rosenergoatom Board Director, Rosenergoatom Board Director, Rosenergoatom Board Director, Rosenergoatom Board Director, Rosenergoatom Concern OJSC, First Deputy Concern OJSC, Inspector Concern OJSC, Director, Concern OJSC, General Director, Concern OJSC, Advisor to First General Director for operations General, Rosatom Nuclear Atomenergoprom JSC, Deputy Rosenergoatom Concern OJSC Deputy General Director management, Rosatom Nuclear Energy State Corporation General Director, Director for operations management Energy State Corporation of the Unit for Development in Rosatom Nuclear Energy and International Business State Corporation 4 in Rosatom Nuclear Energy 4 State Corporation ______

Born in 1957. Born in 1954. Born in 1973. Born in 1961. Born in 1954. Graduate of M.I. Kalinin Leningrad Polytechnic Graduate of Tomsk Polytechnic Institute. Graduate of Urals State Law Academy. Graduate of Urals Polytechnic Institute. Graduate of Moscow Institute of Chemical Institute. 2007–2008 – Deputy Head of the Federal Candidate of Law. 1990–1995 – head of economic analysis group, Machine Building. 2001–2006 – acting Director, Director, Deputy Service for Environment, Technological, 2005–2006 – Deputy head of the Federal Deputy head of economic planning section, 2004–2008 – head of Department, Deputy General Director of Rosenergoatom Concern and Nuclear Supervision in the Russian Agency for Water Resources, Russian Accountant General of Urals Electrochemical head of Management for nuclear power industry OJSC – Director of Smolensk Nuclear Plant, Federation. Federation. Plant. and nuclear fuel cycle of the Federal Agency Branch Company of Rosenergoatom Concern November 2008 to June 2010 – Deputy 2006–2007 – Vice President TVEL, General 1995–1998 – Advisor to Deputy Chairman of for nuclear energy (Rosatom). OJSC. Inspector General, Rosatom Nuclear Energy Director, Atomenergomash. Administration, Deputy Head of Corporate Client 2008-2010 – head of Department, Deputy 2006–2008 – First Deputy General Director, State Corporation. 2007–2010 – Deputy Director, Executive Base Management, Vice President of “United Director of Department for nuclear power acting General Director in Federal State Unitary Since July 2010 – Inspector General, Rosatom Director, Atomenergoprom JSC. Export-Import Bank” – ONEXIM Bank. complex of Rosatom Nuclear Energy State Enterprise Rosenergoatom. Nuclear Energy State Corporation. Since April 2010 – Director, Nuclear Power 1998–2000 – Vice President of JSCB ROSBANK. Corporation. 2008–2010 – Deputy General Director, Rosatom Industry Complex, at the same time with 2000–2001 – Advisor to First Deputy General 2010–2012 — Advisor, Nuclear Energy Complex Nuclear Energy State Corporation. Holding in the registered capital the office of Executive Director of Nuclear Director, RAO Norilsk Nickel. Directorate, Rosatom Nuclear Energy State 2010–2011 – Deputy General Director, Director, of Rosenergoatom Concern OJSC: none. Energy Complex Directorate, Rosatom Nuclear 2001–2004 – First Deputy General Director, acting Corporation. Nuclear Energy Complex, Directorate, Rosatom Holding of common stock issued Energy State Corporation. General Director, General Director of Kola GMK. Since 2012 — Advisor to First Deputy General Nuclear Energy State Corporation. by Rosenergoatom Concern OJSC: none. Since April 2011 – Deputy General Director, 2004–2008 – First Deputy Director, First Deputy Director for operations management, Rosatom 2011–2012 — First Deputy General Director, Director of the Unit for Development and Chairman of Administration, Deputy Director, Nuclear Energy State Corporation. Director, Nuclear Energy Complex, Directorate, International Business in Rosatom Nuclear head of Mining and Metallurgy Directorate, Rosatom Nuclear Energy State Corporation. Energy State Corporation, and the office Deputy Chairman of Administration in Zapolyarye Holding in the registered capital Since 2012 — First Deputy General Director of Director in Atomenergoprom JSC. Branch Company, Norilsk Nickel GMK. of Rosenergoatom Concern OJSC: none. for operations management, Rosatom Nuclear 2008–2009 – General Director, VSMPO-AVISMA. Holding of common stock issued Energy State Corporation. Holding in the registered capital 2009–2010 – comprehensive audits of financing by Rosenergoatom Concern OJSC: none. of Rosenergoatom Concern OJSC: none. and business activities of RusSpecStal JSC. Titles: “Distinguished Contributor to the Power Holding of common stock issued 2010-2011 – General Director of Rostekhnologii Industry of the Russian Federation”. by Rosenergoatom Concern OJSC: none. JSC – Metallurgy. Since August of 2011 – General Director Holding in the registered capital of Rosenergoatom Concern OJSC. of Rosenergoatom Concern OJSC: none. In 2011, elected to World Association of Nuclear Holding of common stock issued Operators (WANO). D irectors of a rd by Rosenergoatom Concern OJSC: none. Holding in the registered capital of Rosenergoatom Concern OJSC: none. Holding of common stock issued by Rosenergoatom Concern OJSC: none. Bo Rosenergoatom ANNUAL REPORT 2012 Section 4. System Rosenergoatom 118 Concern OJSC of Management Concern OJSC 119 Directorate

Yevgeny Vladimirovich Vladimir Grigoryevich Vladimir Yuryevich Stanislav Ivanovich Alla Igorevna Beslan Andreyevich Romanov Asmolov Myasnikov Antipov Arkhangelskaya Barganjiya

General First Deputy First Deputy Deputy General Director — Deputy General Director, Deputy General Director, Director General Director General Director Director of Science Director for Economics Director for Legal and Engineering Centre and Corporate Issues (branch company of Rosenergoatom Concern OJSC) ______4 4 Born in 1961. Born in 1946. Born in 1977. Born in 1951. Born in 1960. Born in 1959. Graduate of Urals Polytechnic Institute. Graduate of Moscow Energy Institute. Graduate of Financial Academy Graduate of Urals Polytechnic Institute, Tver Graduate of Ordzhonikidze Moscow Institute Graduate of Moscow Construction Engineering 1990–1995 – head of economic analysis group, Doctor of Engineering, Professor. under the Russian Federal Government. State University. of Management. Institute. Deputy head of economic planning section, 1994–2003 – Director for Science 2004–2006 – Deputy General Director, Kola 1998–2005 — Deputy General Director, — Candidate of Economics. Candidate of Political Sciences. Accountant General of Urals Electrochemical Development, Russian Science Centre GMK. Director, FGUP Kalinin Nuclear Plant, branch 2006–2007 – Deputy Executive Director, 2001–2006 – head of management, head Plant. “Kurchatov Institute”. 2006–2009 – head of Economic Planning company of Rosenergoatom Concern OJSC Director for Economics, Deputy Director of Section in the Office of the Russian 1995–1998 – Advisor to Deputy Chairman of 2003 – Deputy Minister for Nuclear Energy, Directorate, mining and metallurgy industrial 2005–2006 — General Director, FGUP for Economics in Federal State Unitary President’s Plenipotentiary Representative Administration, Deputy Head of Corporate Client Russian Federation. complex, head of Directorate for Operation Rosenergoatom Concern OJSC. Enterprise Rosenergoatom Concern OJSC. in Volga Federal District, Administration of the Base Management, Vice President of “United 2004–2006 – Director-coordinator, Russian Improvements, Deputy head of Department 2006–2007 — Deputy General Director — Head 2007–2010 – Director of Department of Prices, Russian President. Export-Import Bank” – ONEXIM Bank. Science Centre “Kurchatov Institute”. for Operation Management, Deputy head of Department for Corporate construction and Tariffs, and Cost-Management, Director of the 2006–2008 – assistant to the Russian 1998–2000 – Vice President of JSCB ROSBANK. 2006–2008 – First Deputy General Director, of Department for Foreign Assets, GMK Norilsk sector-level relations, FGUP Rosatomstroy ISK. Department for Economic Estimates, Pricing, President’s Plenipotentiary Representative 2000–2001 – Advisor to First Deputy General Director for Science and Engineering Nickel. 2007–2009 — First Deputy Head of Department and Budget Planning in Atomenergoprom JSC. in Volga Federal District, Administration Director, RAO Norilsk Nickel. Policy, Federal State Unitary Enterprise 2010–2011 – head of Financial and Economic for Power Construction, Head of Development Since 2010 – Deputy General Director, Director of the Russian President. 2001–2004 – First Deputy General Director, acting Rosenergoatom Concern OJSC, Deputy General Service, RT Metallurgiya. of Power Management, First Vice-President, for Economics, Rosenergoatom Concern OJSC. 2008–2010 – head of Law Department, General Director, General Director of Kola GMK. Director, Director for Science and Engineering Since 2011 – Financial Director, head of Treasury, Head of Department for Power Construction Energoatom Concern OJSC, Director of Law 2004–2008 – First Deputy Director, First Deputy Policy, Federal State Unitary Enterprise Rosenergoatom Concern OJSC. in Stroytransgaz. Department, Rosenergoatom Concern OJSC. Chairman of Administration, Deputy Director, Rosenergoatom Concern OJSC, Deputy General Since June 2012 — First Deputy General 2010–2011 — Executive Director, Department Since 2010 – Deputy General Director, Director head of Mining and Metallurgy Directorate, Director, Director for Science and Engineering Director, Rosenergoatom Concern OJSC for regional projects, Energokaskad. for Legal and Corporate Issues, Rosenergoatom Директорат Deputy Chairman of Administration in Zapolyarye Policy of Energoatom Concern OJSC. 2011–2012 – First Deputy General Director, Concern OJSC. Branch Company, Norilsk Nickel GMK. Since 2009, First Deputy General Director VNIIAES; First Deputy General Director 2008–2009 – General Director, VSMPO-AVISMA. of Rosenergoatom Concern OJSC. for science and technology support to NPP 2009–2010 – comprehensive audits of financing Member of Administration, Russian Nuclear operation, VNIIAES; Director, VNIIAES-NTP. and business activities of RusSpecStal JSC. Society. Member of International Advisors Since September 2012 — Deputy General 2010-2011 — General Director of Rostekhnologii Group under the General Director of IAEA Director, Director of Science and Engineering JSC – Metallurgy. (INSAG) Centre, branch company of Rosenergoatom Since August of 2011 – General Director 2011–2013 — President of WANO. Concern OJSC. of Rosenergoatom Concern OJSC. Decorated with Order of Fortitude (1997), Order Decorated with Order of Honor (2002), In 2011, elected to World Association of Nuclear of Honor (2009). honorary title “Honored Power Engineer Operators (WANO). of the Russian Federation” (1995). Rosenergoatom ANNUAL REPORT 2012 Section 4. System Rosenergoatom 120 Concern OJSC of Management Concern OJSC 121

Sergey Nikolayevich Pavel Leonidovich Aleksandr Vasilyevich Aleksandr Konstantinovich Oleg Makarovich Nikolay Nikolayevich Zavyalov Ipatov Palamarchuk Polushkin Sarayev Safronov

Deputy General Director, Deputy General Director, Deputy General Director, Deputy General Director, Deputy General Director – Deputy General Director, Director Branch Company Director for Strategy Director of Facilities Construction Director for Project Engineering Project Manager Director for Special Security of Rosenergoatom Concern OJSC and Corporate Development Management, Branch Company “Directorate Construction of Rosenergoatom Concern OJSC of Floating Thermal Nuclear Power Plants” 4 ______4

Born in 1961. Born in 1950. Born in 1960. Born in 1948. Born in 1940. Born in 1958. Graduate of Leningrad Shipbuilding Institute. Graduate of Urals Polytechnic Institute, Graduate of Odessa Polytechnic Institute. Graduate of Bauman Moscow College Graduate of Tomsk Polytechnic Institute. Graduate of Higher School of the USSR KGB. 2000–2005 – General Director, Vyborg National Economic Academy under the USSR Candidate of Engineering. of Technology. 2002–2008 – President, Federal State Unitary Candidate of Economics. Shipyard. Council of Ministers. 2002–2008 – Chief Engineer, “Volgodonsk 1998–2007 – Deputy General Director, Enterprise Rosenergoatom Concern OJSC, 1997–2008 – Deputy General Director, Deputy 2005–2006 – Project Director, International 1985–2005 — Chief Engineer, Director, Nuclear Plant”, Branch Company of Federal in charge of startup of Rostov NPP, Federal General Director, Federal State Unitary General Director for coordination Industrial Bank. Deputy General Director, Director of Balakovo State Unitary Enterprise Rosenergoatom State Unitary Enterprise Rosenergoatom Enterprise Rosenergoatom Concern OJSC, with Countries of CIS and Eastern Europe, 2006–2007 – Project Engineer, AKO BARSS Nuclear Plant – branch company of FGUP Concern OJSC, Director, “Volgodonsk Nuclear Concern OJSC, Deputy Executive Director Deputy General Director for innovation Deputy Executive Director for Security, Deputy Group. Rosenergoatom Concern OJSC. Plant”, Branch Company of Federal State Unitary for Routine Management of Capital projects, Federal State Unitary Enterprise General Director for Special Security, Federal 2007 – Advisor to Director, Atomenergoprom 2005–2012 — Governor of Saratov Oblast, Enterprise Rosenergoatom Concern OJSC, Construction Projects, Federal State Unitary Rosenergoatom Concern OJSC. State Unitary Enterprise Rosenergoatom JSC. Chairman of Saratov Oblast Government. Deputy General Director, Director, “Volgodonsk Enterprise Rosenergoatom Concern OJSC, First 2006–2008 – Deputy General Director, Concern OJSC, Deputy General Director, 2007–2009 – Deputy General Director, Director, Since July 2012 — Deputy General Director, Nuclear Plant”, Branch Company of Federal Deputy Director for development, in charge Director for new technology platform, Director “Directorate for Construction Director for Strategy and Corporate State Unitary Enterprise Rosenergoatom, of project facilities startup in Federal State Rosenergoatom Concern OJSC, Deputy General for Special Security, Energoatom Concern OJSC. of Floating Thermal Nuclear Power Plants” Development, Rosenergoatom Concern OJSC. Deputy General Director, Director, Branch Unitary Enterprise Rosenergoatom Concern Director, Director for new technology platform, Since 2009 – Deputy General Director, Director Branch Company of Federal State Unitary Decorated with Order of Red Banner (1988), Company of Energoatom Concern OJSC OJSC, Deputy General Director Energoatom Concern OJSC. for Special Security, Rosenergoatom Concern Enterprise Rosenergoatom Concern OJSC, Order of Peoples’ Friendship (1994), Order “Volgodonsk nuclear plant”. for development, Director for development, Since 2009 – Deputy General Director, project OJSC. Deputy General Director, Director, “Directorate of Honor (2000). Winner of the Prize of the 2009–2010 – Deputy General Director, Director, Federal State Unitary Enterprise manager, Rosenergoatom Concern OJSC. for Construction of Floating Thermal Nuclear USSR Council of Ministers (1991), Prize of the “Volgodonsk Nuclear Plant”, Branch Company Rosenergoatom Concern OJSC. Decorated with Medal “Distinguished Work” Power Plants” Branch Company of Energoatom Russian Federal Government in Science and of Rosenergoatom Concern OJSC. 2007–2009 – Deputy Director, (1973), Order of Red Banner (1981), order of Concern OJSC. Engineering (2001) 2010–2012 – Deputy General Director, Director, Atomenergoprom JSC. Honor (1995). Laureate of USSR state prize Since 2009 – Deputy General Director, Director, “Rostov Nuclear Plant”, Branch Company 2010 – Deputy Director, Directorate for Nuclear (1988). “Directorate for Construction of Rosenergoatom Concern OJSC (following Energy Complex, head of Engineering Project of Floating Thermal Nuclear Power Plants” change of name in 2010) Management, Rosatom State Corporation. Branch Company of Rosenergoatom Concern Since May 2012 — Deputy General Director, 2010–2012 — Deputy General Director, OJSC Director of Facilities Construction Management Director for Engineering Project Management, – Branch Company of Rosenergoatom Concern Rosenergoatom Concern OJSC. OJSC Honorary title “Honored Power Engineer Decorated with order metal “Services of the Russian Federation” (2006). to Homeland” II degree (2003), order medal “Services to Homeland” I degree (2007). Rosenergoatom ANNUAL REPORT 2012 Section 4. System Rosenergoatom 122 Concern OJSC of Management Concern OJSC 123

Vladimir Alekseyevich Nikolay Mikhaylovich Jumberi Leontovich Aleksandr Alexeevich Aleksey Vitalyevich Aleksandr Viktorovich Servetnik Sorokin Tkebuchava Khvalko Shalimov Shutikov

Deputy General Director, Deputy General Director — Deputy General Director, Deputy General Director – Chief Accountant Deputy General Director, Director for Purchases Inspector General Director for HR Management, Sales Director Director for Production and Logistics, Rosenergoatom Social and Administrative Issues and Operation of Nuclear Plants Concern OJSC

______4 4 Born in 1962. Born in 1944. Born in 1953. Born in 1964. Born in 1975. Born in 1961. Graduate of Moscow institute of engineering Graduate of A.A. Zhdanov Gorky Polytechnic Graduate of Moscow Mining Institute. Graduate of Saratov Institute of Economics. Graduate of Moscow State University of Traffic, Graduate of Tomsk Polytechnic Institute. physics. Institute. 1998–2004 – Vice President, Oil Company Doctor of Economics. Moscow National Correspondence School Candidate of Engineering. 2002–2004 — Deputy General Director, FGUP Candidate of Engineering. Slavneft OJSC. 2002–2007 – head of Department for Federal of Financing and Economics, State University 1991–2009 – shift engineer, “Balakovo nuclear Siberia Chemical Plant. 2002–2006 – First Deputy General Director 2004–2006 – Advisor to President, Deputy Wholesale Energy Market and electrical power of Management (МВА). plant” Branch Company of Federal State Unitary 2005–2007 — Advisor to General Director, for Generation of Electrical and Thermal Energy, General Director, Rosgosstrakh JSC. exports, Deputy Executive Director 1999–2010 — senior specialist of accounting, Enterprise Rosenergoatom Concern OJSC, Deputy General Director for Raw Materials, First Technical Director, Federal State Unitary 2006–2008 – Deputy General Director, Director for Commerce, Deputy Executive Director, manager of general accounting group, head Deputy Chief Engineer for operation, “Balakovo Deputy Head of Material Supplies Directorate, Enterprise Rosenergoatom Concern OJSC. for HR management, social and administrative Sales Director, Deputy Director for Economics, of section – senior accountant, Office nuclear plant” Branch Company of Federal State Deputy General Director, Techsnabexport. 2006–2008 – Deputy General Director, issues, Federal State Unitary Enterprise Deputy Sales Director, Federal State Unitary for Business and Tax Accounting, Unitary Enterprise Rosenergoatom Concern 2007–2008 — Deputy General Director, Technical Director, Federal State Unitary Rosenergoatom Concern OJSC. Enterprise Rosenergoatom Concern OJSC Techsnabexport OJSC. OJSC, Chief Engineer, “Balakovo nuclear plant” Executive Director, Atomredmetzoloto. Enterprise Rosenergoatom Concern OJSC, 2008–2009 – Deputy Director, 2007–2008 – Deputy General Director, Sales 2010–2012 — Deputy Accountant General, Branch Company of Federal State Unitary 2008 — General Director, Uranium Mining Deputy General Director, Director of Kursk Atomenergoprom JSC. Director, Energoatom Concern OJSC. manager of Directorate for Business and Tax Enterprise Rosenergoatom Concern OJSC. Company. nuclear plant, Branch Company Energoatom 2009–2013 — Deputy General Director, Director Since 2009 – Deputy General Director – Sales Accounting, Techsnabexport. Since 2009 – First Deputy Director 2008–2009 — Advisor to Chairman Concern OJSC. for HR Management, Social and Administrative Director, Rosenergoatom Concern OJSC. Since August 2012 — Accountant General, for production and operation of nuclear plants, of Administration, ACB Baltic Bank 2009–2011 – Deputy General Director, Director Issues, Rosenergoatom Concern OJSC. Rosenergoatom Concern OJSC. Deputy General Director, Director for Development CJSC. of Kursk nuclear plant, Branch Company Since April, 2013 — First Deputy General for production and operation of nuclear plants 2009–2011 — Advisor to General Director, of Rosenergoatom Concern OJSC. Director, Rosenergoatom Concern OJSC. in Rosenergoatom Concern OJSC. Managing Director for Russian Projects, Director Since July 2011 – Deputy General Director, for Non-Uranium Projects, Atomredmetzoloto. Inspector General of Rosenergoatom Concern Since August 2012 — Deputy General OJSC. Director, Director for Purchases and Logistics, Honorary title “Distinguished Contributor Rosenergoatom Concern OJSC. to power industry of the Russian Federation” (2010). Rosenergoatom ANNUAL REPORT 2012 Section 4. System Rosenergoatom 124 Concern OJSC of Management Concern OJSC 125

Viktor Igorevich Mikhail Vasilyevich Farit Timurovich Mikhail Yuryevich Vasiliy Vasilyevich Vyacheslav Aleksandrovich Ignatov Bakanov Tukhvetov Kanishev Omelchuk Fedyukin

Deputy General Director, Deputy General Director, Deputy General Director, Director, Deputy General Director, Deputy General Director, Director, Deputy General Director, Director, “Balakovo nuclear plant”, Director, “Beloyarsk Nuclear Plant”, “Bilibino Nuclear Plant”, director of Kalinin Nuclear Plant – “Kola Nuclear Plant”, Director, “Kursk Nuclear Plant”, Branch Company Branch Company Branch Company Branch Company Branch Company Branch Company of Rosenergoatom Concern OJSC of Rosenergoatom Concern OJSC of Rosenergoatom Concern OJSC of Rosenergoatom Concern OJSC of Rosenergoatom Concern OJSC of Rosenergoatom Concern OJSC

______4 4 Born in 1951. Born in 1956. Born in 1954. Born in 1961. Born in 1953. Born in 1962. Graduate of Tomsk Polytechnic Institute. Graduate of Urals Polytechnic Institute. Graduate of Urals Polytechnic Institute. Graduate of Moscow institute of engineering Graduate of Odessa Polytechnic Institute. Graduate of Kursk Polytechnic Institute. Candidate of Engineering. 2002–2009 – Chief Engineer, “Beloyarsk Candidate of Engineering. physics. 1994–2008 – Chief Engineer, “Kola Nuclear 2006–2008 – leading power unit control 2005–2008 – Deputy General Director, Director Nuclear Plant” Branch Company of Federal 1997–2007 – Director of Moscow Regional 1998–2005 — shift engineer, senior engineer, Plant”, Branch Company of Federal State Unitary engineer at Kursk nuclear plant, shift engineer Branch Company of Federal State Unitary State Unitary Enterprise Rosenergoatom Centre, World Association of Nuclear Operators reactor control engineer, shift manager Enterprise Rosenergoatom Concern OJSC, Chief of power unit at nuclear Kursk nuclear plant, Enterprise Rosenergoatom Concern OJSC Concern OJSC, Chief Engineer, “Beloyarsk (MC WANO). of reactor shop, Kalinin Nuclear Plant - Branch Engineer, “Kola nuclear plant”, Branch Company head of reactor room No. 2, Kursk nuclear plant. “Balakovo Nuclear Plant”, Deputy General Nuclear Plant” Branch Company of Energoatom 2007–2008 – Deputy General Director, Company of FGUP Concern Rosenergoatom of Energoatom Concern OJSC. 2009–2010 – Deputy Chief Engineer for Director, Director “Balakovo Nuclear Plant”, Concern OJSC, Chief Engineer, “Beloyarsk Director, Branch Company of Federal State OJSC. Since 2009 – Deputy General Director, Director, engineering support and upgrade, Kursk nuclear Branch Company of Rosenergoatom Concern nuclear plant”, Branch Company Unitary Enterprise Rosenergoatom Concern 2005–2012 — chief engineer, Kalinin Nuclear “Kola Nuclear Plant”, Branch Company plant. OJSC. of Rosenergoatom Concern OJSC. OJSC “Bilibino nuclear plant”, Deputy General Plant - Branch Company of Rosenergoatom of Rosenergoatom Concern OJSC. Since 2011 – First Deputy Director, Kursk Since 2009 – Deputy General Director, Director Since 2010 – Deputy General Director, Director, Director, Director, “Bilibino nuclear plant” Concern OJSC. Decorated with order metal “Services nuclear plant. “Balakovo nuclear plant”, Branch Company “Beloyarsk nuclear plant”, Branch Company Branch Company of Energoatom Concern OJSC. Since April 2012 – Deputy General Director — to Homeland” II degree (2000), order medal Since August of 2011 – Deputy General Director, of Rosenergoatom Concern OJSC. of Rosenergoatom Concern OJSC. Since 2009 – Deputy General Director, Director, Director, Kalinin Nuclear Plant, branch company “Services to Homeland” I degree (2006). Director, “Kursk nuclear plant”, Branch Company Decorated with Order “Friendship of Peoples” “Bilibino nuclear plant”, Branch Company of Rosenergoatom Concern OJSC. of Rosenergoatom Concern OJSC. (1994), order medal “Services to Homeland” II of Rosenergoatom Concern OJSC. Honorary title “Honored Power Engineer degree (2001). Honorary title “Distinguished Contributor of the Russian Federation” (2011). to power industry of the Russian Federation” (1995), Decorated with order metal “Services to Homeland” II degree (2010). Rosenergoatom ANNUAL REPORT 2012 Section 4. System Rosenergoatom 126 Concern OJSC of Management Concern OJSC 127 te

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Vladimir Ivanovich Vladimir Petrovich Andrey Aleksandrovich Andrey Yuvenalyevich Pereguda Povarov Salnikov Petrov

Deputy General Director, Deputy General Director, Deputy General Director — Deputy General Director, Director, Director, “Leningrad Nuclear Director, “Novovoronezh Nuclear Director, Rostov Nuclear Plant - “Smolensk Nuclear Plant”, Plant”, Branch Company Plant” JSC, Rosenergoatom Branch Company Branch Company of Rosenergoatom Concern OJSC Concern OJSC of Rosenergoatom Concern OJSC of Rosenergoatom Concern OJSC

______4 4 Born in 1958. Born in 1957. Born in 1960. Born in 1963. Graduate of Tomsk Polytechnic Institute. Graduate of Moscow Energy Institute. Graduate of Tomsk Polytechnic Institute. Graduate of Ivanovo Energy Institute. 2005–2009 – Deputy Chief Engineer Candidate of Engineering. 2001–2006 — Deputy Chief Engineer Candidate of Engineering. for retrofitting, “Kursk Nuclear Plant”, Branch 2001–2008 – Deputy Chief Engineer for safety for operation, Volgodonsk Nuclear Plant 2001–2006 – Chief Engineer, “Volgodonsk Company of Federal State Unitary Enterprise and reliability, Volgodonsk nuclear plant, Branch - Branch Company of FGUP Concern Nuclear Plant”, Branch Company of Federal Rosenergoatom Concern OJSC, Deputy Company of Federal State Unitary Enterprise Rosenergoatom Concern OJSC. State Unitary Enterprise Rosenergoatom Chief Engineer for engineering support Rosenergoatom Concern OJSC. 2006–2010 — Chief Engineer, Volgodonsk Concern OJSC. and upgrade, “Kursk nuclear plant”, Branch 2008–2009 – First Deputy Director, Nuclear Plant - Branch Company 2006–2008 – Deputy General Director, Company of Federal State Unitary Enterprise Novovoronezh Nuclear Plant, Branch of Rosenergoatom Concern OJSC. Director, “Smolensk Nuclear Plant”, Branch Rosenergoatom Concern OJSC, Deputy Chief Company of Federal State Unitary Enterprise 2010–2012 — Chief Engineer, Rostov Nuclear Company of Federal State Unitary Enterprise Engineer for engineering support and upgrade, Rosenergoatom Concern OJSC, First Deputy Plant, Branch Company of Rosenergoatom Rosenergoatom Concern OJSC, Deputy General “Kursk nuclear plant”, Branch Company Director, Novovoronezh Nuclear Plant, Branch Concern OJSC (after renamed in 2010). Director, Director, “Smolensk Nuclear Plant”, of Energoatom Concern OJSC. Company of Energoatom Concern OJSC. Decorated with order metal “Services Branch Company of Energoatom Concern OJSC. 2009–2011 – First Deputy Director, “Kursk Since 2009 – Deputy General Director, Director, to Homeland” II degree (2010). Since 2009 – Deputy General Director, Director, D irector nuclear plant”, Branch Company Novovoronezh NPP, Branch Company “Smolensk Nuclear Plant”, Branch Company of Rosenergoatom Concern OJSC. of Rosenergoatom Concern OJSC. of Rosenergoatom Concern OJSC. Since 2010 – Deputy General Director, Director Decorated with order metal “Services Decorated with order metal “Services “Leningrad nuclear plant”, Branch Company to Homeland” II degree (2003). to Homeland” II degree (2003). Honorary title of Rosenergoatom Concern OJSC. “Distinguished Contributor to power industry of the Russian Federation” (2009).

Rosenergoatom ANNUAL REPORT 2012 Section 4. System Rosenergoatom 128 Concern OJSC of Management Concern OJSC 129

4.2. Corporate KER achievement by the Concern’s General Director after 2012

Management System Performance indicator

EBITDA

Progress of investment programme approved as year began, in physical units

Progress of cost plan under Rosenergoatom’s investment programme, as year began Principles of Corporate Management The Concern’s performance is seen as part of the development strategy for the entire Total electrical power generated Rosenergoatom adheres to the fundamental nuclear sector in the Russian Federation. principles of corporate management as laid Production out by the Organization for Economic Co- The Concern’s priority objectives are to in- Limits on cost growth (without depreciation) to last year’s level (reduced value) operation and Development, and observes crease its share and increase the efficiency the principles set forth in the Russian Cor- of nuclear power generation in Russia, clos- Extent of personnel involvement porate Conduct Code: ing the nuclear fuel cycle, and to continue • protection of stockholder rights; international expansion, including services No personnel exposure incidents above 50 mSv/year • equal treatment of stockholders; to VVER power units built abroad. • observing the legally-protected rights LTIFR against previous three-year period of interested parties; The following activities were used to No incidents above Level 2 on the INES scale 4 • timely and accurate disclosure of infor- achieve the above objectives: 4 mation on all material issues related • to the Concern; 1. The Concern created “Facilities Con- • efficient control of the Board, struction Management” – a branch com- to make Nizhny Novgorod Oblast and circuit sought to implement a range of activi- and accountability of the Concern’s pany that monitors capital construction Vladimir Oblast more power-independ- ties that discontinued involvement in entities management before its stockholders. projects from approval of the project ent, and to stop shortages of electri- pursuing non-core activities, or not engaged in document pack, to issue of the con- cal capacity and power on the Nizhny active business, as well as in entities where the Report on the Board’s Work struction license, to the successful gen- Novgorod power grid, the Board of Di- Concern’s holdings are of a minority nature on Priority Activities erating start of the power unit for nu- rectors decided to create the “Directo- thus disabling enforcement of industry-level clear plant power units; and with other rate of Nizhny Novgorod Nuclear Plant corporate management standards accepted in In conformity with the “Corporations” Fed- objects, from the time when a permit is Construction Project” – a branch com- the sector. eral Act, No. 208-FZ of December 26, 1995, issued to put the facilities into opera- pany. (Version of December 29, 2012), and the tion. As decided by the Board, the Concern with- Concern’s Articles of Incorporation, one of 4. As part of activities to implement the drew from 18 entities as part of the effort to the duties of the Board is to determine pri- 2. To build a technology basis for innova- Rosatom State Corporation’s Region- optimize its corporate structure. ority activities for the Concern. tive development, to focus efforts and al action plan in Central and Eastern science and technology resources, to Europe, the consortium formed by Ros- Report on Dividends Paid During 2012, During 2012, the Board convened for 35 meet- ensure that research is oriented towards energoatom and Electricite de France the Board ings. The most important decisions of in the the end goal, to support R&D and ad- (EDF) after a public international tender By resolution of the General Meeting of convened for reporting year were: ministrative activities addressing prob- won the contract for comprehensive Stockholders of Rosenergoatom (Minutes lems that arise at each stage of the life examination of the actual condition and No. 2 of June 29, 2012), no dividends were • decisions to create branch companies, cycle, and to make power units safer, to estimate residual resources of the declared nor paid on the Concern’s common including outside of Russia; more reliable and cost efficient, the equipment and structures in power units stock after 2011. Board decided to create the “Science No. 5 and 6 of NPP Kozloduy in the Re- • increasing the Concern’s registered cap- and Engineering Centre” Branch Com- public of Bulgaria. In the course of the Information about Major Transactions, 35meetings ital; an additional issue of securities to pany. project, the Board decided to establish and Transactions of the Concern mobilize funds from the federal budget Resources-Bulgaria FIP as a branch com- to finance activities for the development 3. In accordance with the General Layout pany in Bulgaria to ensure proper admin- None of the transactions in 2012 qualified as of the nuclear power complex; Diagram for facilities of the electric istration of the project. major transactions or transactions of Con- power sector through to 2030, and the cern subject to approval by the bodies of • decisions to withdraw from the regis- roadmap to put nuclear power units into As one of the Concern’s priority objectives for management of Rosenergoatom Concern tered capitals of other businesses. operation in Russia through to 2030, 2012, optimization of the Concern’s corporate OJSC. Rosenergoatom ANNUAL REPORT 2012 Section 4. System Rosenergoatom 130 Concern OJSC of Management Concern OJSC 131

Criteria and Amounts of Remuneration The variable part of remuneration depends Paid to the Members of the Board on achieved key efficiency indicators (KER), 4.3. System of Key Efficiency set for the Concern as a whole, and includ- Ratios. Employee Evaluation As regulated in par. 12.10 of the Articles of ed in the indicator matrix of the Concern’s Incorporation of Rosenergoatom, if decided General Director. and Remuneration by the General Meeting, the Members of the Board of Rosenergoatom, while in office, The KER for Rosenergoatom State Corpora- may be entitled to remunerations and reim- tion are parsed and translated to executives The procedure to remunerate employees in things, rests on achievement of their key ef- The minimum paycheck bursement of costs related to their func- of every level. for an employee tions as the Board Members. Such payable Rosenergoatom Concern OJSC is regulated ficiency ratios). Detailed information on how in a branch company amounts must be approved by resolution of in corporate acts and regulations on pay- the KER system is used as incentives for the of Rosenergoatom Total remuneration paid in 2012 to key ex- in 2012 was: the General Meeting of Stockholders. ecutive personnel amounted to 466.6 mln ments to employees in the headquarters and Concern’s executives and other employees rubles. in branch companies. is available in par. 6.3. before July 1, 2012 — In 2012, no remuneration was paid to the Board Members of Rosenergoatom Concern Total performance ratio after 2012 adjusted The amount of remuneration depends on The system of incentives is based on bo- OJSC. by weight factors was 108.94%. the position level (with differentiation fac- nuses for achieved KER, where each ratio 6,800 tors), type of job functions, and the level of has a weighted value assigned against the rubles; assigned key efficiency ratios (KER). total of bonuses. The total amount of bo- Criteria and Amounts of Remuneration Paid after July 1, 2012 — to the General Director and the Directorate nuses is found from the annual amount of The minimum paycheck for an employee base salaries for each position, adjusted by Total performance The General Director’s remuneration is reg- in a branch company of Rosenergoatom in a specific coefficient; the top limit depends ratio after 2012 2012 was: before July 1, 2012 – 6,800 rubles; on the employment position level, and can 7,540 4 adjusted by weight ulated in the employment contract, payable rubles; 4 factors was on approval by the Board of Directors. after July 1, 2012 — 7,540 rubles (compared be as high as 260% if the target KER level to the federally regulated minimum wage of is achieved. Bonuses are only paid when 108.94% 4,611 rubles). threshold values of the KER are achieved, also found from the individual KER matrix. The working efficiency evaluation system If achievements excel the target, the bonus for executive officers is based on a system ratio can be adjusted up. of annual assessment (which, among other

Amount of remuneration by employee categories, 000 rubles/year

Employee category Base salary KER achievement bonus

2010

Managerial 393.6 up 137.7 up

Specialists 200 up 40 up

Shop floor 69.6 up 7 up

2011

Managerial 393.6 up 137.7 up

Specialists 200 up 40 up

Shop floor 75.6 up 7.5 up

2012

Managerial 396.7 up 139.9 up

Specialists 203.9 up 41.5 up

Shop floor 86.0 up 8.6 up Rosenergoatom ANNUAL REPORT 2012 Section 4. System Rosenergoatom 132 Concern OJSC of Management Concern OJSC 133

4 4

Novovoronezh nuclear power plant Rosenergoatom ANNUAL REPORT 2012 Section 4. System Rosenergoatom 134 Concern OJSC of Management Concern OJSC 135

4.4. Internal Control and Auditing

Seeking higher business efficiency, Rosenergoatom Concern OJSC continues to improve its internal control and auditing, and acts to combat theft and fraud. In 2012, Rosenergoatom Concern OJSC reduced its risks of unfair practices, improved its financial discipline, and prevented attempts to supply counterfeit products to active nuclear plants and construction projects.

In 2012, In 2012, Rosenergoatom’s Department for The Concern’s branch companies received Under an Executive Order to Rosatom State In 2012, there were reports on 8 cases of There were Rosenergoatom’s audits to check Department internal control and auditing had 27 control 51 control activities with assistance from Corporation, materials are now being pre- counterfeit products, used or otherwise sub- for internal control activities (of which 14 were scheduled and senior auditors and internal controllers. pared to organize and support audits by standard products, and products of illegal and auditing had 13 were extraordinary). After the audits, auditors issued 258 instruc- law enforcement, auditors, and supervisory origin intended to be supplied to Russian tions, planned 216 administrative-technical agencies in Rosenergoatom Concern OJSC. nuclear plants, while 46 attempted supplies 985 The main conclusions from the industrial activities, made changes to 95 regulatory of counterfeit products and forged-docu- bidders safety assurance audit were confirmed when documents, and disciplined 82 employees. In 2012, the Concern launched a compre- ment consignments to the nuclear plants in purchasing 4 procedures 4 the new concept of government regulation hensive programme to combat corrup- were prevented. for compliance in industrial safety was stated at the Febru- In 2012, Rosenergoatom created its Arbi- tion and theft in the nuclear sector during under the United ary 2013 meeting of the Panel for Develop- tration Panel, the function of which is to 2012–2013. As part of the programme, a To prevent delivery of counterfeit and sub- Industry-Level Purchasing Standard 27control activities ment of the Fuel and Energy Complex and enforce the law and help find out-of-court mechanism is developed to examine and standard products to nuclear plants, experi- of Rosatom State Environmental Safety. settlements to order-related controver- coordinate individuals to fill corruption-risk mental operation of a website was launched Corporation, sies. Since it was established, the panel has positions. with a database that accumulates informa- including the corruption After a comprehensive audit of the effi- considered 77 complaints filed by parties to tion about such attempts. The website is component. 13 &14 cient use of funds on nuclear plant con- purchasing tenders hosted by the Concern, There were audits to check 985 bidders scheduled for commercial operation and were were struction projects, specific proposals were its subsidiaries and controlled entities. In in purchasing procedures for compliance will become accessible to the general public schedule extraordinary submitted to the Rosenergoatom manage- 46.7% of the claims, petitioners’ arguments under the United Industry-Level Purchasing in mid-2013. ment and Rosatom State Corporation on were confirmed in full or in part. Standard of Rosatom State Corporation, in- ways to reduce existing risks. Construction cluding the corruption component. of new nuclear power units is a priority The Concern’s thorough work on internal direction for the Concern, as it combines control and auditing received international One of the key directions in combating considerable economic, public image-re- acclaim when the Institute of Certified Fi- corruption is to prevent and identify coun- lated and political interests of the Russian nancial Managers awarded it the prize in the terfeit product supplies to active nuclear Federation. Therefore, decisions by Ro- nomination “2012 Most Efficient Corporate plants and construction projects. For this satom State Corporation and Rosenergoat- Control and Auditing System” in London. purpose, Novovoronezh NPP hosted a field om Concern OJSC to make the work of meeting of heads of business security man- monitoring agencies more intensive and to In 2013, along with traditional tasks such agers in Rosenergoatom Concern OJSC who launch a range of control activities ensur- as control of efficient resource use, detec- met representatives of major equipment ing efficient use of funds in capital con- tion and analysis of risks that can impact the manufacturers in August 2012. The meeting struction of nuclear plants are addressing goals of the Concern and its branch compa- worked out general approaches to assess- a strategic goal in the sector. nies in financing, business, and management, ing potential security threats from supplies the Department will also have to deal with of counterfeit products, and coordinated a Control activities of 2012 resulted a range of serious objectives and functions multi-party draft agreement on cooperation in 189 instructions, with 111 adminis- that require extra consideration, such as: for to protect nuclear plants against counterfeit trative-technical activities planned. 2013, a review of arbitration practices is to products. Changes were made to 17 corporate be prepared, and proposals offered to the regulations. 97 employees were disci- General Director on ways to improve pur- plined, including 30 top executives. chasing procedures. Rosenergoatom ANNUAL REPORT 2012 Section 4. System Rosenergoatom 136 Concern OJSC of Management Concern OJSC 137

4.5. Risk Management Key risks, and measures to prevent/minimize them Risk Description Measures to prevent/minimize

Risk management in Rosenergoatom Specific risks Concern OJSC is done as part 1. Risks of nuclear, Risk of serious emergency/ Programmes are approved annually to of the corporate risk management radiation, technical, fire, incident at the NPP ensure: nuclear, radiation, technical, and ( ) environmental, and physical fire safety, and NPP physical protection. system of Rosatom State Corporation CRMS safety Results of risk management are covered that must integrate risk management in detail in Section 3.3 “Ensuring Safety of Russian NPPs. Radiation impact on experiences gained by the entities within personnel and citizens” Rosatom State Corporation into 2. Risk during nuclear plant Risk of delayed radiation safety For decommissioning of nuclear units, the corporate system that will ensure decommissioning of finally shutdown power units corresponding programmes are prepared (no units were decommissioned in 2012). comprehensive management of engineering, In 2012, Rosenergoatom created a branch technological, operating, investment, and other risks. company “Experimental demonstration engineering centre for decommissioning”

3. Operating risks Risks of lower generation The nuclear plant upgrade programme Goals and objectives of risk Risk Management in Action from equipment downtime or underway (for 5 years, updated annually), management are: During 2012, the Concern’s dangerous unavailability to pick load due and other activities, with progress and • support for the implemented strategy production facilities had no industrial to internal and external factors results as described in Section 3.2 “Generation of electric power by Russian 4 of Rosatom State Corporation OJSC emergencies. nuclear plants. Generating capacity”. Once 4 through risk management; implemented, the upgrade programme • timely identification of emerging risks, In 2012, as required by effective fire- increases the installed capacity use ratio: evaluation and mitigation of threats able fighting regulations, there were more in 2012, growth in equivalent capacity of active plants was 132 MW; downtime to impact the Concern’s performance; than 180 fire safety exercises. during scheduled and preventive repairs • providing information support to the was reduced by 107 days. The Concern Concern’s management in executive de- Compliance with instructions issued successfully fulfilled the FTS balance cisions. by the Federal Fire Safety Service in 2012 to 100.8%, with 2.7% growth of was 100%. electrical power generation compared to 2011. The Concern has an active process underway to organize risk-management ac- As part of ensuring nuclear plant safety, the 4. Commodity risks Risks of changing prices for Market monitoring and forecasting; joint tivities systematically, while distribution of Concern pays a great deal of attention to in- electrical power and capacity development of market models. The risk risks among the parties (risk owners) is not dustrial safety of dangerous production fa- produced by NPPs, changes is external, with limited control ability. in regulations on markets of Activities used enable planning of the changed as an efficient method to reduce cilities that run as components of the NPP. electrical power and capacity Concern’s operations adjusting them to the the risk. This process has identified key risks, The basis of the industrial safety manage- changing situation; this ensures financial activities to manage which are determined ment system in the Concern is organization stability for the company. and implemented by the Concern’s units ac- and practice of production control over in- 5. Risks of higher costs Risk of rising costs to produce Optimizing costs, work with regulatory cording to their core business directions. dustrial safety. Detailed information about electrical power agencies. Monitoring production and the production control over industrial safety financial indicators. The Concern’s cost To minimize possible financial damage from is provided in Section 3.3 “Safety of Russian control programme achieved its target uncontrollable risks, the Concern purchases NPP. Radiation impact on personnel and indicators for cost cutting in 2012. comprehensive insurance to insure its inter- citizens”. General risks ests in various operations. Special safety measures, including anti- 6. Financial risks (credit Risk of counterparts defaulting Compliance with financial Rosatom State As an operator, under the Use of Nuclear terrorist resistance of nuclear plants with risk, interest rate risk, risk or failing to perform on time. Corporation’s policy; active panel for Energy Federal Act, Rosenergoatom Con- robust physical protections at every stage of reduced government Risk of unfavorable change accounts receivable/payable, panel for financing, currency of interest rates, mismatch credit risks. In 2012, there were material cern OJSC assumes total responsibility and of the life cycle (project design, construc- exchange risk, liquidity risk) of interest income/expense loss from financial activities ensures nuclear and radiation safety for all tion, operation, decommissioning) as nucle- in time. stages of the nuclear plant life cycle. There- ar-dangerous objects, integrity of the state Risk of inadequate funds from fore, the Concern has achieved a high level secrets, commercial and executive secrets, the federal budget. Risk of cash shortage to meet in management of nuclear and radiation corporate business security while enforcing the Concern’s liability risks, environmental and physical safety. the law and protecting the Concern’s cor- Rosenergoatom ANNUAL REPORT 2012 Section 4. System Rosenergoatom 138 Concern OJSC of Management Concern OJSC 139

Key risks, and measures to prevent/minimize them

Risk Description Measures to prevent/minimize

General risks

7. Operation risks Reputation risks. Risk of skilled Monitoring the information space. personnel shortages Openness and keeping the public aware of NPP operation. More details on the activities available Section 6.8 “Interaction with stakeholders”.

8. Investment risks Risk of deadline delay with Monitoring implemented investment nuclear plant construction in programme to enforce regulations of the the Russian Federation, and risk Concern, Rosatom State Corporation, of cost hikes and RF Ministry of Energy. Results of risk management are covered in detail in Section 5.2 Investments.

porate interests, is a priority for a corporate ity, which in turn creates a basis for good operator. Detailed information about the financial and business performance, 4 system to prevent and eliminate extraor- including: 4 dinary situations is available in Section 3.3 • improvement of the operation safety “Safety of Russian NPPs. Radiation impact indicator system in the nuclear plants of on personnel and citizens”. Rosenergoatom Concern OJSC; • developing an operator entity’s guid- The active nuclear plants have created: sys- ance “Main Provisions on Analysis of tems of communication, alerting, and in- Trends and Event Triggers in Nuclear formation support; coordination services; Plant Operation”; standing executive bodies; routine manage- • putting the prototype of Rosenergoatom ment bodies; forces and equipment to con- Concern OJSC Industry-level system of tain and eliminate emergencies. Detailed in- diagnostics into commercial operation; formation about the system to prevent and • deploying the software-hardware set of eliminate emergencies is available in Sec- the automatic control and protection tion 3.3 “Safety of Russian NPPs. Radiation system for the turbine at power unit No. impact on personnel and citizens”. 2 of Smolensk NPP; • deploying the united information system All nuclear plants are engaged in systematic for non-compliance control as new nu- activities that assess the achieved level of clear power units are put into operation; safety culture, and build commitment among • concluding analysis of unforeseen emer- personnel to safety culture principles. The gencies under trigger events caused by topical plans of training programmes for high-intensity external impacts of natu- specific positions, and qualification support ral and artificial origin, for nuclear plants programmes include a Section on “Safety with RBMK; culture”. Training and methodological mate- • continuing systematic analysis of origi- rials on safety culture have been prepared. nal engineering requirements, specifica- Training in disciplines of the “Safety cul- tions, and requests for equipment sup- ture” course is provided when personnel are plied to nuclear plants, to increase their trained for a position, and then retrained. reliability, quality, and availability; • developing, verifying, and approval by The plan for 2013 is to continue work to de- • implementing the investment project to Rostekhnadzor, a Calculation Method- velop the risk management system, and to Priority plans for risk management in 2013 extend the service life of power units No. ology for strength and residual resource integrate the system with the existing con- are determined by the Concern’s high re- 3 and 4 of Kursk NPP, No. 1–4 of Balakovo of VVER-1000 reactor units with service trol processes, primarily with strategic and quirements for safety and operation stabil- NPP, and No. 1 and 2 of Kalinin NPP; life extended to 60 years. mid-term planning and budgeting. Rosenergoatom ANNUAL REPORT 2012 Section 4. System Rosenergoatom 140 Concern OJSC of Management Concern OJSC 141

• progress inspections of NPQAP (O), Further evolution of the quality system to- 4.6. Property 4.7. Quality NPQAP (E), and compliance under GOST wards building and implementation of a uni- R ISO 9001-2008 of Balakovo NPP, Be- form technical policy in quality. Management Management loyarsk NPP, Kola NPP, Kursk NPP, Len- ingrad NPP, Smolensk NPP and Kalinin In addition, the plan for 2013 is to imple- NPP; ment a programme for higher quality of As of December 31, 2012, the Concern At all life cycle stages • developing and enacting ORS “Techni- equipment delivered to active nuclear actually used land in 816 plots with of its nuclear plants, cal Requirements for Operator Entity” (21 plants and construction projects at the a total area of 21,269 hectares, of which: product range groups for equipment, to be stages of purchasing and manufacturing Rosenergoatom Concern used in tenders for equipment purchased during 2012–2013, with the following results • 552 land plots with a total area of 6,718 OJSC determines its by nuclear plants); expected: ha were legally owned by the Concern, quality policy based on • developing and implementation of an including 48 plots that emerged during action plan to improve the quality of • updating the regulatory basis for equip- the 12 months of 2012 as previously reg- its main operation goals: equipment delivered to active nuclear ment quality assurance in nuclear istered ones were divided; economically efficient plants and construction projects at the plants; • 264 plots with a total area of 14,551 ha, generation, and reliable stages of purchasing and manufacturing • developing and enactment of guiding rented by the Concern, including 109 supply of electrical and during 2012–2013. documents to regulate certification of plots leased during the reporting period purchased equipment; (of which 8 plots were at the stage of thermal power to users, Main plans for quality management in 2013 • providing analytical support to purchase government registration). with nuclear and radiation centres (the Concern’s head office, nu- safety as unconditional Confirming and expanding the scope of ap- clear plants, general contractors) by 4 The title was registered to 552 plots. plication of the quality management system keeping quality database on manufac- 4 priorities. certificates issued to Rosenergoatom by tured equipment; Cadastre registration had been done TÜV Thüringen e.V.) and ANO Atomcertifi- • 24 audits to examine manufacturers for 815 plots, including by declaring The Concern’s quality management rests cat for processes of project design and nu- of equipment critical for nuclear plant forest lands. on ISO series 9000 standards, the regula- clear plant construction. safety. tory document NP-011-99 “Requirements to Land planning is done, with subsequent ca- Quality Assurance Programme for Nuclear dastre registration of each 1 plot. Plants”, and the provisions of IAEA standards for nuclear plant safety, GSR series For 808 plots, documents have been issued (General Safety Requirements). as title of ownership and/or lease. 4.8. Purchase The results of quality management efforts in Management As of December 31, 2012 2012 were: the Concern owned 7,489 units of real estate, of which: • confirmation of effective quality manage- In Rosenergoatom Concern OJSC as a con- no preferences for local suppliers. Analy- ment system certificates issued to the stituent of Rosatom State Corporation, sis of purchasing procedures during 2012 • 7,350 units were held as registered title Concern, No. TIC 15 100 128 018 (certifica- purchasing is regulated by Rosatom State demonstrated that the share of purchases by the Concern; tion agency TÜV Thüringen e.V.) and No. Corporation’s Uniform industry-level stand- from local suppliers for active nuclear plants • 77 units were at the stage of government ROSSRU.0001.01AE00.77.11.0030 (certifi- ard of purchasing (Purchasing Regulation varied, and averaged 20% of total purchases registration; cation agency ANO Atomcertificat); or UIPS), as approved by the Rosatom State in branch companies. (Local suppliers are • 28 units were at the stage of cadastre • developing the quality system regarding Corporation Supervisory Council resolution understood as entities that mainly operate chart preparation; the effect of the Declaration on Qual- No. 37 of February 7, 2012, the modified ver- in the regions where the nuclear plants are • 34 units were at the stage of document ity Policy, designating a top management sion as approved by Rosatom State Corpora- located). processing with capital construction ser- representative on quality, forming and tion Supervisory Council, resolution No. 46 vices. approval of the registry of employees in of February 15, 2013, Pursuant to Federal Act No. 223-FZ of July charge of quality in structural subdivisions 18, 2011 “Purchasing of Products, Works, and of the Concern’s central apparatus; Starting in 2013, Rosenergoatom Concern Services by Specific Corporate Entities” and • audits of equipment manufacturers, and OJSC makes its purchases as required under the standard that regulates disclosure of audits of incoming equipment control or- Federal Act No. 223-FZ of July 18, 2011 “Pur- information on goods, works or services to ganization at the Concern’s nuclear plants, chasing of Products, Works, and Services by be purchased, such reports are published and construction quality of nuclear plant Specific Corporate Entities”. The UIPS seeks on the Internet through the Federal Gov- projects built by general contractors; to promote fair-play competition, and allows ernment’s website www.zakupki.gov.ru, and Rosenergoatom ANNUAL REPORT 2012 Section 4. System Rosenergoatom 142 Concern OJSC of Management Concern OJSC 143

on the corporate website on purchasing in Results of the annual purchasing programme in 2012 by types 4.9. Information Technology the nuclear sector: www.zakupki.rosatom.ru; of purchasing procedures thus a wide range of people are able to join the procedure. Information technologies have the 64% ever more important role in operations Pursuant to Part 8 Article 3 of Federal Act of Rosenergoatom Concern OJSC. No. 223-FZ of July 18, 2011 “Purchasing of Products, Works, and Services by Specif- Today, they are part of the basic ic Corporate Entities”, the Russian Federal production cycle and it has Government has the right to give preference 28% immediate influence on reliability to products, works and services, manufactured or performed or provided by Russian and results of business processes. residents, rather than by foreign residents, 6% always observing the customs law of the 2% Customs Union and international treaties to Progress with the Programme to transform FBU and IT which the Russian Federation is party, and always considering the specifics of small and Item Number Amount, % Rosatom State Corporation Programme for Transformation in the Financial-Business Unit and the IT of pro- million medium businesses involved in purchasing. cedures rubles Aligning programmes and initiatives of the Rosatom and the Concern in Information and Communication Techologies Open purchasing 11,550 131,331 64 In 2012, the Concern held 15,184 purchasing procedures procedures for a total of 206,007 mln rubles. Programme for Transformation in the Financial-Business Unit and the IT of the Concern (IT PT of the Division) Closed purchasing 109 5,002 2 4 procedures 4 The savings from competitive purchasing 1. Programme 2. Programme 3. Programme 4. Programme 5. Compre- 6. Programme procedures amounted to 10,338 mln rubles Sole supplier 1,258 56,799 28 for imple- for develop- for reduction for information hensive for rapid (obvious) (or 7.7%). mentation ment of the of the Con- support Programme deployment Sole supplier (other) 2,267 12,885 6 of channel Concern’s cern’s produc- to construction to raise of new sites expansion production tion risks, technologies information To raise efficiency in purchasing, it is en- TOTAL 15,184 206,007 100 projects in key systems including security sured that the related procedures are timely. business (operation + projects The respective key efficiency ratio was applications support) to organize added to the list of key efficiency ratio for central data processing heads of purchasing centre s established in the Concern’s branch companies. Programme for Transformation in the Financial-Business Unit and the IT of the Concern (IT PT of the Division) After 2012, efficiency ratios for purchasing were on target. Aligning programmes and initiatives launched by profile departments and units in Rosenegroatom Concern OJSC in Information and Communication Techologies The 2013 annual purchasing programme was published on the purchasing website of Ro- OBURDE VVER TOI Other programmes and initiatives satom State Corporation.

As part of purchasing, the Concern’s key objectives for 2013 include: During 2012, the development of informa- the results was creation of the ICT mid-term • reducing the number of adjustments in tion technology in Rosenergoatom Concern development concept. the annual purchasing programme; OJSC was oriented towards activities under • timely conduct of purchasing proce- the Project Programme to transform the The Concern’s strategic needs in ICT are dures — 95%; FBU (financial and business unit) and IT in formalized as development target pro- • share of public purchasing procedures — Rosatom State Corporation, and to ensure grammes that set forth the directions to im- 80%; — share of purchasing procedures stable operation of active systems of IT, plement ICT projects in the mid-term. where complaints about the purchase communications, and information security. Organizing development in ICT through host are confirmed as justified — not to Serious effort was exerted to systematically target programmes will ensure a more sys- exceed 2%. organize the management of information temic and balanced evolution of ICT within and communications technologies (ICT), and the Concern. ensure their further development; one of Rosenergoatom ANNUAL REPORT 2012 Section 4. System Rosenergoatom 144 Concern OJSC of Management Concern OJSC 145

By regular adoption of IT in its business pro- • developing applications cesses in 2012, the Concern addressed the for the technical unit: following top priorities: • deploying an automated system to support operation as recommended • IT-support for capital construction by WANO; processes, including: • creating a system to ensure delivery • enabling control of nuclear plant of technical data from nuclear plants building through time schedule to the Crisis Centre, and their ex- monitoring during construction, tied change between IT applications; in with targets and actual perfor- • backup of ICT infrastructure to mance; ensure transfer of technical data to • enabling video surveillance of con- the Crisis Centre; struction of facilities, tied in with • creating an IT base to track events of construction time schedules, targets nuclear plant life cycle; and actual performance figures; • reating automated technology to • enabling management of the long- manage repairs at nuclear plants; term investment programme, tied in • building an accounting system to with construction time schedules, keep records of sales and payments targets and actual performance fig- for electric power. ures; • objective selection of suppliers Programme to reduce risks 4 (manufacturers) by purchasing cen- of production and information exchange 4 tres (HO, NPPs, etc.) tied in with quality, manufacturing progress, and The programme includes: certification of nuclear plant equip- • implementation of one-design network- ment; ing solutions based on uniform equipment • managing base design configuration for all nodes of telecommunication, with a of VVER-TOI, and feedback from quickly expandable channel band; projects that use it in practical op- • transition from traditional videoconferenc- eration; ing sessions (VCS) to total remote communication (“remote presence mode”), with • upgrading mechanisms of administrative The strategic goals of the nuclear power • development of FBU applications: access from mobile devices; and engineering support to IT security sector — support for serial construction of • customizing and expanding func- • creating a web-conferencing service; services, creating competency centres nuclear power units and increasing the share tionality and analytic reporting of • upgrading the Data Processing Centre (DPC) and structural subdivisions in IT security of nuclear generation in the national power SAP ERP one-design solution, its in the HO, DPC of the Crisis Centre, creating in the HO and branch companies, with balance — force the Concern to confront replication to all branch companies the Concern’s standby DPC at Novovoron- IT security control processes centralized new large-scale objectives that will require — active nuclear plants; ezh NPP; in the Concern. efficient IT support in all domains of man- • deploying a HR management system • creating standard-design DPC units at nu- agement. in the central office and branch com- clear plants. panies of Rosenergoatom Concern OJSC (including IT support for per- Programme to improve sonnel training and safety processes protection of information at nuclear plants); • deployment of an efficient docu- The programme envisages: ment flow system, including pro- • determining a holistic view of upgrad- cesses of administrative and engi- ing the corporate IT security system to neering document flow, building match relevant threat models in infor- a distributed archive of technical mation security; documents in the Concern; • creating systems to control and ensure • developing a system for planning, IT security (workplace protection, event adjustment, execution, and target- monitoring, building rapid response sce- fact analysis of the incomes-expens- narios); es budget; Rosenergoatom ANNUAL REPORT 2012 Rosenergoatom 146 Concern OJSC Concern OJSC 147 05 Financial Situation and Performance

• Key Financial Performance Figures • Investment Activities Rosenergoatom ANNUAL REPORT 2012 Section 5. Financial Rosenergoatom 148 Concern OJSC Situation and Performance Concern OJSC 149

Structure of actual revenues from electrical power 5.1. Key Financial and capacity sold in 2012, 000 rubles (VAT excl.) Performance Figures Item

Total revenues from sold electrical power/capacity, by accounts 198,416,044

In 2012, Rosenergoatom Concern OJSC real- of Indexing the Price of Electrical Capac- including: ized sales revenues of 200,526,125,000 rubles, ity, originally enacted by Russian Federal or 878,904,000 rubles less than the 2011 Government Resolution No. 238 of April 13, • revenues from sold own products 195,662,176 figure. The main causes of the lower revenues 2010 “Setting Price Parameters for the Sale were an unfavorable price situation on the free of Electrical Capacity on the Wholesale including: market for electrical power, and grid restric- Market for Electrical Power and Capacity”: tions on supplies of electrical power. the price of capacity set as a result of competition for 2012, must be indexed for the • Bilibino NPP 1,688,648 Dynamics of sales revenues, gross and net profit in 2011 and 2012, mln rubles. period between July 1, 2012, and January 1, 2013, to adjust it to the changing consumer • regulated contracts (electrical power) 5,750,610 price index calculated and published by the federal government agency vested with the 201,405 200,526 • regulated contracts (electrical capacity) 18,657,706 functions of official board of statistics, but not to exceed 7% (actually by 6.1%). • day market 133,064,439 The amount of power actually sold by the Concern on the wholesale market in 2012 • free two-party contracts 968,067 92,050 76,115 was 177.3 billion kWh, which was 1.5 billion kWh or 0.8 % above the balance target as- • balancing market 780,505 signed by the FTS. The actual generation by 5 power unit No. 2 of Rostov NPP in 2012 was 5 • contracts of new nuclear plants (capacity) 3,819,841 7.8 billion kWh; and by power unit No. 4 of 0 Kalinin NPP was 5.6 billion kWh. - 2,913 -1,849 • capacity under competitive contracts 30,932,360

Revenues Gross profit Net profit After 2012, payments amounted to 230,171.7 mln rubles (VAT incl.) or 98.3% of the actual • revenues from resold third-party generation 2,753,868 2011 2012 cost (VAT incl.). Cash payments for commodity sold in 2012 were 228,950.8 mln including: rubles (or 99.5% of total sales). The differ- The main causes underlying grid restrictions ence of 1,190.9 mln rubles was reassigned as were lower consumption of electrical power collectable debt to third parties, while the • Atomenergosbit 53,607 during holidays and the spring floods, plus debt of 29.9 mln rubles was written off by constraints on electrical power exchange in Rosenergoatom Concern OJSC Executive • ВNPP 2,849 the Kola-Karelia section (Kola NPP) due to Order of December 25, 2012 “Writing off restrictions in the Murmansk power grid and accounts receivable and payable” from the • Kolenergosbit 230 North-West power grid (after the year, Kola provision for bad debts. NPP accounted for 54% of total grid restrictions). The cost dynamics (14% growth by 2011) • regulated contracts (electrical power) 29,888 were influenced by the following factors: Russian Federal Government Resolution • higher material costs caused by higher • day market 2,436,196 No. 1178 of November 29, 2011, “Pricing and costs of materials and inventory, includ- Regulation of Prices/Tariffs in the Electrical ing more spent on fuel due to higher • balancing market 231,098 Power Sector”, made changes to the Rules prices of HGP and rescheduled fuel Rosenergoatom ANNUAL REPORT 2012 Section 5. Financial Rosenergoatom 150 Concern OJSC Situation and Performance Concern OJSC 151

Financial and business indicators, mln rubles Asset Structure Rosenergoatom’s current assets appreciated by 3,193,314,000 rubles, or 3.5% in 2012. In Indicator 2010 2011 2012 2012/2011, % In 2012, the value of Rosenergoatom’s assets the structure of Rosenergoatom’s current grew by 13% (123,092,198,000 rubles). assets in 2012, inventory increased con- Sales revenues 210,222.70 201,405.03 200,526.13 99.56 siderably by 6,672,962 ,000 rubles (20.5%) Production cost 88,634.80 109,354.54 124,411.45 113.77 This growth of asset value was caused by along with financial investment rising by higher value of both non-current assets by 6,691,502,000 rubles (99%) while at the Gross profit 121,587.90 92,050.49 76,114.68 82.69 14% (119,898,884,000 rubles), and current same receivables dropped by 6,396,149,000 assets by 3.5% (3,193,314,000 rubles). rubles (14.6%), and cash and equivalents Administrative and business costs 92,799.84 83,222.89 61,996.23 74.49 by 3,697,812,000 rubles (a factor of three). Sales profit/loss 28,788.07 8,827.60 14,118.45 159.94 Paid long- and short-term advanced Growth of inventory was triggered primarily amounts, pre-payment for works and ser- by supplies of fuel components to new fuel Other incomes and expenses 398.175 –7,283.01 –10,931.93 150.10 vices related to construction, are recognized companies. (balance) on Rosenergoatom’s business accounts in Distribution of non-current assets, % Profit before tax 29,186.24 1,544.59 3,186.52 206.30 accordance with the accounting policy, in the Section “Non-current assets”, because Central Administration 3 EBITDA 127,369.82 96,112.91 81,536.40 84.83 depending on the type, liquidity of accounts Balakovo NPP 3 Profit tax 6,953.57 3,736.47 4,800.94 128.49 payable can vary. Beloyarsk NPP 10 Other payables –488.224 –721.532 –234.251 32.47 Dynamics of non-current assets, mln rubles Bilibino NPP 1 Net profit 21,744.44 –2,913.41 –1,848.67 63.45 Kalinin NPP 11 994,842 2 874,943 Kola NPP stocking campaign, production-related The table below represents efficiency ratios Kursk NPP 6 services, services of infrastructure pro- that describe Rosenergoatom’s performance 663,064 viders, following tariff increases; in 2012. Novovoronezh NPP 3 • more depreciation now paid on newly- Efficiency ratios, % Smolensk NPP 4 commissioned buildings; 5 • higher insurance costs following chang- Leningrad NPP 8 5 Ratio Formula 2010 2011 2012 es to the premium calculation proce- Rostov NPP 15 dure; Sales Sales profit / 3.69 4.38 7.04 • power unit No. 4 of Kalinin NPP put in efficiency Revenues 78,485 89,791 92,984 Novovoronezh NPP-2 15 operation in 2012; 2010 2011 2012 Leningrad NPP-2 10 • higher labour costs and cost of insur- Asset Net profit 3.25 –0.34 –0.18 efficiency / Average ance programmes in 2012 (following Current assets Non-current assets Baltic NPP 4 assets legal changes); • purchase of electrical power on the day Floating NPP 2 Equity Net profit / 3.24 –0.38 –0.21 market and balancing market to enable efficiency Equity The value of non-current assets increased Engineering Design Branch Office 4 contract performance during extraordi- thanks to higher value of fixed assets, which nary repairs; in turn grew when item “Capital investments Other affiliates 0 • higher property tax on fixed assets com- 2012 sales profit compared to that of the in fixed assets in progress” appreciated by missioned in 2012; previous year increased by 5,290,849,000 44,466,970,000 rubles, or by 12%, and the The increase in financial investment was • higher cost of repairs and maintenance, rubles to 14,118,449,000 rubles, mainly due value of buildings, machines and equipment caused by short-term loans issued to Atom- as extraordinary works were done in to a reduction of administrative costs by rose by 89,170,879,000 rubles, or by 33.5%, energoprom Concern OJSC (available cash is 2012 during WP and extraordinary shut- 21,228,462,000 rubles. as a sign of considerable investment in fixed placed as allowed by the financial policy of down of power units. assets. Rosatom State Corporation). Sales efficiency (by sales profit) for 2012 was Total administrative costs of 61,975.97 mln 7.04% against 4.38% of the previous year. The total value of non-current assets as of The most remarkable decrease in current rubles included provisions for capital in- This increase was caused by leading reduc- December 31, 2012 was 994,841,700,000 assets was that of accounts receivables, vestment of 51,818.81 mln rubles under tion of full costs (95.81% of previous year) rubles. Non-current assets were consid- dropping by 6,396,149,000 rubles, or 14.6%, Federal Government Decree No. 68 of 30 over decrease in revenues (99.56% of the erably distributed among Rosenergoatom with the head office’s efforts to cut miscel- January 2002. previous year). branch companies. laneous debts. Rosenergoatom ANNUAL REPORT 2012 Section 5. Financial Rosenergoatom 152 Concern OJSC Situation and Performance Concern OJSC 153

5 5

Completion of core loading in power unit No.4 of Kalinin NPP, 2011 Rosenergoatom ANNUAL REPORT 2012 Section 5. Financial Rosenergoatom 154 Concern OJSC Situation and Performance Concern OJSC 155

Structure of receivables, mln rubles serves That Ensure Safety of Nuclear Plants Evaluation of net assets at All Stages of Their Life Cycle and Develop- Item Actual value Period change ment”.

193,613 as of Dec. 31,2011 as of Dec. 31,2012

177,921 In the structure of the Concern’s sources of funds, equity is prevalent 000 rubles % of bottom line 000 rubles % of bottom line 000 rubles

140,710 at 79% (854,708,610,000 rubles). 1 2 3 4 5 6 = (гр. 4 – гр. 2)

Financial Ratios Net assets 835,020,202 86.6 936,542,342 86.1 101,522,140 Registered capital 530,011,527 54.9 530,011,527 48.7 0

29,080 The book value of net assets as of December

18,1 13 19,556 Net assets over registered capital 305,008,675 31.6, 406,530,815 37.4 101,522,140 14,688 16,303 12,655 4,738 7,583 31, 2012 was 936,542,342,000 rubles, net value 3,762 having increased in 2012 by 101,522,140,000 2010 2011 2012 rubles mainly due to the growth of fixed assets vestments. Short-term liabilities were fully The financial leverage ratio describes the en- As of December 31, 2012, covered by current assets. tity’s dependence on external loans; it was the current liquidity Advance payments Other debtors by 115,432,310,000 rubles (appreciation of ratio was buildings, machines, equipment, and capital in- within the permissible range. As of December Buyers and clients Provision for bad debts vestments in progress, to finance fixed assets). The quick liquidity ratio shows the part of 31, 2012, the ratio was 0.15, which means that short-term debt that can be repaid immedi- Rosenergoatom Concern OJSC was loan-free Structure of Capital During the period, liabilities accepted for cal- ately from cash or equivalents, and short-term and solvent. 1.36 receivables. The most liquid assets as of De- culation rose by 21,570,058,000 rubles, includ- or The value of Rosenergoatom’s assets ing due to the growth of: cember 31, 2012 could cover 38% of the short- The autonomous ratio describes the specific at the end of the reporting period • long-term and short-term liabilities term liabilities. weight of equity in total assets, and as of De- was 1,087,825,834,000 rubles, in loans, by 19,251,882,000 rubles; cember 31, 2012, equity had a share of 87%, or or 123,092,198,000 rubles more than • other long-term liabilities growing The absolute liquidity ratio shows the part of within the standard range. +0.11 at the beginning of the year. by 6,046,783,000 rubles (due to refund- short-term debts that is covered from cash or compared able VAT on advanced amounts). equivalents. The value of this ratio as of De- The financial stability ratio describes the share to the previous period This increment in asset value was the result cember 31, 2012 was 0.13. The change of 0.05 of own and long-term sources of financing to of newly built fixed assets and construction Rosenergoatom’s net assets as of December was caused by a decrease in short-term liabilities. the bottom line. As of 31 December, 2012, the in progress, from depreciation and provisions 31, 2012 were worth 76.7% more than the reg- ratio was 0.94. A slight change in the ratio was 5 created to ensure safety of nuclear plants at all istered capital; this ratio shows the company’s Financial Stability Ratios caused by the growth of equity and assets. 5 stages of their life cycle and development, es- financial situation in a positive light, as being tablished under Federal Government Decree totally compliant with the requirements on Financial stability is the result of the entire The equity ratio tells us whether the entity’s No. 68 of January 30, 2002 “Approval of the corporate net assets. Taking into account that business operation, and represents stable own funds are sufficient to finance its cur- Rules for Operators to Provide Funds for Re- net assets both exceeded the registered capi- excess of incomes over expenses. The table rent activities. This ratio in Rosenergoatom as tal and increased during the reporting period, below shows Rosenergoatom Concern OJSC of December 31, 2012 was 27% for all current Dynamics of liabilities in 2011-2012, mln rubles we can say that by this indicator Rosenergoat- financial stability ratios for 2012. funds. om’s financial situation is quite healthy. Liquidity ratios Liquidity Ratios

854,709 Standard As of Dec. 31,2010 As of Dec. 31,2011 As of Dec. 31,2012

811,221 Ratio

677,551 The key financial ratios and results were cal- Current liquidity ratio 1 < k ≤ 2–2.5 3.27 1.25 1.36 culated as per the Methodology for Calcula- Fixed-term liquidity ratio (quick ratio) 0.3÷0.8 0.59 0.30 0.38 tion of Key Financial Ratios and Indicators for Financial and Business Analysis in Atomener- Absolute liquidity ratio 0.1÷0.5 0.31 0.08 0.13

goprom JSC and its subsidiaries and controlled Financial stability ratios businesses, based on its business accounting 96,222 153,341 information. Ratio Standard As of Dec. 31,2010 As of Dec. 31,2011 As of Dec. 31,2012 5,7291 45,619 79,776 18,378 Financial leverage ratio k < 1.0÷1.5 0.08 0.14 0.15 2010 2011 The current liquidity ratio describes current 2012 assets to short-term liabilities. As of December Autonomous (financial independence) ratio 0.4÷0.9 0.92 0.87 0.87 Capital Short-term liabilities 31, 2012, this ratio was 1.36, or +0.11 compared Financial stability ratio 0.6÷1 0.95 0.93 0.94 and provisions Long-term liabilities to the previous period. This growth was caused Equity ratio k ≥ 0.1 0.69 0.20 0.27 by the increase in inventory and financial in- Rosenergoatom ANNUAL REPORT 2012 Section 5. Financial Rosenergoatom 156 Concern OJSC Situation and Performance Concern OJSC 157

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Reactor BN-600 core cartogram in the Public information center of Beloyarsk NPP Rosenergoatom ANNUAL REPORT 2012 Section 5. Financial Rosenergoatom 158 Concern OJSC Situation and Performance Concern OJSC 159

5.2. Investment Activities

The Concern’s investment activities through capital investments sought to implement the Long-Term (2009–2015) Programme of Rosatom State Nuclear Energy Corporation, approved by Federal Government Decree No. 705 of September 22, 2008, regarding development of the nuclear power industry in Russia. To ensure continuous and efficient implementation, the Concern has prepared investment programs for the long term, medium-term (three years) and short term (one year).

Functional distribution between the par- • investment projects at facilities that ties involved in the investment process is handle contaminated nuclear fuel and regulated in the Investment Agreement be- radioactive waste (3.7% of total invest- tween State Corporation Rosatom, Atomen- ment); ergoprom JSC, and Rosenergoatom Concern • other investment projects and activities: OJSC. conservation, science research and experimental engineering, technical docu- 5 The Concern’s The Concern’s investment activities were fi- ments, and other activities prior to pro- 5 2012 Investment Programme nanced from the Concern’s own funds, from ject phases (4.8% of total investment). achieved assets contributed by Rosatom State Cor- poration, and when necessary, with loaned Investment projects to build nuclear power 100.2% resources. The Concern’s 2012 Investment units NPP were also financed with in-kind of the target Programme was officially coordinated with contributions worth 58,207.5 mln rubles by the Federal Ministry of Energy for a total Rosatom State Corporation. value of 156,051.6 mln rubles, and achieved 100.2% of the target. By investment direc- Investments to fixed capital in 2012 amount- tions, the results of 2012 appear as follows: ed to 146,230.5 mln rubles. • investment projects to build NPP power Dynamics of asset units, including construction of float- contribution, mln rubles ing nuclear thermal and electrical plants, financing of project survey to find new sites for construction of nuclear power 2010 2011 2012 units (70.7% of total investment); 53,239.8 68,496.5 58,207.5 • projects and activities at operating power units: investment projects to extend the Investments to fixed capital, life of generation I and II power units, en- dynamic, mln rubles suring safe and stable operation of active power units, programme to increase electrical power generation at NPP active 2010 2011 2012 power units in Rosenergoatom (20.8% of 136,554.3 201,778.4 146,230.5 total investment); Rosenergoatom ANNUAL REPORT 2012 Section 5. Financial Rosenergoatom 160 Concern OJSC Situation and Performance Concern OJSC 161

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Construction site of Novovoronezh NPP-2 Rosenergoatom ANNUAL REPORT 2012 Rosenergoatom 162 Concern OJSC Concern OJSC 163 06 Sustainable Growth

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• Public Position on Sustainable Growth • Environmental Impact • Human Resource Management • Labour Protection • Social Policy • Developing Areas of Presence • Charity and Sponsorship • Interaction with Stakeholders Rosenergoatom ANNUAL REPORT 2012 Section 6. Rosenergoatom 164 Concern OJSC Sustainable Growth Concern OJSC 165

6.1. Public Position on Sustainable Growth

In accordance with the internationally accepted definition, we understand sustainable growth to be a process of change in which investments, environmental impact, the evolution of science and technology, and the development of the individual and the community, are all harmonized and work to strengthen our ability to meet humankind’s needs and aspirations for the future.

Opportunities and Challenges Reliable and Safe Operation To achieve the goals and enforce the fun- vention activities are regularly applied. in the Context of Sustainable Growth of Nuclear Plants damental principles of its Environmental Efforts to achieve the goals set for 2012 Policy, the Concern has assumed the obli- suppressed a peak of injuries in 2011 at op- Sustainable growth means develop- Reliable and safe operation of nuclear plants gation to implement and maintain the best erating nuclear plants, with a positive out- ment that meets current needs without is the key priority in the Concern’s activities. methods of environmental management, come: in 2012, the Concern’s nuclear plants endangering future generations’ ability Objectives in this area ensure the protec- and to meet applicable international and na- registered only three incidents compared to to meet their needs. tion of personnel, citizens and the environ- tional standards in environmental manage- seven cases in 2011. To further improve the ment, minimize radioactive emissions, and ment. situation with labour protection, and main- UN International Committee prevent incidents and emergencies. tain the previous injury-free performance on Environment and Growth Improving its environmental management during operation and repair of nuclear plant The safe operation of nuclear plants is con- system and having it certified as compliant equipment, the company is adopting ever- The entire world has been observing grow- firmed through regular audits by bodies of under the international standard ISO 14001 stricter requirements for personnel in terms ing need for affordable, environment-friend- control and supervision, both Russian and is an efficient way for the Concern to con- of standard compliance, not only in labour ly electrical power; this creates great long- international. In more detail, the policy and firm its commitment to the ideals of envi- protection, but also in operation and repairs. term opportunities to promote the nuclear approaches to safety assurance are covered ronmental protection, but also an opportu- Detailed information is available in Section power sector. With fossil fuel deposits on and Section 3.3 “Safety of Russian Nuclear nity to gain a competitive edge and improve 6.4 “Labour Protection”. 6 the decline and global awareness of the Plants. Radiation Impact on Personnel and interaction with stakeholders and the broad- 6 need to stop greenhouse gas emissions, Citizens”. er public. The results of the environmental High Social Responsibility growth of nuclear power sector is inevitable. policy are covered in more detail in Section On an international scale, as key issues of Minimizing environmental impact 6.2 “Environmental Impact”. Operating nuclear plants in Russia cre- the sector’s further development following ates tens of thousands of skilled jobs, and the Fukushima disaster, we focus on the safe The purpose of the Concern’s environmen- Safe and Decent Working Conditions. involves the interests of hundreds of thou- and environment-friendly operation of nu- tal policy is to ensure a safety level of its Labour Protection sands of plant employees’ family members. clear plants. This is why efficient growth of nuclear plants whereby any impact on the The Concern acts as a responsible employer the sector largely depends on how we can environment, personnel or citizens either in Ensuring safe working conditions for staff at by providing additional benefits, and looking respond to current challenges, namely – the the near future or in the long term should nuclear plants and contractors is the Con- after the working conditions and social wel- unconditional assurance of safe operation ensure the preservation of natural habitats, cern’s key objective in industrial safety; it fare of its employees. In conformity with the of all facilities in the nuclear power industry maintaining their integrity and life support- is also one of its key priorities and operat- industry-level tariff agreement, a collective under all circumstances, long-term man- ing functions. As implemented by the Con- ing principles. The management pays close contract was signed and executed that spells agement of radioactive waste, and control cern, its comprehensive approach to manag- attention to ensuring safe operation and out policies on employment and remunera- over nuclear plants at every stage of the life ing its environmental impact envisages total labour protection, and to adopting cor- tion, and social guarantees and benefits to cycle. accountability and disclosure of all environ- rective measures at the Concern’s nuclear employees both current and retired. ment-protection figures. plants. To prevent injuries, audits and pre- Rosenergoatom ANNUAL REPORT 2012 Section 6. Rosenergoatom 166 Concern OJSC Sustainable Growth Concern OJSC 167

Developing Areas of Presence The Concern is a significant influence in its areas of presence. Acting through its branch 6.2. Environmental Impact Rosenergoatom Concern OJSC has great companies — Russian nuclear plants — the economic influence on the development of Concern arranges numerous events in sports its areas of presence, with serious contribu- and mass entertainment and implements Rosenergoatom Concern OJSC sees protection tions made to power security by generating socially-significant projects. of the environment and rational use of natural and fairly distributing economic value, and resources are seen as priority tasks. The goal creating skilled jobs, including in associated Transparency and Active Dialogue economic sectors. A major taxpayer to gov- with Stakeholders of the Concern’s environmental policy ernment budgets at all levels, the Concern is to ensure a level of nuclear plant safety contributes a lot to ensuring the long-term By adhering to principles of transparen- where all impacts on the environment, stability of the Russian regions. cy and active dialogue with Stakeholders, personnel and citizens in the near future Rosenergoatom Concern OJSC seeks to Rosenergoatom’s areas of presence are maintain the highest level of openness and and in the long term preserves natural characterized by the high quality of local transparency in its operations. Rosenergoat- systems, and maintains their integrity infrastructures, good salaries, skilled jobs, om is engaged in active exchange with all and life support functions. and facilities for sports and entertainment. Stakeholders, it discloses timely information Aware of its important role, the Concern on all aspects of its activities, and responds spares no effort or resources to support sus- to the involved party requests and recom- Rosenergoatom Concern OJSC has adopted In all nuclear plants, gross emissions of air tainable growth in its areas of presence: it mendations. Rosenergoatom Concern OJSC a comprehensive approach to environmental pollutants did not exceed regulated limits. is involved in development of local infra- management consistently enforces the footprint management; this includes total In 2012, our units released 1,587 tons of air structure, nurseries and schools, and medi- principles of its information policy: timely accountability and disclosure of all figures pollutants, or 42.1% of the quota for the re- cal institutions; it participates in housing response, accessibility, accuracy and com- on environmental protection. Environmental porting year (3,769 tons). programmes and public recreation facilities. pleteness of disclosed information, with a services of the nuclear plants practice ongo- Serious funds have been invested building reasonable balance struck between the Con- ing environmental monitoring to assess en- 223 tons of pollutants passed through gas- building utilities networks, and pipelines to cern’s openness and its own business inter- vironmental safety. This enables timely and treatment plants and dust traps, of this bring heating and power to citizens. ests. To achieve successful implementation efficient solutions, and minimizes nuclear amount, 210 tons were trapped and decon- of its transparency policy, the company uses plants’ impact on the environment. taminated (about 94% efficiency). As nuclear plants are under construction, all communication formats available today: in addition to the nuclear plant buildings interactive public Annual Reports, its corpo- The principles of Rosenergoatom’s environ- Emissions of air pollutants themselves, the company also builds infra- rate website, press conferences, public dia- mental activities and obligations in environ- from nuclear plants - dynamics, tons structure facilities in satellite cities: nurs- logues and consultations, arranging visits to mental security and protection are stated in eries, schools, hospitals, and housing. Cur- nuclear plants for representatives of Stake- the Environmental Policy, published at www. rently, along with new power units in already holders, and many other methods. Detailed rosenergoatom.ru. developed areas, Rosenergoatom Concern information on interaction with Stakehold- 3,769 OJSC is improving utilities, building more ers is available in Section 6.8 “Interaction housing, and upgrading and retrofitting do- with Stakeholders”. 6 Main Indicators 2,855 6 mestic heating pipelines for citizens. of Environmental Impact 2,052 Air Polluting Emissions 1,559 1,587 1,352 Nuclear plants’ contribution to air pollution compared to other sectors of the economy remains negligible.

Emissions of air pollutants from nuclear plants do not exceed permissible levels and 2010 2011 2012 remain far below the quotas set by environmental protection agencies. Standard limit Actual emission Rosenergoatom ANNUAL REPORT 2012 Section 6. Rosenergoatom 168 Concern OJSC Sustainable Growth Concern OJSC 169

3 Emissions of NOX, SOX and other important air pollutants, stating type and mass in tons Water use, with breakdown by sources, mln m

Description 2010 2011 2012 Water intake, by sources 2010 2011 2012

Sulfur dioxide 888.9 706.1 779.8 Potable water from natural water sources 12.2 10.4 11.5 (of which (of which (of which Carbon oxide 163.7 147.7 170.2 ground ground ground waters 7.7) waters 6.5) waters 7.5)

Nitrogen oxide (converted to NO2) 251.2 215.8 245.2 Potable water for municipal water supply systems 8.5 7.8 7.2 Hydrocarbons (without volatile organic compounds) 81.6 70.5 200.8

Volatile organic compounds 73.5 71.1 70.8 Fresh service water from natural bodies of water 1,809.6 1,799.2 1,706.1

Total 1,458.9 1,211.2 1,466.8 Seawater 5,101.3 5,297.8 4,508.2

Emissions of ozone-depleting substances (ODS) in 2010–2012, in tons Total 6,931.6 7,115.2 6,233.0

Description 2010 2011 2012 Share and total volume of reused and recycled water HFU-12* Water con- 2010 2011 2012 Smolensk NPP 0.150 0.148 0.142 sumption

Total 0.150 0.148 0.142 Volume, Share of used Volume, Share of used Volume, Share of used mln m3 water, % mln m3 water, % mln m3 water, % GHFU-22**

Kalinin NPP 0.290 0.315 0.630 In water 21,046.1 304 25,825.0 363 28,167.5 452 recycling systems Kursk NPP 1.025 1.339 1.202

Novovoronezh NPP 0.165 0.165 — In water 418.0 6.0 407.5 5.7 425.4 6.8 reusing Total 1.480 1.819 1.832 systems

* HFU-12 — difluor-dichlor-methane (ozone-depleting potential 1.0). ** GHFU-22 — difluor- methane (ozone-depleting potential 0.055). 6 6 For years, the share of nuclear plants in pol- Dumping Pollutants quantity of generated electrical power, it while the share of contaminated wastewater lutants released to the atmosphere by all its into Water Bodies amounted to 93.4% of total used water; this was about 0.09% - a good figure compared to corporate entities in the Russian Federation is a good water use ratio for water resources. other businesses in the Russian Federation has remained below 0.01% Nuclear plants are major users of water re- Water was used within limits approved by (typically 3.5–4%). sources. Therefore, issues of water use and environmental protection agencies. Nevertheless, nuclear plants are working to removal are important for their environ- Discharge of contaminated wastewater is grad- reduce their pollutant load on the atmos- mental activities. Virtually all water taken In all nuclear plants, wastewater in residen- ually being reduced through systematic efforts phere: from water bodies (about 99%) by nuclear tial and rainwater sewage was treated before to upgrade and retrofit wastewater treatment • improved technology to increase fuel plants was used for production (media cool- it was released to above-ground water systems at nuclear plants. combustion efficiency; ing inside turbine condensers and in heat bodies. The content of pollutants that get • higher quality fuel oil is used (with lower exchangers) and then returned to the water into above-ground water bodies with nucle- Treatment of Production sulfur content); bodies. ar plant discharge was controlled under co- and Consumption Waste • paint technologies are improving; ordinated and approved official regulations. • efficient gas-purification and dust-trapping During 2012, removal of water from nucle- Nuclear plants’ activities in environ- equipment is put in operation. ar plants matched the water balance and In 2012, a total of 5,823 mln m3 was dumped, mental protection with respect to treatment Rosenergoatom ANNUAL REPORT 2012 Section 6. Rosenergoatom 170 Concern OJSC Sustainable Growth Concern OJSC 171

Production waste, with breakdown by classes, tons Structure of environmental protection costs in 2012, 000 rubles

Indicators 2010 2011 2012 Environmental protection activity Current (operating) Environment-related Environmental costs, 000 rubles services, protection costs, Class 1 (top hazard) 46 52 52 000 rubles 000 rubles

Class 2 (high hazard) 21 78 123 1 2 3 = 1 + 2

Class 3 (medium hazard) 1,633 1,180 1,586 Total 1,528,633.764 928,886.634 2,457,520.398

Class 4 (low hazard) 20,385 12,462 11,900 including:

Class 5 (no hazard) 13,221 10,099 26,503 • protection of air and prevention 258,376.948 10,387.955 268,764.903 of climate change

of waste of production and consumption Costs of Environmental Protection • wastewater collection and treatment 578,247.447 215,849.701 794,097.148 are compliant with Russian Federal environmental law, and are done based on licenses The costs that nuclear plants currently incur • waste treatment 193,708.561 20,261.148 213,969.709 and approved draft quotas for waste, and re- to protect the environment are composed of lated placement limits. the following costs: • protection and reclamation of soil, 44,088.959 39,734.730 83,823.689 • protection and rational use of water re- surface and ground waters Just as other businesses, in the course of sources (including payments to contrac- their production activities nuclear plants tors who receive and treat wastewater); • preserving biodiversity and protection 948.200 8,172.300 9,120.500 generate waste of five hazard classes. In • protection of air; of habitats 2012, the Concern’s nuclear plants gener- • protection of the environment against • ensuring radiation safety 361,839.789 607,194.200 969,033.989 ated 40,164 tons of waste. impact by production and consumption of environment waste (including payments under con- Generated waste of production tracts to deliver waste to special con- and consumption, dynamics, in tons • science research and development 2,336.000 12,443.900 14,779.900 tractors); to minimize human footprint 2010 2011 2012 • reclamation of disturbed and contami- 35,306 23,871 40,164 nated land. • other activities in environmental 89,087.860 14,842.700 103,930.560 protection Costs of environmental protection, mln rubles Most (about 95.6%) of the waste generated 2010 2011 2012 Payments for environmental impacts, dynamics, 000 rubles in 2012 was Class 4 (low hazard) and Class 1,605 1,731 2,458 5 (no hazard): 11,900 tons, and 26,503 tons, respectively. Description Actually paid, 000 rubles 6 A penalty of 222,630 rubles was imposed on 6 Existing waste at the beginning of 2012: Smolensk NPP in 2012 for non-compliance 2010 2011 2012 14,858 tons, at year’s end: 16,860 tons. under the water-protection law and standard Fees for permissible and above-quota pollutant emissions 9,862 8,765 9,691 Through waste treatment activities, nuclear regulations. No other nuclear plants were (discharge) (dumped production and consumption waste) plants in 2012 decontaminated five tons of subjected to any disciplinary penalties by waste of Hazard Classes 1 and 2 (top and monitoring and supervisory agencies, with Funds and penalties paid to compensate damage caused through 0 0 222.6 high hazard). 1,480 tons of waste of Hazard no lawsuits filed for environmental damage. failures under environmental law Classes 3–5 (medium hazard, low hazard, and no hazard) was used. 33,890 tons was Under applicable laws, penalties must be paid delivered to other businesses. 2,787 tons of for adverse impact on the environment as a evaluate quantitatively the impact of differ- dlovsk Oblast and Voronezh Oblast where Hazard Classes 3–5 waste was buried in pro- form of partial compensation for damage done ent industrial factors on the environment Beloyarsk NPP and Novovoronezh NPP re- prietary facilities. by the user to the environment. and human health. spectively are located.

All production and consumption waste is Environmental Risk Management During 2006–2012, IBRAE RAN conducted Rosenergoatom Concern OJSC considered placed in equipped grounds, special storage a whole range of research projects using risk the results of this analysis in determining its facilities, and its utilization is controlled by Today, risk analysis methodology is the most assessment methodology. Their comprehen- environmental policy and to improve its en- nuclear plants’ environmental services. efficient scientific approach that helps to sive research covered, among others, Sver- vironment management system (EMS). Rosenergoatom ANNUAL REPORT 2012 Section 6. Rosenergoatom 172 Concern OJSC Sustainable Growth Concern OJSC 173

Over the past ten years a very level of high For the Concern as an operator who ensures nuclear plant safety has been achieved, environmentally safe production of elec- helping to set standards of permissible ra- trical and thermal energy at nuclear plants, dioactive emissions and discharge to the en- improving its EMS and its certification for vironment, with individual exposure in criti- compliance with the provisions of interna- cal groups of citizens around nuclear plants tional standard ISO 14001 is an efficient way being negligible below the minimum dose to restate is commitment to the ideals of of 10 mcSv/year. environmental protection; it is also a chance to increase its competitive advantages and Actual gas-aerosol emissions from nuclear to better interact with Stakeholders and the plants during the past ten years never ex- public. ceeded 20% of permissible, while liquid radioactive dumps were 5% of permissible Key 2012 Results discharge. Such release of radionuclides into the environment (under 10–6 Sv/year) makes Adherent to its Environmental Policy to the radiation risk indisputably acceptable make its nuclear plants environment-friend- for the public, and thus actual emissions and ly, the Concern carried out the following im- discharge can be described as optimized. portant activities in 2012: Therefore, there is no need for activities to • Kalinin NPP upgraded its air treatment reduce radiation impact on the environment. system to filter pollutants in ventilation systems for solid radioactive waste stor- Ecological Suitability age (SRWS) and the special building; capital repair of the bed of the water Rosenergoatom Concern OJSC has developed storage facilities (waterline sections a programme of activities in key directions in- exposed to erosion by wind and waves cluding environmental protection and corpo- were strengthened); rate standards that represent objectives for • Kursk NPP accomplished all planned the near future and are aligned with the Con- activities to reduce discharge of phos- cern’s strategic concept to improve EMS. phates and nitrogen compounds to the River Reut. Working on the project “Ad- The Concern is always working to improve its ditional Treatment of Waste to Remove methodological documents and corporate Phosphates and Nitrogen Compounds standards (CS) on environmental safety and in Kursk NPP”, the sewage treatment protection. In order to bring nuclear plants’ facilities (STF) of phases 1 & 2 at Kursk environmental efforts into compliance with NPP launched phase two of filter fields Russian Federal law and standard regulation at for experimental operation; surface and 6 various levels, CS documents have been pre- ground water ecosystems around Kursk 6 pared and enacted, such as the “Main rules for NPP were monitored. A report was pre- organizing environmentally-friendly produc- pared entitled “Parameters of surface tion at nuclear plants”, “Methodological rec- and ground water ecosystems around ommendations for organizing environmental Kursk NPP in 2012, collected through monitoring at nuclear plants”, and others. environmental monitoring”.

Inspection and/or re-certification audits Environmental Audit and Certification were organized and examined certified sys- of Environmental Management System tems of environmental management at company headquarters and active nuclear plants surance of Nuclear Plant Environmental The nuclear plants that operated during To achieve its goals and observe the key prin- for compliance under international standard Safety” was prepared and enacted. 2012 remained totally compliant with all ap- ciples of its Environmental Policy, the Concern ISO 14001:2004. The effects of environmen- plicable standards and regulations of envi- has assumed the obligation to adopt and use tal certificates were confirmed. The company obtained approval from the ronmental law. the best methods of environmental manage- Federal Environmental Expert Panel for its ment under international and Russian stand- The regulation on competition “Best Spe- license request to operate power unit No. 4 ards on environmental management. cialist in Environmental Protection and As- Kola NPP at 107% of capacity. Rosenergoatom ANNUAL REPORT 2012 Section 6. Rosenergoatom 174 Concern OJSC Sustainable Growth Concern OJSC 175

6.3. Human Resource Management

As a responsible employer, Rosenergoatom Concern OJSC never stops caring about its employees’ working conditions and social welfare, trying to give them broad opportunities for career growth and occupational development. This helps the company to build and maintain optimized staff that is able to ensure the safe, stable, and economically efficient operation of its nuclear plants.

The goal of the Concern’s HR policy is to have There is no preference for local hires when • 3% of executive employees trained in HR Pool competent and highly skilled employees, both the company needs to fill key positions – corporate ethics procedures. at the present time and in the long term; this occupation-related criteria prevail. Working towards the priority tasks of its HR presumes the existence of an HR management Managing Employees’ Efficiency policy, Rosenergoatom has established a re- system able to rapidly and adequately respond Estimated Needs serve pool of employees trained to fill in top to the changing market environment. in Human Resources Since 2009, Rosenergoatom Concern OJSC executive positions. has used an Employee Efficiency Manage- Key Characteristics Under the programme to recruit, position, ment system that rests on assessing employ- In 2012, the company concluded its stra- of Human Resources and train personnel in active nuclear plants ees’ achievement of key efficiency ratios tegic reserve programme in the Electric and construction projects, the company’s (KER) and meeting the required level of Energy Division, launched to continue the Growth in the nuclear power sector, with HR needs through to 2020 are estimated at competencies. corporation’s project to create the Rosatom ever more new power units being built, is least 20,000 individuals (at least 2,000 indi- Gold Reserve of human resources. The pro- resulting in a shortage of highly skilled per- viduals to be hired annually). The system helps all employees focus on gramme is designed to educate executives sonnel as new jobs are created every year. efforts to achieve results that are most rel- who within three to five years will be able to Ethical Practice evant for the company, and ties their year contend for top administrative positions in The problem of access to a skilled workforce bonuses with their personal performance. branch companies. for newly built power units is resolved from Rosenergoatom Concern OJSC has prepared 6 both internal and external sources. and adopted: In 2012, 8,500 employees (at least 25%) had Currently, more than 20% programme par- 6 • A corporate ethics code; their performance assessed. KER targets for ticipants have been assigned top executive Use of internal sources includes personnel • An Ethics Regulation Panel; 2013 have been set for more than 9,000 em- positions. Many continued their training in rotation and a specialized HR pool estab- • Regulations on the Authorized Ethics ployees. sector-level programmes succeeding the lished in similar power units of active nu- Officer. Gold Reserve programme: “Heritage” and clear plants, with employees hired on top of Developing managerial “Capital”. staff quotas to be trained to enter key posi- All nuclear plants have formed their own competencies tions so that newly built nuclear plants can Ethics Panels and elected their own Author- At the end of 2012, an HR reserve of 270 ex- be manned in good time. ized Ethics Officers. In 2012, the company implemented two ecutive officers was created on the division large-scale programmes to develop manage- level. To build it, 822 employees had to take Engaging personnel from internal sources The main results of Ethics Code enforce- rial competencies: “Incentives” (50 train- remote examinations (tests), with 149 execu- saves money and reduces training time. ment in 2012: ing sessions with nearly 650 trainees) and tives and specialists involved in the work of • 23 statements of non-compliance filed “Record” (41 training sessions, with about the Evaluation Centers. Use of external sources includes the com- under the Ethics Code; 400 trainees). Training was also provided pany hiring graduates from colleges and • 8 Authorized Ethics Officers elected; under the “Speakers” programme and several universities, individuals retired from military • Employees took 72 hours of training on other programmes, including standalone ac- service, and other recruiting. ethical issues; tivities. Rosenergoatom ANNUAL REPORT 2012 Section 6. Rosenergoatom 176 Concern OJSC Sustainable Growth Concern OJSC 177

Personnel Involvement Curricula available from TAUs include aca- Training hours for NPP employees in 2012 demic studies in rules and regulations on Involvement is an emotional and mental the use of nuclear power, control of indus- Item Total Per employee condition that drives employees to do their trial processes of electrical power genera- best. tion at NPP, and practical studies on VR Total hours of in-house training (in TAU and units) 3,710,389 108.7 simulation equipment. Diagram of personnel involvement Total training hours with third-party providers 801,079 23.3

To hone practical skills of production pro- Total training hours, 4,511,468 132 Speaking Staying Achieving cess management, TAU centers have training hardware and equipment including • executives 862,173 138.1 comprehensive simulators. In 2012, the com- A study in 2012 showed that the aver- pany authorized the use of comprehensive • specialists and office 1,493,308 121.7 age involvement index for the Concern’s simulators for power units Nos. 3, 4 and 5 at personnel was 71%, or 7% above the 2011 Novovoronezh NPP, while a comprehensive • shop floor 2,155,887 138.2 figure. The head office and all nuclear plants simulator for power unit No. 4 of Kalinin adopted action plans to raise the efficiency NPP passed commissioning acceptance. * Gender-specific statistics not available. of specific HR management processes and improve personnel attitudes. Each employee group at nuclear plants must take annual training under qualifica- As required by regulations, NPP employ- clear plants. In 2012, the average month- Personnel Training tion maintenance programmes. Operating ees are periodically examined to prove ly paycheck in Rosenergoatom exceeded and Advanced Training personnel at control boards of nuclear plant their knowledge needed to perform their 60,000 rubles, or 2.5–3 times the average in units, must receive at least 92 hours of train- job functions. Examinations cover rules and the Concern’s regions of presence. A key factor that ensures safe and efficient ing annually, including 40 hours of practi- standards of nuclear energy use, industrial operation of nuclear plants is the compa- cal studies on simulators. For other person- safety, operation safety, radiation safety, fire- The company assists employees who desire ny’s use of a successful system of personnel categories in nuclear plants mandatory fighting, basic rules of nuclear plant opera- to own housing. More than 10,000 apart- nel training, re-training and skill manage- training is at least 20 hours. tion, job descriptions, and process manuals. ments are to be built by 2020. Mortgages ment. Employees receive training under are available on preferential terms at rates programmes developed by the Concern’s In 2012, employees in nuclear plants re- NPP personnel training also includes train- not higher than 7%, and even as low as 1% training units and by schools and providers ceived 3,710,389 hours of in-house training in psychology training provided by spe- for younger employees; interest-free loans of occupational training. ing from TAUs and nuclear plant units. On cialists of psycho-physiological support are also available, with deferred first install- the average, each employee in active nucle- laboratories (NPP PPSL). Specialists from ment. Under the corporate housing pro- On the average, each employee in the Con- ar plants received 108.7 hours of in-house among employees of the nuclear plants, gramme, the company built and distributed cern had 132 hours of training in 2012. training whose job functions require permits to be 909 apartments in 2012, including 370 in the employed in activities that involve the use town of Sosnovy Bor, 24 in Udomlya, 345 in Distribution of training hours per employee Rosenergoatom Concern OJSC employees of nuclear power, must take on-hire and Novovoronezh, and 70 in Zarechny. in active nuclear plants, year-on-year dynamics also receive annual training from third-party then annual mandatory psycho-physiologi- 6 occupational education providers. The main cal audits in NPP PPSL. Rosenergoatom Concern OJSC has always 6 135 providers of third-party education services regarded caring for its employees and their 119 for the Concern are schools such as CICE&T The logistic programme for NPP PPSL in families as an issue of the greatest impor- 105 (Central Institute for Continuing Education 2012 purchased and put in operation equip- tance. Its social programmes and policies in- and Training), MIFI National Nuclear Sci- ment and software complexes, for total clude voluntary medical insurance, a chance ence Research Institute, and Federal State worth over 5,250,000 rubles. to receive rehabilitative medical treatment, educational autonomic establishment of private pension plans, and an extensive pro- additional professional training “Petersburg In 2012, another PPSL was created in the gramme of entertainment and sporting ac- Power Institute of Professional Upgrad- Rosenergoatom Concern OJSC Branch Com- tivities. More detailed information on social ing”. In 2012, external training amounted pany - Directorate of Novovoronezh NPP-2 programmes available to Rosenergoatom to 801,079 hors, with 23 hours of external Construction Project. Concern OJSC employees can be found in 2010 2011 2012 training per employee. Section 6.5 “Social Policy”. Approach to Recruitment of High-Skilled The in-house training system for nuclear The cost of external training for employees Personnel for Nuclear Plants plants exists as training and apprenticeship in NPP and HQ Administration in 2012 was units at the nuclear plants (TAU) or directly 283,101,000 rubles, or 8,200 rubles per em- Timely and good paychecks are a key factor inside plant facilities. ployee annually. in recruiting high-skilled personnel for nu- Rosenergoatom ANNUAL REPORT 2012 Section 6. Rosenergoatom 178 Concern OJSC Sustainable Growth Concern OJSC 179

Total workforce breakdown by occupation, employment contract, and region *

Division 2010 2010, 2011 2011, 2012 2012, 2012 Total Total Total Full time, % Part time, % Employment Employment Men Women Men Women Men Women contracts, % contracts, % Type: Type: Permanent Fixed-term

HQ Administration 446 351 797 505 408 913 499 391 890 100 0 100 —

Balakovo NPP 2,859 1,060 3,919 2,771 1,023 3,794 2,768 955 3,723 100 0 100 —

Beloyarsk NPP 1,528 686 2,214 1,593 651 2,244 1,907 821 2,728 100 0 100 —

Bilibino NPP 504 234 738 486 224 710 483 190 673 100 0 100 —

Kalinin NPP 2,510 1,151 3,661 2,561 1,176 3,737 2,660 1,291 3,951 100 0 100 —

Kola NPP 2,060 546 2,606 2,029 553 2,582 2,046 547 2,593 100 0 100 —

Kursk NPP 3,473 1,587 5,060 3,381 1,402 4,783 3,370 1,149 4,519 100 0 100 —

Leningrad NPP 3,840 1,467 5,307 3,667 1,149 4,815 3,646 1,134 4,780 100 0 100 —

Novovoronezh NPP 2,515 827 3,342 2,303 760 3,063 2,333 775 3 108 100 0 100 —

Rostov NPP 1,312 553 1,865 1,402 613 2,015 1,499 666 2 165 100 0 100 —

Smolensk NPP 3,143 1,434 4,577 3,023 1,364 4,387 3,003 1,335 4 338 100 0 100 —

Total 24,190 9,896 34,086 23,721 9,323 33,043 24,214 9,254 33,468 100 0 100 —

* Contracts for season-specific activities (temporary employment) are not envisaged in the Concern.

Staff turnover, breakdown by gender and region *, % Total employed breakdown by age and regions, %

Division 2010, 2010 2011, 2011 2012, 2012 Division 2010 2011 2012 total total total under 35 35 retirees under 35 35 retirees under 35 35 retirees Turnover Turnover Turnover Turnover Turnover Turnover to 55 (60) to 55 (60) to 55 (60) ratio, ratio, ratio, ratio, ratio, ratio, women men women men women men HQ Administration 31.24 53.58 15.18 31.54 55.21 13.25 34.54 51.46 14.00

HQ Administration 9.36 4.8 4.56 9.4 4.8 4.6 5.03 2.40 2.63 Balakovo NPP 24.28 68.16 7.56 24.36 67.27 8.37 25.48 66.02 8.50

Balakovo NPP 3.8 1.69 2.11 3.37 1.5 1.87 1.11 0.23 0.88 Beloyarsk NPP 21.49 64.09 14.42 26.07 59.90 14.03 29.33 56.45 14.22

Beloyarsk NPP 1.1 0.42 0.68 4.68 1.81 2.87 1.07 0.24 0.83 Bilibino NPP 33.07 57.73 9.20 33.43 56.86 9.71 34.93 59.01 6.06 6 6 Bilibino NPP 6.4 2.43 3.97 7.6 2.89 4.71 4.62 2.56 2.06 Kalinin NPP 35.08 60.60 4.32 35.95 58.73 5.32 36.98 57.60 5.42

Kalinin NPP 4.5 1.62 2.88 4.84 1.74 3.1 1.68 0.67 1.01 Kola NPP 29.61 63.46 6.93 28.44 64.61 6.95 28.60 62.97 8.43

Kola NPP 4.9 1.51 3.39 4.49 1.4 3.1 1.14 0.33 0.81 Kursk NPP 28.04 64.40 7.56 28.82 64.17 7.01 30.19 61.58 8.23

Kursk NPP 0.7 0.17 0.53 5.29 1.32 3.97 1.43 0.41 1.02 Leningrad NPP 24.78 60.22 15.00 27.24 58.36 14.40 29.00 56.29 14.71

Leningrad NPP 2.4 1.17 1.23 4.59 2.29 2.3 1.49 0.32 1.17 Novovoronezh NPP 26.49 62.40 11.11 25.18 63.83 10.99 26.94 61.93 11.13

Novovoronezh NPP 0.02 0.0018 0.0182 6.82 0.68 6.14 1.29 0.25 1.04 Rostov NPP 35.91 62.33 1.76 35.84 63.24 0.92 40.69 54.66 4.65

Rostov NPP 0.8 0.26 0.54 5.66 1.88 3.78 0.92 0.52 0.4 Smolensk NPP 25.56 67.68 6.76 25.75 68.13 6.12 26.75 65.69 7.56

Smolensk NPP 0.5 0.21 0.29 6.15 2.62 3.53 0.99 0.34 0.65 Average 29 62 9 29 62 9 31 59 9

* Turnover ratio among younger employees (under 35 y.o.) was 1.7% according to the 2012 data Rosenergoatom ANNUAL REPORT 2012 Section 6. Rosenergoatom 180 Concern OJSC Sustainable Growth Concern OJSC 181

Men and women in employment, %

Subdivision 2010 2011 2012 Men Women Men Women Men Women

HQ Administration 56 44 55 45 56 44

Balakovo NPP 73 27 73 27 74 26

Beloyarsk NPP 69 31 71 29 70 30

Bilibino NPP 68 32 68 32 72 28

Kalinin NPP 69 31 69 31 67 33

Kola NPP 79 21 79 21 79 21

Kursk NPP 69 31 71 29 75 25

Leningrad NPP 72 28 76 24 76 24

Novovoronezh NPP 75 25 75 25 75 25

Rostov NPP 70 30 70 30 69 31

Smolensk NPP 69 31 69 31 69 31

Average 70 30 70 30 71 29

Share of younger employees (under 35 years) by categories, % Employees’ average age dynamics, year-on-year

Category 2010 2011 2012 2010 2011 2012

Managerial 7.56 7.9 8.5 Average age 42.9 42.4 42.3 Specialists 26.36 28.56 29.3

Office 6.79 6.86 6.99

Shop floor 28.51 28.66 29.1

Absence from work ratio, % Distribution of training costs per employee in HQ and NPPs, dynamics, 000 rubles

Subdivision 2010 2011 2012

HQ Administration 1.38 2.82 3.05 283,000

6 Balakovo NPP 0.49 0.35 2.2 248,736 6

Beloyarsk NPP 3.99 2.98 2.7 209,524 Bilibino NPP 0.40 0.50 2.68

Kalinin NPP 6.00 5.00 5.13

Kola NPP 3.60 3.10 4.4

Kursk NPP 3.80 3.40 3.17

Leningrad NPP 5.25 3.96 3.27

Novovoronezh NPP 3.85 3.69 1.5

Rostov NPP 2.00 2.00 1.94

Smolensk NPP 4.35 3.97 3.1 2010 2011 2012 Rosenergoatom ANNUAL REPORT 2012 Section 6. Rosenergoatom 182 Concern OJSC Sustainable Growth Concern OJSC 183

Accidents at active NPPs, year-on-year dynamics*

6.4. Labour Protection * S – serious; Division 2010 2011 2012 M – medium; L – light; Balakovo NPP 0 0 0 (M) – men; (W) – Women Ensuring safe working conditions for nuclear plant Beloyarsk NPP 1S (M) 1M 0 employees and contractor personnel is the Concern’s Bilibino NPP 0 0 0 key objective in labour protection, a major priority, Kalinin NPP 0 1S (W) 0

and one of Rosenergoatom’s operating principles. Kola NPP 0 1S (M) 0

Kursk NPP 0 1с (M) 0

Leningrad NPP 0 1 0

Injury Statistics Novovoronezh NPP 1(M) 0 1

In 2012, branch companies of Rosenergoat- Rosenergoatom Concern OJSC Branch Com- Rostov NPP 0 1S (M) 0 om Concern OJSC — active nuclear plants panies — nuclear plant construction projects Smolensk NPP 0 0 1S (M) had two accidents (including one serious ac- – registered one accident (Directorate of cident): Kostroma NPP Construction Project). Cause: Investments in labour protection, 000 rubles • June 25, at Smolensk NPP (serious ac- Traffic accident. Personal protection equipment 4.9.3 clinical prophylactic nutrition Individual protection device cident); 500 000

• June 30, at Novovoronezh NPP. In 2012, for the Concern, Кч = 0.086, Кт = 450 000 159.5. No occupational disease cases. 400 000 The accidents were caused by: 350 000 • failure to observe the production process; Accidents causing disability for one busi- 300 000 • design flaw; ness day and longer, including lethal cases 250 000 • employee’s non-compliance with opera- (LTI: line 01 of Form No. 7: injuries) at the 200 000 tion routine and discipline; Concern’s active nuclear plants in 2012 — 150 000 • inadequate organization of production; two victims. 100 000 • careless attitude of the victim. 50 000 Fact-based Injury frequency ratio resulting 0 Rosenergoatom Concern OJSC HQ had no in temporary disability in 2012: 0.039. accidents. en N PP Bal N PP Bel N PP Bil N PP Kln N PP N PP Kol Krsk N PP L N V PP Rst N PP S ml N PP

Dynamics of employee injuries, over years Management System Certification of Labour 6 under Occupational Health and Safety Protection Activities 6 Assurance Standard OHSAS 18001:2007 49 Light In 2012, the CertificationA gency’s Panel of 45 Medium In 2012, stage two of the occupational VNIIAES assisted by a representative of the Serious health and safety management system was central office of SSOT-Atom subsystem ex- deployed and successfully passed certifi- ercised inspection control of certified activi- 34 32 cation for compliance under international ties for labour protection at the HQ and the 30 standard OHSAS 18001:2007 at the nuclear active nuclear plants. 24 plants of Beloyarsk, Bilibino, Kola, Kursk, 22 Novovoronezh and Leningrad. The panel concluded that: 17 16 • labour protection activities at HQ and 14 13 Thus the occupational health and safety nuclear plants are compliant with fed- 9 9 management system under OHSAS eral law and regulatory acts on labour 8 5 4 7 5 5 18001:2007 is now used in all active nuclear protection; 4 4 4 4 4 3 3 2 3 3 2 2 3 2 plants. • the effect of the compliance certificate 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 for labour protection activities (safety 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 certificate) was confirmed. Rosenergoatom ANNUAL REPORT 2012 Section 6. Rosenergoatom 184 Concern OJSC Sustainable Growth Concern OJSC 185

Business results of investments OHSAS 18001:2007, the international health in labour protection and safety assurance standard, was success- 6.5. Social Policy fully adopted by the nuclear industry. Total investments in labour protection amounted to 2,665,066,000 rubles. Measures to intensify efforts in labour pro- As a socially responsible business, tection were carried out as planned. Rosenergoatom makes considerable Interaction with contractors investments in its employees, in labour protection Nuclear plants were audited by labour protection compliance teams on the 2012 to create good working conditions Work with contractors at active nuclear safety audits time schedule. and social welfare. plants goes in accordance with: • Standard Regulation on organization Work was organized to create uniform man- of nuclear plant interaction and contrac- agement of labour protection on nuclear tors on issues of labour protection plant construction sites. Under the Collective Contract, the Concern’s Rehabilitation at active power units; employees are entitled to voluntary health in- • Standard Regulation on safety audits Conclusions surance (VHI), private pension insurance (PPI), Every year, the Concern has activities for on repair sites. health-improving and sports programmes. personnel rehabilitation in departmental 1. The system of labour protection man- Great support is given to help recently hired clinics and health resort institutions. In Work with contractors on construction sites agement in Rosenergoatom works in ac- and retired employees realize their potential. 2012, for example, 11,003 persons received is part of an approved programme that en- cordance with applicable standards and Today, the Concern is the nuclear sector’s flag- health rehabilitation and treatment in 10 visages practical activities in 2013 to reduce regulations. ship company in welfare, HR, and other issues clinics at the nuclear plants, under reha- injury rates at construction projects of the 2. Problem-solving activities planned for related to development of the human factor. bilitation programmes to treat cardiovas- nuclear power sector. 2012 curbed the injury rates that peaked While the industry average is about 40,000 cular, musculoskeletal, nervous system, in 2011 at active nuclear plants, with pos- rubles of social spending per employee; the gastrointestinal, and other conditions. Main results of activities in 2012 itive outcomes: in 2012, the Concern’s figure is as high as 70,000 rubles in Rosener- Under voluntary medical insurance con- nuclear plants registered only 3 acci- goatom Concern OJSC. tracts, medical rehabilitation treatment To prevent injuries caused by failure to ob- dents compared to 7 in 2011. was accessed by 552 employees. Another serve rules of equipment operation and 3. To ensure further improvement of labour Health Protection, Rehabilitation, 7,162 individuals received health reha- repair at nuclear plants, and to promote re- protection, and to maintain the achieved and Aid to Personnel bilitation treatment away from home, in sponsible attitudes among personnel, the of injury-free operation and repair of rehabilitation institutions and resorts in company enforces directives and ensures equipment, nuclear plants need to be Voluntary insurance for employees 20 health centers on the Black Sea, the that the nuclear plants adopt a 3-stage con- more demanding of personnel with re- Mineral Waters area of the Caucasus, and trol system in labour protection for equip- gards to compliance with standards and Spending on voluntary medical insurance European Russia. The Concern’s total ment operation and repair, and use of indi- regulations applicable not only to labour amounted to 253.5 mln rubles in 2012. Em- spending on health rehabilitation and im- vidual safety tickets as penalty for violation protection, but also to operation and re- ployees receive medical services from medi- provement in 2012 amounted to 998 mln of rules of operation and repair. pairs. cal offices of the Hospital of the Federal rubles. 6 4. Nuclear plants were instructed to in- Bio-Medical Agency as regulated by the rel- 6 Heads of active nuclear plants attended a tensively use the system of individual evant law. Additional VHI policies are issued Aid to personnel workshop that discusses best practices in responsibility for failing to observe the to employees’ family members at a corpo- labour protection. rules of operation and repair. rate discount. Under the VHI programme, The mandatory employee training system employees and their family members can deployed at Rosenergoatom assumes that One of the Directorate meetings in 2012 receive special information, consulting, and employees not only improve their knowl- was focused entirely on efficient solutions medical assistance, not only locally or in edge of safety, but also gain first aid skills to problems in labour protection. their region, but also from institutions in useful both at work and at home. Moscow and St. Petersburg. The curricula and mandatory special train- Corporate spending under personal insur- ing system implemented in the Concern ance contracts in 2012 for all categories of improve employees’ occupational level, insured employees amounted to 295.7 mln and even make them more employable rubles. should they choose to leave the company. Rosenergoatom ANNUAL REPORT 2012 Section 6. Rosenergoatom 186 Concern OJSC Sustainable Growth Concern OJSC 187

Retirees are entitled to allowances paya- received private pensions. Spending on pri- In 2012, the Concern’s programme improved From the funds donated by the Concern ble under collective contracts. In addition, vate pensions amounted to 581 mln rubles. housing for 710 employee families. under charity contracts, MOOVK provided the Concern gives assistance to its retired Employee families whose housing conditions improved 5,515,000 rubles as financial aid to its mem- employees through the Inter-Regional At this time, 14,090 retirees of the Con- with the Concern’s assistance bers in difficult situations, including pur- Organization of Rosenergoatom Concern cern collect their private pensions from the chase of medicines and high-tech medical OJSC Veterans (MOOVK). Atomgarant Non-Government Pension Fund 2010 2011 2012 aid, gifts on special dates, etc. 13,137,000 (NPF). The average monthly private pen- 650 683 710 rubles were spent to purchase medicines Mass sports and athletic activities sion was 1,854 rubles, with a total of 236.4 and high-tech medical aid; and 6,974,000 mln rubles paid as additional allowances Veterans’ Movement rubles to buy services of health resorts and Rosenergoatom Concern OJSC pays a great by Atomgarant NPF to retired employees medical rehabilitation treatment for retirees. deal of attention to fitness, exercise, and in 2012. The co-financing programme now Taking care of its veteran employees is an 1,228 pensioners went to spas and resorts. sports, and various creative activities that covers 3,518 employees. important direction in the Concern’s social Veterans received nursing services, and pre- improve health and contribute to employ- policy. The main objective for the veterans’ sents on holidays and personal dates. Finan- ees’ quality of life. Currently, more than On January 1, 2012, private pensions indexa- movement is to maintain the achieved level cial aid was provided to retirees in 19,760 10,000 employees regularly practice in ath- tion adjusted pensions by 6% upwards for of cooperation with veterans, getting them cases. letic clubs and art groups. retirees previously employed by the admin- involved in activities of their choice, allow- istration and branch companies. ing them to share their experiences with Youth Policy In 2012, four large-scale corporate events younger specialists, providing skilled medi- were open to all employees: Spending of 713 mln rubles was budgeted to cal assistance, and helping them with daily Working with the younger generation is an • Sport NPP-2012 – the 7th Rosenergoat- finance PPI in 2013. chores. important aspect of Rosenergoatom Concern om Concern OJSC Summer Sports Rally OJSC social policy. Young employees cannot (hosted by Kursk NPP); Improving Housing The Concern honors the Agreement on be recruited unless they have access to good • Junior Sport NPP-2012 – the 6th Rosen- Conditions for Employees Social Protection signed with the Inter- working and recreation conditions, and a wide ergoatom Children and Teenagers Sports Regional Organization of Rosenergoatom range of social security services. Festival for a Prize (hosted by Rostov A comprehensive programme has been in Concern OJSC Veterans/Retirees (MOOVK), NPP); place since June 2012 to provide housing for under which: Activities and programmes under the youth • Baltic Energy – the 7th Tourist Rally of the Concern employees in 2012–2020, with • social, moral, and financial assistance is policy seek to: Employees of Nuclear Power Sector and 43 billion rubles of total financing to build provided to veteran employees, as well • promote the next generation’s role and Manufacturing Sectors (hosted by Len- 10,413 apartments. as medical aid and health improvement; creative initiatives in business manage- ingrad NPP); • social and other programmes are implement and improvements in production • Russia’s Lights – the 5th Festival of Pa- The Concern helps its employees with pur- mented to protect veterans; processes, promoting safety culture; triotic Programmes (hosted by Smolensk chasing permanent housing, and depending • veterans share experiences and skills • create favorable conditions for young NPP). on their needs they can request interest- with younger generation of employees, employees to continue their education free loans to pay the first mortgage install- impart their patriotic spirit, and pass on and occupational skills; In addition, 14 corporate tournaments in ment, and/or partial reimbursement of inter- their glorious traditions of work; • improve social and housing conditions; popular sports involved more than 1,000 est on the mortgage loan. • veterans are invited to work with the • create a mechanism to control, enforce 6 athletes from the Concern. public, including through the media, to and monitor the youth policy; 6 In 2012, the Concern adopted a procedure to promote the nuclear power industry; • create necessary administrative and Private Pension Insurance finance and manage the inventory of tempo- • inviting veterans to join feasible paid economic conditions to develop crea- rary corporate housing, used to accommo- work on temporary teams on assign- tive ability and organize young people’s In 2012, as new retirees by age, 860 former date employees and their families until they ments in research, production, etc., leisure; Rosenergoatom Concern OJSC employees have permanent housing. and other involvement in activities, to • create conditions to promote youth move- engage their vast occupational and life ments, and maintain contacts between PPI co-financing programme experiences. young employees at Rosenergoatom and other businesses and organizations. Item 2010 2011 2012 In 2012, the actual number of retirees in the Inter-Regional Organization of Rosenergoat- In 2012, the following events were notable Retired individuals 12,716 13,449 14,090 om Veterans (MOOVK) grew to 15,832 indi- in young employees’ life: viduals, including: 952 veterans of Chernobyl • the 8th International Tournament in Pensions paid, mln rubles 187.4 205.9 236.4 Disaster response teams, 674 World War II Brain Games: “What? Where? When?” veterans, war time home front veterans, and and “Brain Ring” among young employ- Total paid by the Concern to PPF to finance 453.5 519.3 581 pensions, mln rubles concentration camp prisoners, and 5,487 vet- ees of the nuclear power industry and eran employees of the nuclear power sector. manufacturing (Novovoronezh NPP); Rosenergoatom ANNUAL REPORT 2012 Section 6. Rosenergoatom 188 Concern OJSC Sustainable Growth Concern OJSC 189

• a delegation of young specialists from • a delegation of young specialists from Union Activities Rosenergoatom Concern OJSC partici- Rosenergoatom Concern OJSC participated in the 7th international youth en- pated in anoccupational contest among Rosenergoatom Concern OJSC has evolved units on the one part, and by chairpersons vironmentalist forum “Chernobyl Les- young specialists of Energoatom (Rovno an efficient system to interact with base- of trade unions on the other. The parties meet sons” (town of Slavutich, Ukraine); NPP, Ukraine); level trade unions in the nuclear plants and to discuss vital issues of employment and 6 • a delegation of young specialists from • the international science and technolo- HQ, all of which are united as the Asso- social policy, such as wage increases, medical 6 Rosenergoatom Concern OJSC joined gy conference of young nuclear special- ciation of base-level trade unions, and as insurance, working conditions, housing, youth the 25th international young nuclear ists “NPP Youth: Safety, Science, Pro- regards part of the Russian National Trade policy, veterans policy, and so on. sector employees symposium “Dysnai- duction” (Kalinin NPP); Union of the Nuclear Power Industry. The 2012” (Ignalina NPP, Lithuania); • the 10th international youth humor association helps to pursue an integral and The central event of the year is the annual • a delegation of young specialists par- festival between teams of the nuclear balanced policy that represents and protects corporate conference, convened to debate ticipated in the 2nd international inno- power industry “2012 Autumn Maxi- the lawful rights and interests of the Con- and approve the “Corporate Agreement of vation forum hosted by Rosatom State mum” (Beloyarsk NPP); cern’s employees. Rosenergoatom in Employment and Social Corporation (Kaluga Oblast); • a team from Rosenergoatom Concern Relations” – the result of joint efforts by • an integrated youth division composed OJSC appeared in the humour festival of As a form of interaction between the Con- unions and the employer. The Corporate of survey teams from Rosenergoat- youth teams representing businesses of cern’s management and the trade unions, Agreement regulates employer-employees om joined the inter-regional “Memo- the nuclear sector and profile colleges standing corporate meetings (SCM) on relations, and is the basis for collective con- rial Watch” summer events in Voronezh of the innovation consortium “2012 Ro- issues of social security, employment, and tracts later signed in all branch companies. Oblast; satom Cup” (city of Obninsk); recruitment have convened on a quarter- Collective contracts have been signed and • the 2nd tournament of the “Parliamen- • the “Homeland” patriotic assembly for ly basis since 2004 at one of the nuclear are effective in all operating nuclear plants tary Debate” game among young special- children and teenagers (Smolensk NPP). plants. Such meetings are attended by ex- and construction projects, and in the HQ ists of Rosenergoatom (Balakovo NPP); ecutives and employees from HR and social Administration. Rosenergoatom ANNUAL REPORT 2012 Section 6. Rosenergoatom 190 Concern OJSC Sustainable Growth Concern OJSC 191

Tax payments to budgets of federal, regional and local governments in places 6.6. Developing of residence of branch companies of Rosenergoatom Concern OJSC in 2012, 000 rubles Areas of Presence Region of presence Branch company Federal Regional Local Total budget budget budget

A social infrastructure of quality, high sala- In some regions, nuclear plants pro- Saratov Oblast Balakovo NPP 0 834,253.8 149,463.1 983,716.9 ries, skilled jobs, available sports and recrea- duce as much as 36.5% of total locally tion facilities should be the quality of life in generated power Sverdlovsk Oblast Beloyarsk NPP, 0 631,507.8 98,718.4 730,226.2 the Concern’s areas of presence. Directorate of Beloyarsk NPP-2 In addition, the Concern is actively involved Construction Project Fully aware of this, the Concern exerts con- in creation and fair distribution of economic siderable efforts and resources to support value. Chukotka Autonomous Bilibino NPP 0 289,719.9 52,267.0 341,986.9 sustainable growth in the areas of presence Okrug of nuclear plants: it helps to create infra- The Concern is a major taxpayer in its areas structure, assists nursery and pre-school of presence, and contributes to government Tver Oblast Kalinin NPP 0 1,639,055 87,644.6 1,726,699.5 facilities, schools, and medical institutions, budgets on every level. and helps to build and maintain housing and Murmansk Oblast Kola NPP 0 881,602 209,021.1 1,090,623.1 public recreation facilities. As a major tax- The Concern’s activities are a considerable Kursk Oblast Kursk NPP 0 1,528,172.5 125,398.8 1,653,571.3 payer to government budgets of all levels, influence as they create many skilled jobs in the Concern makes a significant contribution the nuclear and related sectors of economy, Voronezh Oblast Directorate of 0 1,091,254.4 126,332.3 1,217,586.7 to the long-term economic stability of Rus- which offer high income employment with Novovoronezh sia’s regions. good working conditions. NPP-2 Construction Project, Directorate of Voronezh NPP Economic Influence Each gigawatt of nuclear plant installed Construction Project capacity means a thousand-plus skilled The Concern’s economic influence on de- jobs in the nuclear sector, and at least Smolensk Oblast Smolensk NPP 0 1,330,133.1 137,862 1,467,995.1 velopment in its areas of presence is diver- 10,000 jobs in associated sectors. sified. The Concern contributes much to Leningrad Oblast Leningrad NPP 0 2,459,367.8 180,071.1 2,639,438.9 energy security of many regions. Rostov Oblast Rostov NPP 0 2,041,274 254,109.4 2,295,383.4 Value created and distributed by Rosenergoatom Concern OJSC according to Russian Accounting Standards, billion rubles Republic of Bashkortostan Directorate of 0 19,391.4 14,417.2 33,808.6 Bashkortostan NPP Construction Project No. Item 2010 2011 2012 Kaliningrad Oblast Directorate of Baltic 0 20,753.5 7,461.6 28,215.1 1 Created economic value 216.4 210.3 208.4 NPP Construction 6 Project 6 2 Incomes (sales revenues, gains from financial investments, and sold 216.4 210.3 208.4 assets) Kostroma Oblast Directorate of 0 7,664.7 34,333.9 41,998.6 3 Distributed economic value 102.3 131.2 142.3 Kostroma NPP Construction Project 4 Operating costs (payments to suppliers and contractors, cost of 65.3 92.4 98.5 purchased materials) Moscow HQ Administration 6,254,100 581,274.8 0 6,835,374.8 and Moscow-based 5 Salaries and other amounts and benefits for employees 21.5 24.2 26.2 branches

6 Payments to capital providers 1.2 0.2 0.7 St. Petersburg FTNPP (St. Petersburg) 0 1,163.6 0 1,163.6

7 Gross tax payment (before individual profit tax and ATV ) 13.9 14.0 16.2 Kamchatka Krai FTNPP (Vilyuchinsk) 0 102.1 0 102.1 8 Investments in communities, including donations 0.4 0.5 0.6 Nizhny Novgorod Oblast FTNPP (Nizhny 0 84.1 0 84.1 9 Retained economic value 114.1 79.0 66.1 Novgorod)

10 Contribution to GDP 117.8 109.8 Total 6,254,100 13,356,774.4 1,477,100.5 21,087,974.9 Rosenergoatom ANNUAL REPORT 2012 Section 6. Rosenergoatom 192 Concern OJSC Sustainable Growth Concern OJSC 193

Table. Numbers employed by nuclear plants and contractors Infrastructure components built in the Concern’s areas of presence

NPP Staff Contractor staff Area Infrastructure components built in the community thanks to NPP Balakovo NPP 3,723 2,000 Balakovo NPP, Town of 541,500 square meters of housing (11,481 apartments), three schools, 11 pre-schools, Beloyarsk NPP 2,762 3,595 Balakovo, Saratov Oblast gymnasium, medical office, medical clinic, shopping stores, pharmacies.

Bilibino NPP 676 500 Beloyarsk NPP, town of Under a programme to win the allegiance of local government and citizens, Zarechny, Sverdlovsk Oblast the company built and commissioned: the Young Engineers Club for children, Kalinin NPP 3,951 5,612 Aleschenkov Boulevard, Youth Theater, and a gas pipeline to the town of Zarechny. Kola NPP 2,633 3,000 Kalinin NPP, town of Udomlya Western bypass road 51.5 km long built, connecting Udomlya with the large municipality Kursk NPP 4,641 915 Tver Oblast of Bologoye. Bridges retrofitted in the villages of Gaynovo, Krasny May, and Manikhino. A potable water pipeline built to the north section of Udomlya. In 2011, a new 92-apartment Leningrad NPP 4,783 4,000 block commissioned under Rosenergoatom Concern OJSC mortgage programme.

Novovoronezh NPP 3,200 1,637 Kola NPP, town of Poliarniye Kola NPP financed construction of St. Trinity Cathedral, a 117-apartment block, and Zori, Murmansk Oblast supports operation of housing facilities. A boiler house built and put in operation by Rostov NPP 2,200 5,000 Atom-Housing managing company. The city stadium was repaired. The NPP maintains and develops the city’s sports infrastructure (alpine skiing, ice palace, ski track, training Smolensk NPP 4,484 1,504 equipment hall, and multi-purpose gym). A pre-school for 75 children was built and equipped. In its areas of presence, the Concern is most cilities in a region generally creates a strong often one of the largest employers and the multiplier factor for local economies in the Kursk NPP, town of Kurchatov, Construction of housing in Kurchatov (for 50,000 citizens), six secondary schools, 14 best paying one. High requirements for em- regions of presence. Kursk Oblast pre-schools, schools of arts, retail stores, canteens, cafés, hotel and restaurant, hospital compound with medical clinic, maternity hospital, and dentistry building, bakery, ployee skill level motivate the local labour Energetik – a unique sports facilities complex, embankment along the cooling water market to better train its human resources, Social Influence pool near the town, phase one of the municipal Culture Centre and thus the level of education also rises. The Concern’s activities have consider- Leningrad NPP, town of Motor road A-121 repaired, heavy-duty asphalt pavement made. A new stretch of road As a negative impact caused by higher than able social influence on its areas of pres- Sosnovy Bor, Leningrad Oblast 1.7 km long built complete with rainwater drains in A. Nevskiy Prospekt, between average salaries, the general price index ence. Large investments in infrastructure, streets Leningradskaya and Molodezhnaya; a 1.4 km motor road widened and paved tends to increase through the demand- housing built and maintained, improved between Leningradskaya and the NPP-1 mooring facilities. supply balancing mechanism, and affects housing conditions for employees, notable the buying capacity of other citizens in the social projects, programmes to interact with Novovoronezh NPP, town In 2012, to commemorate the 55th anniversary of the town of Novovoronezh, the region. schools, veteran and youth organizations – of Novovoronezh, Voronezh Concern financed repair of the central town square, with a water fountain built, had and this is far from a comprehensive list. Oblast repaired the façade of the Culture Centre, and installed CCTV in the streets. At the same time, the high salaries of nu- 6 The Concern supports construction of housing and infrastructure in the North Estate. 6 clear plant employees boost local consumer Investments in infrastructure form an impor- A managing company was established and now services apartment blocks and provides markets and related businesses, thus being tant aspect of the Concern’s social respon- utilities and public services: branch company of Atom-Housing. Novovoronezh, a positive factor for the local employment sibility. Its investment programmes typically AtomTeploSbit LLC. situation. include construction of social objects and infrastructure. Rostov NPP, town of Trunk pipelines and local supply networks, electrical power lines along motor roads, In addition, the presence of a nuclear plant Volgodonsk Rostov Oblast including lampposts along newly built roads, a surgery building for town hospital in the region can attract power-intensive Key infrastructure components in the home No. 1, service building for municipal dental clinic, a secondary school, a stadium in Molodezhniy district park area. production, which is another positive factor towns of nuclear plants were built even as for employment. the plant was under construction. The table below contains information about past in- Smolensk NPP, town of Most social facilities in Desnogorsk were built with assistance from Smolensk NPP; The Concern also considerably influenc- vestments into the development of infra- Desnogorsk Smolensk Oblast many units were previously assets on the corporate balance sheet. Direct aid from Smolensk NPP financed construction of an Orthodox cathedral in the town “Glad es growth in associated sectors, as a major structure. Tiding to All Mourners”; and a boxing club. buyer of products and services from domestic (largely local) suppliers. As a responsible employer, the Concern In 2012, State Corporation Rosatom and Smolensk Oblast signed a cooperation helps hundreds of families solve their hous- agreement under which additional financing will be available for the municipality of Desnogorsk to develop the area and support citizens. Therefore, the arrival of nuclear power fa- ing problems every year. Rosenergoatom ANNUAL REPORT 2012 Section 6. Rosenergoatom 194 Concern OJSC Sustainable Growth Concern OJSC 195

Families with improved housing conditions with the Concern’s assistance 6.7. Charity and Sponsorship

710 720 650 683 The goals of the Concern’s charitable and sponsorship programmes are to perform its social duties, consolidate 473 employees, and increase their responsibility and self-respect.

Rosenergoatom Concern OJSC has had dire straights, the disabled, Chernobyl charitable programmes since its incorpora- disaster responders, war and home front tion, and sees this as one of its best corpo- veterans, large families, etc.; rate traditions. • restoring and renovating places related to Saint Sergius of Radonezh and Sera- After years of cooperation, main principles phim of Sarov; preparations to cele- 2009 2010 2011 2012 2013 and terms of interaction have evolved be- brate 700th anniversary of Saint Sergius. tween the Concern and charity recipients. Church building in the towns of pres- Co-financing is one such principle: the Con- ence; cern partners up with other businesses and • support and promotion of sports and a In 2012, a new comprehensive housing • youth organizations in science and tech- organizations in practically every project. In healthy lifestyle, and patriotism; programme for the Concern’s employ- nology, occupational training, social ac- addition, the Concern’s charity projects have • events to improve social and sport infra- ees was adopted, planned for 2012– tivities and sports; inputs from private individuals, including structure in communities around NPP, 2020. During the period, more than • additional higher education, and ad- employees of nuclear plants and HQ Ad- landscaping; 625,000 square meters of housing is to vanced training programmes; ministration. • support for cultural projects that pro- be built -10,500 apartments. Housing • Housing for Youth project; mote moral values and responsibility. construction is one of key conditions • plans for career growth, and develop- Traditional directions for charity and spon- to recruit skilled labour – and this is ment of executive competencies. sorship include: Total spending on charity and sponsorship particularly important after large-scale • assistance to socially disadvantaged citi- in 2012 amounted to 586.6 mln rubles, on construction of new power units. Work with veteran organizations goes under zens – orphaned children or persons in these directions: the regulation on social support to retir- Work with schools in the areas of presence ees, former employees of Rosenergoatom includes career consulting for high-school Concern OJSC, and the regulation on vet- students, and support for profile training eran employees of the nuclear power sector. Spending on charity and sponsorship, mln rubles in colleges, hosting tournaments and con- Detailed information on work with veterans 6 tests. For example, the Concern is involved is available in par. 6.5 “Social Policy” of this 6 in annual vacancy fairs aimed at college stu- Annual Report. Charity and sponsorship category 2012 dents. It offers internships and apprentice- ships at nuclear plants. Unique projects in- Social programmes and projects designed to Traditional events under the charity and sponsorship policy 191.41 clude educational ones for school children, ensure good living and working conditions such as Children’s Nuclear Academy at Kola for employees and their families include: Industry-level programmes 209.19 NPP, Atom Class at Rostov NPP, a lecture cycle “My Job” for high-school students at • voluntary medical insurance; Leningrad NPP, and others. • health rehabilitation treatment; Charitable activities and sponsorship in nuclear plant locations (including aid to 186.0 retirees, persons in need, institutions for children, sports infrastructure, etc.) • private pension plans; Programmes for young employees of the • hosting cultural, entertainment, and Concern seek to create conditions for ef- sporting events. Total 586.6 ficient work and to help realize creative potential. Key directions for young specialists: Details on the Concern’s social programmes • A system of adaptation, training, and tu- are available in par. 6.5 of the Annual Report. torship for young specialists; Rosenergoatom ANNUAL REPORT 2012 Section 6. Rosenergoatom 196 Concern OJSC Sustainable Growth Concern OJSC 197

6.8. Interaction Interaction with Stakeholders with Stakeholders Stakeholders Interests Interaction procedure

Government (federal, subjects of Efficient and stable electrical power Presentation of Annual Report the Russian Federation,), local self- supplies, safe and open operations, through dialogues and public hearings. Through active dialogue with stakeholders government, supervisory agencies no negative environmental impact, Annual Report published on the Rosenergoatom Concern OJSC seeks to ensure social responsibility, leadership in corporate website. Publication of technology and innovations Annual Report, interactive version the highest levels of openness and transparency (website). Printed copies of Annual of its activities. Rosenergoatom Concern OJSC Report delivered by official mail. Publication of annual environmental maintains close contact with all stakeholders, reports with timely disclosure of relevant information on every operation-related aspect, and responds Stockholders (Rosatom State Achievement of targets (generation, Presentation of Annual Report Corporation, Atomenergoprom JSC) investments, safety, salaries, social through dialogues. Printed copies of to their requests and recommendations. programmes, operating efficiency). Annual Report delivered by official mail. Annual Report published on the corporate website. Publication of Annual Report, interactive version Approach to interaction (website) with stakeholders The Concern’s employees and trade Stable employment and good Notifications on the issued Annual The approach to interaction rests on the fol- • openness and transparency; unions paycheck, social security (including Report with a link to corporate page lowing principles: • mutually beneficial cooperation; pension), self-realization, tutorship, and interactive version of Annual • trust and sincerity; • regular constructive dialogue; personnel training, career growth, Report (website). Top management advanced training addressing the employees to present • partnership; • performing all obligations. Annual Report. Printed version of the report sent to divisions, branch companies, subsidiaries and controlled businesses. Stakeholder matrix and nature of interaction*

Rosenergoatom Citizens, communities, environmental Public relations, considering stakes, Presentation through dialogues and and NGOs proposals and expectations. Safe and public hearings. Press releases with a open operations, no adverse impact link to corporate page and interactive > on the environment, stable electrical version of Annual Report (website) Decisive Employees, Stockholders trade unions Government, power supplies, support in areas of influence presence, jobs, environmental projects zone General public, local communities, supervisory agencies environmentalists, not-for-profit Business partners, suppliers, and investments organizations prospective investors 6 Business partners, suppliers, Plans for development, government Presentation of Annual Report 6 > prospective investors support, assured stability of quality, through dialogues and public hearings. Considerable stable financial situation. Annual Report published on corporate Stockholders General public, website. Publication of Annual Report, influence Business partners, local communities, zone interactive version (website). Printed suppliers, environmentalists, copies of Annual Report delivered prospective investors not-for-profit organizations by official mail. Distribution at exhibitions and conferences. Press releases

> Government, Employees, Indirect supervisory agencies trade unions Mass media, analysts Open and safe operations, access to Presentation of Annual Report influence Mass media, analysts Mass media, analysts management, plans and outlooks, key through dialogues and public hearings. zone targets achieved, regular disclosure of Press releases with a link to corporate corporate information page and interactive version of Annual Stakeholders Report (website). Press conferences

* The matrix is regularly updated to consider opinions of corporate management and third-party experts. Rosenergoatom ANNUAL REPORT 2012 Section 6. Rosenergoatom 198 Concern OJSC Sustainable Growth Concern OJSC 199

Main Forms of Communication Information support for nuclear plant opera- and devices, including interactive multime- and Awareness tion is coordinated by Public Relations Cen- dia, and special tool kits for science experi- tres at each NPP. Reports on operation and ments. Main forms of communication and awareness social materials are published through corporate and local media, on local TV chan- Public Awareness Centres at nuclear • Public discussions nels, blogs, and so on. plants have a chain of Clean Energy clubs • Environmental reports as a meeting place for local reporters who Rosenergoatom • Media outlets General public In of the event of an emergency at a nuclear regularly write on the issues of the nuclear Concern • Special projects plant, there is a system of rapid information sector. The clubs organize interviews, press • Blogosphere and communities OJSC • Interaction to prepare exchange using community and regional TV conferences, and topical press tours. public annual reports and radio, press agencies, press services of governors and regional governments, the Public Opinion regional offices of the Ministry for Emergen- Polls cies and the police. This system is used not Public Discussions first time, public presentations of such re- only in case of emergencies, but also on at- The Concern’s management emphasizes the ports were made in every region where nu- tempted hack attacks and misinformation. importance of public opinion on issues of In strict compliance with the laws of the clear plants are situated. development in the nuclear power sector. Russian Federation, when planning its activi- It is accepted practice to organize press ties that can have considerable impact on For details about the results of environmen- tours and visits to nuclear plants, inviting re- In March 2013, the Levada Centre again the environment and the local public, Ros- tal impact and implemented environmental porters not only from the Russian press, but polled Russian citizens to learn what they energoatom Concern OJSC initiates public policy, please see Section 6.2. “Environmen- international media as well. think about nuclear power, using a repre- discussions that invite participation from tal Impact”. sentative national sampling that covered experts representing R&D and designers, In 2012, emergency drills of Rosener- urban and rural respondents: 1,601 individu- supervisory agencies, federal, regional, and Media goatom Concern OJSC involved em- als aged 18 and older, in 130 communities of local government agencies, NGOs, environ- ployees of public awareness centres 45 regions nationwide. mentalists, the press, and the broader public. Information about nuclear plant operation (PAC) at nuclear plants of Kola, Kalinin, and the radiation situation in the communi- Smolensk, Leningrad, Beloyarsk, Kursk, The results of the poll show that the nu- Any public discussion is a set of activities around them is available without delay and Rostov. clear phobia that emerged in 2011 following ties used to assess environmental impact as press releases and reports published the Fukushima disaster has been success- from planned business or other activities. on the corporate website and the nuclear To cover a comprehensive drill, Kursk fully overcome and that people see nuclear Discussions have the purpose of inform- plants: www.rosenergoatom.ru. NPP invited more than 30 representa- power as the only real alternative to fossil ing the public about planned activities, and tives from printed and digital media, fuels. their possible impacts on the environment, The website www.russianatom.ru publishes including foreign observers. to identify public preferences and consider information on radiation monitoring at Rus- Blogosphere them for impact assessment, and to protect sian nuclear plants in real time. Special Projects the rights, liberties, and lawful interests of In 2012, in a series of other blogs, Rosatom 6 citizens within areas targeted for specific Multi-channel voice Awareness campaigns addressing the gener- State Corporation launched the blogs of 6 business operations. mail service al public are seen as one of the most impor- General Director of Rosenergoatom (http:// tant directions for public interaction. Public publicatom.ru/blog/romanov/) and nuclear Overall, in 2012, in Rosenergoatom Con- Balakovo NPP: (845-3) 62-22-20 Awareness Centres in the areas around nu- plants (http://publicatom.ru/blogs/). They cern OJSC’s areas of presence of the com- Beloyarsk NPP: (34377) 3-61-00 clear plants have displays and show rooms are used to publish information about nu- pany held 13 public discussions resulting in Kalinin NPP: (48255) 6-87-87 that are visited by 3,000-5,000 people every clear plant operations, and to answer ques- licenses issued for various activities: place- Kola NPP: (81532) 4-48-88 year. Special education projects are also im- tions from the public. ment, construction, operation, increasing Kursk NPP: (47131) 5-65-55 plemented, such as the ‘Nuclear Academy capacity of power units, including at the nu- Leningrad NPP: (81369) 5-55-55 for Children’ (Kola NPP), “Kurchatov Public Interaction as this Annual Report clear plants of Rostov, Novovoronezh, Balak- Novovoronezh NPP: (47363) 7-37-37 Readings for Children” (Beloyarsk NPP), and was Prepared ovo, and Beloyarsk. These activities involved Rostov NPP: (8639) 23-61-77 “Today’s Fiction is Tomorrow’s Reality” (Ka- more than four thousand individuals. Smolensk NPP: (48153) 3-21-24 linin NPP), addressed to students of differ- The 2012 Annual Report is the fifth integrat- ent age groups. This includes a unique pro- ed report published by the Concern. In the Environmental Reports In addition, all nuclear plants have 24/7 ject called “Atom Class”, implemented first context of its construction, “Safety of the voice mail service that publishes daily up- in 2012 in one of the secondary schools in Russian Nuclear Sector” was selected as the Every year, each nuclear plant issues an dates on the nuclear plants and radiation Rostov-on-Don. Under the project, a physics priority issue of the Report. annual environmental report. In 2012, for the environment. laboratory will receive advanced equipment Rosenergoatom ANNUAL REPORT 2012 Section 6. Rosenergoatom 200 Concern OJSC Sustainable Growth Concern OJSC 201

Levada Centre poll on dynamics of Russian citizens’ perception of nuclear power, %

According to you, the nuclear power sector must be: actively promoted, kept at the present level, reduced, or abandoned altogether? 40

0 2008 2009 2010 2011 2012 2013

actively promoted kept reduced abandoned I don’t know at the present altogether level

This Annual Report was guided by the rules Emergencies” took place on April 9, 2013 in total of 34 perople. During public consulta- of sustainable growth reporting found in the building of VNIIAES in Moscow. During tions the parties had the opportunity to ex- the Global Reporting Initiative (GRI, version the dialogue, participants not only asked amine the draft report that considered com- 3.1) and Technical Protocol for the electric questions about information disclosure in ments and proposals offered by stakeholder power sector (GRI Electric Utility Sector the Concern’s Annual Report, but also had a representatives during previous dialogues. Supplement). hands-on experience when they visited the Both stakeholders and experts spoke of the Concern’s Crisis Centre. high quality of the 2012 Annual Report from Key stakeholder representatives were in- Rosenergoatom, and the exhaustive disclosure volved in dialogues to discuss selection and During Dialogue No. 3 titled “Public Aware- and compliance with international and indus- 6 coverage of most significant aspects of the ness and Alerts” on April 9, 2013, stake- try-level standards of Public Accountability 6 Concern’s operations; they also actively par- holder representatives could interactively Policy. Parties to the dialogue also stated that ticipated in public affirmation of the report. examine the Concern’s efforts to keep the all their recommendations and proposals on public informed and aware. Their comments information disclosure were considered in the Dialogue No. 1 on “Discussing Concept of and proposals to improve the system were report; they also raised some new proposals 2012 Annual Report of Rosenergoatom” later considered, including when this report (see the table below). with stakeholders took place on January 31, was prepared. 2013. The concept of the Concern’s Annual Report was presented to all parties attend- Public Consultations ing, and each had a chance to speak and make comments and proposals. As a result Public consultations on discussion of the of the dialogue, the concept of the Annual draft public Annual Report of Rosenergoatom Report received a number of significant Concern OJSC for 2012 took place on May 17, changes (see the Table). 2013. The event involved the Concern’s top executives, representatives of the government, Dialogue No. 2 titled “Rosenergoatom Con- supervisory agencies, business partners, the cern OJSC System to Prevent and Eliminate public, environmentalists, and the media – a Rosenergoatom ANNUAL REPORT 2012 Section 6. Rosenergoatom 202 Concern OJSC Sustainable Growth Concern OJSC 203

Considering material comments and proposals offered by stakeholders

Material comments raised during dialogues and public consultations and considered in the 2012 Report

Questions, comments, proposals Comments and proposals considered Questions, comments, proposals Comments and proposals considered

Stockholders (Rosatom State Corporation, Atomenergoprom JSC) Citizens, communities, environmental monitors, NGOs

Safety in the nuclear power sector to be selected as a priority “Safety of Russian nuclear power sector” is the Give more details on sustainable growth Considered in Section 6 “Sustainable growth” issue priority issue of the report Cover in-depth SNF generated annually Considered in Section 6.2 “Environmental Impact” Report to include references to GRI indicators Will be considered in future Cover competitive ability and efficiency after Russia joins the Consequences of WTO membership on the Provide information on the Concern’s innovative activities and Considered in Section 3.6 “Innovative Activities” WTO Concern’s operations and competition will be R&D deliverables disclosed in future

Business partners, suppliers, prospective investors Annual Report to pay special attention to safe, reliable and Section 3.3 “Assuring Safety of Russian NPPs. efficient operation of nuclear plants, environment-friendly Radiation Impact on Personnel and Citizens” Annual Report to cover the Concern’s contribution to municipal Considered in Section 6.6 “Developing areas of nuclear energy infrastructure in host communities presence” Environmentalist Organizations Disclose information on social programmes, career growth and Considered in Section 6.3 “HR management” personnel training Annual Report to focus on safe, reliable and efficient operation of Consequences of WTO membership on the nuclear power sector as a priority issue. Describe the Concern’s Concern’s operations and competition will be Annual Report to emphasize safety assurance. Provide details on Considered in Section 3.7 “International Activities” competitive ability and efficiency after Russia joins the WTO. disclosed in future. international activities Public consultation to be broadcast online Feasibility of dialogue webcasts will be examined Government (federal, Subjects of the Russian Federation, local self-government, supervisory agencies) Employees, trade unions Annual Report to cover social topics related to the Concern’s Considered in Section 6.8 “Interaction with efforts to develop awareness centres in the regions of presence stakeholders” More coverage of the Concern’s social policy, mention events Additionally covered in Section 6.5 “Social policy” of significance for nuclear plant employees, sports and culture and Section 6.6 “Developing areas of presence” As a priority, Annual Report to cover safe and reliable operation “Safety of Russian nuclear power sector” is the activities of nuclear plants priority issue of the Report Describe innovative technologies used by the Concern. Cover the Additionally covered in Section 6.5 “Social policy” Annual Report to cover results of Rostekhnadzor audits in 2012, Considered in Section 3.3 “Assuring Safety of Russian Concern’s anniversary. Describe initiative to create an association and Section 6.6 “Developing areas of presence” and corrective action by Rosenergoatom NPPs. Radiation Impact on Personnel and Citizens” of nuclear communities. Disclose the Concern’s plans for social activities Media, Analysts

More attention on disclosure of sustainable growth activities Considered in Section 6 “Sustainable growth”. Number of reported indicators expanded. Progress with comments on 2011 Annual Report 6 6 Cover the situation with power unit No. 1 of Leningrad NPP Considered in Section 3.5 “Maintenance and repair” Stakeholder questions, comments, proposals As promised for 2012 Progress as regards 2011 Report, compliance progress Additionally interpret environmental radiation safety indicators Considered in Section 3.3 “Assuring Safety of Russian to make report data more informative NPPs. Radiation Impact on Personnel and Citizens” A wider list of stakeholders to be invited for Will be considered in Dialogues on 2012 Annual Report involved public consultations on the Annual Report, future dialogues more parties, included more representatives Provide details on results of innovative activities. Will be done in future including parties opposed to nuclear power of media and environmentalists Cover activities to promote the nuclear sector Will be considered in Extra information provided on NPP Public Provide details on future needs in human resources: numbers, Future reports will describe the Concern’s HR next Annual Report Awareness Centres. Dialogue on public skill levels. strategy in more detail awareness and informing

Provide details on the Concern’s contribution to WANO Considered in Section 3.7 International Activities The Concern’s expert assistance needed to Will be considered as Information support, including expert activities work with stakeholders in areas with new NPP activities begin in new (methodological) assistance, construction of construction sites regions new nuclear power units, by the Concern’s Disclose more comparative data on impacts from various type of Will be considered in future. Department of Information and PR, and NPP power generation on environment. Public Awareness Centres Rosenergoatom ANNUAL REPORT 2012 Section 6. Rosenergoatom 204 Concern OJSC Sustainable Growth Concern OJSC 205

6 6

Construction site of power plant No.4 of Kalinin NPP, 2011 Rosenergoatom ANNUAL REPORT 2012 Section 6. Rosenergoatom 206 Concern OJSC Sustainable Growth Concern OJSC 207

Conclusion on the Public Consultation Rosenergoatom’s Annual Report Rosenergoatom

Preamble As a merit of the Report, we should note that or in its communications with stakeholders, operation of nuclear plants are para- during the procedure of public consultation, and publish it without any changes. mount for all stakeholders. Rosenergoatom Concern OJSC requested that Rosenergoatom Concern OJSC adhered to • The report uses both Russian and in- we should assess its 2012 Annual Report, the provisions of international standards (Guid- Value statements, comments, ternational accounting standards, thus completeness and relevance of information ance on Reports of Sustainable Growth, and recommendations making it comparable to other busi- therein disclosed, and the response to stake- Global Reporting Initiative (GRI, Ver. G3.1), nesses. In 2012, the number of perfor- holders’ proposals and inquiries to Rosener- series АА1000 Institute of Social and Ethical Based on our analysis of the report, public mance indicators disclosed was consid- goatom Concern OJSC. Accountability); however, our conclusion has domain information posted on the Rosen- erably expanded. We express our shared no objective to confirm the report’s compli- ergoatom Concern OJSC corporate website, positive evaluation of the report, both We have the required competencies in cor- ance with international reporting systems. and discussion of the results of an inde- its format and the scope of information porate liability, sustainable growth, and non- pendent evaluation of the report, we do therein presented. financial reports, and while we observe ethical This conclusion is based on a comparative confirm the following: • As it prepared its Annual Report, Ros- prerequisites of independent and objective analysis of two versions of the report (the draft energoatom Concern OJSC responded judgment, we express our personal opinion as for public consultation and the final version), • In its report, Rosenergoatom Concern to opinions, inquiries and recommenda- experts, but not as corporate entities of which the materials furnished to us with the results OJSC discusses all important issues of tions offered by stakeholders involved we are representatives. of recent dialogues and hearings, minutes of relevance to stakeholders, including as- in the concept report discussions and meetings, and a table with considered stake- pects of nuclear plant safety, environmen- dialogues. For this purpose, we and our representatives holders’ comments, as well as explanations tal impact, social security, economy in the were furnished with following materials: the provided by Rosenergoatom Concern OJSC Concern’s regions of presence, and effi- While we speak of strong points in 2012 draft and final version of the 2012 Annual executives and employees during this public cient systems of management. The report Annual Report of Rosenergoatom Concern Report, and minutes of the dialogues. In addi- consultation on the report. sufficiently represents strategic develop- OJSC, we must also point out certain as- tion, we were offered an opportunity to par- ment priorities for Rosenergoatom Con- pects of relevance and completeness, seen ticipate in public consultations that discussed We are unaware of any facts that would make cern OJSC, and describes its approaches as important by stakeholders, and we rec- 6 the draft report, held on May 17, 2013, and in us question any information contained in the to principles of responsible business. ommend that they should be considered in 6 dialogues with stakeholders (January 31, 2013 report. However, during this public consulta- • The report contains significant infor- subsequent reporting cycles: in Moscow, dialogue to discuss the Annual tion, we did not review the system of informa- mation, encompasses areas relevant for Report concept, attended by 27 stakeholder tion gathering and analysis in Rosenergoatom stakeholders, and discusses key areas • We think it would be important to pay spokespersons; April 09, 2013 in Moscow, Concern OJSC; nor did we examine its report- of the Concern’s responsible business more attention to the description of the dialogue on “Rosenergoatom Concern OJSC ing processes. The accuracy of the report’s practices. All aspects of activities of Concern’s strategy, including its goals on System to Prevent and Eliminate Emergen- content is the responsibility of Rosenergoat- Rosenergoatom are disclosed with a rea- sustainable growth, and to describe the cies”, attended by 20 stakeholders; April 09, om Concern OJSC; whether or not any data in sonable level of detail. The report states Concern’s consistent progress towards 2013 in Moscow, dialogue on “Public Informa- the report is true is not a matter for this public the mission, values, strategy, sustainable such goals. tion and Awareness”, attended by 20 stake- consultation. We have not received any reward growth policy, and corporate governance • More attention should be given to the holder spokespersons; and May 17, 2013 in or remuneration from Rosenergoatom for our system, with achieved objectives in busi- description of the Concern’s contribu- Moscow, public consultations to discuss the participation in the public consultation proce- ness, social and environmental issues tion to local economies, including crea- draft public Annual Report of Rosenergoatom dure. described by a wide range of indicators. tion and development of infrastructure Concern OJSC for 2012). During the events, We believe that the topic of “Safety of in small communities nationwide. all participants and stakeholder representa- The text of this conclusion has been coor- Russian nuclear power industry” was • Information on the management of non- tives were able to ask questions and state their dinated with all signatories. Rosenergoatom correctly chosen as the priority issue for financial risks (environmental, social, opinions. Concern OJSC may use it for internal purposes the Annual Report, since aspects of safe etc.) needs to be more detailed. Rosenergoatom ANNUAL REPORT 2012 Section 6. Rosenergoatom 208 Concern OJSC Sustainable Growth Concern OJSC 209

Most questions raised by key stakeholders things, by the modified final version of the Chairman, subcommittee for legal support V.T. Potsyapun were answered in the course of dialogues Annual Report that elaborates and provides to the nuclear power industry, Panel and public consultations. In addition, the additional information, with removed vari- on power industry in the State Duma Concern amply uses all means available ous technical errors and flaws indicated by of the Federal Assembly today (including the Internet) to communi- the participants during the events. cate its position and relevant information to its stakeholders. Therefore, we believe For example, the Concern elaborated, speci- First Deputy Director, Kurchatov Centre Yu.M. Semchenkov of Nuclear Technologies, “Kurchatov Institute” that further expansion of the report’s scope fied and amended as requested, the Sec- would be unreasonable. tions “Assuring nuclear and radiation safety”, “Personnel Management”, “Developing the Director, Moscow Regional Office, ANOW M.V. Chudakov Interaction with stakeholders areas of presence”, etc. The report pays spe- of Rosenergoatom Concern OJSC, cial attention to issues of sustainable growth and consideration of their comments with a separate section now devoted to it. Executive Director, Green Patrol Russian A.A. Markov and request Sustainable growth indicators have become National Non-Government Organization considerably numerous and detailed.

During its activities that involved stakehold- Therefore, the Concern fulfilled the obliga- Chairperson, Oka Inter-regional A.V. Khasiyev ers in January through May of 2013, Rosen- tions it assumed with the previous Annual Environmentalist Movement ergoatom Concern OJSC furnished ample Report, where it intended to include de- information about its strategic goals and tailed and exhaustive information in its sub- objectives, operation results, improvements sequent Annual Reports. Head of urban district of Novovoronezh Yu.I. Pegusov of its safety system, and contribution to its areas of presence. Involvement of Rosen- In certain aspects, the company either prom- Head, Centre of Corporate Social E.N. Feoktistova ergoatom Concern OJSC in such dialogues ised to disclose information requested by the Responsibility and Non-Financial Reporting, and public discussions of its draft Annual stakeholders in subsequent reports, or it pro- the Russian Union of Manufacturers and Report, confirms the company’s high com- vided relevant grounds for non-disclosure. Entrepreneurs mitment to ensure performance acceptable for the public and the environment. The Thus, as the final version of the 2012A nnual management of Rosenergoatom Concern Report was prepared, the management of Chairman, Russian Trade Union I.A. Fomichev OJSC is aware of how important interaction Rosenergoatom Concern OJSC demonstrat- of Employees of Nuclear Power Industry with stakeholders is, and develops forms and ed a high degree of openness, and construc- methods of such interaction, using among tively responded to stakeholder comments other things interactive methods of infor- and requests, including problems raised. It Director, Institute for Safe Development L.A. Bolshov of Nuclear Energy under RAS, Science mation and exchange with a wide range of is our hope that in future Rosenergoatom Research and Coordination of Future stakeholders: the General Director’s blog, Concern OJSC will continue active develop- Developments virtual reality visits, etc. ment of its system of public reporting and 6 interaction with stakeholders. In view of the 6 Response by Rosenergoatom above, we state our favorable perception of Chairman, Inter-Regional Public S.I. Baranovsky Concern OJSC the report filed by Rosenergoatom Concern Environmental Organization “Green Cross” to stakeholders’ comments OJSC, and our support for Rosenergoatom’s commitment to the principles of responsi- Our analysis demonstrates that Rosener- ble business practices; we also acknowledge Head, “Council of Territories” public A.A. Zhuravleva organization for support of Baltic NPP goatom Concern OJSC has actively respond- that the 2012 Report filed by Rosenergoat- Construction Project ed to stakeholders’ questions, comments, om Concern OJSC passed public affirmation and proposals, as proved, among other successfully. First Deputy, Editor in Chief, M.G. Filimonov FGUP RAMI RIA Novosti

President, International Association E.G. Churkin of Young Nuclear Specialists, NGO Rosenergoatom ANNUAL REPORT 2012 Rosenergoatom 210 Concern OJSC Concern OJSC 211 - Appendices

• Details and Contacts • Table of Standard Components of Sustainable Growth Reports Guidance under the Global Reporting Initiative (GRI), RUME • System of Public Reporting Indicators at Rosenergoatom • Auditor’s Opinion on Non-Financial Reports • Statement by the Rosenergoatom Internal Control and Audits Department on the Results of an Internal Audit to Examine Rosenergoatom’s Process of Generating Public Reports • Business/Financial Accounting Statements • Auditor’s Report Certifying Annual Business Accounting Statements • Auditing Committee Statement on the Results of Review of Financial and Business Activities of Rosenergoatom Concern OJSC for 2012 • Report on the Concern’s Compliance with Provisions of the Corporate Conduct Code recommended by the Federal Financial Markets Service • Active nuclear power units connected to the grid • Installed Capacity and Electrical Power Generation by Russian Nuclear Plants in 2012, by Power Sources and Geography (Regions of Russia) • Glossary • Abbreviations Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 212 Concern OJSC Concern OJSC 213

Details and Contacts Table of Standard Components of Sustainable Growth Reports Guidance under the Global Reporting Initiative (GRI), RUME Full and short corporate names Open Joint Stock Company “Russian Concern for Production of Electric and Thermal Energy at Nuclear Power Plants”

Location Rosenergoatom Concern OJSC, Rosenergoatom

Contact telephone 109507, Moscow, ul. Ferganskaya, 25

Fax 8 (495) 647-46-03

Email [email protected] GRI GRI Report Guidance component Full disclosure/ Report Report Sections Website www.rosenergoatom.ru index comment pages

Auditor Open Joint Stock Company “Russian Concern for Production 1 Strategy and analysis of Electric and Thermal Energy at Nuclear Power Plants” 1.1 Statement from the most senior ● 14-17 Address by Chairman Rosenergoatom Concern OJSC, Rosenergoatom decision-maker of the organisation. of Council, General Director 109507, Moscow, ul. Ferganskaya, 25 1.2 Description of key impacts, risks and ● 164 6.1. Public position in Registry Keeper Keeping the Registry of Holders of the Concern’s registered opportunities sustainable growth securities is the function of Registrator R.O.S.T. OJSC. Details of the Concern’s Registry Keeper: 2 Description of corporate entity Full name: Registrator R.O.S.T. Open Joint-Stock Company. 2.1 Name of organisation ● 26 1.1. General Information Location: Moscow, ul. Strominka, 18, bldg. 13. License: No. 10-000-1-00264, issued by FCSM of Russia on December 03, 2002. 2.2 Primary brands, products, ● 26 1.1. General Information and/or services Stockholders 1. Atomenergoprom JSC — 96.4150%. 2.3 Operational structure of the ● 28 1.3. Corporate Structure 2. Rosatom State Corporation — 3.5850% organisation, including main divisions, operating companies, subsidiaries, Subsidiaries and affiliates Subsidiary entities: and joint ventures Atomenergoremont OJSC — 100% Atomenergosbit OJSC — 100% 2.4 Location of organisation's ● 212 Appendix. Details Energoatominvest LLC — 100% headquarters and Contacts UKS OJSC — 100% (in bankruptcy) ENIC OJSC — 100% 2.5 Number of countries where the The Concern 108 3.7. International Activities Baltic NPP OJSC — 100% organisation operates, and names operates in 7 IKAO CJSC — 100% of countries with either major countries BNPP-2 OJSC — 80.6% operations or that are specifically VNIIAES OJSC — 75.002% relevant to the sustainability issues Rusatom Service CJSC — 52% covered in the report Atomtechexport CJSC — 51% 2.6 Nature of ownership and legal form ● 212 Appendix. Details Affiliates: and Contacts Termoxid PNF CJSC — 44.90% appendices appendices ASE CJSC — 47.78% 2.7 Markets served (including geographic ● 40-71 3.1. Position in the Industry KONSIST-OS CJSC — 25% breakdown, sectors served, and types Energoatominvest NPO CJSC — 24% of customers/beneficiaries).

2.8 Scale of the reporting organisation. ● 26, 28 1.1. General Information 1.3. Corporate Structure

2.9 Significant changes during the ● 9-10, Information reporting period regarding size, 128-130 about the Annual Report structure, or ownership 4.2. Corporate Management System Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 214 Concern OJSC Concern OJSC 215

GRI GRI Report Guidance component Full disclosure/ Report Report Sections GRI GRI Report Guidance component Full disclosure/ Report Report Sections index comment pages index comment pages 2.10 Awards received in the reporting ● 135 The Concern’s 2011 Annual 3.8 Basis for reporting on joint ventures, Information and 9-10 Information period Report won several Russian subsidiaries, leased facilities, data in the report about the Annual Report awards in 2012: outsourced operations, and other describe the • 3rd in nomination “Power entities that can significantly affect activities of the Industry’s Best Report” in comparability from period to period Concern and its Corporate Annual Reports and/or between organisations. branch companies Open hosted by Krasnodar (nuclear plants Krai Government under annual Sochi International 3.9 Data measurement techniques and ● 9-10 Information Investment Forum; the bases of calculations, including about the Annual Report • 2nd in nomination “Best assumptions and techniques Interactive Annual Report”, underlying estimations applied to hosted by RA Expert; the compilation of the Indicators and • 1st in nomination “Best other information in the report. Interactive Annual Report”, 3.10 Explanation of the effect of any No rephrases 10 Information by Moscow Exchange; re-statements of information about the Annual Report • 3rd in industry-level rating provided in earlier reports, and the of Year Reports in Rosatom reasons for such re-statement (e.g. State Corporation mergers/acquisitions, change of base 3 Report Parameters years/periods, nature of business, measurement methods). 3.1 Reporting period (e.g. fiscal/calendar 2012 9-10 Information year) for information provided. about the Annual Report 3.11 Significant changes from previous No essential 10 Information reporting periods in the scope, changes from about the Annual Report 3.2 Date of most recent previous report The Concern’s Information boundary, or measurement methods previous reporting (if any). previous report was about the Annual Report applied in the report. periods published in June 2011 3.12 Table identifying the location of the ● 213-232 Appendix 1 Standard Disclosures in the report. 3.3 Reporting cycle (annual, biennial, etc.) ● 9-10 Information about the Annual Report 3.13 Policy and current practice with ● 9-10 Information regard to seeking external assurance about the Annual Report 3.4 Contact point for questions. ● Appendices for the report.

4 Governance, Commitments, and Engagement

3.5 Process for defining report content. This report was 10 Information 4.1 Governance structure of the ● 114-127 4.1. Structure and List of guided by the about the Annual Report organisation, including committees Executive Management GRI and technical under the highest governance body industry-level responsible for specific tasks, such protocol for the as setting strategy or organisational electrical power oversight. sector, to ensure 4.2 Indicate whether the Chair of the ● 114, 115 4.1. Structure and List of relevance and highest governance body is also Executive Management importance of issues an executive officer. covered, a dialogue with stakeholders 4.3 For organisations that have a unitary ● 114-115 4.1. Structure and List of discussed the board structure, state the number Executive Management concept of the of members of the highest governance Annual Report and body that are independent and/or its priority topics non-executive members. appendices appendices 3.6 Boundary of the report (e.g. countries, ● 9-10 Information 4.4 Mechanisms for shareholders Interaction with 131 4.3. KER System. Employee divisions, subsidiaries, leased facilities, about the Annual Report and employees to provide stockholders and Evaluation and Remuneration joint ventures, suppliers).. recommendations or direction to the employees highest governance body. is regulated ● 3.7 State any specific limitations on the 9-10 Information by Russian law. scope or boundary of the report about the Annual Report (see completeness principle for 4.5 Linkage between compensation for ● 131 4.3. KER System. Employee explanation of scope). members of the highest governance Evaluation and Remuneration body, senior managers, and executives and organization’s performance. Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 216 Concern OJSC Concern OJSC 217

GRI GRI Report Guidance component Full disclosure/ Report Report Sections GRI GRI Report Guidance component Full disclosure/ Report Report Sections index comment pages index comment pages 4.6 Processes in place for the highest The Concern 174-177 6.3. HR Management 4.16 Approaches to stakeholder ● 197-201 6.8 Interaction governance body to ensure conflicts has an Ethics engagement, including frequency with stakeholders of interest are avoided. Code to regulate of engagement by type and by management stakeholder group. of conflicts of interests. Ethics 4.17 Key topics and concerns that have ● 202-203 6.8 Interaction Code: http://www. been raised through stakeholder with stakeholders rosenergoatom.ru/ engagement, and how the wps/wcm/connect/ organisation has responded to those rosenergoatom/site/ key topics and concerns, including documents through its reporting.

4.7 Process for determining the ● 114 4.1. Structure and List of composition, qualifications and Executive Management expertise of the members of the highest governance body and Global Reporting Initiative, RUME Full disclosure/ Report Report Section its committees, including any G3.1 Comment pages consideration of gender and other Economic indicators of diversity. Approach Section 5. 4.8 Internally developed statements ● 32,135 4.4. Internal control and Financial of mission or values, codes of auditing. situation and conduct, and principles relevant to results. economic, environmental, and social Section 6. performance and the status of their Sustainable implementation. growth 4.9 Procedures of the highest governance ● 257-265 Appendix. Corporate Conduct EC1 Direct economic value Includes ● 190 6.6. Developing body for overseeing the organisation's Compliance Report generated and distributed, several areas of presence identification and management of including revenues, indicators: economic, environmental, and social operating costs, employee 1.2–1.7 performance, including relevant risks compensation, donations and opportunities, and adherence and other community or compliance with internationally investments, retained agreed standards, codes of conduct, earnings, and payments and principles. to capital providers and 4.10 Processes for evaluating the highest The Concern 131 4.3. KER System. Employee governments. governance body's own performance, uses a KER-based Evaluation and Remuneration EC2 Financial implications 1.3 Financial aspects and other particularly with respect to system to evaluate and other risks and risks and opportunities for economic, environmental, and social performance of top opportunities for the corporate activities caused performance. executives organisation's activities due by climate change were not 4.11 Explanation of whether and how ● 136-139 4.5. Risk Management to climate change. estimated the precautionary approach ЕС3 Coverage of the 1.4. Voluntary ● 185-189 6.5. Social policy or principle is addressed by organisation's defined pension the organisation. benefit plan obligations. insurance 4.12 Externally developed economic, ● 108-111, 6.1. Public position EC4 Significant financial ● 158-159 5.2.Investment environmental, and social charters, 164-166 in sustainable growth assistance received from activities principles, or other initiatives to which 3.7. International Activities government. the organisation subscribes

or endorses. EC5 appendices appendices Range of ratios of standard ● 131 4.3. KER System. entry level wage by gender Employee 4.13 Memberships in associations (such as ● 108-111 3.7. International Activities compared to local minimum Evaluation and industry associations) and/or national/ wage at significant locations Remuneration international advocacy organisations. of operation. 4.14 List of stakeholder groups engaged ● 196 6.8 Interaction ЕС6 Policy, practices, and ● 141-142 4.8. Purchase by the organisation. with stakeholders proportion of spending management 4.15 Basis for identification and selection ● 196 6.8 Interaction on locally-based suppliers of stakeholders with whom to engage. with stakeholders at significant locations of operation. Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 218 Concern OJSC Concern OJSC 219

Global Reporting Initiative, RUME Full disclosure/ Report Report Section Global Reporting Initiative, RUME Full disclosure/ Report Report Section G3.1 Comment pages G3.1 Comment pages EC7 Procedures for local hiring ● 174-175 6.3. HR EN9 Water sources significantly 2.2 Seawater intake fm Baltic Sea 169 6.2. Environ- and proportion of senior Management affected by withdrawal (Kopor Bay, Gulf of Finland). mental impact management hired from of water. Fresh water intake fm: the local community • Saratov Reservoir at significant locations (Balakovo NPP); of operation. • Beloyarsk reservoir (Beloyarsk NPP); ЕС8 Development and impact ● 190-194 6.6. Developing • reservoir at B. Ponneurgen of infrastructure areas Springs (Bilibino NPP); investments and services of presence • Lake Udomlya (Kalinin provided primarily for NPP); public benefit through • Lake Imandra (Kola NPP); commercial, in-kind, or pro • River Seym (Kursk NPP); bono engagement. • R. Sista, R. Kovashi, Lake Kopanskoye (Leningrad EC9 Understanding and ● 190, 191 6.6. Developing NPP); describing significant areas • River Don (Novovoronezh indirect economic impacts, of presence NPP); including the extent of • Cimlyansk reservoir impacts (Rostov NPP); Environmental • Desnogorsk reservoir on R. Desna (Smolensk NPP). Approach 6.1. Public Nuclear plants have no ml position on impact on water sources. Water sustainable intakes for nuclear plants are growth not protected areas. Nuclear 6.2. Environ- plants do not impact the mental impact Ramsar List marshlands.

EN1 Materials used by weight ● 71, 90 3.4. Developing EN10 Percentage and total 2.4 ● 169 6.2. Environ- or volume. generation volume of water recycled mental impact potential. and reused.

EN2 Percentage of materials Not applicable EN11 Location and size of land The Concern does not own/ used that are recycled input owned, leased, managed lease any lands within or materials. in, or adjacent to, protected near protected zones or high areas and areas of high biodiversity zones EN3 Direct energy consumption ● 71 3.2. Electrical biodiversity value outside by primary energy source. power protected areas. production by Russian NPPs. EN12 Description of significant Nuclear plants and other Generating impacts of activities, facilities of Rosenergoatom capacity products, and services on Concern OJSC do not impact biodiversity in protected biodiversity within or near EN4 Indirect energy ● 71 3.2. Electrical areas and areas of high protected zones or high consumption by primary power biodiversity value outside biodiversity zones. source. production by protected areas. Moreover, restricted access to Russian NPPs. lands under nuclear facilities Generating creates favorable conditions capacity for life and reproduction of EN5 Energy saved due to ● 70 3.2. Electrical local species and populations, including ones that are unique appendices appendices conservation and efficiency power improvements. production by and threatened Russian NPPs. EN16 Total direct and indirect ● 167-168 6.2. Environ- Generating GHG emissions by weight. mental impact capacity EN18 Other relevant indirect ● 168 6.2. Environ- EN8 Total water withdrawal 2.2 ● 169 6.2. Environ- GHG emissions by weight. mental impact by source. mental impact EN17 Initiatives to reduce ● 168 6.2. Environ- greenhouse gas emissions mental impact and reduction achived. Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 220 Concern OJSC Concern OJSC 221

Global Reporting Initiative, RUME Full disclosure/ Report Report Section Global Reporting Initiative, RUME Full disclosure/ Report Report Section G3.1 Comment pages G3.1 Comment pages EN19 Emissions of ozone- ● 168 6.2. Environ- HR1 Percentage and total All effective investment depleting substances mental impact number of significant agreements are signed in strict by weight. investment agreements compliance with the Russian and contracts that include law and presume protection of EN20 NOx, SOx, and other 2.6 ● 168 6.2. Environ- human rights clauses or human rights significant air emissions mental impact that have undergone human by type and weight. rights screening.

EN21 Total water discharge ● 169-170 6.2. Environ- HR2 Percentage of significant Under the Uniform industry- by quality and destination. mental impact suppliers, contractors, and level purchasing standard of EN22 Total weight of waste ● 169 6.2. Environ- other business partners that Rosatom State Corporation by type and disposal mental impact have undergone human used by the Concern, labour method. rights screening and actions protection systems of suppliers taken. and contractors are examined, EN23 Total number and volume In 2012, Smolensk NPP had 6.2. Environ- including in terms of human of significant spills. a non-production incident mental impact rights. Labour protection that caused escape of oil clauses are part of standard products to Desnogorsk Water contracts signed with suppliers Reservoir: about 180 kg of oil and contractors products (estimate). HR3 Area of contaminated water Total hours of employee On hire, 100% employees read surface was 150,000 m2. This training on policies and corporate rules, policy and non-compliance qualified as procedures concerning procedures, including those unauthorized discharge of oil aspects of human rights that related to human rights issues. products to a water body; not are relevant to operations, At least two hours of training as an emergency and large- including the percentage of per employee scale pollution. employees trained. HR4 EN25 Identity, size, protected 2.7 Water bodies used by nuclear 6.2. Environ- Total number of incidents In the reporting period, no status, and biodiversity plants are not protected mental impact of discrimination and cases of discrimination on value of water bodies and biodiversity zones (not on the corrective actions taken. record. related habitats significantly Ramsar List) HR5 Operations and significant The Concern acts in strict affected by the reporting suppliers identified in compliance with the Russian organization’s discharges of which the right to exercise law. During the period, there water and runoff . freedom of association and were no constraints on EN26 Initiatives to mitigate 2.11 ● 168 6.2. Environ- collective bargaining may freedom of associations and environmental impacts of mental impact be at significant risk, and collective negotiations products and services, and actions taken to support extent of impact mitigation. these rights. HR6 EN28 Monetary value of ● 171 6.2. Environ- Operations and significant The Concern honors the RF significant fines and mental impact suppliers identified as Labour Code. No child labour total number of non- having significant risk used. monetary sanctions for for incidents of child non-compliance with labour, and measures environmental laws and taken to contribute to the regulations. elimination of child labour. HR7 EN30 Total environmental 2.12 ● 171 6.2. Environ- Operations and significant The Concern honors the RF protectionexpenditures and mental impact suppliers identified as Labour Code. No cases of investments by type. having significant risk for coercion or forced labour on

incidents of forced or record. appendices appendices HR Human Rights Performance Indicators compulsory labour, and measures to contribute to Approach The Concern observes human 174-175 the elimination of all forms rights; a Code of Ethics has of forced or compulsory been adopted: labour. http://www.rosenergoatom. ru/wps/wcm/connect/ rosenergoatom/site/documents Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 222 Concern OJSC Concern OJSC 223

Global Reporting Initiative, RUME Full disclosure/ Report Report Section Global Reporting Initiative, RUME Full disclosure/ Report Report Section G3.1 Comment pages G3.1 Comment pages HR8 Percentage of security Standard job descriptions LA8 Education, training, ● 185-187 6.5. Social policy personnel trained in the for each of the Concern’s counseling, prevention, and organization’s policies or employees presumes that risk-control programmes procedures concerning they know and observe the in place to assist workforce aspects of human rights that law of the Russian Federation, members, their families, are relevant to operations. including protection of human or community members rights regarding serious diseases.

HR9 Total number of incidents 3.2.3 In the reporting period, no LA9 Health and safety ● 185-186 6.5. Social policy of violations involving rights cases of infringed rights of topics covered in formal of indigenous people and native or minority ethnic agreements with trade actions taken. groups on record. unions.

HR10 Percentage and total All transactions of purchases, LA10 Average hours of training 3.1.10 ● 177 6.3. HR number of operations that recruitment, social per year per employee by Management have been subject to human programmes, remuneration, gender and by employee rights reviews and/or impact awards, charity and sponsorship category. assessments. were evaluated in terms of human rights protection LA11 Programs for skills Mandatory employee training 176-177 6.3. HR management and lifelong system in Rosenergoatom Management HR11 Number of grievances The Concern operates in strict learning that support the presumes not only furthering related to human rights filed, compliance with Russian law. continued employability of knowledge in safety and labour addressed, and resolved No complaints of human rights employees and assist them protection, but also acquiring through formal grievance violation on record during the in managing career endings. first aid skills for incidents at mechanisms. reporting year work and at home. Training and occupational skills programmes Labour Practices and Decent Work used in the Concern make individuals more employable Approach Section 6. Sustainable should if they leave the growth company. — added to par. 6.3, emphasis LA1 Total workforce by ● 178-179 6.3. HR LA12 ● employment type, Management Percentage of employees 174 6.3. HR employment contract, and receiving regular Management region broken down by performance and career gender. development reviews by gender. LA2 Total number and rate of ● 178 6.3. HR LA13 ● new employee hires and Management Composition of governance 3.1.12 117 4.1. Structure employee turnover by age bodies and breakdown of and List group, gender, and region. employees per category of Executive according to gender, age Management LA3 Benefits provided to full- ● 185 6.5. Social policy group, minority group time employees that are membership, and other not provided to temporary indicators of diversity. or part-time employees, by LA14 major operations. Ratio of basic salary of men 3.1.12 Base pay rates are gender- to women by employee independent LA4 Percentage of employees 3.1.4 Collective contracts cover 6.3. HR category. covered by collective 100% of employees. Management LA15 bargaining agreements. Return to work and 100% of employees resume retention rates after their functions after maternity LA5 Minimum notice period(s) The Concern honors the RF 6.3. HR parental leave, by gender. leave appendices appendices regarding significant Labour Code as regards period Management operational changes, of notice to employees before PR Product Responsibility including whether it is serious changes in its activities. Approach 3.3. Ensuring specified in collective Safety of Russian agreements. Nuclear Plants. LA7 Rates of injury, occupational ● 182-183 6.4. Labour Radiation diseases, lost days, and protection Impacts on absenteeism, and number Personnel and of work-related fatalities by General Public region and gender. Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 224 Concern OJSC Concern OJSC 225

Global Reporting Initiative, RUME Full disclosure/ Report Report Section Global Reporting Initiative, RUME Full disclosure/ Report Report Section G3.1 Comment pages G3.1 Comment pages PR1 Life cycle stages in which Nuclear, radiation, industrial, 76-79 3.3. Ensuring SO3 Percentage of employees In 2012, there was no training health and safety impacts engineering, and fire safety is Safety of Russian trained in organisation's in anti-corruption policies and of products and services are evaluated at each stage of the Nuclear Plants. anti-corruption policies and corporate procedures assessed for improvement, life cycle Radiation procedures. and percentage of Impacts on significant products and Personnel and SO4 Actions taken in response In 2012, no cases of corruption services categories subject General Public to incidents of corruption. on record to such procedures. SO5 Public policy positions 3.3.4 The Concern is involved in PR3 Type of product and service The Concern discloses all and participation in public Rosatom State Corporation information required by necessary information in a policy development and legislative initiative to regulate procedures and percentage timely fashion as required lobbying. the business of nuclear energy of significant products and by Russian law, instructions SO6 Total value of financial and In 2012, the Concern made no services subject to such from supervisory and other in-kind contributions to donations to political parties, information requirements. authorized agencies political parties, politicians, policies or organizations PR4 Total number of incidents Not applicable, as products are and related institutions by of non-compliance with not to be marked country. regulations and voluntary SO8 Monetary value of In 2012, the Concern was not codes concerning product significant fines and total subject to any large penalties, and service information number of non-monetary or non-financial sanctions and labeling, by type of sanctions for non- outcomes. compliance with laws and PR 5 Practices related to Not applicable, as there is no regulations. customer satisfaction, interaction with end users of SO9 Operations with significant In the reporting period, the including results of surveys electric power potential or actual Concern’s had no considerable measuring customer negative impacts on local negative impact on local satisfaction. communities. communities PR6 Programmes for adherence Not applicable, there being no SO10 Prevention and mitigation The Concern’s policy and to laws, standards, and marketing communications measures implemented in procedures are design to voluntary codes related to operations with significant prevent all possible negative marketing communications, potential or actual impacts on local communities including advertising, negative impacts on local promotion, and sponsorship. communities. PR9 Monetary value of In the reporting period, the Electric Utilities Sector Supplement significant fines for non- Concern was not subject to any compliance with laws and large penalties for legal and EU1 Installed capacity, broken ● 50-69, 3.2 Electric regulations concerning regulatory non-compliance down by primary energy 259 power the provision and use of with products and services. source and by regulatory production by products and services. regime. Russian NPPs Appendix. SO Society Installed Approach Section 6. capacity & Sustainable generation of growth electric power by Russian NPPs in SO1 Percentage of operations The Concern uses procedures 196-201 6.8 Interaction 2012, breakdown with implemented local of public hearings and with stakeholders by power sources community engagement, discussions in 100% of cases and geography appendices appendices impact assessments, and when planning activities that (Russian regions) development programmes. may cause environmental impact on local citizens, as Russian law requires

SO2 Percentage and total 100% of audits and reviews 135 4.4. Internal number of business units include measures to detect control and analyzed for risks related to corruption-related risks auditing corruption. Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 226 Concern OJSC Concern OJSC 227

Global Reporting Initiative, RUME Full disclosure/ Report Report Section Global Reporting Initiative, RUME Full disclosure/ Report Report Section G3.1 Comment pages G3.1 Comment pages EU2 Net energy output broken ● 259 6.6. Developing EU9 Provisions for 1) Decommissioning (D) 83-84 3.3. Ensuring down by primary energy areas of presence decommissioning of nuclear of nuclear- and radiation- Safety of Russian source and by regulatory 3.2 Electric power sites. hazardous sites is financed Nuclear Plants. regime. power from D Savings Fund built Radiation production by with deductions from costs of Impacts on Russian NPPs sold products (electrical and Personnel and Appendix. thermal energy) as instructed General Public Installed in Federal Government Decree capacity & No. 68 of January 30, 2002. generation of 2) Total costs are calculated electric power by based on operator’s guidance Russian NPPs in (RDEO) “Methodology to 2012, breakdown Calculate Costs of Preparation by power sources and Decommissioning and geography of nuclear plant units” (Russian regions) МТ1.3.2.06.030.0082-2012, written by VNIIAES (reviewed EU3 Number of residential, Not applicable: no sales to and updated in 2012). industrial, institutional ultimate clients 3) As reference for D cost and commercial customer estimation, materials were used accounts. from approved D project for EU4 Length of above and Not applicable: the Concern Units 1 and 2 of Novovoronezh underground transmission does not transport electric NPP. and distribution lines by power EU10 Planned capacity against Facilities for the nuclear power regulatory regime projected electricity sector are built under the 2030 EU5 Allocation of CO2e Not applicable: emissions demand over the long term, RF Energy Strategy and 2020 emissions allowances or of CO2 and equivalents and broken down by energy master layout map of facilities equivalent, broken down by negligible source and regulatory in the electrical power sector, carbon trading framework. regime. considering outlooks until 2030 EU6 Management approach to ● 36-37 2.3. Key strategic EU11 ● ensure short and long-term goals and Average generation 46 3.2. Electrical electricity availability and initiatives efficiency of thermal plants power reliability. by energy source and production by regulatory regime. Russian NPPs. EU7 Demand-side management ● 40-43, 46 3.1. Position in Generating programs including the Industry capacity residential, commercial, EU12 institutional and industrial Transmission and Not applicable: the Concern is programs distribution losses as a not engaged in transmission of percentage of total energy. electrical power

EU13 EU8 Research and development ● 102 3.6. Innovation Biodiversity of offset In 2012, the Concern’s impact activity and expenditure activities habitats compared to the on biodiversity compared to aimed at providing reliable biodiversity of the affected similar areas was not assessed electricity and promoting areas sustainable development. EU14 Programs and processes to ● 177 6.3. HR ensure the availability of a Management skilled workforce

EU15

Percentage of employees The Concern’s data gathering appendices appendices eligible to retire in the next system is unable to provide 5 and 10 years broken down such consolidated data for by job category and by 2012. The Concern plans to region disclose information of EU15 in its future Reports Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 228 Concern OJSC Concern OJSC 229

Global Reporting Initiative, RUME Full disclosure/ Report Report Section Global Reporting Initiative, RUME Full disclosure/ Report Report Section G3.1 Comment pages G3.1 Comment pages EU16 Policies and requirements ● 76-82, 3.3. Ensuring EU25 Number of injuries and In the reporting period, there regarding health and 182-184 Safety of Russian fatalities to the public were no shock/injury cases and safety of employees and Nuclear Plants. involving company assets, lethal cases among citizens, employees of contractors Radiation including legal judgments, caused by contact with the and subcontractors. Impacts on settlements and pending company’s assets Personnel and legal cases of diseases. General Public. 6.4. Labour EU28 Power outage frequency. ● 259 Appendix protection EU29 Average power outage The Concern’s data gathering EU17 Days worked by contractor The Concern’s data gathering duration. system is unable to provide and subcontractor system is unable to provide such consolidated data for employees involved in such consolidated data for 2012. The Concern plans to construction, operation and 2012. The Concern plans to disclose information of EU29 maintenance activities. disclose information of EU17 in in its future Reports its future Reports EU30 Average plant availability ● 259 Appendix EU18 Percentage of contractor 100% of all sub (contractor) factor by energy source and and subcontractor personnel are trained in health by regulatory regime. employees that have protection and safety undergone relevant health and safety training.

EU19 Stakeholder participation 196-201 6.8. Interaction in the decision making with stakeholders process related to energy planning and infrastructure development.

EU20 Approach to managing the During the reporting period, impacts of displacement. the Concern did not cause population relocation impacts

EU21 Contingency planning ● 77-78 .3. Ensuring measures, disaster/ Safety of Russian emergency management Nuclear Plants. plan and training programs, Radiation and recovery/restoration Impacts on plans. Personnel and General Public

EU22 Number of people During the reporting period, physically or economically the Concern did not cause displaced and population relocation impacts compensation, broken down by type of project.

EU23 Programs, including Not applicable, the Concern those in partnership with is not engaged in electrical government, to improve power transmission or or maintain access to distribution electricity and customer support services. appendices appendices EU24 Practices to address Not applicable, the Concern language, cultural, low is not engaged in electrical literacy and disability power transmission or related barriers to accessing distribution and safely using electricity and customer support services. Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 230 Concern OJSC Concern OJSC 231

System of Public Reporting Indicator Item Report Section/Chapter 2.1.1.4. Incomes (total sold products, 5. Financial situation and Indicators at Rosenergoatom works, and services) performance 2.1.2. Production efficiency 2.1.2.1. Labour efficiency 5. Financial situation and performance

Indicator Item Report Section/Chapter 2.1.2.2. Own production efficiency 5. Financial situation and (added value) performance Efficiency of mainline activities 2.1.3. Financial robustness 2.1.3.1. Borrowed funds to equity 5. Financial situation and Providing electrical power to the nation performance

1.1.1. Generation of electrical 1.1.1.1. Share of electrical power 3.2. Electrical power production 2.1.3.2. Government funds 5. Financial situation and power by NPPs generated by nuclear plants, to total by Russian NPPs. Generating performance production of electrical power in capacity Russia 2.2.1. Positions of Russian 2.2.1.1. Number of power plant projects 3.4. Developing generation engineering on global NPP outside of Russia (in the reporting potential 1.1.1.2. Power generation of nuclear 3.2. Electrical power production construction market period) plants in the reporting year by Russian NPPs. Generating capacity 2.3.1. Investments in equity 2.3.1.1. Total spending under the 5.2. Investment activities during the reporting period investment policy (stating share of 1.1.2. Use of installed nuclear 1.1.2.1. Installed capacity use factor of 3.2. Electrical power production funds used to update plants and plant capacity NPPs by Russian NPPs. Generating technology) capacity Assurance of nuclear and radiation safety 1.2.1. Increasing capacity of 1.2.1.1. Target for increase of equivalent 3.4. Developing generation power units capacity potential 4.1.1. Projects to create national 4.1.1.1. Passed legislation to support 3.3. Ensuring Safety of Russian systems to process RW and creation of treatment and storage for Nuclear Plants. Radiation Impacts 1.2.1.3. Number of retrofitted VVER- 3.4. Developing generation spent nuclear fuel RW and used nuclear fuel on Personnel and General Public 1000 units (in reporting period, and potential total) 4.1.4. Emergency response and 4.1.4.1. Description of reliable safety 3.3. Ensuring Safety of Russian readiness barriers for nuclear- and radiation- Nuclear Plants. Radiation Impacts 1.2.1.4. Number of retrofitted RMBK 3.4. Developing generation hazardous sites and their life cycle on Personnel and General Public units (in reporting period, and total) potential planning

1.2.2. Service life of power units 1.2.2.1. Number of power units with 3.4. Developing generation 4.1.4.2. Description of the emergency 3.3. Ensuring Safety of Russian service life extended to 15 years during potential response system, including Nuclear Plants. Radiation Impacts the reporting period improvement of safety control on Personnel and General Public monitoring systems at nuclear power 1.2.2.2. Number of nuclear power units 3.4. Developing generation facilities, organization of professional with working document prepared for potential rescue teams service life extension, upgrade and retrofitting 4.1.4.3. Description of public alert and 3.3. Ensuring Safety of Russian communication systems Nuclear Plants. Radiation Impacts 1.2.3. Power units operation 1.2.3.5. Total reduced time of planned 3.5. Maintenance and repair of on Personnel and General Public mode repairs, after rescheduling, including NPPs in Russia. Deployment of through: Rosatom Production System 4.1.4.4. Description of protection 3.3. Ensuring Safety of Russian • fewer repair days system for employees, citizens, and Nuclear Plants. Radiation Impacts • rescheduled repair without change areas in radiation emergencies on Personnel and General Public in total repair days 4.1.5. Assuring physical 4.1.5.1. Description of up-to-date 3.3. Ensuring Safety of Russian 1.2.3.7. Availability ratio 3.2. Electrical power production protection of nuclear power engineering and technological systems Nuclear Plants. Radiation Impacts by Russian NPPs. Generating facilities of control and personnel access on Personnel and General Public capacity management

1.3.1. Power units built and 1.3.1.1. Number of power unit 3.4. Developing generation 4.2.2. Non-compliance during 4.2.2.1. Number of registered cases 3.3. Ensuring Safety of Russian appendices appendices commissioned in Russia construction projects in Russia potential handling of nuclear and in nuclear power facilities by Nuclear Plants. Radiation Impacts radiation hazardous materials International Nuclear Events System on Personnel and General Public Securing leadership for Russian companies on the global markets (INES) 2.1.1. Financial stability 2.1.1.1. Gross profit 5. Financial situation and 4.3.1. Decommissioning 4.3.1.1. Number of decommissioned 3.3. Ensuring Safety of Russian performance nuclear- and radiation-hazardous sites Nuclear Plants. Radiation Impacts 2.1.1.2. Total profit tax charged and paid 5. Financial situation and on Personnel and General Public performance 4.4.1. Reclamation of 4.4.1.1. Area of reclaimed contaminated 6.2. Environmental impact 2.1.1.3. Net operating profit after taxes 5. Financial situation and contaminated territories territories (NOPAT) performance Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 232 Concern OJSC Concern OJSC 233

Indicator Item Report Section/Chapter Indicator Item Report Section/Chapter

Creating innovative nuclear technologies and promoting them to various sectors of the economy 7.1.1.2. Stakeholder interaction while 6.8. Interaction with stakeholders preparing public reports 5.1.1. Inventions related to use of 5.1.1.1. Number of patents, utility 3.6. Innovation activities nuclear power models, and industrial samples 7.1.1.3. Compliance with corporate Information about the Annual requirements to public reports Report 5.1.2.3. R&D total spending 3.6. Innovation activities 7.1.2. Industry information 7.1.2.1. Number of information centre s 6.8. Interaction with stakeholders 5.2.2. Participation in 5.2.2.1. Participation in implemented 3.7. International Activities resources implemented international international innovation projects innovation projects (INRFC, ITER, Generation-IV, FAIR) 7.1.2.2. Public and culture activities 6.8. Interaction with stakeholders (museums, popular science, career 5.3.1. VVER-TOI 5.3.1.1. Description of work 3.6. Innovation activities consulting, and other) accomplished in the reporting year 7.1.2.3. Industry-level mass media 6.8. Interaction with stakeholders 5.3.1.2. Progress report 3.6. Innovation activities 9.1.2. Employee training 9.1.2.1. Share of employees periodically 6.3. HR Management 5.3.3. Floating NPP 5.3.3.1. Description of work 3.6. Innovation activities subject to efficiency assessment and accomplished in the reporting year career growth

5.4.3. Line of fast-neutron 5.4.3.1. Description of work 3.6. Innovation activities 9.1.2.3. Spending on employee training 6.3. HR Management reactors accomplished in the reporting year 9.1.3. Building and using human 9.1.3.1. Number of employees in staff 6.3. HR Management 5.2.2. Radiation technologies 5.5.2.2. Description of plans for 3.6. Innovation activities reserves reserve radiation technology development (targets, tasks, efficiency) 9.1.3.2. Share of employees appointed 6.3. HR Management to open positions from the staff Creating efficient management mechanisms for the nuclear industry reserve

6.1.2. Implementation of 6.1.2.1. Results of implemented 3.5. Maintenance and repair of Efficiency in sustainable growth "Rosatom’s Production System" programme to raise production NPPs in Russia. Deployment of project efficiency (reduced area of preparation Rosatom Production System Environmental impact (impact on the environment, environmental protection) shops; shorter production cycle; fewer defects per specific components; 11.1.4. Initiatives to reduce 11.1.4.1. Information on initiatives 6.2. Environmental impact lower manufacturing cost of specific hazardous atmospheric to reduce hazardous atmospheric equipment; greater output in and emissions, results emissions product positions). 11.1.5. Initiatives to reduce 11.1.5.1. Information on initiatives to 6.2. Environmental impact 6.1.2.2. Economy from implemented 3.5. Maintenance and repair of hazardous discharge to water reduce hazardous discharge to water production development programmes NPPs in Russia. Deployment of bodies, results bodies. and cost cutting in business units Rosatom Production System 11.1.5.2. Quantitative data on reduced 6.2. Environmental impact 6.1.3. Reorganizing financial and 6.1.3.1. Evaluation of reorganization 4. Management system hazardous discharge to water bodies. economic management results (evaluation of targets achieved) 11.1.11. Environment management 11.1.11.1. Number of structural units 6.2. Environmental impact 6.1.5. Purchase management 6.1.5.1. Tools used to ensure more open 4.8. Purchase management systems adopted in structural certified for compliance under ISO and transparent purchasing. units 14001

6.1.5.2. Total economy after conducted 4.8. Purchase management 11.2.5. Consumption of water for 11.2.5.1. Consumption of water for own 6.2. Environmental impact open tender purchasing procedures (% own needs needs and rubles) 11.3.15. Payments for air polluting 11.3.15.1. Payments for air polluting 6.2. Environmental impact 6.1.6. Developing in-house 6.1.6.1. Projects to develop 6.8. Interaction with stakeholders emissions from permanent and emissions from permanent and mobile communication communication channels between mobile sources, waste dumped sources, waste dumped to above- and executives and employees to above- and underground underground water, buried production water, buried production and and consumption waste 6.1.8. Risk Management 4.5. Risk Management 4.5. Управление рисками consumption waste appendices appendices 6.1.9. IT-enabled management 6.1.9.1. List of IT implementation 4.9. Information technologies 11.5.1. Radionuclide emissions to 11.5.1.1. Total radionuclide emissions to 6.2. Environmental impact projects atmosphere atmosphere

6.1.11. Control of financing and 4.4. Internal control and auditing. 11.5.2. Radionuclide discharge 11.5.2.1. Total radionuclide discharge 6.2. Environmental impact business activities Combating Theft and Fraud with wastewater with wastewater

Making development of the nuclear power industry publicly acceptable 11.5.2.2. Total background in 6.2. Environmental impact radionuclide-bearing water 7.1.1. Public reports of the 7.1.1.1. Compliance with international Information about the Annual Concern and its units requirements for non-financial reports Report 11.5.4. Radionuclide polluted 11.5.4.1. Area of radionuclide polluted 6.2. Environmental impact and interaction with stakeholders areas areas Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 234 Concern OJSC Concern OJSC 235

Indicator Item Report Section/Chapter 11.5.4.2. Gamma-radiation dose in 6.2. Environmental impact polluted areas

Social and employment relations (labour organization and respect for labour) 12.1.4. Share of employees under 12.1.4.1. Share of employees under 35 6.3.HR Management 35 years of age y.o.

12.1.5. Average employee age (by 12.1.5.1. Average employee age (by 6.3.HR Management categories) categories, excluding part-time and off-staff)

12.1.8. Average paycheck 12.1.8.1. Average paycheck in the 6.6. Developing areas of presence compared to labour market company compared to labour market average average

12.3.3. Number of employees 12.3.3.1. Number of employees with 6.5. Social policy with non-government pension non-government pension plans. plans

12.3.4. Total spending on 12.3.4.1. Total spending on personnel 6.3. HR Management personnel

12.3.5. Total spending on social 12.3.5.1. Total spending on social 6.5. Social policy programmes for employees programmes for employees

12.3.6. Social payments annually 12.3.6.1. Social payments annually per 6.5. Social policy per employee employee

12.3.7. Spending on additional 12.3.7.1. Spending on additional health 6.5. Social policy health insurance insurance

12.4.5. Control of personnel 12.4.5.1. Annual average effective 3.3. Ensuring Safety of Russian exposure to radiation exposure per of personnel to radiation Nuclear Plants. Radiation Impacts on Personnel and General Public

12.4.5.2. Number of cases with 3.3. Ensuring Safety of Russian exceeded officially regulated irradiation Nuclear Plants. Radiation Impacts limit. on Personnel and General Public

12.4.5.4. Share of total number of 3.3. Ensuring Safety of Russian employees subject to individual Nuclear Plants. Radiation Impacts monitoring, on the ARMIR system list on Personnel and General Public

12.4.5.5. Share of employees exposed to 3.3. Ensuring Safety of Russian negligible risk of radiation Nuclear Plants. Radiation Impacts on Personnel and General Public

12.4.5.6. Share of employees exposed to 3.3. Ensuring Safety of Russian life-long radiation risk Nuclear Plants. Radiation Impacts on Personnel and General Public

Influence on the social and economic situation in the areas of presence. Interaction with the public 13.2.1. Preparing ZATO 13.2.1.1. Preparing ZATO development 6.6. Developing areas of presence development programmes programmes appendices appendices 13.4.1. Charity projects, related 13.4.1.1. Charity projects and related 6.7. Charity and sponsorship spending total spending

Ethical practices and public regulation 14.4.2. Organization format for 14.4.2.1. Existence of Code of Ethics 6.3. HR Management ethics practices Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 236 Concern OJSC Concern OJSC 237

Auditor’s Opinion on Non-Financial Reports appendices appendices Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 238 Concern OJSC Concern OJSC 239

Statement by the Rosenergoatom Internal Control and Audits Department on the Results of an Internal Audit to Examine Rosenergoatom’s Process of Generating Public Reports

An internal audit to examine Rosenergoatom Concern OJSC process of generating Public The audit: Annual Reports was performed in compliance with the Procedure to Arrange and Conduct • Assessed the efficiency of the internal control system as regards the process of public Internal Audits of Business Processes Used in Rosenergoatom Concern OJSC, its affili- report generation (including analysis of regulation and formal description of key processes ates and subordinate organizations, approved by Order of Rosatom State Corporation No. related to generation of public reports; efficiency analysis of adopted key control proce- 9/436-P of May 14, 2012, in the light of the requirements stated in Public Reporting Policy of dures that ensure reliable generation of public reports); Rosatom State Corporation, approved by Rosatom State Corporation Order No. 1/403-P of • checked compliance with the public report generation procedure under the effective leg- May 13, 2011, Uniform Standard of Public Annual Reports of Rosenergoatom Concern OJSC islation and corporate standard requirements that regulate the business process of public approved by Rosenergoatom Concern OJSC Order No. 9/526-P of June 06, 2012, fundamen- report generation; tal provisions of the GRI Guidance on Reporting in Sustaining Development (version G3), • issued recommendations on steps to improve the internal control system as public reports AA1000 series of international standards, and the recommendations issued by the Russian are generated. Union of Industrialists and Entrepreneurs (RSPP) to be adopted as guidance in managerial practices and corporate non-financial reports. The results of the audit yielded out conclusion that the system of internal controls over the process of public reports are efficient, and the procedure to generate public reports by Ros- By Executive Order No. 9/1271-P issued by General Director of Rosenergoatom Concern energoatom Concern OJSC is compliant with the relevant legislation, Rosatom State Corpora- OJSC on December 28, 2012 “Organization of Activities to Prepare Annual Reports of Ros- tion’s Policy in public reporting, and Rosenergoatom’s internal corporate standards regulating energoatom Concern OJSC”, the preparation and presentation of information is the func- the business process of public report generation. tion of the executive officers in structural subdivisions that are part of the task force formed to prepare the report (with D.L. Tkebuchava, First Deputy General Director, as the task force Director, leader). Department of Internal Control and Audits, Controller General The pivotal issues in the actual procedure used to organize the process of preparing public reports of Rosenergoatom Concern OJSC include: working out the concept of the annual V.V. Tatarchuk public report; topic-specific dialogues with stakeholders; expert examination of the annual public report’s concept by the Public Reporting Committee of Rosatom State Corporation; approval of the annual public report by General Director of Rosenergoatom Concern OJSC; collecting materials to prepare the text of the report; writing the draft of the Annual Report; appendices appendices expert examination of the draft annual public report by the Public Reporting Committee of Rosatom State Corporation; final changes to the draft annual public report; conclusion by the Standing Technical Panel of Rosenergoatom Concern OJSC; coordination of the text of the annual public report with the Deputies of General Director and Accountant General; approval of the final version of the of the annual public report by General Director of Ros- energoatom Concern OJSC. Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 240 Concern OJSC Concern OJSC 241

Business/Financial Accounting Statements

Miscellaneous current assets 1260 61,969 70,488 182,277 Section II subtotal: 1200 92,984,134 89,790,820 78,484,981 Accounting Balance Sheet Statement Bottom line 1600 1,087,825,834 964,733,636 741,548,605 As of December 31, 2012 Organization: Rosenergoatom Concern OJSC Codes Form 0710001 - Page 2 OKUD Form 0710001 Date (year, month, day) 2012 12 31 Comments Item description Code December 31, December December 31, By OKPO 08844275 2012 31, 2011 2010 Taxpayer ID INN 7721632827 LIABILITIES III. EQUITY AND PROVISIONS Type of economic activities: Generation of electric power by nuclear By OKVED 40.10.13 Registered capital (share capital, registered 1310 530,011,527 530,011,527 461,515,003 plants fund, partners’ contributions) Form of incorporation/ownership By 12247 12 Own stock repurchased from stockholders 1320 (-) (-) (-) Open Joint-Stock Company (owned by the Federal Government) OKOPF/OKFS Revalued non-current assets 1340 - - - Units of measurement: 000 rubles By OKEI 384 (385) Surplus capital (not revalued) 1350 314 - - Location (address): 109507, Moscow, ul. Ferganskaya, 25 Reserve capital 1360 145,322,811 170,951,971 125,321,661 25-1 Provisions established under legal 1361 143,720,122 169,349,282 124,806,194 requirements Provisions established under incorporation 1362 1,602,689 1,602,689 515,467 documents Comments Item description Code December 31, December December 2012 31, 2011 31, 2010 25-2 Retained profits (unrecovered loss) 1370 179,373,958 110,257,243 90,714,309 ASSETS Section III subtotal 1300 854,708,610 811,220,741 677,550,937 1-1; 1-2; 1. NON-CURRENT ASSETS IV. LONG-TERM LIABILITIES 1-3; 1-6; 14-2 Borrowed funds 1410 60,178,290 44,000,000 15,516,623 1-7 Deferred tax liabilities 1420 1,018,119 758,606 105,453 1-4; 1-5 Intangible assets 1110 1,112,416 965,164 1,018,175 7-1 Appraisal-related liabilities 1430 4,823,016 1,802,328 - Results of research and development 1120 6,236,231 2,830,335 1,985,578 Miscellaneous liabilities 1450 13,756,370 10,730,275 2,756,082 Intangible R&D assets 1130 - - - Section IV subtotal 1400 79,775,795 57,291,209 18,378,158 Material R&D assets 1140 - - - Fixed assets 1150 933,571,888 818,139,578 628,475,510 14-2; 14-3 V. SHORT-TERM LIABILITIES 2-1; 2-3; - Buildings, machines, equipment, and 1151 354,938,386 265,767,507 244,270,930 Borrowed funds 1510 22,138,794 19,065,202 3,649,504 2-4; 2-5; other fixed assets 5-3; 5-4 Accounts payable 1520 42,694,181 47,043,486 35,177,223 2-6 Suppliers and contractors 1521 29,829,810 29,135,230 16,275,976 2-2 - Construction in progress invested in fixed 1152 410,323,886 365,856,916 252,718,809 Advance payments received 1522 22,459 5,999 311,281 assets Owed to employees 1523 846,873 789,584 685,688 - Advance payments to suppliers and 1153 168,309,616 186,515,155 131,485,771 Owed to government off-budget funds 1524 300,073 147,139 97,241 contractors for capital construction, 5-5 Debts in taxes and duties 1525 1,946,896 1,695,403 1,182,489 suppliers of fixed asset items Miscellaneous creditors 1526 9,748,070 15,270,131 16,624,548 Yield-bearing investments in material 1160 194,438 17,956 - 10 Deferred revenues 1530 1,754,188 1,927,461 1,881,835 values 7-2 Appraisal-related liabilities 1540 6,674,722 6,313,537 4,910,912 3-1; 3-2; Financial investments 1170 38,983,069 38,686,715 20,546,548 Settlements with incorporators (registered 1545 80,079,544 21,872,000 - 3-3 capital fund) Deferred tax assets 1180 - - - Miscellaneous liabilities 1550 - - - Miscellaneous non-current assets 1190 14,743,658 14,303,068 11,037,813 Section V subtotal 1500 153,341,429 96,221,686 45,619,474 Section 1 subtotal: 1100 994,841,700 874,942,816 663,063,624 Bottom line 1700 1,087,825,834 964,733,636 741,548,605 II. CURRENT ASSETS Inventory 1210 39,170,331 32,497,369 24,121,957 Materials, stock, and similar assets 1211 38,460,633 32,397,331 24,106,242 Costs of production in progress 1212 - - 4,710 Finished products and resellable stock 1213 704,728 89,579 2,213 Shipped goods 1214 - - 913 Deferred costs 1215 - - - Unclaimed collectible revenues 1216 - - - Miscellaneous inventory and costs 1217 4,970 10,459 7,849 Value Added Tax on values purchased 1220 1,680,680 1,749,350 2,381,623 5-1; 5-2 Accounts receivable 1230 43,801,336 50,197,485 39,668,522 Long-term accounts receivable, total 1231 4,804,039 7,262,994 8,013,706 Settlements with buyers and customers 1232 12,548 7,909 1,774,162 Advance payments issued 1233 - - 31,607 Miscellaneous debtors 1234 4,791,491 7,255,085 6,207,937 Short-term accounts receivable, total 1235 38,997,297 42,934,491 31,654,816 appendices appendices Settlements with buyers and customers 1236 16,290,387 14,679,768 10,890,886 Advance payments issued 1237 7,941,777 6,430,056 8,858,638 Miscellaneous debtors 1238 14,765,133 21,824,667 11,905,292 3-1; 3-2; Financial investments (except cash 1240 6,721,002 29,500 11,175,000 3-3 equivalents) 27-1 Cash and equivalents 1250 1,548,816 5,246,628 955,602 Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 242 Concern OJSC Concern OJSC 243

Profit and Loss Statement Cash Flow Statement As of December 31, 2012 for 2012 Organization: Rosenergoatom Concern OJSC Codes Organization: Rosenergoatom Concern OJSC Codes OKUD Form 710002 OKUD Form 0710004 Date (year, month, day) 2012 12 31 Date (year, month, day) 2012 12 31 By OKPO 08844275 By OKPO 08844275 Taxpayer ID INN 7721632827 Taxpayer ID INN 7721632827 Type of economic activities: Generation of By OKVED 40.10.13 Type of economic activities: Generation of electric By OKVED 40.10.13 electric power by nuclear plants power by nuclear plants Form of incorporation/ownership By OKOPF/OKFS 12247 12 Form of incorporation/ownership By OKOPF/OKFS 12247 12 Open Joint-Stock Company (owned by the Open Joint-Stock Company (owned by the Federal Federal Government) Government) Units of measurement: 000 rubles By OKEI 384 (385) Units of measurement: 000 rubles/000,000 rubles By OKEI 384 (strike what does not apply)

Comments Item description Code 2012 Previous year 11-1; 11-2 Revenues 2110 200,526,125 201,405,029 Item Code 2012 2011 6-1; 11-1 Sales costs 2120 (124,411,445) (109,354,539) Cash flow from current operations Gross profit/loss 2100 76,114,680 92,050,490 Revenues – total 4110 206,308,819 200,418,629 6-1 Commercial expenses 2210 (20,262) (18,459) Including: 6-1 Administrative costs 2220 (61,975,969) (83,204,431) - from sold products, works, services 4111 196,703,609 197,588,197 Profit/loss after sales 2200 14,118,449 8,827,600 - payments in lease, rent, royalty fees, commission fees, and similar 4112 288,733 304,807 Gains from interest held in other corporate entities 2310 14,322 58,201 amounts Interest receivable 2320 1,963,781 2,286,105 - resold financial investments 4113 - - Interest payable 2330 (718,469) (154,854) - miscellaneous revenues 4119 9,316,477 2,525,625 11-3 Miscellaneous incomes 2340 5,890,456 6,522,237 Payments, total 4120 131,247,525 121,068,671 11-3 Miscellaneous expenses 2350 (18,082,019) (15,994,703) Including: Profit/loss before tax 2300 3,186,520 1,544,586 - to suppliers/ contractors, for materials, products, works, services 4121 82,705,549 72,087,578 Current profit tax 2410 (4,800,939) (3,736,466) - to employees 4122 23,203,221 21,457,891 Including fixed tax liability/assets 2421 (4,359,262) (4,080,701) - interest payable on debentures 4123 447,673 - 13-1; 13-2; Change in deferred tax liability 2430 (1,183,460) (1,242,591) - profit tax 4124 6,521,926 3,083,111 13-3 - miscellaneous payments 4129 18,369,156 24,440,091 13-1; 13-2; Change in deferred tax assets 2450 987,834 589,439 Balance of cash flow from current operations 4100 75,061,294 79,349,958 13-3 Cash flow from investments Other 2460 (38,625) (68,380) Revenues – total 4210 123,967,999 172,708,478 Net profit/loss 2400 (1,848,670) (2,913,412) Including: - from sold non-current assets (except financial investments) 4211 111,595 363,925 Comments Item description Code 2012 Previous year - from sold corporate stock or holdings in other corporate entities 4212 128,817 - REFERENCE: - from repaid loans issued, sold debentures (claim rights to third 4213 121,614,772 170,156,433 Result of miscellaneous operations not included in the 2520 70,965,719 24,938,709 parties) net profit/loss of the period - dividends, interest on financial debt investments, and similar 4214 1,727,664 2,056,536 Consolidated financial result of the period 2500 69,117,049 22,025,297 revenues from holdings in other corporate entities Base profit/loss per share of stock 2900 (0) (0) - miscellaneous revenues 4219 385,151 131,584 Payments – total 4220 279,700,653 381,998,046 Including: - to purchase, create, upgrade, retrofit and setup non-current assets 4221 144,925,500 195,562,317 - to purchase corporate stock or holdings in other corporate entities 4222 270,911 22,746,011 - to purchase debentures (claim rights to third parties), issue loans to 4223 126,935,596 159,154,104 third parties - interest payable on debentures included in the price of an investment 4224 4,580,813 1,174,339 asset - miscellaneous payments 4229 2,987,833 3,361,274 Balance of cash flow from investments 4200 (155,732,654) (209,289,567)

appendices appendices Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 244 Concern OJSC Concern OJSC 245

Equity Dynamics Statement for 2012 Form 0710004 Page 2 Organization: Rosenergoatom Concern OJSC Codes Item Code 2012 2011 OKUD Form 0710002 Cash flow from financial operations Date (year, month, day) 2012 12 31 Revenues – total 4310 120,721,893 153,373,214 By OKPO 08844275 Including - Received loans and credits 4311 62,514,349 63,000,000 Taxpayer ID INN 7721632827 - Cash investments 4312 - - Type of economic activities: Generation of electric power By OKVED 40.10.13 - from issued stock or increased holdings 4313 58,207,544 90,368,524 by nuclear plants - from issued bonds, promissory notes, security debentures, etc. 4314 - - Form of incorporation/ownership By OKOPF/OKFS 12247 12 - government budget allocations, and other government financing 4315 - 4,690 Open Joint-Stock Company (owned by the Federal - miscellaneous revenues 4319 - - Government) Payments – total 4320 43,711,060 19,141,539 Units of measurement: 000 rubles By OKEI 384 Including - to incorporators/stockholder to finance buyout of stock/holdings in 4321 - - the corporate capital, or their retirement from the corporation - Paid as dividends and otherwise to distribute profits among 4322 - - owners/ partners 1. Cash flow - redemption/buyout of promissory notes and other securities, 4323 43,711,060 19,140,530 repayment of loans and credits Item Code Registered Own stock Surplus Reserve Retained Total - Miscellaneous payments 4329 - 1,009 capital redeemed capital capital profit/ Balance of cash flow from financial operations 4300 77,010,833 134,231,675 from uncovered Balance of cash flow for the reporting period 4400 (3,660,527) 4,292,066 stockholder loss Balance of cash and equivalents at the beginning of the 4450 5,241,407 948,091 Size of capital 3100 461,515,003 - - 125,321,661 90,714,309 677,550,973 reporting period as of Balance of cash and equivalents at the end of the reporting 4500 1,548,765 5,241,407 December 31, period 2010 Impact by change of foreign currency exchange rate to the ruble 4490 (32,115) 1,250 For year 2011 Increment in 3210 68,496,524 - - 69,481,797 - 137,978,321 capital, total Including, 3211 X X X X - - net profit Revaluation 3212 X X - X - - of assets Incomes 3213 X X - X - - recognized directly as capital increment Additional 3214 68,496,524 - - X X 68,496,524 issue of stock Increase in 3215 - - - X - - par value of stock Re- 3216 ------organization of corporate entity Engaged 3217 X X X 69,481,797 - 69,481,797 industry- level reserves for purposes of investment

appendices appendices Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 246 Concern OJSC Concern OJSC 247

Form 0710023 - Page 2 entity Item Cod Registered Own stock Surplu Reserve Retained Total Engaged 3317 X X X 45,814,550 - 45,814,550 e capital redeemed s capital profit/ industry- from capital uncovered level stockholde loss reserves for r purposes of Decrement in 3220 - - - - (4,308,553) (4,308,553) investment capital, total Decrement in 3320 - - - - (2,326,995) (2,326,995) Including, 3221 X X X X (2,913,412) (2,913,412) capital, total loss Including, 3321 X X X X (1,848,670) (1,848,670) Revaluation 3222 X X - X - - loss of assets Revaluation 3322 X X - X - - Expenses 3223 X X - X (1,395,141) (1,395,141) of assets recognized Expenses 3323 - - - X (478,325) (478,325) directly as recognized capital directly as decrement capital Decrease in 3224 - - - X - - decrement par value of Decrease in 3324 - - - X - - stock par value of Decrease in 3225 - - - X - - stock number of Decrease in 3325 - - - X - - stock number of Re- 3226 ------stock organizatio Re- 3326 ------n of organizatio corporate n of entity corporate Dividends 3227 X X X X - - entity Change in 3230 X X - - - X Dividends 3327 X X X X - - surplus Change in 3330 X X 314 - - X capital surplus Change in 3240 X X X (23,851,487 23,851,487 X capital reserve ) Change in 3340 X X X (71,443,710 71,443,710 X capital reserve ) Size of 3200 530,011,52 - - 170,951,971 110,257,24 811,220,74 capital capital as of 7 3 1 Size of 3300 530,011,52 - 314 145,322,811 179,373,95 854,708,61 December capital as of 7 8 0 31, 2011 December For year 31, 2010 2012 Increment in 3310 - - - 45,814,550 - 45,814,550 capital, total Including, 3311 X X X X - - net profit Revaluation 3312 X X - X - - of assets Incomes 3313 ------recognized directly as capital increment Additional 3314 - - - X X - issue of stock Increase in 3315 - - - X - - par value of appendices appendices stock Re- 3316 ------organizatio n of corporate Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 248 Concern OJSC Concern OJSC 249

Auditor’s Report Certifying Annual Business Accounting Statements

To: Stockholders The Audited Entity’s responsibility for its accounting reports of Joint Stock Company “Russian Concern for Production The Audited Entity’s management shall assume ultimate responsibility for the aforemen- of Electrical and Thermal Energy tioned financial statements and reports, and shall ensure that they are prepared reliably, at Nuclear Power Plants” accurately, and in compliance with Russian Accounting Standards, and shall enforce the internal control system as may be required to prepare financial statements free of any material Audited entity misrepresentation through either fraudulence or error.

Corporate name: The Auditor’s responsibility Joint Stock Company “Russian Concern for Production of Electric and Thermal Energy at Nuclear Power Plants” (Rosenergoatom Concern OJSC, Rosenergoatom). Our responsibility is to form and state our judgment as regards reliability of the said financial Location: statements based on the review conducted by ourselves. We conducted the audit in conform- 109507, Moscow, ul. Ferganskaya, 25. ity with Russian Federal auditing standards, which require that we should adhere to applicable Statutory registration: standards of ethics, and that we should plan and conduct our audit in a manner that ensures rea- Registered by Federal Tax Service, Interdistrict Tax Inspectorate No. 46 in the city sonable certainty that the said financial statements are free of any material misrepresentation. of Moscow, on September 17, 2008; certificate: series 77N o. 010416448. Record of September 17, 2008 in the Unified State Register of Legal Entities, Our review consisted of auditing procedures designed to obtain auditing evidence to con- Primary State Registration Number 5087746119951. firm numeric values and disclosure of information in the financial statements. Selection of such auditing procedures was based on our judgment, which in turn relied on assessment of Auditor the risk of material misrepresentation through either fraudulence or error. As we assessed such risk, we examined the corporate control system used to prepare and verify the financial Corporate name: statements, and the purpose of such examination was to enable selection of auditing proce- Financial and Business Consultants Limited Liability Company (FBK LLC). dures, but not to express an opinion about efficiency of the said corporate control system. Location: Our audit also established compliance of the adopted corporate accounting policy and the 101990, Moscow, ul. Myasnitskaya, 44/1, Bldg. 2AB. grounds underlying the value indicators furnished by the management of the Audited Entity, Statutory registration: as well as integral assessment of the filed financial reports as a whole. Registered by Moscow Chamber of Registration, on November 15, 1993, certificate: series YuZ 3 No. 484.583 RP. Record of July 24, 2002, in the Unified State Register of Legal Entities, We hold that the evidence collected in the course of our audit give sufficient grounds for Primary State Registration Number 1027700058286. our judgment about the financial statements as true and reliable. Membership in self-regulated association of auditors: Russian Chamber of Auditors Not-for-Profit Partnership. ID record in the registry of the self-regulated association of auditors: Opinion Certificate of association in Russian Chamber of Auditors Not-for-profit Partnership, No. 5353, ORNZ (Primary Registration Entry Number) 10201039470. It is our opinion that the reviewed financial statements can reliably represent all relevant as- appendices appendices pects of the financial situation in Rosenergoatom Concern OJSC as of December 31, 2012, its We have reviewed the attached accounting statements filed for 2012 by Rosenergoatom, financial and business performance, and its cash flows during 2012, in conformity with Rus- Concern OJSC comprising its Accounting Balance Sheet Statement as of December 31, 2012, sian Accounting Standards. its Profit and Loss Statement, its Equity Dynamics Statement, and its Cash Flow Statement, and comments to the Accounting Balance Sheet Statement and Profit and Loss Statement, Vice President A.V. Tikhonovsky and an explanatory memorandum. (by letter of authorization No. 4/13 issued on January 15, 2013) Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 250 Concern OJSC Concern OJSC 251

Auditing Committee Statement Report on the Concern’s Compliance on the Results of Review with Provisions of the Corporate of Financial and Business Activities Conduct Code recommended of Rosenergoatom Concern by the Federal Financial Markets Service OJSC for 2012

Moscow April 01, 2013 No. Provision of the Corporate Conduct Code Compliant Comment

General Meeting of Stockholders 1 Stockholders are notified about a scheduled General Not compliant Under Russian law, the conformity with the Federal Law On Joint- In the course of the review, the Auditing Meeting at least 30 days before it convenes, regardless Concern need not so mandate Stock Companies, the Articles of Incorpo- Committee randomly selected and exam- of its order of business, unless the law requires a longer in its corporate documents period of notice ration of Rosenergoatom Concern OJSC ined documents that are related to the (hereinafter - the “Company”), and the Com- Company’s financial and business opera- 2 Stockholders have the opportunity to read the list of Compliant pany’s Regulation on the Auditing Commit- tions, and represent essential aspects of the persons entitled to attend the General Meeting from the day of notice about the scheduled General Meeting and tee, between March 14, 2012, and April 01, Company’s activities. until its official closure if convened by attendance, or 2013, the Company’s Auditing Committee until the last date to accept ballots if by absentee vote reviewed the Company’s financial and busi- In the course of the review, the Audit- 3 Stockholders have the opportunity to read handout Compliant ness operations during 2012. ing Committee relied, among other things, information (materials) through digital communications, on the Auditor’s Report by Accountants & incl. the Internet prior to General Meetings The Auditing Committee was formed based Business Advisers LLC (FBK LLC) on the ac- 4 Stockholders have the opportunity to propose an issue Compliant on the Company’s Sole Stockholder Resolu- counting (financial) reports filed by Rosener- for the order of business of the General Meeting, or to tion No. 2 of June 29, 2012, with the follow- goatom Concern OJSC for 2012. demand that the General Meeting be convened, without ing designated members: presenting a record from the stockholder registry, if Based on the results of the review, we of this their stock holding rights are registered in a stockholder Petr Anatolyevich Stepayev Auditing Committee do hereby: registry system; but if their rights are registered on a deposit account, a statement of such deposit account Chairperson of the Auditing Committee, shall suffice to exercise the said stockholder right. deputy head of the Department of Invest- State our opinion as regards reliability of the ment Programmes for Capital Investments, information contained in the Company’s ac- 5 The Articles of Incorporation or other documents of Not compliant Under Russian law, the a Concern shall regulate that the Concern’s General Concern need not so mandate Rosatom State Corporation counting (financial) reports, in all essential Director, officers of theA dministration, Directors, in its corporate documents aspects. Auditing Panel members, and Auditor appear mandatory Liudmila Nikolayevna Demidova to attend General Meetings of Stockholders Member of the Auditing Committee, Direc- We have not established in the Company’s 6 Nominees shall appear before the General Meeting of Not compliant Under Russian law, the tor of the Department of Economics and financial and business activities, any facts of Stockholders convened to deliberate election of the Concern need not summon Controlling, Rosenergoatom non-compliance with the rules and proce- Board, General Director, officers of the Administration, such individuals to its General dures of business accounting and financial Auditing Panel members, and designate the Auditor for Meetings Yelena Grigoryevna Novomlinskaya reporting under the applicable legal acts of the Concern Member of the Auditing Committee, Advi- the Russian Federation, or any other Russian 7 The Concern’s in-house documents shall regulate a Not compliant sor to the Department of Economics and Federal legislation, which might have mate- check-in procedure for persons arriving to attend the General Meeting appendices appendices Controlling, Nuclear Energy Complex Direc- rial impact the reliability of the Company’s torate, Rosatom State Corporation reporting information. Board of Directors 8 The Concern’s Articles of Incorporation shall authorize Compliant Articles of Incorporation, par. This Auditing Committee did not receive Chairperson P.A. Stepayev the Board of Directors to approve the Concern’s financial 12.2.2 any requests from the company’s stockhold- Members l.N. Demidova and business plan annually ers or the Board of Directors calling for an E.G. Novomlinskaya 9 A Board-approved procedure for risk management must Not compliant Risk management procedure extraordinary audits or reviews. exist in the Concern regulated in CEO-approved corporate documents Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 252 Concern OJSC Concern OJSC 253

No. Provision of the Corporate Conduct Code Compliant Comment No. Provision of the Corporate Conduct Code Compliant Comment 10 The Concern’s Articles of Incorporation shall authorize Compliant Articles of Incorporation, par. 24 The Concern’s internal documents shall regulate that Not compliant the Board to suspend from office a General Director 12.2.20 the Board is authorized to demand information from elected by the General Meeting executive bodies and head officers of the Concern’s key structural units, as required to enabled the Board’s 11 The Concern’s Articles of Incorporation shall authorize Compliant Articles of Incorporation, par. functions, and liability for failure to furnish such the Board to set requirements to qualifications and 12.2.18 information remuneration of the Concern’s General Director, officers of the Administration, heads of key structural units 25 A Board Panel for strategic planning must be formed, or Not compliant No Board Panels formed another Panel shall assume such function (except the 12 The Concern’s Articles of Incorporation shall authorize Compliant Articles of Incorporation, par. Auditing Panel and HR and Remuneration Panel) the Board to approve terms of contracts signed with the 12.2.18 General Director and officers of the Administration 26 A Board Panel shall be formed (Auditing Panel) to Not compliant No Board Panels formed recommend the Concern’s Auditor to the Board, and to 13 The Concern’s Articles of Incorporation or other Compliant Articles of Incorporation, par. interact with the Auditor and the Auditing Commission documents shall state that the votes cast by the 12.2.18 Directors who are General Director and officers of 27 The Auditing Panel shall be formed only of independent Not compliant No Auditing Panel formed the Administration shall not be counted as the Board and non-executive Directors approves terms of contract with the General Director (corporate/executive manager) and the Administration 28 The Auditing Panel shall report to an independent Not compliant No Auditing Panel formed Director 14 The Concern’s Board of Directors shall have at least Not compliant No independent directors 3 independent Directors who so qualify under the elected to the Board 29 The Concern’s internal documents shall regulate that Not compliant No Auditing Panel formed Corporate Conduct Code all Auditing Panel members may access all documents and information in the Concern, provided they do not 15 The Concern’s Board of Directors shall have no individuals Compliant disclose confidential information found guilty of business crimes or high treason, or civil offence as officers of federal or local government agencies, 30 A Board Panel shall be formed (HR and Remuneration Not compliant No Board Panels formed or penalized for business crimes or tax crime or fraud. Panel), with the function to determine selection criteria for candidates to the Board and plan the Concern’s 16 The Concern’s Board of Directors shall have no Compliant remuneration policy individuals who are stockholders, General Director (manager), executive officer, or employee of a corporate 31 The HR and Remuneration Panel shall report to an Not compliant No HR & Remunerations competitor of this Concern independent Director Panel formed

17 The Concern’s Articles of Incorporation shall state that Not compliant Procedure pursuant to par. 4 32 The Concern’s officers shall not be members of the HR Not compliant No HR & Remunerations the Board of Directors is elected by cumulative vote Art. 66 of “Corporations” Act and Remuneration Panel. Panel formed

18 The Concern’s internal documents shall regulate that Not compliant Under Russian law, the 33 A Board Panel for risks shall be formed, or another Panel Not compliant No Board Panels formed each Director must refrain from action that may give rise Concern need not so mandate shall assume such function (except the Auditing Panel to a conflict between their personal interests and those in its corporate documents and HR and Remuneration Panel) of the Concern; and should such conflict arise, they shall 34 A Board Panel for shall be formed to settle corporate Not compliant No Board Panels formed report the conflict to the Board conflicts, or another Panel shall assume such function 19 The Concern’s internal documents shall regulate that Not compliant Under Russian law, the (except the Auditing Panel and HR and Remuneration each Director shall notify the Board in writing about their Concern need not so mandate Panel) intent to transact with stock of the Concern where they in its corporate documents 35 The Concern’s officers shall not be members of the Not compliant No Board Panel for corporate are Directors or its subsidiaries/affiliates, and they shall Board Panel formed to settle corporate conflicts. executive conflicts report to the Concern all transactions that involve such securities 36 The Board Panel formed to settle corporate conflicts Not compliant No Board Panel for corporate shall report to an independent Director. executive conflicts 20 The Concern’s internal documents shall regulate that the Not compliant Under Russian law, the Board of Directors meet at least every six weeks Concern need not so mandate 37 The Concern shall have internal documents, approved by Not compliant No Board Panels formed in its corporate documents the Board, to regulate the procedure to form the Board Panels and their working procedures. 21 The Concern’s Board of Directors shall have at least six Compliant Articles of Incorporation, par. appendices appendices meetings during the year for which the Concern’s Annual 12.2.4 38 The Concern’s Articles of Incorporation shall regulate Not compliant Under Russian law, the Report is filed the procedure to determine the Board’s quorum, Concern need not institute ensuring that independent Directors are always present this procedure 22 The Concern’s internal documents shall regulate the Compliant Regulation on the Board, at Board meetings. procedure of Board meetings Section 7 Executive Bodies 23 The Concern’s internal documents shall regulate that the Compliant Articles of Incorporation, par. Concern’s transactions worth 10 and more percent of the 12.2.13 39 The Concern shall have a collegiate executive body Not compliant No collegiate body formed Concern’s total assets in the course of business as usual (Administration) are subject to approval of the Board. Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 254 Concern OJSC Concern OJSC 255

No. Provision of the Corporate Conduct Code Compliant Comment No. Provision of the Corporate Conduct Code Compliant Comment 40 The Concern’s Articles of Incorporation or other Not compliant No Administration 53 A third-party appraiser shall be contracted to state Compliant Third-party appraisers documents shall contain a provision that its property market value of the assets to be exchanged through a contracted under the transactions and loans taken are subject to approval large transaction. Corporations Federal Act by the Administration, unless they qualify as large transactions and part of the Concern’s business as usual 54 The Concern’s Articles of Incorporation shall regulate Not compliant Under Russian law, the that when major holdings of the Concern’s stock are Concern need not so mandate 41 The Concern’s internal documents shall regulate Not compliant Under Russian law, the purchased (merger), no action may be taken to protect in its corporate documents procedures to coordinate transactions beyond the scope Concern need not so mandate interests of the executive bodies (or members thereof), of the Concern’s financial and business plan. in its corporate documents or to damage stockholders’ situation (including that until expiry of the expected time to purchase stock, 42 The Concern’s executive bodies shall have no individuals Compliant the Board may not decide to issue additional stock, or who are stockholders, General Director (manager), securities convertible to stock, or options to purchase executive officer, or employee of a corporate competitor the Concern’s stock, even if the Board has such authority of this Concern under the Articles of Incorporation).

43 The Concern’s executive bodies shall have no individuals Compliant 55 The Concern’s Articles of Incorporation shall regulate Not compliant Under Russian law, the found guilty of business crimes or high treason, or that a third-party appraiser be contracted to name the Concern need not so mandate civil offence as officers of federal or local government current market value of stock, and possible change of its in its corporate documents agencies, or penalized for business crimes or tax crime or market value as a result of merger fraud with securities. 56 In case of merger, the Concern’s Articles of Incorporation Compliant 44 The Concern’s Articles of Incorporation or other Not compliant Under Russian law, the shall not exempt the purchasing party from obligation documents shall state that the corporate/executive Concern need not institute to offer the stockholders an option to sell the Concern’s manager may not assume similar functions in a this corporate procedure common shares that they hold (issued securities competing entity, or enter any financial relations with this convertible to common shares) Concern, other than to provide services of a corporate/ executive manager. 57 The Concern’s Articles of Incorporation or other Not compliant Under Russian law, the documents shall regulate that a third-party appraiser be Concern need not so mandate 45 The Concern’s internal documents shall state that the Not compliant Under Russian law, the contracted to find the stock conversion ratio in case of in its corporate documents executive officers must refrain from action that may give Concern need not so mandate re-organization rise to a conflict between their personal interests and in its corporate documents those of the Concern; and should such conflict arise, Disclosure of Information they shall report the conflict to the Board. 58 The Concern shall have a Board-approved internal Compliant Rosenergoatom Regulation 46 The Concern’s Articles of Incorporation or other Not compliant Under Russian law, the document to define the Concern’s rules and approaches on public disclosure of documents shall state selection criteria for the Concern need not so mandate as regards disclosure of information (Regulation on information corporate/executive manager. in its corporate documents information policy)

47 The Concern’s executive bodies shall present their Not compliant 59 The Concern’s internal documents shall require Not compliant Under Russian law, the reports to the Board on a monthly basis. mandatory disclosure of information about purposes of Concern need not incorporate stock placement, persons who intend to purchase issued this Section in its corporate 48 Contracts signed between the Concern and its General Compliant stock, incl. major holding, and whether the Concern’s top documents Director (corporate/executive manager) and officers executive officers are going to purchase any of the stock of Administration, shall regulate liability for failure to to be issued observe confidentiality clauses as regards confidential and classified information. 60 The Concern’s internal documents shall contain a list of Compliant Procedure to prepare and information, documents, and materials to be furnished to coordinate draft resolutions Corporate Secretary stockholders before they deliberate the order of business of the Board and General 49 The Concern shall employ a designated officer (corporate Compliant Functions assumed by the at the General Meeting Meeting secretary), instructed to enforce the rules of procedure Concern’s Board of Directors 61 The Concern shall maintain a website and regularly Compliant www.rosenergoatom.ru; that guarantee the stockholders’ rights and lawful publish information there. www.e-disclosure.ru/portal/ interests on the Concern’s bodies and officers. company.aspx?id=18936

50 The Concern’s Articles of Incorporation or other Compliant Section 4, Regulation on the 62 The Concern’s internal documents shall require Not compliant Under Russian law, the appendices appendices documents shall regulate the procedure to designate/ Board of Directors disclosure of information about transactions between it Concern need not incorporate elect the corporate secretary, and their list of duties. and individuals who under the Articles of Incorporation this Section in its corporate 51 The Concern’s Articles of Incorporation shall state Not compliant Defined in Regulation on the qualify as its top executive officers, or any organizations documents qualification requirements for the corporate secretary Board of Directors in which its top executive officers directly or indirectly hold 20 and more percent of their registered capital, or Essential Corporate Acts which are otherwise controlled or influenced by such individuals. 52 The Concern’s Articles of Incorporation or other Compliant Provisioned in the Articles documents shall state that any large transaction is of Incorporation (p. 11.1.14, p. subject to approval before it is accomplished. 12.2.13) Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 256 Concern OJSC Concern OJSC 257

No. Provision of the Corporate Conduct Code Compliant Comment No. Provision of the Corporate Conduct Code Compliant Comment

63 The Concern’s internal documents shall require Not compliant Under Russian law, the Dividends disclosure of information about all transactions that Concern need not incorporate may cause changes in the market value of the Concern’s this Section in its corporate 75 A Board-approved internal document shall be used by Not compliant Under Russian law, the issued stock. documents the Board as guidance to recommend size of payable Concern need not approve dividend (Regulation on dividend policy) such corporate document 64 A Board-approved internal document shall regulate use Not compliant Under Russian law, the of essential information about the Concern’s activities, Concern need not instruct 76 The Regulation on dividend policy shall set the Not compliant Under Russian law, the stock, and other securities, and related transactions, the Board to regulate use procedure to calculate minimum share of the Concern’s Concern need not approve unless such information is public domain and its of essential information on net profits to be paid out as dividends, and the terms to such corporate document disclosure may cause changes in the market value of the corporate operations, issued pay or not pay dividend on preferred stock where the Concern’s issued stock stock, securities, and related dividend rate is determined by the Concern’s Articles of transactions Incorporation.

Control of financial and business activities 77 Information about the Concern’s dividend policy Not compliant Under Russian law, the and changes to it shall be published in a periodical Concern need not approve 65 A Board-approved internal document shall regulate Not compliant Under Russian law, the publication named in the Concern’s Articles of and publish such corporate procedures for in-house control of its financial and Concern need not install such Incorporation as one to circulate notices of its General document business activities. procedures Meetings; such information shall also be posted on the Concern’s website. 66 The Concern shall form a special unit to enforce its Compliant Department of internal internal control procedures (audit and monitoring control and auditing in service) Rosenergoatom

67 The Concern’s internal documents shall regulate that Not compliant Under Russian law, the the members and structure of its audit and monitoring Concern need not integrate service is decided by the Board. such Section in its Articles

68 The audit and monitoring service shall have no Compliant individuals found guilty of business crimes or high treason, or civil offence as officers of federal or local government agencies, or penalized for business crimes or tax crime or fraud.

69 The audit and monitoring service shall have no Compliant individuals who are this Concern’s executive officers, or who are stockholders, General Director (manager), executive officer, or employee of a corporate competitor of this Concern.

70 The Concern’s internal documents shall regulate the time Compliant limit for documents and materials to be furnished to its audit and monitoring service, to evaluate accomplished financial and business transactions, and liability of its executives and employees should they fail to present such in good time.

71 The Concern’s internal documents shall regulate that Not compliant No Auditing Committee the audit and monitoring service must report all non- compliance to the Auditing Committee; in its absence, to the Board

72 The Concern’s Articles of Incorporation shall regulate Not compliant Under Russian law, the that all transactions not envisaged in the Concern’s Concern need not integrate financial and business plan (unusual transactions) should such Section in its Articles be submitted to the audit and monitoring service for appendices appendices examination.

73 The Concern’s internal documents shall regulate the Not compliant Under Russian law, procedure to pre-approve unusual transactions with the the Concern need not Board. integrate such Section in its constitutive documents

74 A Board-approved internal document shall regulate the Not compliant Under Russian law, the procedure for the Concern’s Auditing Commission to Concern need not approve review its financial and business activities. such corporate document Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 258 Concern OJSC Concern OJSC 259

Active nuclear power Installed Capacity and Electrical units connected to the grid Power Generation by Russian Nuclear Plants in 2012, Power Plant Unit No. Reactor type Electrical capacity, MW Joined the grid by Power Sources and Geography Balakovo NPP 1 VVER-1000 1,000 28.12.1985 (Regions of Russia) 2 VVER-1000 1,000 08.10.1987

3 VVER-1000 1,000 24.12.1988

4 VVER-1000 1,000 11.04.1993

Beloyarsk NPP 3 BN-600 600 08.04.1980

Bilibino NPP 1 EGP-6 12 12.01.1974

2 EGP-6 12 30.12.1974

3 EGP-6 12 22.12.1975

EGP-6 12 27.12.1976

Kalinin NPP 1 VVER-1000 1,000 09.05.1984

2 VVER-1000 1,000 03.12.1986

3 VVER-1000 1,000 16.12.2004 S/no Power Plant Grid Constituent Power Power EU1: EU2: EU30: EU 28: 4 VVER-1000 1,000 24.11.2011 Entity units unit type installed Generation LAF, % simultane- of the Russian capacity, of electri- ous generators Kola NPP 1 VVER-440 440 29.06.1973 Federation MW cal power, going off grid, billion kWh occurrences 2 VVER-440 440 09.12.1974

3 VVER-440 440 24.03.1981 1 Kalinin NPP Centre Tver Oblast 4 VVER 4,000 28,307.0 88.4 3+12*

4 VVER-440 440 11.10.1984 including power Centre Tver Oblast VVER 1,000 5,583.7 102.4 12 unit No.4 Kursk NPP 1 RBMK-1000 1,000 12.12.1976 2 Kursk NPP Centre Kursk Oblast 4 RBMK 4,000 29,046.6 83.7 2 2 RBMK-1000 1,000 28.01.1979

3 RBMK-1000 1,000 17.10.1983 3 Novovoronezh Centre Voronezh 3 VVER 1,834 13,292.6 83.3 3 NPP Oblast 4 RBMK-1000 1,000 02.12.1985 4 Smolensk NPP Centre Smolensk 3 RBMK 3,000 20,478.2 79.6 3 Leningrad NPP 1 RBMK-1000 1,000 21.12.1973 Oblast

2 RBMK-1000 1,000 11.07.1975 5 Kola NPP NW Murmansk 4 VVER 1,760 9,945.8 81.9 1 Oblast 3 RBMK-1000 1,000 07.12.1979 6 Leningrad NPP NW Leningrad 4 RBMK 4,000 24,412.2 70.4 1 4 RBMK-1000 1,000 09.02.1981 Oblast Novovoronezh NPP 3 VVER-440 417 12.12.1971 7 Rostov NPP South Rostov Oblast 2 VVER 2,000 15,716.5 90.7 0 4 VVER-440 417 28.12.1972 appendices appendices 8 Balakovo NPP Volga Saratov 4 VVER 4,000 31,666.9 91.2 2 5 VVER-1000 1,000 31.05.1980 Oblast

Rostov NPP 1 VVER-1000 1,000 30.03.2001 9 Beloyarsk NPP Urals Sverdlovsk 1 FN 600 4,256.9 80.8 0 Oblast 2 VVER-1000 1,000 16.03.2010

Smolensk NPP 1 RBMK-1000 1,000 09.12.1982 10 Bilibino NPP East Chukotka 4 EGP-6 48 167.8 82.3 0 Autonomous 2 RBMK-1000 1,000 31.05.1985 Okrug

RBMK-1000 1,000 17.01.1990 TOTAL 33 25,242 177,290.4 83.2 15+12* Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 260 Concern OJSC Concern OJSC 261

Glossary

• Core zone — Part of the reactor that houses nuclear fuel, the moderator, beta absorber, • Uniform State System to Prevent and Eliminate Emergencies — a system designed to heat medium, reactive impact devices, and structural elements used to enable a con- protect citizens and land against disasters of natural, industrial, or other nature, to pro- trolled nuclear fission chain reaction and transmit the energy to the heat medium. vide defenses at times of peace for citizens, territories and the environment, material and cultural values of the land; the system integrates bodies of management, forces and • Automated radiation control system — one that measures intensity of gas-aerosol emis- means commanded by the federal government, the governments of constituent Subjects sions to the air and liquid discharge to surface waters. of the Russian Federation, local governments, organizations (including privately owned), • Automated radiation background control — a system that measures strength of exposure whose functions include addressing issues of protecting the public and territories in to gamma rays within residential communities. emergencies. • Nuclear plant – Nuclear equipment used to generate energy in preset operational • NPP life cycle — all stages of evolution that a nuclear plant passes through during its modes and conditions, installed within project-defined boundaries that uses for the pur- existence; this includes design, construction, commissioning, operation, and decommis- pose one or more nuclear reactors and a set of related systems, devices, equipment, and sioning. buildings with personnel • Closed nuclear fuel cycle — A nuclear fuel cycle (NFC), where spent nuclear fuel un- • Nuclear power industry – Section of the power industry that engages nuclear energy to loaded from the reactor is recycled to recover uranium and plutonium to be reused in produce heat and electric power. nuclear fuel • International Atomic Energy Agency — international organization, currently of 30 • Unforeseen emergency — An emergency caused by triggers not considered for project- member states that possess high level in science and technology. The IAEA was created specific emergencies, or accompanied by additional, compared to project-specific emer- to assist its member states in science and technology development, harmonizing their gency scenarios, failures of safety systems in excess of single failure scenario, and com- national regulatory and standard instruments to ensure safe, efficient, and environment- plicated by human error. friendly use of nuclear power for peaceful application. • Nuclear reactor protection shell — A device in a nuclear reactor designed to hold radio- • Nuclear plant safety — A nuclear plant’s ability, during normal and abnormal operation, active nuclides within the volume of the shell, in the event of emergency decompres- including emergencies, to keep the radiation impact on its personnel, citizens and the sion of the reactor equipment. environment within specific required limits. • Safety protections — Systems (components), designed to prevent or mitigate damage to • NPP unit — Part of a nuclear plant that performs its generating function to the project- nuclear fuel storage, thermal housing, equipment, and pipelines that contain radioactive defined extent. substances. • FN (fast-neutron reactor) — A nuclear reactor in which most fission in the nuclear fuel • Installed capacity use factor — Ratio of arithmetical mean capacity to installed capacity relies on fast neutrons. for a specific time interval. • WANO — World Association of Nuclear Plant Operators, whose mission is to maximize • Emergency drill set — a set of exercise activities the Concern uses to train its manage- the safety and reliability of nuclear plant operations worldwide through exchange of ment, forces, and facilities to response to an emergency. information and encouraging contacts among its members, comparing their working re- • The Concern’s Crisis Centre — A key component within the structure of emergency sup- sults and promoting best practices. port to NPPs, it monitors main parameters of production, radiation, environment, and fire • Commissioning — A process when the systems and equipment of power unit or the safety in the 24/7 mode. entire NPP are launched, and their project compliance is checked. The process includes • Nuclear reactor shell — A tight reservoir designed to hold the fission zone of the nuclear pre-commissioning setup, hardware and generating starts, and production test opera- reactor, neutron reflector, monitoring and experimental hardware, and related cooling tion; it concludes when the NPP is signed off for commercial operation. equipment with a flow of heat medium. appendices appendices • VVER – Translates as “Water-Cooled Power Reactor”. These shell-protected water-mod- • Load availability factor — The ratio of net time in operation of a reactor unit in a calen- erated power reactors use water under pressure. dar operation period, to the sum total of such time and duration of unscheduled repairs • Radioactive emission — A substance (or mix) as a gas and/or aerosol, released into the during period “t”. Load availability factor that describes the reactor’s robustness during environment (air) from emitting sources. a period free of scheduled shutdowns, numerically equals the probability of unfailing operation of the unit at any random point in time in between scheduled shutdowns. The • Radiation dose — In radiation safety, a measure of impact by ionizing radiation on a bio- standard value for a NPP is LAF=80 %. logical object, typically a human. Doses can be by exposure, absorption, and equivalent. Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 262 Concern OJSC Concern OJSC 263

• Safety culture — Corporate culture where all individuals are trained, skilled, and psycho- • Fuel element — The key structural component in a nuclear reactor’s core zone in which logically prepared, and ensuring NPP safety becomes a priority and inherent need that nuclear fuel is encapsulated. results in understanding, and self-control during safety-related activities. • Conditional emergency — A scenario assuming multiple damage failures and equip- • Spent nuclear fuel — Nuclear fuel contaminated in the reactor’s fission zone and with- ment, under which nuclear plant employees and emergency services drill issues of rapid drawn from it finally. response to unusual situations at the nuclear plant, and test readiness of personnel and equipment to eliminate likely emergencies. • Organization for Economic Cooperation and Development (OSART) — International economic association of developed nations adherent to the principles of representative • Power efficiency — efficient (rational) use of energy resources, to achieve economically democracy and free market economy, whose mission is to promote economic growth in justified efficiency at the existing level of engineering and technology, given compliance the OSART member states, and raise their contributions to global economic growth and with environmental protection regulations. development, fighting poverty in countries that are not OSART members. • Nuclear object — an entity that uses or stores nuclear materials on the premises or • Pre-project activities — Problems that must be solved before the decision is made to houses and/or operates a nuclear power unit or nuclear storage facilities. begin design, the process directly documented. • INES — International Nuclear Events Scale. It was adopted to facilitate communication • Floating thermal nuclear power plant (FTNPP) — A Russian project to create mobile and understanding between nuclear industry specialists, mass media, and the public, as floating nuclear thermal and electric plants with small output capacity to be used in regards the magnitude of events/incidents at nuclear units in terms of safety. The Scale remote regions in Russia and abroad, including for the desalination of seawater. places all events into one of its seven levels: higher-level events (4-7) are known as “emergency”; lower-level events (1-3) are “incidents”. Events that are negligible in terms • Radiation safety — condition when the existing and future human generations are pro- of safety are placed at level 0 beyond the Scale, and are known as “departures”. Events ir- tected against health-damaging impacts of ionizing radiation. relevant for safety and placed beyond the Scale, and are known to be “off-scale”. • Radiation monitoring — collecting information about the radiation situation at nuclear plants, in the environment, and exposure of humans. • RBMK (large-capacity multi-channel reactor) — Channel-type, water-graphite energy reactor with electric capacity equal or above 1 GW, where water boils in duct channels, and saturated steam is supplied from separators into the turbines. • Reactor unit — A set of NPP systems and components, designed to convert nuclear energy to heat, including a reactor and directly related systems to support its normal operation, emergency cooling, emergency protections, and safety assurance, provided compliance with mandatory auxiliary and support functions from other systems of the power plant. The limits for the reactor unit are stated specifically for each NPP in its project pack. • Situation Crisis Centre — A centre that ensures technical, technological, information- exchange, and analytic supports to activities of the HQ of Rosatom State Corp., and involvement in information support to ongoing management of the industry both under routine conditions and in emergencies. • Quality management system —The entire set of organizational structure, methodology, processes and resources needed for general management of quality; designed to ensure appendices appendices continuous improvement of operations, making the business more competitive on the domestic and global markets, the system determines any entity’s competitive ability; it is part of the corporate management system. • Radiation control system — A system that includes automated data-metering hardware sets and related auxiliary equipment, and ensures collection and processing of information on control parameters that describe radiation situation within the nuclear plant’s controlled access zone, on the product site, within the health protection zone, and observation zone, in every operation mode of the nuclear plant, including standard and unforeseen emergency, and the plant’s condition when the power unit is decommissioned. Rosenergoatom ANNUAL REPORT 2012 Appendices Rosenergoatom 264 Concern OJSC Concern OJSC 265

Abbreviations

ASIDC — automated system of individual VLAW – very low-activity waste dosimeter control, used by personnel at a nuclear plant NPRR (group) — group for nuclear plant rapid response ASRSC – automated system of radiation situation control OSART – organization for economic cooperation and development АRCS – automated radiation control system SNF – spent nuclear fuel IAEA – International Atomic Energy Agency FTNPP – floating thermal nuclear power WANO — World Association of Nuclear plant plant Operators MDGU – mobile diesel generator units VVER – water-water energy reactor MPU – mobile pumping units MCP – main circulation pipeline ESL — extension of service life PE – permissible emissions FPU – floating power unit DGU – diesel generator unit RW – radioactive waste PD – permissible discharge UPEE — United system for prevention and PS – pollutant substances elimination of emergencies CNFC – closed nuclear fuel cycle AMCS – access management and control system ICT – information and communication technologies SCC – Situation Crisis Centre (Rosatom) IRG – inert radioactive gas RCS – radiation control centre PPEEC – physical protection equipment FE – fuel element engineering complexes NPP DEU– nuclear power plant drill ICUF – installed capacity use factor exercise units EDC – emergency drill complex LSRWS – liquid and solid radioactive waste storage CEE – comprehensive emergency response exercise PAPS – pre-assembly preparation shop SRED – science research and experimental TSC – technical service centre design EDC – experimental demonstration centre appendices appendices