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EXTERNAL VECTOR of ROSATOM's DEVELOPMENT: CASE STUDIES of ACTIVITIES in TURKEY, FINLAND and HUNGARY Master's Thesis

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EXTERNAL VECTOR of ROSATOM's DEVELOPMENT: CASE STUDIES of ACTIVITIES in TURKEY, FINLAND and HUNGARY Master's Thesis MASARYK UNIVERSITY FACULTY OF SOCIAL STUDIES DEPARTMENT OF INTERNATIONAL RELATIONS AND EUROPEAN STUDIES EXTERNAL VECTOR OF ROSATOM’S DEVELOPMENT: CASE STUDIES OF ACTIVITIES IN TURKEY, FINLAND AND HUNGARY Master’s Thesis Author: Nikita Minin UČO: 419802 Supervisor: PhDr. Tomáš Vlček, Ph.D. Study Field: Energy Security Studies Year of Enrollment: 2014 Brno, 2016 2 STATEMENT OF AUTHORSHIP I hereby declare that this thesis I submit for assessment is entirely my own work and has not been taken from the work of others save to the extent that such work has been cited and acknowledged within the text of my work. Date: Nikita Minin ……………………… 3 ACKNOWLEDGEMENTS Sincere words of gratitude go to Tomáš Vlček, who was supervising and guiding me throughout the whole process of making this work happen. Unless for his much appreciated advice, this thesis would not look the way it does, neither it would contribute to my personal and academic growth the way it has done. I would also like to thank the whole department and lecturers for their individual approach towards the issues that were arising in the course of studies and thesis writing. In addition, I’m exceptionally grateful to my parents, who supported me no matter what and believed in me, even when I doubted myself. Moreover, my personal huge thanks go to the European Commission as such that has provided an indispensable financial support for getting the degree at stake through the Erasmus Mundus scheme. With this regard, I’d like to mention Violeta Osouchová, who was supervising my stay and has demonstrated outstanding care and understanding, when dealing with students’ requests, which can be referred to the whole team of the Masaryk University Centre for International Cooperation. Last but not least, I’m thanking Jolana Navrátilová for patience and assistance she has provided, when it was much needed that helped me to go through all possible kinds of formal hurdles. 4 TABLE OF CONTENTS LIST OF ABBREVIATIONS .................................................................................................. 6 LIST OF FIGURES AND TABLES ........................................................................................ 8 ABSTRACT ............................................................................................................................... 9 INTRODUCTION .................................................................................................................. 10 I. THEORETICAL ASPECTS OF ANALYZING ROSATOM’S EXTERNAL STRATEGY ............................................................................................................................ 14 1.1. RESEARCH FRAMEWORK ................................................................................................. 15 1.2. METHODOLOGICAL PREMISES OF ACADEMIC INQUIRY .................................................... 18 1.3. OPERATIONALIZATION SETTINGS OF THE RESEARCH ....................................................... 24 1.4. TIMEFRAME, VALIDITY AND LIMITATIONS OF THE RESEARCH ........................................ 27 II. ANALYSIS OF ROSATOM’S EXTERNAL STRATEGY ........................................... 32 2.1. ROSATOM’S ORIGIN, AREAS OF COMPETENCE AND ORGANIZATIONAL STRUCTURE ....... 33 2.2. THE OUTLINE OF ROSATOM’S EXTERNAL POLICY ........................................................... 41 2.3. DETERMINANTS AND CONSIDERATIONS OF ROSATOM’S EXTERNAL POLICY ................... 48 2.3.1. Overall Favorable Economics ................................................................................. 49 2.3.2. Support for Domestic Development ......................................................................... 52 2.3.3. Long-Run Perspective .............................................................................................. 53 2.3.4. Prestige and Mindset ............................................................................................... 55 2.3.5. Political Gains ......................................................................................................... 56 2.4. KEY FEATURES OF ROSATOM’S EXTERNAL STRATEGY ................................................... 60 2.4.1. Image-Making .......................................................................................................... 60 2.4.2. Expansionism ........................................................................................................... 62 2.4.3. Expedience ............................................................................................................... 64 2.4.4. Integrity ................................................................................................................... 66 2.4.5. Flexibility ................................................................................................................. 68 2.4.6. Superiority ............................................................................................................... 69 III. CASE STUDIES OF THE NUCLEAR PROJECTS IN THE CONTEXT OF ROSATOM’S EXTERNAL STRATEGY ............................................................................ 72 3.1. ROSATOM’S INVOLVEMENT IN AKKUYU NUCLEAR POWER PLANT IN TURKEY ............... 72 3.1.1. Image-Making .......................................................................................................... 74 3.1.2. Expansionism ........................................................................................................... 75 5 3.1.3. Expedience ............................................................................................................... 77 3.1.4. Integrity ................................................................................................................... 78 3.1.5. Flexibility ................................................................................................................. 80 3.1.6. Superiority ............................................................................................................... 82 3.2. ROSATOM’S PARTICIPATION IN HANHIKIVI NUCLEAR POWER PLANT IN FINLAND .......... 85 3.2.1. Image-Making .......................................................................................................... 86 3.2.2. Expansionism ........................................................................................................... 87 3.2.3. Expedience ............................................................................................................... 88 3.2.4. Integrity ................................................................................................................... 90 3.2.5. Flexibility ................................................................................................................. 92 3.2.6. Superiority ............................................................................................................... 93 3.3. ROSATOM AND THE EXTENSION OF PAKS NUCLEAR POWER PLANT IN HUNGARY ........... 96 3.3.1. Image-Making .......................................................................................................... 97 3.3.2. Expansionism ........................................................................................................... 98 3.3.3. Expedience ............................................................................................................... 99 3.3.4. Integrity ................................................................................................................. 102 3.3.5. Flexibility ............................................................................................................... 104 3.3.6. Superiority ............................................................................................................. 105 3.4. SUMMARY ..................................................................................................................... 107 CONCLUSION ..................................................................................................................... 109 REFERENCES ...................................................................................................................... 115 6 LIST OF ABBREVIATIONS AEM AtomEnergoMash AEP AtomEnergoProm ASE AtomStroyExport BN Sodium-cooled fast reactor (from Russian: быстрый натриевый) BOO Build – Own – Operate BOT Build – Own – Transfer Lead- or lead-bismuth-cooled fast reactor (from Russian: BREST быстрый реактор со свинцовым теплоносителем) BWR Boiling water reactor CANDU Canada Deuterium Uranium CEO Chief executive officer CIS Commonwealth of Independent States CNNC China National Nuclear Corporation EC European Commission EIA Environmental impact assessment ENUSA Enusa Industrias Avanzadas EPC Engineering – Procurement - Construction ESA Euratom Supply Agency EU European Union EUP Enriched uranium product FSUE Federal State Unitary Enterprise HEU Highly enriched uranium Inc. Incorporation JSC Joint Stock Company kWh Kilowatt-hour LEU Low-enriched uranium Minatom Ministry of Atomic Energy of the Russian Federation MIR Modernized International Reactor MOX Mixed oxide fuel MW Megawatt MWe Megawatt electrical 7 NIAEP Nizhny Novgorod Engineering Company “Atomenergoproekt” NNL National Nuclear Laboratory NPP Nuclear power plant In Russian – АЭС Атомная электростанция (Atomnaya ElektroStancija) (AES) Experimental design bureau (from Russian: опытно- OKB конструкторское бюро; transliterates as opytno-konstruktorskoe buro) PM Prime Minister PR Public relations PWR Pressurized water reactor RAO
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