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Japan-Russia Relations from the Japan Russia Relations from the Economic and Energy aspects November 2009 Ministry of Economy, Trade and Industry D t Di t G lf T d P li Deputy Director-General for Trade Policy Yuji Muranaga 2009 Japan-Russia Energy and Environment Dialogue in Niigata K-1 MURANAGA © ERINA

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Page 1: Japan-Russia Relations from theelations from the … · which the Russian government hopes to join The Japanese government is askingwhich the Russian government hopes to join. The

Japan-Russia Relations from theJapan Russia Relations from the Economic and Energy aspects

November 2009Ministry of Economy, Trade and Industry

D t Di t G l f T d P liDeputy Director-General for Trade PolicyYuji Muranagaj g

2009 Japan-Russia Energy and Environment Dialogue in Niigata K-1 MURANAGA

© ERINA

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ContentsContents

1.Current situation of the Russian

economeconomy

2 J R i t d d i t t2.Japan-Russia trade and investment

relationsrelations

3 Japan Russia energy relations3.Japan-Russia energy relations1

2009 Japan-Russia Energy and Environment Dialogue in Niigata K-1 MURANAGA

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1. Current situation of theR iRussian economy

2

2009 Japan-Russia Energy and Environment Dialogue in Niigata K-1 MURANAGA

© ERINA

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Russian economy: Steady economic growth decelerated rapidly (1)

○ Th R i i h il li t t○ The Russian economy is heavily reliant on resources exports.○ The Russian economy was hard hit by the global recession, even though the

Russian economy grew smoothly until the first half of 2008 due to the steep rise of the resource prices.

400450500 15%

12 000

14,000

%ドル ロシアのGDP成長率及び1人当たりのGDPの推移

$11807

$100

(10億ドル)mineral resources69.7%

Transition of Russian export articlesTransition of GDP growth rate and GDP per person of Russia

US$ 1 billion U.S.$

200250300350400

1.4%

6 .4%

10 .0%

5 .1% 4.7%

7.3% 7.2%6.4%

7.7% 8.1%

5 .6%5%

10%

8,000

10,000

12,000 $100

$72

$66mineral

$8,230(forecast)

050

100150

-5.3% -5%

0%

4,000

6,000

$57

$41

$31$26$26$30

mineral resources66.1% $57 (Jan~Sep)

(1~6)'95 '00 '03 '04 '05 '06 '07 '08 '09その他 食料品、農産物

木材、紙パルプ製品 機械、設備、輸送機器

化学品、ゴム 金属・同製品

鉱物資源

-10.4%

-15%

-10%

0

2,000

97 98 99 00 01 02 03 04 05 06 07 08 09 年

1人あたりの名目GDP 実質GDP成長率 均価格(ド / ゙ )

$19$14

$18( Jan~Jun )

(1~6)

Mineral resources

Chemical goods, rubber Metal & metallic products

Food goods, agricultural products

Wood, pulp & paper Machinery , equipment & transport machine

GDP growth rateGDP(1~6)

Others

3Source:Federal state statistics service

Interfax(2009)

1人あたりの名目GDP 実質GDP成長率 均価格(ドル/バレル)

Source:Federal state statistics serviceInterfax(2009)

Source :IMF “World Economic Outlook Database"

Source :Energy Information Administration

GDP growth rate WTI average price ($/barrels)GDP per person

2009 Japan-Russia Energy and Environment Dialogue in Niigata K-1 MURANAGA

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Russian economy: Steady economic growth decelerates rapidly (2)

$140

$160

2500

30007/11Highest value of WTI ($145)

$100

$120

2000

5/19

$60

$80

1000

1500 Highest value of RTS index (2488)

$20

$40

50012/22Lowest value of WTI ($31)

$0 0

RTS指数(左目盛り) WTI原油価格(右目盛り)RTS index (left scale) WTI crude oil price (right scale)

4

数 価格

2009 Japan-Russia Energy and Environment Dialogue in Niigata K-1 MURANAGA

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Russian economy: Economic growth forecast in 2009

The World Bank

(※1)

OECD

(※2)

IMF

(※3)

World ▲1.7% ▲3.6% ▲1.1%

※4 (▲2.9%)

Japan ▲5.3% ▲6.8% ▲5.4%

U.S. ▲2.4% ▲2.8% ▲2.7%

EU ▲2.7% ▲4.8% ▲4.2%

China 6.5% 7.7% 8.5%

India 4 0% 5 9% 5 4%India 4.0% 5.9% 5.4%

Russia ▲4.5%

(▲7.9%)

▲6.8% ▲7.5%

Brazil 0.5% ▲0.8% ▲0.7%※1:Global Economic Prospects 2009 Forecast Update March 30, 2009(Modification of Russian Economic Report June,2009)※2: Economic Outlook No.85 ( June,2009 )※3World Economic Outlook UPDATE ( October,2009 )※4:The number of countries

5

※The World Bank:153OECD:OECD signatory and China,India,Russia and Brazil:34IMF:183

2009 Japan-Russia Energy and Environment Dialogue in Niigata K-1 MURANAGA

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The jobless rate and the inflation rate of Russia

15100

失業率(%)インフレ率(%)Inflation rate Jobless rate

12

15

70

80

90

100

8 3%

6

9

40

50

60

70 8.3%

3

10

20

308.1%

00

96 97 98 99 00 01 02 03 04 05 06 07 08 09

Attention Jobless rate June in 2009Inflation rate jury in 2009

66

失業率 インフレ率

Source: JETRO、Federal state statistics service

Jobless rate Inflation rate

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The recent decreases of public external debt and the increases of private external debt

( $ 100 million )Transition of external debt balance

6,000

$284.4 billion4,000

5,000

$166.3 billion

2,000

3,000

$3.3 billion

$29.5 billion 0

1,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20096月

政府関係機関 通貨当局 銀行 その他民間部門

6月

Governmentalorganization

Monetary authorities Bank Private

Source: Bank of Russia7

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The State budget of the Russian Federation

Transition of Russian Federation budget and stabilization fund Transition of the energy sector of Russian Federation revenue

250012

Trillion (ruble)$ 100 million

2000

2500

8

10

12

1000

1500

4

6

8

0

500

0

2

2004 2005 2006 2007 2008 2009 2010

歳入 歳出 安定化基金(左軸)

(2008年より準備基金と国民福祉基金に分割)

RSF(left axis)

Energy sector

Revenue Expenditure

Non-energy sector

9Source: Ministry of Finance of the Russian Federation

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Transition of foreign currency reserves and exchange rate of ruble-$

407000

$ 100 million Ruble/ $July 2008Foreign reserves $ 596.6 billion1 $=23.1rubles(7/16)

February 20091$=36.4rubles(2/19)

25

30

35

5000

6000

1 $ 23.1rubles(7/16)

August 2009Foreign reserves $596.6 billion

15

20

25

3000

4000

5

10

1000

2000

00

9Source: Bank of Russia

2009 Japan-Russia Energy and Environment Dialogue in Niigata K-1 MURANAGA

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2.Japan-Russia trade and investment relationsinvestment relations

10

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Trade relationship between Japan and Russia (1)

○ In 2008, the trade between Japan and Russia developed a tendency to expand , p p y pand reached a record US$29.7 billion. But the amount of trade between two countries will decrease due to the global recession.

○ The amount of trade between Japan and Russia is smaller compared with thatwith other major countries. But there is some possibility of increasingly relying

億ドル

on both countries’ economic scale.Comparison among Japan-the U.S. trade, Japan-China trade, Japan-South Korea trade, Japan-EU trade and Japan-Russia trade

Total amount ($)

Transition of the amount of Japan-Russia trade$ 100 million

250

300

350

輸入(露→日)

輸出(日→露)

$ 29.7 billion

40%UP

Total amount ($)

Japan - Russia1

($29.7billion )

9 0

Import Japan-Russia

Export Japan-Russia

100

150

200輸出(日→露)

Japan - China9.0

($266.6billion )

Japan - U.S.7.5

($222.6billion )$ 5.2 billion

Export Japan Russia

0

50

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09年

($222.6billion )

Japan - EU6.3

($187.2billion )

3.11 6

11Source:Trade Statistics of Japan

Source:Trade Statistics of Japan

Japan - South Korea

($ 92.2billion )

1~6

2009 Japan-Russia Energy and Environment Dialogue in Niigata K-1 MURANAGA

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Trade relationship between Japan and Russia (2)

○ Trade between Japan and Russia has developed a tendency to suffer restrictions

on some specific articles, so that an expansion of exports of other articles to

対ロシア輸入内訳(08年)

Russia can be expected in the future.

) Breakdown of export to Russia(2008)

ゴム製品

2.2%

その他

5.7%

対ロシア輸出内訳(08年)

164.5億ドル(前年比36%増)

対ロシア輸入内訳(08年)

132.8億ドル(前年比11.5%増)Russia→Japan

Natural resources, etc.Breakdown of imports from Russia (2008) Breakdown of export to Russia(2008)

$13.28 billion (11.5% increase over the previous year)

$16.45 billion (36% increase over the previous year)

Oth

Rubber Others

輸送用機器

77.4%

一般機械

11.0%

電気機器

3.7%

原油及び粗

油 35.6%

非鉄金属

15.2%石炭魚介類鉄鋼

3 0%

その他

28.1%

相互補完的貿易関係

Oil 35.6%

Nonferrous metalCoal

Fisheryproducts

Others

Iron and steelMutually complementary Economic relationship

Electric equipmentMachinery Transport

machinery

8.8%7.1%

石油製品

6.5%

木材

3.1%

3.0%

Russia ← JapanCars, etc.

貿易関係Wood

Petroleum

12

Source:Trade Statistics of Japan Source:Trade Statistics of Japan

2009 Japan-Russia Energy and Environment Dialogue in Niigata K-1 MURANAGA

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Passenger automobile market in Russia

○ The passenger automobile market in Russia has expanded continuously every year. Exports from Japan increased rapidly until last year.

○ A market reduction is expected because of the recession. In 2008, the market scale

日本からロシアへの自動車の輸出(中古車を含む)

exceeded 3 million cars; however there is a forecast of the market from 1.3 million cars to 1.6 million cars in 2009.

Scale of Russian passenger car market The amount of export cars from Japan to Russia

12.0%

14.0%

100

120

シェア(%)

日本から シア の自動車の輸出(中古車を含む)

数量(台)

Number of export(10 thousands)

12.6%

In 2008 1.04 million(secondhand cars 0.56 million)

Scale of Russian passenger car market10 thousands

300

350(The used cars are included)

Share

Number

6.0%

8.0%

10.0%

60

80

100 数量(台)

シェア(%)

318150

200

250

130~160

Share

Number

0 0%

2.0%

4.0%

6.0%

0

20

40

3.3%

279

50

100

150

0.0%0

99 00 01 02 03 04 05 06 07 08 09 年

13Source:Trade Statistics of JapanJapan Automobile Manufacturers Association ,Inc

Source:Expert、Pricewaterhouse Coopers

In 2009 47 thousands (secondhand car 22 thousands)

02007 2008 2009

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Russian Protectionist measures (raising import tariffs on automobiles)

○ The Russian government raised import tariffs on automobiles to protect domestic○ The Russian government raised import tariffs on automobiles to protect domestic automobile manufacturers in January 2009. This measure was extended in October 2009.○ This measure against the G20 summit declaration and the spirit of the WTO,

which the Russian government hopes to join The Japanese government is askingwhich the Russian government hopes to join. The Japanese government is asking the Russian government to abolish the measure.

(Reference) Contents of raising import tariffs on automobiles① Foreign cars over five years old① Foreign cars over five years old

Before: Displacement per 1㎤ 1.4~3.2 Euro →After: Displacement per 1㎤ 2.5~5.8 Euro②Foreign cars under five years old

Before: 25% →After: 30%,35% or Displacement per 1㎤ 1.2~2.8 EuroAutomobile exports decreased suddenly because of the raising of the import tariff in January .

60 000

30 000

40,000

50,000

60,000

10,000

20,000

30,000新車台数

中古車台数

Number of new cars

Number of secondhand cars

14Source:Trade Statistics of Japan

0

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Russia’s protectionist measures (Others)

○ Raised import tariff on steel products○ Raised import tariff on steel products The Russian government raised import duties on wide range of steel for 9 months from February 14, 2009. Some tariffs were raised from 5% to 15% and others from 15% to 20%.

○ Raised import tariff on LCD and plasma TVs

The Russian government raised import tariff on LCD TV and TVs from 10% toThe Russian government raised import tariff on LCD TV and TVs from 10% to 15%.

○ Additionally, there has been some movement to raise import ○ y, ptariffs in other wide sectors .

15

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Product situation and schedule by main foreign automobile manufacturers in Russia

○ In recent years Japanese automobile companies made plants in Russia one after○ In recent years, Japanese automobile companies made plants in Russia one after another.

○ Some automobile companies review their plans by the recession.

Toyota (Japan)December 2007

Annual production: 20,000 units, 2008

Saint-PetersburgExplanatory note:Automobile Manufacturer (country)Beginning period of production

Nissan (Japan) June 2009 Annual

production: 50,000 units

MoscowKaluga

Beginning period of productionNumber of production

GM (U.S.)2008

25,000 units Mitsubishi Motors( Japan)2011

160,000 units※ JV(Peugeot)

MoscowKaluga

Ford(U.S.)2002

75,000 units Isuzu (Japan)April 2008

25,000 units

VW (Germany)October 2007115,000 units

Future:300,000 units

Elabuga

Hyundai (Korea)2010

Annual production: 100,000 units

※ JV(SSA,Sojitz)

16

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Examples of embarkation and cooperation in Russia

Saint Petersburg○Toyota○Nissan○Sekisui chemical○Asahi breweries

Kaliningrad○Sony○Panasonic

Moscow○ JT○Uniqlo○Shiseido○ Bank of Tokyo-Mitsubishi UFJ○IHI

Yaroslavl○Komatsu Sakhalin

○ Sakhalin petroleum gas development○ Mitsui &Co○ Mitsui &Co. ○ Mitsubishi Corp

Elabuga○ Isuzu

Lipetsk○Yokohama rubber

Nizhegorod○Toyo radiator○Daido metal Irkutsk

○ Tajima Mokuzai

Primorskii○ S it C

(Reference) The number of corporate members of the Japan Club: 185 [July 2009]

○ Sumitomo Corp

17

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Breakdown of direct investments to Russia from Japan (2008)

○ The amount of the direct investments from Japan to Russia was 31.7 billion yen. In 2008, the main fields of investments were machinery, wholesale & retail and finance & insurance.finance & insurance.

Comparison of the amount of direct investments from Japan to the main countries (2008)

The amounts of direct investments from Japan to Russia (2008)

Total

Japan - Russia1

(31.7 billion yen)

Japan - China21.1

(670 billion yen)

Japan - U.S.140.7

(4 4617 billi )

Total 31.7 billion yen

(4,461.7 billion yen)

Japan - Brazil17.0

(538 billion yen)

17.1Nonmanufacturer Nonmanufacturer Nonmanufacturer ManufacturerJapan - India

17.1

(542.9 billion yen)

18Source:Bank of Japan (注)Upper: Number of ratio Lower: Amount of direct investment

NonmanufacturerWholesale & retail

NonmanufacturerFinance & insurance Others

Manufacturer

2009 Japan-Russia Energy and Environment Dialogue in Niigata K-1 MURANAGA

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Problems that Japanese companies in Russia feel they face

○ Delay in infrastructure improvement (harbors and railways, etc.)

・ Arrears of freight, insufficient harbor facilities

・ Damage caused by rolling stock transportation (vibration, shocks,

etc )

○ Unclear industrial policy of Russian government

etc.)

・ For example, no measures of development in the automobile parts

○ Complicated and unclear administrative procedures

p , p p

industry are shown.

○ p p

・ Problems of administrative procedure are complicated, unclear, subject

to differing interpretations by officers in charge and prolonged wait

19

times.

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Efforts by Japan to help reform the business environment in Russia

○Business environment improvement in Russia・ Russia applied to join GATT in 1993 and Japan agreed to this and Russian signed in November 2005 Main・ Russia applied to join GATT in 1993 and Japan agreed to this, and Russian signed in November 2005. Main

countries except Georgia basically finished bilateral market access negotiation.・ Russia hasn’t solved its protectionism issues before joining WTO, and it is necessary for Russia to make one-a

stop investment service.

○H ldi f J R i i t t f (h t d METI i J d th Mi i t○Holding of Japan-Russia investment forum (hosted METI in Japan and the Ministry for Economic Development in Russia, etc.)A Japan-Russia investment forum took place to increase investment from Japan to Russia.

(The 1st meeting in September 2006 at Saint Petersburg (participants: 700) the 2nd meeting in February 2007 at Tokyo (participants: 500) The 3rd meeting in September 2008 at Saint Petersburg (participants: 500))Tokyo (participants: 500) The 3rd meeting in September 2008 at Saint Petersburg (participants: 500))

○Holding of intergovernmental working group about Japan-Russia transportation cooperationThe Japanese government and the Russian government negotiated Japan-Russia logistics on the Trans-The Japanese government and the Russian government negotiated Japan-Russia logistics on the Trans-Siberian Railway.

○ Activities with “The Japan-Russian Trade and Investment Promotion Organization”ROTOBO and JETRO work out information services and business matching to promote Japan-Russia trade.ROTOBO and JETRO work out information services and business matching to promote Japan Russia trade.

20

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Efforts of Japan-Russia in the Far East and the eastern Siberia area.

○ There are a lot of dela s of ario s infrastr ct re impro ements in the Far East and the eastern○ There are a lot of delays of various infrastructure improvements in the Far East and the eastern Siberia. On the other hand, there are a lot of undeveloped natural resources.

○ The Russian government adopted a program of development in the Far East and the eastern Siberian area in 2007. The Japanese government proposed “The initiative for the p g p pstrengthening Japan-Russia cooperation in the Far East and the eastern Siberia.” (Energy , transportation and improvement on the trade and investment, etc.)

○ The Russian government expects not only technologies but also finance. The Japanese government dispatched an economic mission to the Far East in June 2009government dispatched an economic mission to the Far East in June 2009.

Russian Far Eastern Economic Mission

From 31 May to 6 JuneVl di t k N kh dk V i Kh b kFar East

Khabarovsk

Vladivostok, Nakhodka, Vanino, Khabarovsk72 mission members of public and private sectors

Vanino

Eastern Siberia

VladivostokNakhodka 21

Eastern Siberia

2009 Japan-Russia Energy and Environment Dialogue in Niigata K-1 MURANAGA

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3.Japan-Russia energy l tirelations

22

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○ Russia is a resource-rich country with both major crude oil and natural gas reserves and is

Importance of Russia in Japan’s energy policy○ Russia is a resource-rich country with both major crude oil and natural gas reserves and is

geographically near Japan.○ Japan depends on the Middle East for about 90% of its crude oil. It is important for Japan’s energy

security to secure export countries for crude oil and natural gas that don’t rely on tankers passingthrough the Straits of Hormuz and Malacca.

○ It is mutually beneficial to cooperate together because Japan intends to diversify its sources of energy supplies, and also Russia intends to develop the Far East and eastern Siberia and to strengthen the relationship with the Asia-Pacific region .

Crude oil and natural gas production in the world (2007)

Others

Russia 20.6%

Natural gas production

Russia12.6%Oil

production

Saudi Arabia12.6%

54.4% U.S. 18.8%

Canada 6.2%

p2940BCMU.S. 8.0%Others

66.6%

81.5MBD

Countries where Japan imported crude oil and natural gasCountries where Japan imported crude oil and natural gas

Oil import Volume

Saudi ArabiaIndonesia

Kuwait

Russia

Indonesia

Others

Brunei

OmanOthers

LNG import Volume

Source: BP Statistics 2008Trade Statistics of Japan

23Iran

Qatar

Malaysia

Australia

Qatar

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○ The Sakhalin 1 project is a collaborative

Outline of the Sakhalin 1 project

project by the U.S., Japan, Russia and India.

The United States: ExxonMobil 30% サハリンⅠS kh li 1

e U ted States o ob 30%Japan: Sakhalin oil and gas development 30%Russia: Rosneft 20%India: ONGC20%

サハリンⅠ原油・ガスPL

Sakhalin 1 oil gas pipeline

India: ONGC20%

○ The Japanese government has 50% of the stocks of Sakhalin petroleum gas

Shipment base of oil

DeKastri

development.

○ Crude oil has been produced since 2005 and about 40% of the production to

サハリンⅡ原油・ガスPL

Sakhalin 2 oil gas pipeline

Japan(about 250,000 barrels per day at peak) goes to Japan.

24Oil pipelineGas pipelineSakhalin 1 projectSakhalin 2 project

Shipment base of oil

Prigorodnoye

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Outline of the Sakhalin 2 project

○ The Sakhalin 2 project is a collaborative○ The Sakhalin 2 project is a collaborative project by the co-parent company (Sakhalin Energy) of Russia, UK, Netherlands and Japan.Russia:Gazprom 50%+1stock UK N th l d Sh ll 27 5% 1UK, Netherlands :Shell 27.5%-1 Japan: Mitsui & Co. ,Ltd 12.5% ,

Mitsubishi Corp. 10%

○ Crude oil has been produced since 1999 and b t 50% f th d ti ( ki t

サハリンⅠ原油・ガスPL

Sakhalin 1 oil gas pipeline

about 50% of the production (peaking at about 150,000 barrels per day ) goes to Japan.

○ The export of LNG began at the end of March this year About 50% of the amount of

Shipment base of oil

DeKastri

サハリンⅡ原油・ガスPL

this year. About 50% of the amount of production (about 9.6 million tons per year) was contracted over the long term to Japan.

○ JBIC financed about US$ 3.7 billion (about $5 3 billion including the private bank

Sakhalin 2 oil gas pipeline

$5.3 billion including the private bank groups).

○ NEXI undertook the trade insurance to additional loans of $1.4 billion in October 20092009.

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Oil pipelineGas pipelineSakhalin 1 projectSakhalin 2 project

Shipment base of oil

Prigorodnoye

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Outline of prospective development cooperation of the Pacific Ocean Pipeline and Russian oil companies

○ Eastern Siberia is a important region with major reserves of crude oil the p g jtransportation of which bypasses the Strait of Hormuz and Malacca.

○ The second stage of the Pacific Ocean pipeline (to the Pacific coast) will be decided by the progress of the eastern Siberia oilfield developments.

○ JOGMEC and the independent oil company (Irkutsk oil) are prospecting to secure the○ JOGMEC and the independent oil company (Irkutsk oil) are prospecting to secure the throughput as a first step cooperation of Japan-Russia in eastern Siberia.

Vankor

Sedimentary Basins of East Siberia

今回共同探鉱を行っている鉱区

ユルブチェン SkovorodioTarakan

VerkhnechonKyumbin

Tersko-Kamov

★今回共同探鉱を行っている鉱区

Yurbchen

大慶

Taishet

Kozmino

: 第1段階ルート: 第2段階ルート案: 中国による建設ルート: 既発見油田

26First routeSecond route plan

Existing found oil fieldA building route by China

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Outline of the East gasification program

○ The gas development of the Far East and eastern Siberia “East gasification○ The gas development of the Far East and eastern Siberia East gasification program” is progressing by Gazprom.

○ The gas pipeline from Sakhalin to Vladivostok is scheduled to be constructed by 2012 when the APEC summit is held in Vladivostok.

サハリン

チャヤンダ

ユルブチェン

コビクタハバロフスク

E i ti Pi li

ウラジオストク

Existing Pipeline2007-20092010-20122013-20162016-2030

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Cooperation between Agency for Natural Resources and Energy & Gazprom

Cooperation between The Agency for Natural Resources and Energy, Gazprom & Rosneft

○ Agency for Natural Resources and Energy agreed on the framework for cooperation with Gazprom in November 2005. Regular consultations have been held four times.

○ Gazprom is the largest gas corporation in the world; the Russian government is a 50% stockholder. Gazprom has a de facto monopoly of gas production and export in Russia.

p g y gy p

Gazprom has a de facto monopoly of gas production and export in Russia.

○ Gazprom and a Japanese company (Itochu Corp) are executing the economic evaluation of anagreement which executed joint gasification studies in December 2008.

○ Concerns of Japan: Development of natural gas fields and cooperation of LNG project. C f G C i f ifi i j d i h lConcerns of Gazprom: Cooperation of gasification project and science technology.

○ The Agency for Natural Resources and Energy agreed on the framework for cooperation with Rosneftin March 2008. Regular consultations will be held in the near future.

Cooperation between Agency for Natural Resources and Energy and Rosneft

○ Rosneft is the biggest oil company in Russia. The Russian government has 75% of the stocks . Rosneftis a leading company in eastern Siberia development.

○ Concerns of Japan : Joint oil prospecting Concerns of Rosneft : Cooperation in petrochemistry facilities construction p p yin the Far East

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Strong point of Russia: Russia is the largest country to supply uranium enrichment.

Current situation of Japan-Russia nuclear power cooperation

○ The expansion of the nuclear power generation is advancing worldwide. There are a lot of worries about tight supply and demand of nuclear fuel.

○ Especially, uranium enrichment is controlled by an oligopoly, and there is possibilities of this becoming a bottleneck.

○ As Russia is the world’s largest uranium enrichment supply country, Russia has a major influence on the nuclear power market in the world.

① Russia has the largest capacity of the concentrated equipment.② Russia supplies a lot of enriched uranium to the U.S. market for scrapping nuclear weapons.

Concentrated equipment capacity of the world

JNFL(Japan)(Centrifugation )

Others1550(3%)

Nuclear fuel cycle

Natural uranium ore

Huge share!

(Centrifugation )300(0.6%)

AREVA(France)(Gas diffusion)10800(20%)

Uranium mine Enrichment plant Uranium fuel

TOTAL54,325tSWU(2007年)

USEC(US)(Gas diffusion)8000(15%)

ROSATOM(Russia)(Centrifugation)24500(45%)

Nuclear plant

Spent fuel

RecycleURENCO(UK, Netherlands,Germany)(Centrifugation)9175(17%)

Reprocessing plant Waste processing

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Current situation of Japan-Russia nuclear power cooperation

Mutual complementary form of Japan-Russia nuclear power policy

・ The issue of the fuel stability procurement of ・ Top uranium enrichment supply ability in the Concentrated cooperationy p

electric power・ Top-class engineering technology

p pp y yworld・ Competition issues of the nuclear power

industryTechnical co-operation

cooperation

○ Agency for Natural resources and Energy and RosatomCooperative movement of Japan-Russia nuclear power cooperation○ Agency for Natural resources and Energy and Rosatom・ The Director-General of the Agency for Natural Resources and Energy of Japan , and the President of

Rosatom , Kirienko agreed on cooperation promotion in March 2008.○ Cooperation of Toshiba and Atomenergoprom・ Agreed cooperate framework in March 2008.

Th id i th ibiliti f ti i h t ti th・ They are considering the possibilities of cooperation in such as concentration, the nuclear power plant construction and the equipment manufacturing.

○ Agreement of Japan-Russia nuclear power・ When Prime minister Putin came to Japan in May 2009,the agreement of Japan-Russia nuclear power cooperation was signed.( Not yet ratified.) p p g ( y )

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