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Selected: Clear list

The involved team
and clear objectives –
are the key to transparent
relations and trust
in the Company

Chapter 4. Values and Results

The present chapter covers main results of the Fuel Company activities in the context of implementation of the basic values of State Corporation.

Responsibility for the Results

Each of us is accountable for personal performance to the colleagues, the customers, and the Company. In our work we set the highest requirements on ourselves. Not the efforts spent but the results achieved are highly valued. The successful result is the basis of our new achievements.

Excerpt from the Decision of the Strategic Council of ROSATOM State Corporation d/d July 03, 2014

Production and Economic Results

n 2014 the subsidiaries of TVEL FC fulfilled the plans on the products and services to the full extent, which enables compliance with all contractual commitments of the Company to Russian and foreign customers.

Considerable increase in labor efficiency in TVEL FC over a period from 2012 to 2014 speaks for production efficiency, that is success in addressing the major business task; this has been achieved primarily through implementation of ROSATOM Production System [ i ] and increase in the Company revenue, and owing to headcount optimization during the Fuel Company restructuring.

For the forthcoming years the management of the subsidiaries of JSC “TVEL” set a task on further transformation of production relations in the subsidiaries, formation of smaller groups [ i ] with dynamic form of production management covering 100% of regular workers, man-loading increase, development of system of interaction between all management levels through monitored performance indicators, development of the internal communications system [ i ].

Stable long-term relations with the end-product consumers allow development of long-term production and scientific plans, leading to reliable provision of subsidiaries and research establishments of the Fuel Company with the orders. The foreign orders portfolio is formed amounting to USD 10,391 million up to the year 2024, and comprises commitments on supplies of nuclear fuel and its components for foreign reactors of Russian design, as well as the commitments on supplies for European reactors BWR, PWR in production cooperation with AREVA NP, for reactors PHWR and BWR in the context of cooperation with Nuclear Power Department of the Government of India.

Following the results 2014 the Fuel Company became the leader in labor efficiency in the nuclear industry.

Production and Economic Results




Labor efficiency, RUB mln/person
∆ 2014/2013
22
%
Headcount, persons, ∆ 2014/ 2013 — 14%
Revenue, RUB mln
∆ 2014/2013
5
%



Separation-Sublimation Complex

In all subsidiary companies of separation-sublimation complex the increase in production efficiency has resulted in considerable excess of level of labor efficiency as compared to the previous years.

Major production event 2014:
Concentration of sublimation production at SC “SGChE”.

This project enables reduction in TVEL FC conversion expenses, and substantial increase in capacity load of conversion (sublimation) production facilities.

Main objectives of the separation-sublimation complex of TVEL FC for the year 2015 and in the midterm:
launching of works intended to remove depleted uranium from the site of SC AECC, its transportation to SC “PA ECP”, and processing into the safe form for long-term storage.

Labor efficiency dynamics of the separation-sublimation complex, RUB mln/person

Subsidiary companies 2012 2013 2014 ∆2014/ 2013
SC "SGChE" 2.6 2.9 3.41 18%
SC AECC 3.3 4.45 3.52 -21%
SC "PA ECP" 3.9 4.8 5.57 16%
SC UEIP 4.6 5.9 7.78 32%

Nuclear Fuel Fabrication Complex

The main activity of TVEL FC is production and sales of fuel assemblies for power and research reactors [ i ].

In 2014 share of revenue received by TVEL FC from FA sales made 58.8% in total consolidated revenue.

Over the period from 2012 to 2014 revenue from FA sales increased by RUB 13,505 mln (by 20%), including all categories of consumers.

Products consumption structure of the subsidiaries of the given complex has not been changed materially, main consumers are Russian and European NPP (42.7% and 52.3% of the complex revenue in 2014, respectively).

In 2014 the plan of TVEL FC on nuclear fuel production was adjusted in accordance with the customers’ orders, and was fulfilled to the full extent.

The planned volume of the produced fuel products is determined in accordance with preliminary orders made by consumers based on the plans of fuel charging and recharging.

Major production events 2014:

  • Four assemblies TVS-KVADRAT were produced and supplied to the foreign customer for pilot operation in PWR reactor;
  • Production of priming fuel sets for new units of Beloyarsk NPP (FN-800), Rostov NPP (VVER-1000) and Leningrad NPP-2 (VVER-1200);
  • Production of fuel set for research fast neutron reactor CEFR (China);
  • Adoption of the process of evaporation of uranium hexafluoride from Western design horizontal containers 30V;
  • Volume of non-nuclear products production. Development of the Industrial metallurgy centre at the premises of SC CMP.

Main objective of the nuclear fuel fabrication complex of TVEL FC for the year 2015:
Fuel assemblies production and supply for Tianwan NPP (China), and execution of current orders.

Labor Efficiency Dynamics of the Fabrication Complex, RUB mln/person

Subsidiary companies 2012 2013 2014 ∆2014/ 2013
PJSC "MSZ" 3 3.56 4.49 26%
PJSC NCCP 2.6 3.85 3.18 -17%
SC CMP 2.6 2.94 3.34 14%
SC "MZP" 4.4 7.44 3.21 -57%

Revenue from FA Sales, RUB mln

Indicator 2012 2013 2014
Revenue from FA sales, RUB mln 67,550 73,595 81,055

Distribution of Revenue From Nuclear Fuel Sales by Consumers Geography, RUB mln (%)

Category of consumers 2012 2013 2014
Russian consumers 31,022 (45.9%) 31,973 (43.4%) 34,650 (42.7%)
European consumers 36,528 (54.1%) 39,689 (53.9%) 42,390 (52.3%)
Asian consumers 0 (0%) 1,933 (2.6%) 4,015 (5%)
Total 67,550 (100%) 73,595 (100%) 81,055 (100%)

Production Volume of Subsidiaries of the Fabrication Complex, ea

Product 2012 2013 2014 2015 (plan)
FA VVER-1000 1,119 1,222 1,339 1,271
FA VVER-440 1,806 1,750 1,487 1,750
FA RBMK-1000 2,690 2,680 3,221 3,300
FA FN-600, FN-800 437 485 291 286
FA EGR-6 96 144 144 144
FA for research reactors 227 79 0 96
FA PWR, BWR 204 337 352 164
TOTAL FA 6,579 6,697 6,834 7,011
Ceramic fuel pellets, tU 1,534 1,392 1,508 1,482

Gas Centrifuge Complex

Subsidiaries of the separation-sublimation complex are main consumers of the products of the gas centrifuge complex.

In 2014 the share of revenue received by subsidiary companies of the gas centrifuge complex in external market outside the Fuel Company made 0.02% from consolidated revenue of TVEL FC. The plans for production of gas centrifuges were fulfilled to the full extent.

Major production event 2014:
PJSC “KMP” produced and put on tests the pilot batch of 9+ Generation gas centrifuge.

Main objective 2015:
Preparation to serial production of 9+ Generation gas centrifuge at the subsidiaries PJSC “KMP” and UGCMP LLC.

Labor Efficiency Dynamics of the Gas Centrifuge Complex, RUB mln/person

Subsidiary companies 2012 2013 2014 ∆2014/ 2013, %
PJSC "KMP" 2 2.64 2.42 -8%
SC "VPA "Tochmash" 1.1 1.05 1.5 43%
UGCMP LLC 2.5 2.28 3.48 53%

Non-nuclear Products Manufacturing

Development of general industrial activities in TVEL Fuel Company is stipulated both by the necessity to strengthen positions on conventional markets, and the expansion into new markets outside NFC, creation of substitute high-technology productions, and solution of the import substitution tasks.

Major production event 2014:
In 2014 TVEL FC continued its forward motion within the directions that are considered promising and new both for the industry and for Russia, such as “Lithium-ion energy storage” and “Electrochemical generators on the basis of hydrogen fuel cells”.

  • UEIP JSC implemented its pilot project and proved economic efficiency of intra-factory electric transport re-equipment to rechargeable lithium-ion cells; now it prepares the initiative proposals referring to the relevant program for the industry.
  • ZEP LLC (UEIP JSC subsidiary) in 2014 started implementation of the important public order for creation of energy sources based on electrochemical generator for special-purpose equipment. Electrochemical generators that were developed by ZEP LLC in 2014, were put on tests on the gas transmission infrastructure objects.

Main objective 2015:
The year 2015 will be even more intense as regards the objectives set by the Company. Efforts should be made to accelerate the achieved rates of growth, to leverage the accumulated scientific engineering potential of the industry through creation and launching of new science- and technology-intensive sophisticated non-nuclear products.

Following the results 2014 volume of sales from general industrial activities reached RUB 12,135.60 mln, which is equal to 8.8% from the consolidated revenue of the Fuel Company.

Structure of revenue from general industrial activities in 2014, %

Change in the volume of revenue from sales of non-nuclear products in 2014 is stipulated by reduction of the volume of energy services sales and completion of deliveries under ITER project.

Despite negative factors the Fuel Company exceeded the goals set for production and sales, works and services by 4% due to increase in sales of calcium core wire, titanium alloys rolling, lithium and isotope products.

Dynamics of revenue from general industrial activities in 2012–2014

Indicator 2012 2013 2014 ∆2014/ 2013, % 2015, plan
Revenue from general industrial activities 13,466.78 11,669.4 12,135.6 4% 12,648.65
including energy services and outgoing services (superconductor, etc.) 8,373.39 7,094.18 6,507.03 -8% 6,411.69

Financial Results

Financial management is maintained in accordance with the approved Financial policy of the enterprises of the Fuel Company, agreed upon with ROSATOM State Corporation.

Main provisions of Financial policy of TVEL FC:

  • JSC "TVEL" provides overall direction of interrelations with financial institutions (base banks, partner banks) regarding the matters of consolidated debt portfolio management, placement of available cash assets, subsidiaries liquidity management, management of payment and cash services for trade finance and currency exchange transactions, hedging and other financial transactions of the subsidiaries of the Fuel Company;
  • JSC "TVEL" approves transactions of the subsidiaries of the Fuel Company regarding attraction and placement of temporary funds. Conclusion of financial transactions (borrowing funds, except for borrowing from ROSATOM State Corporation), execution of bank guarantees on the part of the principal, issuing and placement of securities, disposal of derivative financial instruments (under contracts that are concluded outside the exchange business, and that provide for liabilities on products supplies), unsecured letters of credits are executed in accordance with the requirements of the Uniform Industrial Procurement Standard.
  • The system of borrowings is being implemented within the Group with the purpose of optimization of the credit portfolio of TVEL FC and expenses on attraction of external funding, as well as for central funding of operating activity of subsidiaries of the Fuel Company and current liquidity management.

Budgeting in the subsidiaries of TVEL FC is set in accordance with the Unified budgeting procedure and standards of ROSATOM State Corporation.

Budgets of the subsidiaries of the Fuel Company are approved at the meetings of the Board of Directors of SC based on the results of consideration of the consolidated budget of the Company by the budget committees of JSC “TVEL” and ROSATOM State Corporation.

In 2014 all KPI and target production indicators applied to evaluate the Company performance were achieved.

In 2014 the export products were sold to the total amount of USD 1,523 mln. Sales of nuclear fuel and its components amount to 95.3% — the largest share in the export revenue.

Achievement of Major KPI and Production Indicators of TVEL FC in 2014 [ i ]

Indicator Unit of measurement Target Actual value Deviation
AFCF FC [ i ] RUB bln 21.90 33.33 52.19%
Labor efficiency RUB mln/person 4.91 5.49 11.89%
Foreign orders portfolio USD bln 10.33 10.39 0.63%
Semi-fixed costs RUB mln 43,600 39,963 -8.34%
LTIFR [ i ] Preservation of base period level within 0.30 0.07
No INES events of level 2 and above No events No events
Proceeds from sales of enriched uranium products (including within FA, pellets) for NFC in whole. RUB bln 50.40 69.3 37.5%

Main Financial and Economic Indicators of TVEL FC

Indicator 2012 2013 2014 ∆ 2014/2013, %
Revenue (net) from sales, RUB mln 121,958 131,436 137,962 5%
Gross profit, RUB mln 39,289 39,628 44,663 13%
Ratio of gross profit to sales revenue, % 32.22% 30.15% 32.37%
Share of general and administration costs in revenue, % 2.29% 2.27% 2.28%
Business expenses 2,400 2,224 2,267 2%
Administrative expenses 2,799 2,989 3,144 5%
EBITDA, RUB mln 42,668 51,163 48,959 -4%
Net profit, RUB mln 19,642 23,866 20,870 -13%
Free cash flow, RUB mln -470 1,801 4,202 133%
Net assets, RUB mln 566,427 579,708 590,006 2%
Return on sales, % 16.11% 18.16% 15.13%
Return on equity % 0.035% 0.042% 0.036%
EBITDA margin, % 34.99% 38.93% 35.49%
Ratio of borrowed and own funds 0.11 0.13 0.14 8%
Current liquidity ratio 2.52 2.42 2.76 14%
Labor efficiency, RUB mln/person 3.6 4.5 5.49 22%
Gross tax liabilities, RUB mln 23,419 27,695 25,774 -7%
Dividend payout, RUB mln 19,500 18,937 16,291 -14%

Consolidated Revenue Distribution by Directions, RUB mln

Types of products Volume of sales
2012 2013 2014
Nuclear fuel and components 75,017.3 79,603 89,055.6
Services on conversion and enrichment 18,403.2 23,505.1 23,154.7
Gas centrifuge products 2,916.7 4,214.3 25.1
R&D 4,301.4 6,338.5 5,577.3
Other products 2,1319.4 1,7775.1 20,149.4
Total 121,958 131,436 137,962.1

Distribution of Export Revenue by Types of Products, USD mln

Types of products Volume of sales
2012 2013 2014
Nuclear fuel and components 1,353.5 1,437.1 1,451.9
Engineering services 7.2 6.3 11.9
Lithium products 16.3 13.3 12.5
Calcium, titanium, zirconium 12.4 12.3 14.8
Isotope products 9.9 10.1 9.9
Other products 29.7 26 22.1
Total 1,429 1,505 1,523.2

Total increase of revenue of the Fuel Company in 2014 made RUB 6,526 mln as compared to 2013.

The revenue was influenced both by negative and positive factors.

The following can be referred to the negative factors:

  • completion in 2013 of works within the program HEU-LEU (RUB -3,352 mln);
  • changes in contraction schemes with regard to gas centrifuge products and services on enrichment (RUB -5,783 mln);
  • reduction in volume of the orders related to superconductive material within the international project ITER (RUB -758 mln);
  • lack of the orders for foreign research reactors fuel (RUB -320 mln).

The above stated negative factors were offset by:

  • increase in sales
    • of nuclear fuel and its components for Russian and foreign NPP (RUB +4,357 mln, in particular in 2014 there was delivered nuclear fuel for CEFR reactor (China) and FA of new type FA-K (TVS-K) in total volume RUB 2,210 mln);
    • of nuclear fuel for transportation reactors, and special products (RUB +2,708 mln);
  • growth of :
    • orders on conversion and enrichment services (RUB +498 mln);
    • energy services (heat and electric power) (RUB +605 mln)
  • increase in sales volume of other products, and other factors (RUB +1,300 mln).
Dividend policy of JSC “TVEL” with regard to subsidiary companies is set with account of need for investment in production, its reconstruction and improvement of technical facilities.

Dividend Payout, RUB mln

Indicator 2012 2013 2014
Dividends paid to JSC "AEP" 19,486.7 18,937.5 16,291.2
Dividends paid to JSC "TVEL" from SC 515.8 4,150.9 3,036.1

Efficiency

We always find the solutions to problems. We are efficient in all we do; when achieving the set targets, we make efficient use of the company’s resources and are continuously improving our working processes. There are no obstacles that can hinder our finding out the most efficient solutions.

Excerpt from the Decision of the Strategic Council of ROSATOM State Corporation d/d July 03, 2014

Based on the results of 2014 the Fuel Company was acknowledged as the most efficient division of ROSATOM State Corporation.

Performance Assurance

The need to expand the order portfolio with a view to achieve strategic objectives, and severe and ever-growing competition in global markets always required special approaches to production and management processes and the development of performance efficiency management system.

In 2008 the companies of the nuclear industry, including the subsidiary companies from the Fuel Company’s management system started the integration of RPS (ROSATOM Production System).

RPS (ROSATOM Production System) is a large-scale industrial project intended not only to increase the performance up to the level of foreign competitors of ROSATOM State Corporation and reduce the costs, but also to increase salaries and to form new rules for career advancement.

RPS is based on the system of scientific organization of labor, production and management as formulated by the Ministry of Medium Machine-Building Industry of the USSR. Furthermore, RPS included and adjusted the best developments and instruments from other modern systems, in particular the principles used in Toyota Production System by Toyota Motor Corporation. The key principle of RPS, the same as in Toyota production system, lies in meeting the requirements of consumers within shortest possible time limits at the lowest possible resources spent and with the required level of quality.

The aim of RPS introduction is to create based on the best national and foreign experience the universal methodology for complex optimization of production and management procedures, its practical approval within the facilities of ROSATOM State Corporation.

In 2014 the Fuel Company accomplished projects of three levels: industrial (20 projects), division (7 projects) and projects of enterprises (212 projects).

Criteria for the project dividing are the following:

  • Industrial project is a pilot one for the specific branch of the industry. The problem is solved for the first time and serves the example;
  • Division project unites several subsidiary companies of the division and requires adoption of decisions by the Management company;
  • Enterprise project implies optimization of the internal processes within the company.

The basic indicators for the project monitoring are as follows: flow rate, labor productivity, occupied space, and production cost. The goal is transformation of local projects focused on competitiveness increase into a complex program for efficiency enhancement and creation of a team of like minded managers with leadership practices.

The top performer in terms of the adopted SFI among the subsidiary companies of ROSATOM at the end of 2014 was SC AECC, and the most active worker on SFI adoption — production engineer of workshop No.51 of sublimation factory SC “SGChE”, Mikhail Miasnikov (57 personal suggestions for improvement adopted ). A year earlier the most active worker for improvements adoption in nuclear industry also was the employee of SC “SGChE” — Boris Zabelin, electrician, who filed 47 suggestions.

2014 was marked by an increase in number of suggestions for improvement (SFI) filed per employee: in 2013 it was equal at average to 1.6 SFI /person, and in 2014 — 3.0 SFI/person” [ i ].

In 2014 SC AECC was acknowledged as the winner of sectoral competition of RPS (ROSATOM Production System) in nomination “The most active branch company in terms of filing and implementation of suggestions for improvement”.

In 2014 there were filed more than 60 thousand SFI, accepted for implementation — 91,5% and adopted — 88,4 % (in 2013 — 80%). The result achieved is also due to the automated filing system for SFI and to the enhancement of implementation process control.

Work with Suggestions for Improvement in TVEL FC in 2012–2014

Examples of 2014 projects and their outcomes:

  • PJSC “MSZ” — “Application of the pull system principles for fuel production for RBMK and VVER-440 reactors”:
    • increase in labor efficiency — 17% on RBMK;
    • increase in labor efficiency — 10% on VVER-440.
  • PJSC “KMP” — “Cost reduction of gas centrifuge components manufacture in conditions of slump in production volume”. The result: manufacture cost reduction at average for 15 parts by 12.8 %.
  • PJSC NCCP — “VS-KVADRAT manufacture cost reduction”. Target value of manufacture cost is not more than RUB 2,352 thous., actually — RUB 2,195 thous.
  • JSC “KMP” — “Production flow forming in conformity with standard line criteria with 100% coverage”:
    • process reduction time for parts manufacturing in the critical flow from 350 hours to 269 hours;
    • reduction of incomplete production in the flow from 2,670 parts to 1,450 parts.
  • SC “PA ECP” — “Optimization of supply process of fluohydric acid produced by SC “PA ECP” in SC CMP”. The result: reduction of cistern turnover time by 59%.


Plans for 2015

Further development of RPS is planned in the form of program solutions focused on productive efficiency of the key products, and on integration of RPS expertise from other companies into TVEL FC operation.

Investment Activities

TVEL FC carries out its investment activities in line with the Uniform Industry-Specific Policy of ROSATOM State Corporation and its organizations. Investments management system of the Fuel Company is based on the principle of efficiency.

Documents regulating investment activities:

  • JSC "TVEL" Investment Projects and Programs Management Standards
  • Uniform Industry-Specific Regulations for Projects Portfolio Management of ROSATOM State Corporation and its organizations;
  • Uniform industry-specific instructional guidelines on handling requests for consolidated investment resource of ROSATOM State Corporation and its organizations;
  • Uniform industry-specific instructional guidelines on execution of project identification summaries of ROSATOM State Corporation and its organizations;
  • Uniform industry-specific instructional guidelines on assessment of ongoing and planned scientific, technical and development works;
  • Order "On participants of investment activities of JSC "TVEL" and enterprises of the Fuel Company";
  • Provisions on JSC "TVEL" Investment Committee.

Investment Committee (further on "the Committee") is a permanent collegiate advisory board acting under the guidance of the Chairman and following the principles of the investment policy of ROSATOM State Corporation and its organizations.

Primary objective of the Committee is to reach common agreement on the following:

  • TVEL FC investment priorities in order to implement the Operations Strategy of ROSATOM State Corporation and TVEL FC;
  • composition, structure, parameters of TVEL FC projects portfolio and amendments thereto;
  • solutions contributing to implementation of TVEL FC projects and achievement of the expected results;
  • control of TVEL FC projects implementation on each stage of life cycle through preventive and corrective actions.

Composition of JSC "TVEL" Investment Committee

Chairman Yu.A. Olenin – President of JSC "TVEL"
Deputy Chairman N.V. Nikipelova – Senior Vice-President of JSC "TVEL" for Finance, Economy and Corporate Management
Secretary S.A. Lazarev – Director of JSC "TVEL" Investment Department
Members V.V. Rozhdestvensky – Senior Vice-President of JSC "TVEL" for Production
P.I. Lavrenyuk – Senior Vice-President of JSC "TVEL" for Science, Engineering, Technology and Quality
Yu.A. Kudryavtsev – Senior Vice-President of JSC "TVEL" for New Business Development
K.K. Sokolov – Vice-President - Business and Fuel and Power Resource Manager of JSC "TVEL"
E.V. Lyakhova – Director for Investments and Operations Efficiency of ROSATOM State Corporation
V.I. Korogodin — Director for Lifecycle Management of Nuclear Fuel Cycle and NPP of ROSATOM State Corporation
N.S. Khlebnikova – Director of Department of Investment Management of ROSATOM State Corporation
S.V. Komova – Head of Investment Control Department of ROSATOM State Corporation

Investment control mechanisms include:

  • collective investment decisions making by Investment Committee of JSC "TVEL" or, depending on the value and strategic importance of an investment project, by Investment Committee of ROSATOM State Corporation;
  • certification of investment projects and programs, including elaboration and description of the current state, feasibility studies and plans of their implementation;
  • phase gate approach implementation in management of investment projects and programs, including audit of efficiency and results rating of their implementation;
  • audit procedures of feasibility studies for current investment projects;
  • annual preparation and updating of the Fuel Company's business plan defining the mid- and long-term prospects of investment activities of subsidiary companies, included into the perimeter of TVEL FC, followed by approval thereof by the Investment Committee of JSC "TVEL".

Results 2014:

n 2014 the Investment Committee of JSC “TVEL” convened 28 meetings. The amount of investment projects financing reached RUB 29,466 mln (RUB 36,920 mln in 2013). TVEL FC implements over 250 investment projects simultaneously, and the amount of funding tends to vary year after year, depending on combination of various stages of their life cycles.

Funding of industrial and technological base of primary production accounts for the biggest share in overall investment outlay.

Amount of Financing of TVEL FC Investment Projects by Directions, RUB mln

Direction 2012 2013 2014 Share in total amount of investments in 2014
Nuclear industry 22,373.0 17,582.0 17,295.0 58.7%
Development of general industrial activities 1,088.0 931.0 536.0 1.8%
Development of infrastructure 5,255.0 3,585.0 1,244.0 4.2%
Safety and encumbrances 5,221.0 4,128.0 2,645.0 9.0%
Others 7,391.0 10,694.0 7,745.0 26.3%
Total for TVEL FC: 41,328.0 36,920.0 29,466.0 100.0%

Amount of Financing of TVEL FC Investment Projects by Subsidiaries, RUB mln

Direction 2012 2013 2014 Share in total amount of investments in 2014
JSC "TVEL" 10,422 9,253 2,049 7.0 %
SC UEIP 6,251 5,798 8,040 27.3%
SC "SGChE" 5,930 3,471 3,542 12.0 %
SC "PA ECP" 7,184 3,118 2,957 10.0 %
UGCMP LLC 151 120 10 0.0 %
SC CMP 2,436 1,921 1,311 4.4%
PJSC "MSZ" 2,514 2,843 2,566 8.7%
SC AECC 1,164 825 424 1.4%
SC "VNIINM" 1,264 902 815 2.8%
PJSC NCCP 1,449 1,215 762 2.6%
SC "VPA "Tochmash" 645 388 77 0.3%
PJSC "KMP" 1,333 914 189 0.6%
SC "MZP" 585 317 30 0.1%
SC "United Company ESC" 5,524 6,681 22.7%
SC "EC "RGC" 311 13 0.0 %
Total for TVEL FC: 41,328 36,920 29,466 100.0 %
Based on the results of 2014 JSC “TVEL” was given the Purchaser of the Year Award by Fabrikant.ru trading portal as organizer and trader in good faith.

Procurement Activities

Basic documents of JSC “TVEL” and its subsidiaries that regulate procurement activities and set the supplier and contractor selection criteria are:

  • Federal Law No. 223-FZ “On Procurement of Goods and Services by Certain Legal Entities”;
  • Uniform Industrial Procurement Standard of ROSATOM State Corporation (UIPS);
  • JSC “TVEL” Corporate Standard Procurement Process.

The Fuel Company supports, respects and protects basic human rights, and builds its external business relationship on the principles of honesty, integrity and openness.

UIPS prohibits introduction of any requirements other than stipulated by law to the admission criteria for suppliers and contractors participating in the procurement procedure. Suppliers and contractors are evaluated using the critatia of labor practices, impact on society and environment only subject to availability of all permits and licenses set by the law. Such criteria also include availability of management system certificates as evaluative ones i.e. forming the final evaluation for a member of procurement procedure. The Company performs no evaluation study of actual and potential impacts in the supply chain, all concluded contracts are checked for compliance with the Russian legislation.

Procurement procedures are implemented using the following electronic platforms: “UEMP” JSC, Fabrikant LLC and A-K-D LLC.

Structure of TVEL FC Procurement

Indicator Unit of measurement 2012 2013 2014 2015 (plan)
Share of procurement through public competitive procedures under the UIPS % 96.20 95.22 95.46 94.00
Total amount of procurement of TVEL FC RUB mln 133,386.70 161,199.80 168,962.30 133,895.50
Total amount saved by TVEL FC from procurement through public competitive procedures RUB mln 2,051.00 2,534.20 2,601.10
Dynamics in the above figures indicates the enhanced efficiency of procurement management and transparency of procedures. Efficient interaction with suppliers reduces the risk of corruption, fraud and purchase of substandard quality products.

This approach to procurement management promotes its openness and transparency and saves labor and financial resources.

Total amount saved by the subsidiaries of TVEL FC in 2014 through the procurement procedures made RUB 2,601.1 mln.

More than 90% of competitive procurement procedures are carried out through on-line sales platforms.

Division of suppliers and contractors according to cost criterion:

  • up to RUB 500 thous. — 2,254;
  • from RUB 500 thous. to RUB 10 mln — 1,906;
  • from RUB 10 mln to RUB 100 mln — 424;
  • from RUB 100 mln to RUB 1 bln — 77;
  • over RUB 1 bln — 15.

The largest procurement groups are the following: the products and services purchased from the companies of nuclear industry, power supply, natural gas supply. These are the largest categories in procurement from sole supplier.

Basic groups of competitive procedures:

  • construction and installation works;
  • transport services;
  • manufacture of components;
  • repair and maintenance of equipment;
  • insurance services.

Pursuant to provisions of the Uniform Industrial Procurement Standard of ROSATOM State Corporation the Company may not provide any preferences to the suppliers on a territorial basis. The exception is only envisaged for outsourcing companies founded during the restructuring of the Fuel Company. UIPS guarantees to such companies certain volumes of orders over a period of five years from the date of incorporation in the following way: for the first year — 90%, the second year — 75%, the third year — 60%, the fourth year — 40%, the fifth year 25% of total annual demand of the client.

Local suppliers participate in competitive procedures on a common basis, specific approaches to local suppliers are not applied. The Company maintains no special records for such suppliers.

Structure of Suppliers and Contractors of TVEL FC, ea

Some of the key suppliers and contractors of TVEL FC enjoy monopolist position on the market [ i ]. Under the provisions of UIPS (Uniform Industrial Procurement Standard of ROSATOM State Corporation) no tender is provided for such contractors (natural monopoly entities), only the “Procurement from Sole Supplier” procedure.

In September 2012 JSC “TVEL” appointed an arbitration committee vested with authority to consider complaints against actions (or omission thereof) of any customer, competent authority, procurement manager and/or procurement commission during the implementation of procurement procedures on behalf of organizations of TVEL FC management system.

Over the reporting period 158 complaints were submitted to the arbitration committee with respect to procurement procedures, amounting to RUB 3,500.37 mln, where: 52.1% were found to be unjustified; 7.5% — justified; 4.7% — partially justifued; 15.5% — revoked by the lodger; and 20.2% dismissed due to wrong jurisdiction and other technicalities, such as wrong procedure, form and terms of filing.

In furtherance of the plan [ i ] aimed to admit small and mid­sized businesses to procurements of infrastructural monopolies and government-linked companies, JSC “TVEL” approved the order d/d March 25, 2014 specifying the list of goods, works, services which can be purchased from small and mid­sized businesses.

In 2014 the works within the frameworks of the Project “The Fuel Company Logistics Management System Optimization” were continued; this project is planned for implementation till 2016.

Purpose of the project:

  • introduction of category management in TVEL FC [ i ] ;
  • reduction of stock at the the subsidiaries’ warehouses of the Fuel Company (works for optimization of uncalled stock and reduction of their level);
  • optimization of warehouse infrastructure and material flows (optimization of material flows both in the internal logistics scheme of the enterprises, between the subsidiaries of TVEL FC and between enterprises of various divisions of the ROSATOM State Corporation).
3,834
Total number of suppliers

Energy Efficiency

The project on energy consumption reduction and energy efficiency improvement in industrial companies of ROSATOM State Corporation is one of the major projects aimed to improve competitiveness in the specific industry. The subsidiaries of the Fuel Company are considered to be pilot ones in the process of organization and implementation of methods and accounting system of energy saving in the specific industry in general, starting from energy inspections, long-term programs and specific measures for energy conservation.

In 2014 energy consumption by the subsidiary companies of TVEL FC (PJSC “MSZ”, SC CMP, PJSC NCCP, SC “MZP”, SC “VNIINM”, SC AECC, SC UEIP, SC “PA ECP”, SC “SGChE”, SC “VPA “Tochmash”, PJSC “KMP”, UGCMP LLC, Uralpribor LLC, NRDC LLC, EDB-Nizhny Novgorod JSC, SC “Centrotech-SPb”) was reduced by 22.6% [ i ] (880 mln kWh), heat energy — by 36.9% (1,511 thous. Gcal) as compared to the basic figures of 2009 under comparable conditions. The reduction in energy resources consumption (under conditions comparable with 2009) in monetary terms was 27.4% (RUB 2,191 mln) with the target indicator — 23%. Reduction of energy consumption is not related to reduction of the volume of the Fuel Company’s production program, it was achieved through realization of activities under the Program “Energy Saving and Efficiency Improvement” effective in the subsidiaries of TVEL FC since 2011. In 2014 the amount of financing under the Program was equal to RUB 573.72 mln.

22.6%
reduction of energy consumption by subsidiaries of TVEL FC in 2014
PJSC “MSZ” became the winner of All-Russian contest “Russian Business Leaders: Dynamics and Responsibility — 2014” in the category “For High Energy Efficiency” held by the Russian Union of Industrialists and Entrepreneurs.

The main activities that were carried out by the companies of TVEL FC and made it possible to achieve the planned target of reduction in energy resources consumption in 2014 were:

  • Installation of additional capacitor units for compensation of reactive power on the side 0.4 and 6 kV;
  • Installation of variable frequency drives in various systems;
  • Installation of Computerized Process Control System for the equipment in boiler stations;
  • Replacement and modernization of energy-intensive technological and power equipment;
  • Decentralization of air supply system with replacement of compressors with modern ones;
  • Winterization of enclosure structures of buildings and structures.

In 2014 the consumption of electric power and heat energy by the subsidiary companies in monetary terms was RUB 3,819 mln and RUB 1,237 mln respectively.

In 2015 as a part of activities for improvement of energy efficiency the following is planned:

  • Reduction of energy resources consumption by the subsidiaries of TVEL FC (under comparable conditions 2009) no less than by 25%;
  • Implementation of the Program “Energy Saving and Efficiency Improvement” at the subsidiaries of TVEL FC;
  • Repeated energy inspection in accordance with the requirements of article 16 of Federal Law dated November 23, 2009 No. 261-FZ “On energy saveing and improvement of energy efficiency and on amendments made to certain enactments of the Russian Federation”.

Implementation of Information Technologies

With the view of increasing the efficiency and optimizing business processes TVEL FC uses the latest information technologies and solutions.

In 2014 TVEL FC Information Technologies Department fulfilled the following works:

  • project activities for development and introduction of new information systems in accordance with Information Technologies Transformation Program of ROSATOM State Corporation and the needs of JSC "TVEL" management with due account for the development plans of the Fuel Company;
  • coordination of IT activities of the subsidiary companies of TVEL FC;
  • securing smooth operation of employees, and the existing infrastructure and information systems.

These activities resulted in the following:

  1. Successful completion of the project of Replication of Standard Solution for Resource Management System of the Fuel Company on the basis of SAP ERP at SC "SGChE". By the end of 2014 the system has been prepared for commercial operation.
    The project of the year 2014 on replication of resource management system in five subsidiary companies took the top position in Business Transformation Category of SAP Quality Awards 2014 in CIS region. The project was accomplished within the record-breaking tight deadlines – over 9 months and the size of the project team amounted more than 500 persons.
  2. Successful completion of the project Replication of Extended Master System for HR Management at SC "SGChE".
  3. Successful completion of the project Replication and Development of the Automated Control System for Design Engineering Pre-production (ACS DEP) in the subsidiary companies of Gas Centrifuge Complex. The system with the extended functionality was launched into commercial operation in March 2014 at EDB­Nizhny Novgorod JSC, PJSC "KMP", NRDC LLC, UGCMP LLC, Uralpribor LLC, SC "Centrotech-SPb" - the branch of NRDC LLC, JSC "TVEL".
  4. Successful completion of the project Replication of ACS DEP in Plants of Separation-Sublimation Complex. The system was launched into commercial operation on December 1, 2014 at SC "SGChE", SC UEIP, SC "PA ECP".
  5. Successful completion in accordance with the scheduled plan of the project Pilot Implementation of Lifecycle Element Management Subsystems of the Product in Gas Centrifuge Complex.
  6. As part of the project Development of Operating Activity Automation Concept for SC "VNIINM" - the development of the Target architecture of information system, program of projects and feasibility study of complex automation of the operating activity of the Company.
  7. Completion of the project Development of Concept for Integrated Design Management System at SC "CDTI".
  8. Completion of preparatory works on the program for automation of laboratory information management system at the subsidiaries of the Fuel Company.

1. Electric Energy Consumption and Transfer to Outside Organizations [ i ], mln kWh

2. Heat Energy Consumption and Transfer to Outside Organizations [ i ], thous, Gcal

3. Electric Energy Consumption by the Subsidiaries of TVEL FC in Monetary Terms, RUB mln

4. Heat Energy Consumption by the Subsidiaries of TVEL FC in Monetary Terms, RUB mln

5. Primary Energy Sources Consumption [ i ], mln GJ

6. Indirect Energy Consumption by the Subsidiaries [ i ] of TVEL FC, mln GJ.

One Step Ahead

We strive to be the global leader in the industry, predict what will happen tomorrow and prepare for it today. We are always a step ahead in technologies, knowledge and professional skills. We are constantly growing, learning, we respond rapidly to changes in the external environment. Every day we try to work better than yesterday.

Excerpt from the Decision of the Strategic Council of ROSATOM State Corporation d/d July 03, 2014

Scientific and Technological Activities

Main purpose of scientific and technological activity of the Company is to promote competitiveness and safety of production. The main activities are regulated by the following documents:

  • ROSATOM State Corporation Program for Innovative Development and Technological Modernization for the period up to 2020 (in the public part);
  • Long-term Program “Nuclear Fuel and Effective Fuel Cycles at Russian NPP for 2012–2016 and up to 2020”.

The research and development scope is defined by the decisions of the management of ROSATOM State Corporation, contractual obligations, and is subject to revision on an annual basis at the meetings of the Scientific and Technical Council No. 2 of ROSATOM State Corporation — “Nuclear Materials and Technologies of Nuclear Fuel”, the STC of JSC “TVEL” and its sections.

Scientific and technological activities of TVEL FC are focused on:

  • improvement of characteristics and technologies of nuclear fuel production;
  • design and technological development of the separation-sublimation complex;
  • innovative activities in the non-nuclear industry.

Employees of the R&D complex of TVEL FC provide training and advanced training to the highly skilled personnel in the sphere of radiation chemistry, physics of metals, adaptive metallurgy and solid-state physics, fissile and structural materials, metallurgy and technology of rare, scattered and radioactive metals.

SC “VNIINM” serves as the basis for the Postgraduate School with specialization in Adaptive Metallurgy and Thermal Treatment of Metals and Alloys; Nuclear Power Units, including Design and Decommissioning; Metallurgy of Ferrous, Non-ferrous and Rare Metals; Technology of Rare, Scattered and Radioactive Elements.

The Institute has two Dissertation Councils that admit for examination doctoral and candidate dissertations. The Institute expands its cooperation with the leading educational institutions. The branch of the 9th Department of MEPhI NRNU, complex branch of the Department of D. I. Mendeleev University of Chemical Technology of Russia and M. V. Lomonosov Moscow State University of Fine Chemical Technologies operate based on SC “VNIIM”. The Institute also has entered into cooperation agreements with the leading industry-specific higher education institutions, for example, with Tomsk Polytechnic University (TPU). As part of these agreements, students take practice and training, and write theses on the promising areas of the Institute activities.

TVEL FC subsidiary employees take part in the annual international scientific conferences (e.g., “Zirconium in the Nuclear Industry”, “Top Fuel”) and seminars, conduct meetings of the Scientific and Technical Councils of ROSATOM State Corporation and JSC “TVEL”.

In 2014, the Scientific and Technical Conference of TVEL FC was held, the specialists of TVEL FC took part in the 9th International Scientific and Technical Conference “Safety, Efficiency and Economics of the Nuclear Power”, the symposium of the International Association for Physics and Safety of VVER reactors, the Conference “Half-Century Safety Assurance of NPP with Pressurised Water Reactors in Russia and Abroad”, the Conference “Zirconium in the XXI century”, the traditional workshops carried out in Finland and Russia with participation of representatives of operators, supervision authorities of the countries. Within these workshops the discussion was held of the experience of manufacturing, operation and prospects of improvement of fuel and fuel cycles of nuclear power plants with reactors VVER-440, VVER-1000. The problems of reactor material science were discussed at the conferences in Research Institute of Atomic Reactors SRC JSC, at the Institute of Power Engineering (in the framework of the Halden Reactor Project). The workshop, held in Obninsk, was devoted to the issues of intensification of heat transfer in fuel assemblies of VVER-100 of new design, there were also discussed the arguments to support increase of the power unit capacity to 107% of nominal value.

The research activities carried out by the subsidiaries of the Fuel Company are of applied nature, some of them address the issues of fundamental science. Such research includes, for example, works on the study of the properties of mixed uranium-plutonium nitride fuel carried out in 2014, determination of the behavior mechanism of structural steels (ferritic-martensitic, dispersion hardened by oxides) under conditions of irradiation in the fast fission reactor, determination of the properties of composite claddings (silicone carbide) for the purpose of their application instead of zirconium, determination of the properties of superconductors made of magnesium diboride and pnictides. The development of computer simulation models of technological conversions for fabrication and reprocessing of nuclear fuel should be also referred to fundamental research activities. Such works include mathematical description of physical and chemical processes in the specific conditions of a process equipment with subsequent verification of the model.

Modernization and Technical Upgrade of Research and Development Complex

TVEL FC continues modernization and development of infrastructure of its R&D complex within the framework of the projects of technical upgrade of enterprises that comprise the complex and in accordance with Federal Target Program "New Age Nuclear Energy Technologies for the Period of 2010-2015 and up to 2020" (FTP NANET).

Technical upgrade under the FTP NANET aims to create national wide information structure, a number of stand and experimental areas for development, manufacture and research of quality and certification of structural and superconducting materials. Research departments are upgraded, modernized and re-equipped first to promote comprehensive and thorough study of the structure and physical and mechanical characteristics of materials at all stages of technological conversions, and other necessary (including nanoscale) material researches. To this effect, purchase of appropriate modern equipment is provided.

Purchased new equipment will more effectively solve the problems. For example, technical upgrade in SC "VNIINM" will allow to increase the level of safe operation of equipment, engineering systems, and to increase the performance on contractual obligations associated with improved technical parameters and upgraded equipment of scientific and engineering units.

The following measures were taken in 2014 in the frameworks of the Project:

  • modernization of equipment used in non-destructive control of metal and welded joints;
  • purchase of precision laser marking system SPLM "Mini Marker 2-20А4";
  • modernization of high-temperature unit based on the furnace SShWE 1.2,5/25;
  • development of a project on change of shell-and-tube water-to-water heat exchangers of the heating system to plate heat exchangers;
  • development of detailed design of the system of information protection.

Involvement of Universities in Implementation of the Investment Projects

In 2012-2014, MEPhI NRNU was involved in the frameworks of implementation of the investment projects on development of new types of fuel for nuclear power plants, research reactors (RR), low-capacity nuclear power stations (LNPS). The fields of works of MEPhI NRNU are as follows:

  • establishment of regularities of texture variations in the products of zirconium alloys induced by a neutron irradiation;
  • development of a modified oxide nuclear fuel for high fuel burn-ups;
  • development of a method for improving the corrosion resistance of fuel-element claddings made of zirconium alloys by multicomponent alloying at ion mixing.

Moscow Institute of Steel and Alloys (MISA), branch of MEPhI NRNU in Seversk, N.I.Lobachevsky State University of Nizhni Novgorod, Ural State University were also involved by sub-contracting with branch organizations (SC “VNIINM”, SC CMP) in the development of mathematical models of processes, investigations of the properties of different materials, etc.:

  • a number of fundamental and applied researches were carried out with the assistance of MISA and Tomsk Polytechnic University on subjects connected with the development of criteria taking into account the concentration of hydrogen in the material of the claddings, for use in engineering design of the fuel elements of water-cooled reactors in justifying their safe working capacity in normal and transient operation;;
  • in conjunction with Tomsk State University there were carried out the works on modelling of cold rolling of tubes on roll mills to provide the structure and mechanical properties of fuel-element claddings;
  • verification experiments, defining properties of a moulding powder and compressed tablets in relation to the pressing load application and removal pattern, and modes of pressing-out, and adaptation of the developed 3D model of press operation for industrial rotary presses, were carried out in Seversky Institute of Technology of MEPhI NRNU;
  • development in non-nuclear industry in collaboration with Moscow State University — technology of superconducting wire of iron arsenide — superconducting material with great potential in industrial application.

In the period 2012 to 2014, R&D funding in universities averaged to RUB 85.18 million per annum.

Innovative Activities in the Nuclear Industry

Services and products of FE NFC form the basis of subsidiaries comprising the Fuel Company (more than 80% of revenue following the results 2014), and that is why innovative activities in nuclear industry are critical for ensuring long-term competitiveness and sustainability of TVEL FC.

In 2012 — 2014, investments of JSC “TVEL” in research and development amounted to more than 1.5 billion rubles annually.

Main R&D projects are as follows:

  • design and improvement of nuclear fuel and reactor cores of Russian design (primarily VVER-1000/1200/1300);
  • design of nuclear fuel for Western reactors (PWR);
  • design of nuclear fuel for low-capacity nuclear power stations, research reactors and nuclear-powered icebreaker (NPIB).

As for the operating and new power units of NPP, the works are aimed to increase the discharge burn-up range, increase service life of FA, improve operational reliability of nuclear fuel, prove the working efficiency of FA in terms of increased capacity of power units (104-107% of nominal) with unconditional security. Works on optimizing the design of TVS-KVADRAT assemblies (for PWR), new fuels for the RR, floating power unit, new cores for NPIB offer many innovations and ensure the strategy of entering new markets.

1,5
bln annualy – amount of investment to R&D of TVEL FC in 2012–2014

Results of activities on improvement of nuclear fuel properties and production technologies in 2014:

Design and adaptation of nuclear fuel and cores for Russian reactors

  • TVS-2M nuclear fuel is put into operation in 18-month fuel cycle on Power Units 1 and 2 of Tianwan NPP (in makeup volumes);
  • Development of the Front End Design of TVS-2M with mixing grids (to increase the capacity of the power unit to 107% of nominal) is completed; production was launched; Power Unit 4 of Balakovo NPP started operation of new fuel;
  • TVSA-12PLUS (makeup volume) was put into operation without blank zones, with 13 spacer grids, 3 mixing grids and a unit head at Power Unit 3 of Kalinin NPP;
  • Addendum to the Front End Design of TVSA-T for the Temelin NPP was elaborated in connection with the introduction of modernized version of the fuel assembly — TVSA-T.mod.1 (optimization of spring cartridge, support grid and first spacer grid);
  • Technical appendices were updated and long-term (10 years) contract to supply nuclear fuel for VVER-1200 for Units 5 and 6 of Paks NPP was signed;
  • Licensing of the fuel of VVER-440 (assemblies — RK of 2+ Generation) with a high uranium feed for Dukovany NPP was completed; the fuel is put into production; Unit 1 started its operation on a new fuel (with full makeup);
  • Licensing of the second generation fuel with high enrichment in 15-month fuel cycle under conditions of the inceased capacity (to 1,485 MW) of PAKS NPP power units was completed; a set of cartridges (12 RK) was produced, put into operation.

Design of nuclear fuel for western reactors

  • Acceptance tests of TVS-KVADRAT were carried out.
  • A pilot lot of TVS-KVADRAT has been manufactured, delivered, loaded, and since June 2014 has been operated by the reactor of the European company.

Design of nuclear fuel for LNPS, RR, NPIB

  • Post-irradiation studies of reirradiated fuel elements from experimental TWS 14-14 were completed to substantiate an improved core 14-14-1 with an energy source enhanced by 50% for floating nuclear thermoelectric plants (FNTP) with RU KLT-40S;
  • Addendum to the Front End Design of VVR-KN fuel assembly for VVR-K research reactor in Kazakhstan was developed;
  • Reactor tests of experimental FA (EFA) MR with LEU-fuel at Maria research reactor in Poland were completed with the achievement of burn-up of 61%, post-irradiation studies of two EFA were conducted;
  • Front End Designs of a burnable absorber rod, start-up neutron source, absorbing element, emergency shutdown rod of the core 14-15-1 for nuclear-powered icebreaker with RU RITM-200 were developed.

2015 Plans for nuclear fuel design and improvement

  • Completion of licensing of TVSA-12 in Bulgaria. Start of production. Full make-up shipment to Kozloduy NPP;
  • Completion of licensing of TVS-2M with profiled fuel elements with gadolinium in order to reach the capacity 107% of the nominal value. Start of production. Full make-up shipment to Unit 2 of Balakovo NPP;
  • Start of operation of the first core of NPP-2006 Project (Power Unit 1 of Novovoronezh NPP-2);
  • Development, start of production and delivery of secondary neutron source units to Temelin NPP;
  • Start of production of TVSA-T.mod.1;.
  • Development of supporting materials for the implementation of TVS-2M from the first charges of Power Units 3 and 4 of Tianwan NPP;
  • Development of materials for preliminary substantiation of safe operation of Hanhikivi NPP;
  • Start of operation of the second generation fuel with high enrichment in 15-month fuel cycle under conditions of the increased capacity (to 1,485 MW) on one of the Units of Paks NPP;
  • Manufacture of equipment for the inspection and repair bench of the European country, where a pilot lot of TVS-KVADRAT is operated.
  • Acceptance tests of two experimental fuel assemblies IRT-3M with low-enriched uranium-molybdenum fuel for research reactors;
  • Issue of Front End Designs of a fuel element and core 14-15-1 with highly enriched intermetallic fuel for a nuclear-powered icebreaker with RU RITM-200;
  • Start of production of FE, AE, BPR, start-up neutron sources and emergency shutdown rods for the core 14-15-1;
  • Continuation of reactor testing of an experimental fuel assembly with low-enriched cermet fuel for the core 14-15-2 of nuclear-powered icebreaker with RU RITM-200.

“TVS-KVADRAT” Project

“TVS-KVADRAT “design is based on long experience in manufacturing and operation of nuclear fuel in VVER-1000 reactors. In particular, “TVS-KVADRAT “design employs frame and spacer grid design solutions tested and approved in fuel assemblies for VVER-1000, which allows to increase the operational reliability of nuclear fuel in PWR reactors. Advanced Russian alloys based on zirconium are used as structural materials. Russian design of fuel for PWR reactor has a stable geometry, is not prone to damage and has higher degree of fuel burn-up.

In 2014, a pilot lot of TVS-KVADRAT was manufactured, delivered and, on obtaining permission from the State supervisory authority of the European country, fed into reactor of the European company for operation.

By the end of 2014, specialists of JSC “TVEL”, PJSC NCCP, SC CMP, SC “VNIINM”, and JSC “Afrikantov OKBM”, responsible for the implementation of TVS-KVADRAT Project, were recognized as the winners in the special category “One step ahead” of the annual industry competition “ROSATOM’s Person of the Year”.

“One Step Ahead” Award

Dolgov Aleksey Borisovich, Director of Department of JSC “TVEL”

Goncharov Yuri Valerievich, Deputy Director General for Development and Innovations of JSC “NCCP”

Enin Anatoly Alekseevich, Chief Design Manager of JSC “NCCP”

Samoylov Oleg Borisovich, Cheif Design Manager of JSC “Afrikantov OKMB”

Novikov Vladimir Vladimirovich, Deputy Director General of SC “VNIINM”

Troegubov Aleksey Vladimirovich, Process Engineer of the Rolling Plant of SC CMP

“Proryv” Project

“Proryv” Project of ROSATOM Nuclear Energy State Corporation is implemented in the framework of the Federal Target Program “New Age Nuclear Energy Technologies for the Period 2010–2015 and up to 2020”, The purpose of the project is to develop fast neutron reactors with closed nuclear fuel cycle, and to arrive at the solution of safe nuclear energy sector creation and irradiated fuel disposal problems. The project includes the construction of an Experimental Demonstration Energy Complex on the basis of SC “SGChE” with the reactor BREST-OD-300, the irradiated fuel radiochemical processing module and module of fuel production from derivatives. In the framework of the Project the works are ongoing on development of new reactor and industrial technologies, including a new mixed nitride uranium plutonium fuel characterized by high density and thermal conductivity.

Research of reactor plant goes in two directions: BREST type reactor with lead coolant, and FN-1200 reactor with sodium coolant. Despite very similar solutions and operation parameters, the type of coolant provides for some significant differences in core design and new structural materials used.

Participants of “Proryv” Project are JSC “TVEL” and its subsidiaries: SC “VNIINM”, SC “SGChE”, PJSC NCCP, PJSC “MSZ”, Elemash-STP LLC, NCCP-Engineering LLC, etc.

In 2013, by the order of ROSATOM State Corporation No. 1/200-P, SC “SGChE” was designated as the operator of fuel fabrication/refabrication and spent nuclear fuel reprocessing modules, and the working group was established under the leadership of P. I. Lavrenyuk, senior Vice-President of JSC “TVEL”, to organize interaction and coordination of the project participants for construction of nuclear fuel cycle facilities of EDEC. To implement “Proryv” project there was established the directorate at SC “SGChE”.

In 2014, the following results were achieved in the implementation of “Proryv” Project:

  • Main State Expertise of Russia approved the design documentation for the fabrication module and start-up complex of MNUP-fuel refabrication;
  • SC “SGChE” received a license for EDEC setting;
  • construction works on the first stage of EDEC at SC “SGChE” have been started;
  • The methods of production of MNUP-fuel by carbothermic synthesis of (U-Pu)N powders from initial oxide powders, production of nitride fuel pellets and fuel elements for the fitting of experimental fuel assemblies with MNUP-fuel of the FN-600 reactor of Beloyarsk NPP were applied in test production at SC “SGChE”.
  • six experimental fuel assemblies with MNUP-fuel were manufactured at SC “SGChE” and put on test in FN-600 reactor. Test of one fuel assembly in FN-600 reactor with a burn-up of about 6% was successfully completed, irradiation of the remaining FA continues, including two new EFA, which have been manufactured since 2014;
  • work design documents and technical documents (PJSC NCCP) for the manufacture of the full-scale model of FA RU BREST–OD-300 were developed. The model of new design with new construction material was manufactured and successfully passed vibration tests at PJSC “MSZ” and lead stand tests at JSC “NIKIET”;
  • production (PJSC “MSZ”, Elemash-STP LLC) of necessary for new projects assortment of semi-finished products and components of special steels, including fuel-element cladding of EK-164 and EP823 steels in four sizes, hexagonal shroud tube of EP450 and EP823 steels, extremely thin-walled tubes of EP823 steels for the manufacture of spacer grid cells was set up, production of fuel element “tube assembly”, etc. started;
  • Working out of Front End Designs of preproduction models of equipment for the manufacturing complex of fuel elements and fuel assemblies of fuel fabrication module for fast neutron reactors (JSC SverdNIIHimmash” together with SC “VNIINM” and JSC “TVEL”);
  • technological optimization and improvement of experimental MNUP-fuel manufacturing method (SC “VNIINM”);
  • Issue of Front End Designs for BREST-OD-300 and FN-1200 reactor unit fuel elements, and for fuel elements of all experimental fuel assemblies put on irradiation in FN-600.

Innovative Activities in the Non-nuclear Industry

In order to create new and innovative industries aimed at the development of the second core business of the Fuel Company, there are implemented projects on four programs: “New Energy”, “Machine building”, “Metallurgy”, “Chemistry”.

The subsidiaries of the Company establish industrial centres (clusters) for development of innovative non-nuclear production. Creation of the new knowledge-based innovative industries at the subsidiaries of the TVEL FC will create more jobs, give employment to highly qualified staff released due to restructurisation, and attract young professionals, form the business environment in the cities of presence of TVEL FC subsidiaries, improve living standards and attractiveness of the territories.

Grounds for development of the second core business of the Fuel Company:

  • competencies in each of the innovative development programs;
  • availability of infrastructure for distribution of new production facilities — buildings, railways, co-generation plants, sewage treatment plants, etc.;
  • availability of qualified personnel;
  • good manufacturing practice.

Main Lines of New Businesses Development in TVEL FC

Total revenue from the sale of innovative projects in non-nuclear sphere in 2014 reached RUB 6,059 mln, which is 26% higher than in 2013 (RUB 4,819 mln in 2013, RUB 4,054 mln in 2012).

In 2012–2014, TVEL FC invested annually more than RUB 1 bln of own and borrowed funds in the implementation of innovative projects in non-nuclear sphere.

Intellectual Property of TVEL FC

TVEL FC owns more than 1,600 items of intellectual property.

Among the objects protected by law there are inventions, utility models, production secrets (know-how), software for electronic computing machines, databases (DB), trademarks and industrial designs.

Intellectual Property Identification and Legal Protection System as it applies to the items created by subsidiaries and affiliates of TVEL FC is implemented in accordance with applicable laws of the Russian Federation, Standard Industry Methodological Recommendations, and by local regulations of the entities comprising the Company.

Functions to identify and secure legal protection of the items of intellectual property created by the subsidiaries of the Fuel Company are assigned to the Patent and Licensing Department of JSC “TVEL”, as well as to technical departments, development design offices, intellectual property protection teams and patent-information departments of TVEL FC subsidiaries.

Intellectual Property Items registered by TVEL FC Subsidiaries in 2014, ea

Companies of TVEL FC Inventions, ea Utility models, ea Russian Production secrets (know-how), Russian, ea
Russian foreign Russian foreign
JSC "TVEL" 5 1 2 - 7
SC "VNIINM" 5 3 4 - 41
PJSC "MSZ" 7 1 1 - 28
SC "PA ECP" 1 - 1 - -
PJSC NCCP 3 1 - - 7
SC UEIP 5 - 1 - -
SC CMP 12 - - - -
SC "SGChE" 7 - - - -
SC "Centrotech-SPb" 6 - - - -
EDB-Nizhny Novgorod JSC 1 - 3 - -
NRDC LLC 2 - 2 - -
Total 54 6 9 - 83

Number of Registered Inventions, Utility Models, Industrial Designs and Production Secrets (Know-how)




Russian inventions
Foreign inventions
Russian designs
Foreign designs
Russian utility models
Foreign utility models
Production secrets (know-how)
93
2012
97
2013
83
2014

Number of applications for inventions, utility models, software and databases, production secrets (know-how)

Application 2012 2013 2014
Applications for inventions: Russian 65 68 54
Applications for inventions: foreign 1 1 3
Applications for utility models: Russian 12 13 7
Applications for utility models: foreign 1 1 -
Applications for software and DB: Russian 2 19 57
Applications for software and DB: foreign - - -
Applications for production secrets (know-how) 32 60 76

Number of Applications for Inventions, Utility Models, Software and Databases, Know-how filed by TVEL FC Subsidiaries in 2014

Companies of TVEL FC Applications for inventions (Russian) Applications for utility models (Russian) Applications for software and DB (Russian) Applications for production secrets (know-how)
JSC "TVEL" 11 2 1 -
SC "VNIINM" 7 4 3 41
PJSC "MSZ" 3 1 - 28
SC "PA ECP" 5 - 22 -
PJSC NCCP 3 - 1 7
SC UEIP - - 23 -
SC CMP 9 - - -
SC "SGChE" 6 - 7 -
SC AECC 2 - - -
SC "Centrotech-SPb" 3 - - -
EDB-Nizhny Novgorod JSC 4 - - -
Uralpribor LLC 1 - - -
Total 54 7 57 76

One Team

We are Rosatom. We have common goals. Taking joint actions we achieve maximum result. Teamwork yields unparalleled results. Together we are stronger and can achieve most ambitious goals. Success of the employees is a success of the Company

Excerpt from the Decision of the Strategic Council of ROSATOM State Corporation d/d July 03, 2014

Human Resources

HR Policy of TVEL FC is implemented in accordance with TVEL FC Development Strategy, and is intended to ensure efficient use of human resources contributing to the achievement of the Company’s strategic goals.

HR Policy of TVEL FC is focused on achieving balance between the interests of its employees and the employer, and it is aimed at making the employees to consent to the efficient development of their professional and management capabilities in accordance with the long-term development strategy of the Fuel Company.

Main long-term goals of TVEL FC HR policy:

  • ncrease of personnel engagement to promote the company’s sustainability;
  • sustained growth of labor efficiency;
  • adhering of personnel to corporate values;
  • development of strategically important personnel competencies and skills in order to comply with requirements to the personnel stated by international global companies;
  • engagement of each employee in solving the problems of strategic development and appealing to “collective intelligence”;
  • ensuring of social acceptability of the changes made.

Key Indicators

Indicator 2012 2013 2014
TVEL FC headcount at the year-end, persons 30,964 27,159 23,717
TVEL FC average headcount in the fiscal year, persons 34,088 29,238 25,169
Employees being employed by TVEL FC more than 5 years ago, % 78 76 81
Candidates and Doctors of Science, persons 290 312 281
Holders of MBA degree, persons 11 12 16

Estimated Average Headcount in 2015–2019, persons

All HR management activities, which are undertaken to achieve the goals set, are focused on the long-term personnel stability of the Fuel Company.

Steady decrease in headcount in 2011–2014 was caused by restructuring processes, centralization of management functions and personnel outsourcing. The ultimate goal of these processes with regard to HR management is to enhance labor efficiency in TVEL FC subsidiaries to match major foreign competitors.

Headcount, staff structure and composition

TVEL FC subsidiaries hire its employees in strict compliance with the Labor Code of the Russian Federation. The top managers are sorted out of the members of succession pool program.

All Fuel Company subsidiaries (except for JSC “TVEL”) have collective agreements that cover 100% of these subsidiaries’ employees (98% of average headcount in the Fuel Company). If any considerable changes are intended in the business, the company shall notify their employees at least 2 months prior to the effective date of any such changes. This provision is stipulated by labor laws of the Russian Federation and by the Collective Agreement of each subsidiary. Payments and benefits provided to temporary or part-time employees are stipulated by the collective agreements and vary from one subsidiary to another. All payments and benefits comply with requirements of the labor laws.

In 2014, TVEL FC subsidiaries hired 1,892 persons, including JSC “TVEL” — 63 persons, whereof 10 persons were transferred from the Fuel Company subsidiaries and 2 persons — from Rosatom State Corporation. About 60% of hired employees are men, around 70% — persons under 45 years old. Among the hired employees the highest per cent of new employees is in the Moscow Region and the city of Moscow (44.6%), the Vladimir Region (17%), the lowest per cent — in the Krasnoyarsk Territory and the Irkutsk Region (1.6% each).

5,225 persons terminated their employment with the company. At the end of 2014, the retirement rate [ i ] by the business regions of TVEL FC varied from 42.3% in the Sverdlovsk Region and 35.6% in the Vladimir Region to 10.4% in the Moscow Region and 11.9% in the Novosibirsk Region. The retirement rates vary by gender as well: men — 21%; women — 24%. Overall retirement rate for the Fuel Company is 22%.

Personnel turnover rates [ i ] vary by the business regions of TVEL FC from 5.1% in the Vladimir Region and 4.5% in the Moscow Region to 1.0% in the Udmurt Republic and 0.1% in the Krasnoyarsk Territory. Overall personnel turnover rate for the Fuel Company is 3.2%. The most mobile age group (turnover rate is 8%) is comprised of employees up to 24 years old; male employees are more mobile than female (turnover rate is 3.4% and 3% respectively).

Total Staff by Categories at the Year-end

Direction 2012 2013 2014 ∆2014/ 2013, %
As per consolidation circuit (total), persons 30,964.0 27,159.0 23,717.0 -12.7%
including:
Key staff 11,716.0 9,743.0 8,608.0 -11.6%
Supporting staff 6,961.0 5,615.0 4,144.0 -26.2%
Managers 3,520.0 2,618.0 1,964.0 -25%
including top management (General Directors, their Deputies) 132.0 96.0 97.0 +1%
Specialists 8,256.0 8,839.0 8,717.0 -1.4%
Employees 395.0 312.0 256.0 -17.9%
Indirect labor group 116.0 32.0 28.0 -12.5%

As of December 31, 2014, TVEL FC headcount was 23,717 persons. Overall majority of subsidiaries’ employees (over 98%) work under the open-term labor contracts and during normal business hours (40 hours a week). As of the end of 2014 the headcount of employees under civil law contracts, external part-timers and women on maternity and childcare leave was 673 persons.

TVEL FC upholds the principle of equality and tolerates no gender discrimination: male and female employees working in the Company get the same salary, regardless of categories.

The highest per cent of employees are men (64.7% of all employees, 90.7% of top managers). The highest per cent of employees at the age of 45-54 are women (43%); the lowest per cent of employees under 24 are women (18%).

Total Staff by Age (Headcount), 2014, persons

Total Top Managers by Age (Headcount), 2014, persons

Average age of TVEL FC employees is 42. Employees under 35 years old comprise 23% of total staff.

Recruitment of prospective young people is one of the top priorities in HR policies of the Fuel Company. By hiring young specialists, the Company intends to preserve and strengthen its position in the sphere of science and advanced technologies in the years ahead.

The Company cooperates with educational establishments under the divisional program of arrangements aimed at employer brand building, training, recruitment and employment of educational establishment graduates subject to annual updating.

To promote career guidance, school students are taken on tours at the enterprises of the Fuel Company where they meet young specialists and take part in informational and educational events (intellectual environmental game “First Step Into a Nuclear Project”, Science Festival “Energy of Intelligence”, etc.).

The major areas of cooperation with educational establishments of higher and secondary education:

  • long-term planning of demand for specialists in terms of industry-specific training (for 2014–2021);
  • creation of awareness among students and graduates on possibilities of professional growth in subsidiaries of the Fuel Company; TVEL FC and ROSATOM State Corporation brand building;
  • arrangement of educational and on-the-job trainings at the premises of TVEL FC subsidiaries;
  • implementation of joint educational programs, special courses within the sphere of main departments:
    • branch of the 9th Department of MEPhI NRNU and complex branch of the Department of D.I. Mendeleev University of Chemical Technology of Russia and M.V. Lomonosov Moscow State University of Fine Chemical Technologies at SC “VNIINM”;
    • main Department of “Design and Engineering Support of Mechanical Facilities” of Stoletovy Vladimir State University at SC “VPA “Tochmash” (opened in 2014);
    • main Department of Seversky Institute of Technology of MEPhI NRNU “Radiochemistry” at SC “SGChE” (opened in 2014);
  • running of special competitions for recruiting young specialists with advanced capabilities (Young Professionals Tournament “TeMP”, Career Days).
In 2014 746 students of higher and vocational educational institutions undertook internship with the Fuel Company subsidiaries. In 2015, the Company expects 687 students to take their practical training.

Over the reporting period the Company employed 81 graduates of the higher educational institutions and vocational secondary schools, 6 of them took target preparation classes for employment by TVEL FC.

Criteria for efficiency of interaction with educational institutions

  • Recruiting of university graduates to the nuclear industry companies in 2014. Target: university graduates recruiting plan is fulfilled. Allowable deviation is +/- 10%. Diploma grade point average of the employed graduates is over 4.3. Per cent of graduates from core universities of ROSATOM State Corporation is over 20%.
  • Recruiting and retention of university graduates with high potential in the nuclear industry companies in 2014. Target: 10% of total number of recruited university graduates should correspond to the set criteria. Number of university graduates with high potential, who were employed in 2013 and who left the company voluntarily in 2014, is at most 20%.

About 1.2% of TVEL FC average headcount take parental leave annualy. The majority of them are women (over 99%). This indicator is the highest (about 2%) for the Fuel Company subsidiaries in the city of Moscow and the Sverdlovsk Region, and the lowest one (about 0.8%) – in the Tomsk Region and the Irkutsk Region. Over 90% of employees who took parental leave, return to the company later on, and 80% keep working in the Company after 12 months.

TVEL FC mostly hires the local residents, and attracts specialists from other regions only if and when no properly qualified candidates to the vacancy are available at the local labor market.

81
graduates from higher and vocational educational institutions were emloyed by the Company in 2014.

Workforce by Categories and Regions (persons, 2014)

Region Headcount Key staff Supporting staff Managers/senior management (General Directors, their Deputies) Specialists Office workers Indirect labor group
Moscow 1,767 37 253 245/19 1,206 17 9
Moscow Region 4,290 1,483 1,153 444/9 1,206 4
Vladimir Region 2,681 1,031 574 202/15 841 20 13
Udmurt Republic 3,331 1,572 664 277/9 804 14
Novosibirsk Region 1,627 601 213 156/9 640 17
Sverdlovsk Region 2,723 1,101 282 174/15 1,083 78 5
Tomsk Region 3,959 1,797 431 237/7 1,452 42
Krasnoyarsk Territory 2,122 472 557 121/6 942 30
Irkutsk Region 1,217 514 17 108/8 543 34 1
Total in 2014 23,717 7,608 4,144 1,964/97 8,717 256 28
Total plan for 2015 22,788 8,487 3,933 2,325/90 7,805 220 18

Composition of Top Management in TVEL FC Subsidiaries According to Place of Residence in 2014, %

Increase of Personnel Engagement

Personnel engagement, personal interest in business and success of the Company have direct effect on business performance and efficiency. The Company implements a set of arrangements aimed at increase of personnel engagement, encourages the employees to progress towards professional improvement.

Engagement study is conducted under the unified industrial slogan: “ROSATOM cares about your opinion”. Arrangement plans, aimed at increase and retention of personnel engagement, are approved and implemented at the annual management meetings on study findings analysis in 12 subsidiaries of the Fuel Company. In general, annual surveys allow to estimate comprehensive efforts within the project according to 19 job satisfaction factors, and this determines per cent of employees, who:

  • recommend their company as a good employer to their relatives and friends;
  • attempt to make the most of their opportunities fulfilling their obligations, improve enterprise processes and come up with suggestions for improvement;
  • intend to keep being employed by the Company in future.

Comprehensive efforts within the project are made both through arrangement plans implemented by the subsidiaries, and through execution of the unified divisional projects. Thus, in 2014 the Fuel Company executed the projects in the following key directions:

  • Career development and employee involvement in enterprise management and development;
  • The Fuel Company applies the unified rating system of employee behaviour, skills and work complexity group; this system allows to ensure the transparency of personal additional incentive (PAI); the current training programs provide the employee with the opportunity to acquire additional skills, to learn related trades and operations; small group leader and direct manager [ i ] training program is implemented.;
  • Remuneration depending on personal contribution to the enterprise economic growth;
  • In 2014 there were removed premium rate restrictions for submission of suggestions for improvement (the greater effect — the higher personal remuneration); unified transparent system of submission, implementation and remuneration of suggestions for improvement within RPS activities and innovation is active.
  • Remuneration for team progress;
  • In the reporting year internal competition between the small groups was held in TVEL FC subsidiaries: small groups that show rapid results get a higher rating and are remunerated; up to 50% of savings made owing to solutions on labor efficiency growth implemented by small groups shall be advanced to the team remuneration fund of this group.

Engagement by TVEL FC Subsidiaries Based on Survey Findings in 2012–2014, %

Engagement rate TVEL FC JSC "TVEL" SC AECC PJSC NCCP SC "PA ECP" SC CMP PJSC "MSZ" SC "VNIINM" PJSC "KMP" SC UEIP SC "VPA "Tochmash" UGCMP LLC
2014 81 82 74 75 93 84 77 75 89 74 84 88
2013 76 83 76 62 90 74 67 62 84 87 82 63
2012 74 80 85 78 88 62 59 52 82 82 72 59

Motivation and Reward

Arrangements 2014:

  • salary indexation in all subsidiaries, except for JSC “TVEL” (indexation % — over 6.7%, in certain subsidiaries selectively for several lower grades — up to 15%);
  • increase of annual premium rate in certain subsidiaries (increase by per cent corresponding to salary indexation per cent);
  • selective reconsideration of the employees’ personal additional incentive subject to the results of the annual assessment;
  • review of remuneration system and benefits efficiency in TVEL FC; collection, of the employees’ proposals for alteration of salary disclosure documents.

Arrangements planned for 2015:

  • payment of up to 50% of annual premium in advance (in order to increase the employees’ social security level due to volatile economic environment and rise in inflation);
  • salary indexation in all TVEL FC subsidiaries, except for JSC “TVEL” (scheduled indexation % — not less than consumer price index, scheduled indexation term — September 1, 2015);
  • there might be increase of annual premium rate in certain subsidiaries (increase by per cent corresponding to salary indexation per cent);
  • selective reconsideration of the employees’ PAI following the results of the annual assessment;
  • updating of local salary and benefits disclosure documents to improve efficiency (reconsideration of annual premium calculation, approaches to PAI identification following the results of the assessment, etc.);
  • elaboration and implementation of measures aimed at increase of variable part of total remuneration depending on personal and collective labor efficiency;
  • development of the approach to payment of indemnities for harmful/hazardous labor conditions common for all TVEL FC subsidiaries.

In 2014 the average salary in the Fuel Company, except for JSC “TVEL” amounted to 66,077 rubles (including in scientific institutions — 83,477 rubles), that is higher by 21.4% than in the preceding year.

21.4%
increase of the average wage in 2014

KPI System for Top Executive Management and Junior Management

Business performance management system applied by the Fuel Company is based on generating of KPI list ensuring comprehensive development of division for company’s top management. Maximum preference is given to such spheres as nuclear, radiation, industrial safety and ecology; social security in regions of presence; gain of operational efficiency; nuclear products and industrial operation markets share, where TVEL FC improves its performance by introduction of new products.

Remuneration scheme for President, Vice Presidents of JSC “TVEL”, Directors General of companies included into the management system of the Fuel Company:

  • fixed salary;
  • personal additional incentive;
  • supplemental payments for dealing with information classified as state secret;
  • regional benefits and margins (where applicable);
  • annual remuneration in accordance with KPI.

KPI for directors of subsidiaries:

  • Integrated performance indicator of investment activity.
  • Adjusted free cash flow of the Company, RUB bln
  • Proceeds from sale of products and services, RUB bln
  • Labor efficiency, RUB mln/person.
  • Foreign orders portfolio for 10 years, USD bln (for PJSC “MSZ” only)
  • Lost time injury frequency rate.
  • Government contracts, investment projects.
  • Full cost of unit sold.

Average Wage by TVEL FC Subsidiaries, rub.

Remuneration consultants are not engaged in determining of remuneration rate. Remuneration rate must be approved by ROSATOM State Corporation.

In 2014 the ratio of total annual remuneration of the President of JSC “TVEL” to average annual remuneration of all TVEL FC employees (except for remuneration of the President) was 60.7.

In 2014 increase in total annual remuneration of the President of JSC “TVEL” as compared to average annual increase in remuneration of all employees (except for remuneration of the President) was 10% [ i ].

Ratio of Average Wage in the Subsidiaries of the Fuel Company Compared to Average Wage in Regions of Operations [ i ]

Region 2012 2013 2014
Moscow 2.48 2.49 2.60
Moscow Region 1.61 1.62 1.66
Vladimir Region 1.08 1.45 1.55
Udmurt Republic 1.93 1.76 1.78
Novosibirsk Region 2.02 2.14 2.14
Sverdlovsk Region 2.17 2.23 2.44
Tomsk Region 1.86 1.79 1.89
Krasnoyarsk Territory 2.29 2.33 2.62
Irkutsk Region 2.12 2.25 2.35

Ratio Between the Average Pay of the Lowest 10% and the Highest 10% Employees of the Subsidiaries of the Fuel Company, by Regions [ i ]

Region 2012 2013 2014
Moscow 6.4 6.5 4.1
Moscow Region 3.6 3.5 3.5
Vladimir Region 4.0 4.1 6.8
Udmurt Republic 4.7 4.7 6.0
Novosibirsk Region 5.4 5.1 5.0
Sverdlovsk Region 5.4 5.3 4.4
Tomsk Region 4.1 3.8 3.7
Krasnoyarsk Territory 3.6 4.0 4.9
Irkutsk Region 4.7 4.1 4.0

Elements of Annual Personnel Efficiency Assessment System Applied in TVEL FC

Assessment type Target group Results of the reporting period
"RECORD" assessment Managers, specialists, employees (MSE) 98% of MSE headcount were assessed; this figure corresponds to target indicators. All TVEL FC subsidiaries took part in the assessment.
Following the results of assessment there were made recommendations concerning alteration of personal additional incentives, choice of training program and recruitment of employees to succession pool.
Corporate employee assessment system by professional and personal competences Staff 95.9% of staff headcount were assessed.
Following the results of assessment there were made recommendations concerning reconsideration of personal additional incentives. The average grade for professional competences grew by 2-5% as compared to the previous year.
In 2014 4.13% of employees were not covered by the assessment. These are women, who were on parental leave, the employees, who worked at the company for less than 3 months, the employees, who were to be withdrawn from subsidiaries under the restructuring processes.

TVEL FC motivation and reward policy is aimed at maintenance of salary competitiveness.

Ratio of standard entry level wage of TVEL FC subsidiaries to minimum wage varies from 1 to 1.5 (Moscow and the Moscow Region, the Vladimir Region, the Sverdlovsk Region, the Udmurt Republic), from 2.5 to 3 (the Krasnoyarsk territory, the Irkutsk Region and the Novosibirsk Region).

Personnel Efficiency Assessment

In 2014 annual personnel efficiency assessment system was successfully implemented and applied in all Fuel Company subsidiaries.

About 14,500 thousand men and 8,000 thousand women were involved in the assessment.

Every year the Fuel Company organizes professional contests where workers of most common trades compete for “The Best in Trade” Award. 51 authoring teams took part in the contest. Following the results of the applications, 20 authoring teams were marked out with corporate rewards (92 laureates).

In October 2014 the following occupational competitions took place:

  • Electrician for electrical equipment maintenance and repair (PJSC NCCP);
  • Operator of gas-separating production (SC “PA ECP”);
  • Assembly fitter (SC “VPA “Tochmash”);
  • Dosimetrist (SC “SGChE” ).

78 workers from 19 enterprises of TVEL FC took part in competitions.

On November 13-14, 2014 at PJSC “MSZ” there was held the XVIII branch professional efficiency contest for the best “maintenance fitter” and “machining and fitting inspector”. 54 workers of the nuclear industry participated in the branch contest, including 15 participants from the Fuel Company enterprises, who have won 6 prizes out of 12.

In the period from July to December 2014 the contest was held for the Best solution/development in 6 categories:

  • he best engineering and process solution;
  • the best design project;
  • the best development of new production/the best solution for reconstruction and building;
  • the best work in the sphere of management;
  • the best business solution for development of entrepreneurial activity in CATU;
  • the best solution for environmental safety.

There were nominated the works on creation and application of innovative technologies, design projects, environmental activity, financial-economical and HR management, business efficiency enhancement.

System of non-material benefits for the employees of TVEL Fuel Company is aimed to encourage professional growth, increase in efficiency and performance, attainment of the goals and the best final results of activities, enhancement of the work quality and arrangement of conditions for creative activity.

Achievements of the employees of TVEL FC were marked with state awards, awards of ROSATOM State Corporation and JSC “TVEL” in accordance with the Uniform Industry-specific Award Policy.

During the year 2014 in celebration of commemorative days and anniversaries more than 2.5 thousand workers and veterans of TVEL FC received rewards and bonuses for work achievements, contribution to development of enterprises, the Fuel Company and the nuclear industry, in particular:

  • national awards — 7 employees;
  • awards of ROSATOM State Corporation — more than 1.8 thous. persons, including merit badges — 149 employees, labor merit badges “Veteran of Nuclear Power and Industry” — 1093 workers and veterans.
  • awards of JSC “TVEL” — more than 700 persons.

HR Development and Training

raditionally, HR development and training is in the focus, and it is one of the top priorities of HR policy of the Fuel Company.

According to HR Development and Training Provisions, TVEL FC subsidiaries regularly implement training programs to enhance competencies of their managers, as well as ordinary workers.

Total number of TVEL FC employees, who underwent training in at least one program, was 11,227 persons.

Average length of training in 2014 per one employee of the Company was 43 hours (44 hours in 2013)

Total scope of training in policies and procedures related to human rights amounted to three hours and included familiarization with:

  • corporate code of conduct;
  • provision on trial period upon hiring;
  • Order “On Organization and Conduct of Medical Examination of Employees”;
  • provision on salaries and benefits;
  • provision on voluntary health insurance;
  • labor safety induction program.

This kind of training is mandatory for each employee, which means 100% coverage of the staff.

Educational events, that contribute to development of skills, are implemented by efforts of the internal coaches, as well as the external providers of training services.

Scope of Training in 2014 per one Employee by Category and Gender

Formation and Development of TVEL FC Succession Pool and Succession Plans

TVEL FC pays great attention to development of succession pool and training of managers.

Training in this sphere is based on the following principles:

  • correlation with business strategy and industry development;
  • focus on the most advanced international leadership development practices;
  • Analysis of the uniform industry-specific development system for managers.

2014 was the year of implementation of the mandatory integrated development program “Leadership School” intended for the key industry managers. For managers there are provided training programs on development of value-based indicators. In 2015 the training of the managers at management and industrial HR school is scheduled.

TVEL FC founded the Institute of Internal Coaches in 2011. The Internal Coaches are the employees of the Fuel Company who provide on-the-job training to their colleagues. To become an Internal Coach, the employee needs to pass the selection procedure, take additional training and be properly certified. By the end of 2014, 73 employees of TVEL FC were qualified as the Internal Coaches (in 2013 — 46 employees).

Priority development programs in the subsidiaries of TVEL FC:

  • Succession Pool Development Program “ROSATOM Assets”, “ROSATOM Capital” and “ROSATOM Talents”;
  • Development of management skills;
  • Training in the application of the tools of “ROSATOM” Production System;
  • Training program for internal coaches.

HR training and development policy is focused on maximizing of internal potential of the industry. Educational events that contribute to development of skills are implemented with involvement of the internal coaches of the Company, the trainers.

Key Priorities for 2015 in the Sphere of HR Training and Development:

  • Development of results-oriented corporate culture capable of self-improvement and innovations;
  • Compliance of human resources with strategic goals of the industry;
  • Safety culture development.

TVEL FC Succession Pool and Succession Plans

Indicator 2015 [ i ] 2013 Uniform industry-specific succession pool [ i ] 2014Uniform industry-specific succession pool 2015 Uniform industry-specific succession pool (plan)
Number of employees included to succession pool 450 153 151 197
Number of employees included to succession pool and running for major posts 450 153 151 197
Number of employees included to succession pool and transferred to major posts 238 26 40 79

TVEL FC Social Policy

Social Programs Implementation

In addition to mandatory social guarantees, benefits and privileges envisaged by the labor laws, TVEL FC subsidiaries prepared corporate social programs, such as:

  • non-state pension benefits;
  • voluntary health and industrial injuries insurance;
  • housing program;
  • sanitary and resort treatment and recreation of employees and their children;
  • catering;
  • assistance to veterans and pensioners of the industry;
  • organization of cultural and sports events;
  • benefits for employees, etc.

TVEL FC social programs represent a strong motivating factor. According to personnel engagement surveys, up to 65% of employees find their social package satisfactory.

Total amount spent by TVEL FC on its social programs in 2014 is RUB 1,471.1 million, RUB 56 thous. per worker; this indicator exceeds the indicator of 2013 (RUB 53 thous.) by 5.6 %.

Implementation of Major Corporate Social Programs in 2014

Corporate social program Funds allocated under the program in 2014, RUB mln Basic facts
Voluntary health insurance (VHI) 162.36 99% of TVEL FC employees are insured under VHI policy.
Maximum amount under the VHI policy in 2015 is increased by 15%
Accident and health insurance 11.43 80% of TVEL FC employees are covered by accident and health insurance.
Sanitary and resort treatment, children recreation programs 169.30 4,756 employees got vouchers to sanitary and rehabilitation resorts in 2014, where 2,995 are persons working in harmful conditions.
Maximum amount of each voucher in 2014 was increased by 10% — to RUB 50.4 thous. for a 21-days leave.
Assistance in improvement of housing conditions 68.39 852 employees have improved their housing conditions under the program, and 479 of them are young specialists. [ i ]
Benefits 48.68 4,571 workers of the Company got their benefits in 2014.
Average benefit amount was RUB 10,650 thous.
The amount of benefit does not depend on the official position.
Types and criteria of benefit provision are unified.
Sports and cultural events 259.15 The subsidiaries of TVEL FC held more than 936 corporate and sports competitions in 2014.
Total number of participants — over 37 thous. of workers and members of their families
Assistance to non-working pensioners 525.39 Assistance to non-working pensioners is provided in accordance with the Uniform Industry-Specific Public Policy of ROSATOM State Corporation and ROSATOM enterprises. The main target of corporate social programs of assistance to non-working pensioners is to provide social assistance to non-working pensioners, who made significant contribution to the industry development. In 2014, corporate social program of assistance to non-working pensioners was implemented to the full extent in accordance with the approved budget.
There are over 40,000 non-working pensioners in the Fuel Company. 1,607 of 40 thous. pensioners got vouchers to sanitary resorts.
Total amount spent for assistance to pensioners was 525,39 million rubles, which amounts to 13,000 rubles per pensioner annually.
Non-state pension provision (NPO) 226.44 By the end of 2014, 25% of TVEL FC workers were involved in the non-state pension program; the highest rate was achieved at SC CMP (36.1%), SC “PA ECP” (28.9%), SC UEIP (26.7%) and PJSC “MSZ” (23.9%).
Pension accruals under [ i ] the NPO program were accumulated mostly at the Non-State Pension Fund Atomgarant.

Interaction with Trade Unions

Primary trade unions function in all TVEL FC subsidiaries. Each employee of the Fuel Company may join a trade union that represents the interests of the workers. Management of ROSATOM State Corporation and TVEL FC supports self-organization of the employees. Share of employees being the members of trade unions reaches 98% in some subsidiaries. The Fuel Company interacts with trade unions under the social partnership program. The management acknowledges the important role of trade union in implementation of corporate social programs and in awareness rising. Social stability at the enterprises and in the cities of presence of the Fuel Company is the result of cooperation between JSC “TVEL” and Russian Union of Nuclear Power and Industry Workers (RUNPIW), subsidiaries of the Fuel Company and primary trade unions, veteran councils and other workers’ associations.

On December 17, 2014 in the city of Moscow the Industrial Agreement on Nuclear Energy, Industry and Science for 2015–2017 was signed between ROSATOM State Corporation, All-Russian Industrial Association of Employers “Employers’ Association for Nuclear Energy, Industry and Science of Russia” and RUNPIW; this agreement stipulates general concept of social and labor relations regulation in the nuclear industry, including mutual commitments concerning reward, labor conditions and safety, work and rest schedules, employment, social guarantees, benefits and privileges for employees. Subject to the Industrial Agreement and Collective Agreements the social programs are applicable to all subsidiary employees, whether the employee is a member of a trade union or not.

Association of primary trade union organizations of the Company subsidiaries operates in TVEL FC; JSC “TVEL” and RUNPIW hold regular meetings with participation of the chairmen of primary trade union organizations and HR directors (3 meetings were held in 2014), and the meetings of the working group of experts of the Fuel Company and the trade union (5 meetings were held in 2014).

Safety

Safety is the top priority. Our primary task is to provide human health safety and environmental protection. Every single detail matters — we know safety rules, follow them, and prevent violations.

Excerpt from the JSC “TVEL” Health and Labor Protection Policy.

Occupational Health and Industrial Safety

The main directions, directives and commitments in the sphere of safety and health of the Fuel Company workers are recorded in the JSC “TVEL” Health and Labor Protection Policy.

System-based application of the guiding principles of the Policy — the uniform methodology for the identification and assessment of occupational risks — allows the Company to reduce the impact of harmful and hazardous production factors in the workplace, to allocate targeted funds to solve the most important labor protection problems. Priority goals and objectives aimed at reducing occupational risks are an integral part of the planning process; they are included in Occupational Safety and Health Objective Achievement Program. Goals are updated annually and assume the special assessment and the improvement of working conditions, reduction of injuries, rising of awareness and competence to perform job tasks in a safe manner. In 2014, these positions were also a priority.

In the Fuel Company subsidiaries, where collective bargaining agreements are concluded, Occupational Safety and Security Tripartite Committees comprised of representatives of management, workers and unions have been established and are functioning. The number of employees of the Fuel Company subsidiaries, which have such committees, is 97% of the total number of employees of the Fuel Company.

Owing to preventive measures in the sphere of labor protection, in 2014 the Company continued the downward industrial injuries tendency. As compared to 2013 the number of injured at work went down by 50% (from 6 to 3 persons).

At 17 subsidiaries of TVEL FC 3 persons were injured in 2014 (2 persons at SC “VNIINM”, and 1 at SC UEIP).

No emergencies at hazardous facilities or mass accidents occurred.

1. Industrial Injuries at TVEL FC Enterprises, persons

2. Rates of Injury by Sex, persons

3. Injury Rate (IR) in TVEL FC Subsidiaries [ i ]

4. Absentee Rate (AR) in TVEL FC [ i ]

5. Average Industrial Injuries Frequency Rate (IIFR) in TVEL FC

6. Average Injury Rate (IR) in TVEL FC [ i ]

7. Average Occupational Diseases Rate (ODR) in TVEL FC [ i ]

8. Average Lost Days Rate (LDR) in TVEL FC [ i ]

9. Number of Occupational Diseases in TVEL FC

JSC “TVEL” understands that engineering processes vital for manufacturing of products shall not have negative impact on the health of personnel, and shall rather make provisions for keeping the risks at acceptable level with respect to every operation. Main strategic goal of JSC “TVEL” in the sphere of health and labor safety is to minimize negative impact on human health.

Excerpt from the JSC “TVEL” Health and Labor Protection Policy.

Following the restructurisation, all major units, having technologically sophisticated production with a high risk of injuries and accidents, remain a part of the Fuel Company.

Most industrial injuries occurred due to organizational faults, such as failure of managers and specialists to ensure labor safety, as well as failure of the injured persons to observe labor and production discipline, labor protection rules and regulations.

Registration of accidents and generation of reports is carried out on the basis of the following regulatory documents:

  • Labor Code of the Russian Federation (Articles 227-231);
  • Provisions on Specifics of Investigation of Industrial Accidents in Certain Sectors and Organizations (Appendix No. 2 to the Decree of the Ministry of Labor and Social Development of the Russian Federation No. 73 dated November 24, 2002).

In the reporting period, ROSATOM State Corporation undertook the following measures: “Plan of additional measures to ensure safety and prevent injuries in the construction, repair, reconstruction and modernization of nuclear facilities”; “Plan of measures to prevent contracting personnel injuries during construction and assembly works at ROSATOM State Corporation facilities”.

In 2014, the Company launched the Corporate register of injuries of contracting personnel employed on the Company facilities and in subsidiaries of TVEL FC.

No violations of safety parameters or limits of the effective and equivalent doses set by the nuclear and radiation safety regulations were registered at the subsidiaries of the Company in 2014.

All production enterprises of the Fuel Company operated within the approved effective dose limits applicable to the personnel, there is no Group A personnel (individuals exposed to the effective dose of 100+ mSv [ i ] over a period of five successive years, or effective dose of 50+mSv during a year).

1. Records of injuries suffered by personnel of the contracting organizations and subsidiaries of TVEL FC

2. Average Annual Effective Dose, mSv

3. Maximum Effective Dose for Personnel, mSv

In 2014, the Department of Nuclear, Radiation, Industrial and Environmental Safety of JSC “TVEL” together with the Inspectorate for Control over Safety of Nuclear and Radiation Hazard Facilities of JSC “TVEL” carried out 17 inspections, including 2 unscheduled inspections by the orders of the JSC “TVEL” management. The inspections revealed 497 violations (549 in 2013): 72 of which were related to labor protection issues; 151 — industrial safety; 87 — radiation safety; 44 — environmental safety; 10 — fire safety; 12 — nuclear safety; and 121 — other violations.

For the purposes of prevention and mitigation of the impact of hazardous and harmful production factors during the operations in hazardous and harmful conditions, the workers are provided with special and properly certified clothing, footwear and individual protection means for free. Average cost of individual protection equipment per each worker exposed to hazardous or harmful labor conditions in 2014 amounted to 11.39 thousand rubles (10.8 thousand rubles per person in 2013).

Group A Personnel Distribution by Individual Irradiation Dose in 2014, %

Indicator 2012 2013 2014
less than 1 mSv 58.60 (6,830 persons) 61.05 (6,301 persons) 60.63 (5,854 persons)
1-2 mSv 25.25 (2,943 persons) 23.70 (2,446 persons) 21.08 (2,035 persons)
2-5 mSv 12.24 (1,426 persons) 11.60 (1,197 persons) 12.86 (1,242 persons)
5-20 mSv 3.91 (456 persons) 3.65 (377 persons) 5.43 (524 persons)

In accordance with provisions of federal laws, TVEL FC organizes regular medical examination of its workers involved in operations with hazardous and harmful factors. Workers involved in operations in harmful conditions are entitled to privileges and bonuses in accordance with applicable laws of the Russian Federation and the “List of Occupations and Positions of Workers and MSE Entitled to the Early Retirement and Benefits for Working in Unfavorable Labor Conditions”, in particular, medical and preventive meals, compensations, extra leaves, etc. Subsidiaries of the Fuel Company implement programs of voluntary health insurance, accidents and sickness insurance, and health resort treatment [ i ].

Group A Personnel Distribution by Individual Irradiation Dose in 2014, persons

Industrial sites of the Company’s subsidiaries are subject to regular control over the contents of harmful chemicals in waste water, exhaust from ventilation systems, radiation and chemical status monitoring, organization and performance of all kinds of supervision in accordance with the Production Control Programs.

Certification of work places at the subsidiaries of TVEL FC serves to carry out the assessment of conditions and labor safety at the said work places, establish the extent of deviation from the parameters of the production environment and work process [ i ], following the results of certification the arrangements are scheduled for improvement of the labor conditions.

All subsidiaries provide regular labor safety training to their workers in accordance with GOST 12.0.004-90 and fire safety training in accordance with the Federal Law No. 69-FZ “On Fire Safety”, as well as all types of briefings and tests with respect to the abovementioned spheres. The Company takes preventive measures to mitigate industrial injuries and occupational illness.

In 2014, each employee of TVEL FC involved in functioning and maintenance of nuclear and radiation-hazard facilities took on the average 54.78 hours of training in standards of nuclear and radiation safety.

The Company spent grand total of 2.2 bln rubles (79 thousand rubles per each employee) on labor protection arrangements in 2014.

Information about Training of TVEL FC Employees Involved in Functioning and Maintenance of Nuclear and Radiation-hazard Facilities in NRS Standards in 2014, persons




JSC “TVEL”
193/37.12
SC “VNIINM”
538/64.66
PJSC “KMP”
378/72.73
SC “SGChE”
8,510/67.63
PJSC NCCP
1,901/65.28
SC CMP
966/61.92
SC “PA ECP”
6,367/71.19
PJSC “MSZ”
1,940/71.75
NRDC LLC
860/41.35
SC “Centrotech-SPb”
1,588/72.71
SC AECC
1,394/70.55
SC UEIP
2,989/23.75
Uralpribor LLC
110/5.57
EDB-Nizhny Novgorod JSC
126/40.38
Total for TVEL FC
27,860/54.78

Total hours of training / Average training hours per employee




Environmental Impact Mitigation

Environmental Policy

TVEL FC in its environmental activities is committed to promotion of environmental, nuclear and radiation safety.

One of the priority directions of the Fuel Company in the field of environmental protection and ecological safety is involvement in the functioning of the Integrated Management System, where a Corporate Environmental Management System is a constituent.

The main objective of the corporate IMS is to identify the environmental aspects and potential environmental risks that affect the environment, safety and health of employees, and to set tasks for improvement of these activities and development of programs to address these tasks subject to constant monitoring.

“JSC “TVEL” acknowledges that the engineering processes contributing to the production of items, including the use of nuclear, radioactive and other hazardous materials, shall not cause negative impact on environment and on human health. Main strategic goals in the sphere of environment include promotion of environmental safety that is vital to sustainable growth of JSC “TVEL” and its subsidiaries, and reduction of negative impact of production and the supplied products on environment to the minimum acceptable level”.

Excerpt from the JSC “TVEL” Environmental Policy

TVEL FC Environmental Policy Implementation Scheme 2014.

TVEL FC pays great attention to environmental protection within the regions of presence, and continuously interacts with stakeholders on the matters of environmental impact. In 2014, there was held a public hearing on decommissioning of the storage facility 310 of SC AECC.

System-based application of guiding principles of the Policy — the unified methodology of environmental aspect identification and environmental risk evaluation — allows to allocate funds to solve the most important problems, which leads to improved performance in the field of ecology. Priority goals and objectives aimed at reducing environmental risks are an integral part of the planning process; they are included in the Fuel Company’s Environmental Objective Achievement Program and Environmental Policy Implementation Plan.

Ecologically significant subsidiaries of TVEL FC [ i ] issue annual public reports on environmental safety to inform the stakeholders, partners, local government bodies, public at large, and publish them on Websites of the enterprises.

In 2014, in the course of the implementation of the Environmental Policy by the companies included in the Fuel Company’s management system, there were implemented the production and technical activities aimed at environmental protection and ecological safety, in particular:

  • at SC CMP: completion of the works on construction of the system of rehabilitation of the upper waters of aquifers polluted with radioactive wastes accumulated in the tailing dumps No. 2 and No. 3;
  • at PJSC “MSZ”: development and implementation of the local system of air purification from radioactive dust, adoption of low-waste and energy-saving technologies in the production of fuel assembly components;
  • at PJSC NCCP: construction of the pilot plant for demercurization of wastes generated during the decommissioning of production 600, process development;
  • at SC “SGChE”: continuation of the works on preservation of B-1 and B-25 basin and construction of additional safety barrier;
  • at SC AECC: disposal of previously accumulated wastes of triflate production. The works complied with the requirements of environmental and sanitary laws of the Russian Federation. 150 tons of wastes were delivered to a specialized organization;
  • at SC UEIP: completion of the works on technical upgrade of the non-ferrous metal remelting section;
  • at SC “PA ECP”: modernization of the separation plant refrigeration supply system and uranium enrichment plant conditioning system, and general and gas-cleaning ventilation systems in the building No. 3.

Environmental Impact

No emergencies and incidents resulting in negative environmental impact occurred in 2014 at the subsidiaries of the Fuel Company.

Use and processing of materials

The quantity of materials necessary for the manufacture of products at TVEL FC enterprises is determined by the production program.

Enterprises of separation-sublimation complex use uranium and synthetic materials. Enterprises of fabrication block use raw materials represented by enriched uranium product obtained at the enterprises of separation-sublimation complex. Synthetic materials, ferrous and non-ferrous metals are basically used in the manufacture of gas centrifuges.

All raw materials used by the TVEL FC enterprises are acquirable. No renewable materials are used in production. The examples of the used materials see in the Table below.

Use of Materials in Main Production by TVEL FC Enterprises, Tons

Material Enterprises 2012 2013 2014 [ i ]
Sulfuric acid SC AECC,
PJSC “MSZ”
1,604.0 1,092.1 378.5
Nitric acid PJSC “MSZ”,
PJSC NCCP
1,308.0 850.0 1,814.4
Hydrochloric acid PJSC NCCP
PJSC “MSZ”
360.0 360.0 360.5
Ferrous metals PJSC “MSZ”,
PJSC NCCP,
Uralpribor LLC, UGCMP LLC,
EDB-Nizhny Novgorod JSC,
SC “Centrotech-SPb”
1,706.5 1,311.0 1,185.5
Non-ferrous metals 557.3 444.9 476.0

Industrial and Consumer Waste Disposal

In 2014, total amount of industrial and consumer waste of TVEL FC Enterprises was increased by 3.1% and made 306.4 thous. tons.

Waste increase in 2014 was caused by:

  • Increase of the amount of ashes and slag waste of Hazard Class 5 (slightly hazardous) in connection with the increase in the coal burning at SC “SGChE” and SC CMP HPPs due to the increase in the generation of electricity and thermal energy for the population of nearby settlements;
  • Optimization of production and the production site of PJSC NCCP, which resulted in debris and dismantled equipment to be removed from the territory.

The bulk of waste (91%) was represented by Hazard Class 5 (slightly hazardous) waste, such as ash slag resulting from solid fuel burning at the HPPs. Ash slags are dumped by the HPP and the bulk of other waste is delivered to specialized organizations.

In 2014, there were processed 3.6 thousand tons of materials representing recycled or reused wastes (5.5 thousand tons in 2013, 5.2 thousand tons in 2012) generated at TVEL FC subsidiary enterprises. The use of wastes is mainly organized at PJSC “MSZ”, SC CMP and PJSC NCCP; in 2014 these subsidiaries used in their production 31.3%, 16% and 6.1% of their waste, respectively.

TVEL FC subsidiary companies are not engaged in waste transportation across international borders.

The company is guided by the precautionary principles, and strives to minimize the impact on the environment, even if there is no rigorous scientific evidence proving any harmfull impact of any activity.

Waste Generation and Recycling at TVEL FC Enterprises in 2012–2014

Enterprise Waste generated, tons a year Waste recycled, tons a year
2012 2013 2014 2012 2013 2014
SC "SGChE" 296,677.9 235,608.0 255,811.6 18.0 88.3 0
SC AECC 10,012.9 12,820.8 3,431.7 188.1 110.9 16.3
Uralpribor LLC 9,138.3 9,445.1 6,088.8 1.0 0.7 0.7
SC "PA ECP" 15,949.8 9,031.6 8,547.5 2.0 0.0 0.0
SC CMP 10,635.0 6,501.0 12,084.1 2,739.3 3,608.3 1,933.0
PJSC "MSZ" 5,139.2 6,311.6 4,828.7 1,640.9 1,541.7 1,513.3
SC UEIP 5,401.5 4,445.2 4,066.9 556.8 119.1 46.0
PJSC "KMP" 3,867.0 4,376.1 2,746.2 0.0 0.0 0.0
SC "VPA "Tochmash" 2,732.6 2,475.2 1,778.7 83.2 29.5 9.8
PJSC NCCP 910.2 1,021.7 1,396.8 0.0 0.0 85.5
UGCMP LLC 1,160.5 901.5 417.1 1.2 0.7 0.2
SC "VNIINM" 564.8 528.3 513.2 0.0 0.6 0.5
SC "MZP" 867.7 479.9 630.6 0.0 0.0 0
NRDC LLC 75.7 83.3 38.2 0.0 0.0 0
SC "Centrotech-SPb" 38.8 39.1 29.4 0.0 0.0 0
EDB-Nizhny Novgorod JSC 21.9 24.5 28.1 0.0 0.0 0
Other 4,866.5 3,201.34 3,977.8 0.0 0.0 0
Total 368,060.3 297,294.2 306,415.3 5,230.4 5,499.7 3,605.3

Waste Generated at TVEL FC Enterprises, by Hazard Classes, thousand tons

Indicator 2012 2013 2014 ∆2014/ 2015, %
Total waste, including: 368.10 297.30 306.42 3%
Hazard Class I 0.07 0.03 0.05 77%
Hazard Class II 8.57 8.88 5.86 -34%
Hazard Class III 0.90 1.07 1.05 -2%
Hazard Class IV 30.25 29.81 20.74 -30%
Hazard Class V 328.27 257.50 278.72 8%

Water Consumption and Water Disposal

In 2013, withdrawal of water by TVEL FC enterprises decreased by 3.5% as compared to the previous year, and was 545.4 mln m3. The main sources of water withdrawal are natural sources from which 515.8 mln m3 were withdrawn. 29.7 mln m3 were withdrawn from public and other water supply systems. Water withdrawal by TVEL FC enterprises has no material impact on natural water sources.

The enterprises of the Fuel Company apply the actual consumption method in calculation of water consumption and water disposal.

The decrease in volumes of water withdrawal by the Fuel Company is mainly caused by the following:

  • decrease in water withdrawal by SC AECC, SC “SGChE” and SC CMP due to reduction of the electric supply program of Irkutskenergo JSC, the HPP of SC “SGChE” and SC CMP;
  • decrease in the volume of circulating water for equipment cooling at SC CMP HPP due to lower outdoor temperatures in Q3 2014, as compared to the same period in 2013.

In 2014, the standard of water withdrawal was set at 670 mln m3, the actual volume of withdrawal was 81% of the set standard.

About 98% of consumed water is used by the TVEL FC enterprises for the equipment cooling.

In 2014, the volume of return water was 263.8 mln m3. The share of return water of the total amount of withdrawn water was 48%, the share of reused water of the total volume of withdrawn water was 10%.

There are slight fluctuations in water consumption in return water supply systems at the TVEL FC enterprises over the last few years.

Water Consumption in 2012–2014, mln m3

1. Water Disposal by Enterprises of TVEL FC in 2012–2014, mln m3

2. Total Emission of Pollutants [ i ], thousand tons

In 2014, 440.8 mln m3 of water were disposed by the TVEL FC enterprises, while the standard is 692 mln m3. All water was disposed into natural water bodies. The volume of water disposal directly depends on the water consumption.

In 2014, the volume of disposal of polluted waste water by TVEL FC enterprises decreased by 7%. The change in the volume of waste water is directly related to reduction of water withdrawal by the enterprises of the Fuel Company.

Pollutant Emissions

In 2014, total pollutant emissions into the atmosphere by TVEL FC enterprises were 20.7 thousand tons (30.5% of the standard set by TVEL FC for 2014), which is 3.0 % less than in 2013.

The largest volumes of emissions were reported at the enterprises of the Fuel Company (SC “SGChE”, SC CMP) that are directly related to the emissions generated in the production of electricity and heat power, at SC “SGChE” and SC CMP HPPs. It should be noted that these HPPs supply heat and electricity to the settlements located in areas of location of the enterprises.

Emissions of ozone-depleting substances at TVEL FC enterprises decreased in 2014 by 1.8 % and amounted to 262.4 tons. The decrease in emissions was caused by modernization of equipment at the enterprises of the Fuel Company.

The enterprises of the Fuel Company apply computational method for calculation of emissions of ozone-depleting substances.

Reduction of nitrogen oxide emissions was caused by decrease in the proportion of gas burned by HPPs being a part of the Fuel Company (SC “SGChE”, SC CMP). The increase in sulphur oxide emissions was caused by the higher proportion of coal burned by the HPP of SC “SGChE” and SC CMP.

Total Pollutant Emissions by Enterprises of the TVEL FC, thousand tons

Enterprise The share of emissions of the enterprise of the total volume of the TVEL FC’s emissions in the reporting year, % 2012 2013 2014
SC "SGChE" 82 21.0 16.7 16.9
SC CMP 12 1.9 1.9 2.6
SC UEIP 3 1.0 0.9 0.6
Other 3 0.6 0.6 0.6
Total 100 20.1 20.1 20.7

Carbon monoxide emitted into the atmosphere from anthropogenic sources is oxidized to carbon dioxide. In 2014, carbon dioxide emissions of TVEL FC enterprises amounted to 1,010.4 tons, which is 12.6 % less than in 2013.

The bulk of greenhouse gas emissions was caused by emission of the energy facilities (HPP, boiler houses) and transport.

The impact of the subsidiaries of the Fuel Company on the climate is negligible in comparison with organizations of mining industry and thermal power companies. Climate change has no impact on the activities of the subsidiaries of TVEL FC and their employees. The issue related to assessment of the financial aspects and other risks and opportunities associated with climate change was not considered in the reporting period.

Greenhouse gas emission intensity is 7.32 kg/mln rubles of revenue.

1. Emission of Ozone-depleting Substances, thous. tons

2. Carbon Dioxide Emissions, tons [ i ]

Emissions of Ozone-­depleting Substances, by TVEL FC Enterprises and Types of Substances, tons

Substance name Enterprises 2012 2013 2014
freon-113 SC AECC 0.00 0.10 -
SC "SGChE" 0.80 0.00 -
SC UEIP 6.90 4.00 4.02
freon-12 SC "SGChE" 6.60 6.60 2.87
SC "PA ECP" 2.70 2.70 2.60
SC CMP 72.20 72.20 72.24
freon-13 SC CMP 164.20 164.20 164.21
freon-22 SC AECC 2.60 2.40 1.89
SC "SGChE" 4.30 4.30 2.15
SC UEIP 17.60 9.80 9.83
SC "PA ECP" 0.50 0.60 2.60
PJSC "MSZ" - - -
UGCMP LLC 0.00 0.00 0.00
Total 278.60 267.10 262
In terms of equivalent CFC-11 [ i ] 253.20 249.90 253.37

Emissions of Specific Pollutants, thousand tons [ i ]

The relative impact of the Fuel Company subsidiaries on the environment in the regions of presence

The TVEL FC enterprises are located on lands that are owned by the enterprises, as well as on lands that are used on a leasehold basis and are owned by the Russian Federation. Industrial sites of the subsidiaries and adjacent areas are not classified as the areas with high valued biodiversity, they are not inhabited by animals and plants included in the IUCN (International Union for Conservation of Nature and Natural Resources) Red List and the national list of protected species. In accordance with the Russian Federation nature protection laws TVEL FC enterprises set the standards of admissible impact on the environment that ensure the quality of the environment. Strict compliance with the standards of admissible impact on the environment by the Fuel Company enterprises ensures the absence of threats to animals and plants inhabiting the areas adjacent to TVEL FC enterprises.

The impact of the subsidiaries on the environment of the regions of presence is in general less than 5% of the total impact of the industry on the environment of the corresponding regions. Figures of SC “PA ECP” (5.4% of the total discharge of waste water in the Krasnoyarsk Territory), SC CMP (5.7% of the total discharge in the Udmurt Republic), SC AECC (3.9% of the total discharge in the Irkutsk Region) are close to the said impact. The 5% level was exceeded by SC “SGChE” (25.2% of total wastes, 79.5% of the total discharge of waste water in the Tomsk Region). The proportion of the rest of TVEL FC enterprises in the total impact of economic activities on the environment of the regions of presence is low.

In 2014, operating expenses of TVEL FC enterprises for environment protection amounted to RUB 2,371.17 mln.

Expenses of TVEL FC related to minimization of the environmental impact

In 2014, operating expenses of TVEL FC enterprises for environment protection amounted to RUB 2,371.17 mln. Target funds allocated in the framework of the investment and project activities of TVEL Fuel Company and ROSATOM State Corporation, were used to finance both technical and organizational measures.

Planning of production and technical measures aimed at ensuring of environment protection by the subsidiaries included in the management system of the Fuel Company is carried out in the framework of the investment and project activities of TVEL Fuel Company and ROSATOM State Corporation.

Expenses of TVEL FC Related to Environment Protection, RUB mln

Expense item 2012 2013 2014 2015 (plan)
Radiation safety assurance 973.1 1,059.2 1,123.1 1,000.0
Wastewater collection and treatment 427.5 335.1 374.4 400.0
Atmosphere air protection 209.1 187.7 178.2 190.0
Waste disposal 187.5 131.4 153.2 160.0
Land conservation 83.2 28.4 59.7 50.0
Other 342.9 471.5 482.5 460.0
Total 22,23.3 2,213.3 2,371.2 2,260.0

Expenses of the Subsidiaries of TVEL FC Related to Environment Protection, RUB mln

Subsidiary 2012 2013 2014
SC "SGChE" 665.5 13.5 892.2
SC UEIP 751.7 702.8 775.8
SC CMP 205.4 209.0 217.8
PJSC "MSZ" 123.8 114.6 105.2
PJSC NCCP 204.6 110.0 155.5
SC AECC 55.9 43.5 57.9
SC "VNIINM" 7.3 39.3 57.8
SC "PA ECP" 136.8 26.7 59.2
SC "VPA "Tochmash" 24.5 24.0 24.2
PJSC "KMP" 23.0 23.0 20.3
SC "MZP" 4.5 2.7 0.1
Uralpribor LLC 15.3 0.9 0.8
NRDC LLC 0.1 0.3 0.0
UGCMP LLC 1.3 0.0 0.0
EDB-Nizhny Novgorod JSC 0.0 0.0 0.0
Other 3.8 3.0 4.4
Total 2,223.3 2,213.3 2,371.2

Prior to its inclusion in investment projects, each action is subject to justification and assessment from the view point of the final result effectiveness at the meeting of the Investment Committee of JSC “TVEL”.

The bulk of expenses is related to activities for environment radiation safety assurance (RUB 1,123.1 mln). Considerable expenses are also related to collection and treatment of waste water (RUB 374.4 mln), and to other activities in the sphere of environment protection (RUB 482.5 mln).

The bulk of environment protection expenses of TVEL FC falls on SC “SGChE”, SC UEIP and SC CMP.

Structure of Payments for Negative Environmental Impact in 2014, %

TVEL FC Environment Protection Costs Outlay in 2014, %




Radiation safety assurance
47
%
Wastewater collection and treatment
16
%
Air protection and climate change prevention
8
%
Waste disposal
6
%
Protection and rehabilitation of lands surface and ground waters
3
%
Other environment protection activities
20
%

In 2014, total amount of payments for negative impact on the environment decreased by 22.3 % as compared to the previous year, and amounted to RUB 19.34 mln.

In 2014, there were no substantial fines and penalties for the impact on the environment in respect of subsidiaries included in the management system of TVEL FC, no damage was caused to the environment.

Nuclear and Radiation Safety

Assurance of nuclear and radiation safety (NRS) of facilities of the Fuel Company subsidiaries, prevention and exclusion of any possibility of inadmissible exposure of the personnel, population and environment to radiation are among the priority activities of TVEL FC.

In 2014 TVEL FC subsidiaries registered no violations which can be assigned to category 2 or higher on the INES scale, no excess of the limits of the annual effective radiation doses of the personnel, no Group A personnel exposed to the effective dose of 100+ mSv over a period of five successive years.

Prevention of radiation accidents requires the constant monitoring of compliance with the rules, regulations, instructions, observance of technological discipline.

General management of work to guarantee NRS in TVEL FC subsidiaries, responsibility for compliance with the Federal laws, the regulatory, requirements of Rostekhnadzor concerning NRS are imposed on Technical Directors (Chief Engineers).

Lists of nuclear hazardous sections are elaborated for all nuclear-hazardous facilities and approved by the Director of the Department for Nuclear and Radiation Safety of ROSATOM State Corporation. Design documentation and the conclusions on the nuclear safety issued by the Department of Nuclear Safety of IPPE RF SSC FSUE are provided for all nuclear hazardous sections. All nuclear hazardous sections are equipped with emergency alarm systems in the case of self-sustaining fission chain reaction.

The Company subsidiaries undertake systematic efforts for prevention and exclusion of radiation accidents, improvement of the stability of hazardous production facilities, training of personnel and special formations in conditions of accidents and emergency situations.

TVEL FC Nuclear and Radiation Safety Principles

Radiation safety in TVEL FC subsidiaries is ensured by regulatory radiation safety requirements, development of necessary documentation justifying radiation safety activities, personnel training, compliance with rules, regulations, instructions on radiation safety, and radiation control in the units, buffer areas, and the area of professional responsibility of enterprises.

Units of the enterprises for processing, storage, production involving nuclear materials and radioactive substances, radioactive wastes treatment have sanitary-epidemiological statements of conformance stating that the work with radiation sources is in compliance with sanitary rules.

Activities of JSC “TVEL” and the Fuel Company subsidiaries are carried out in accordance with the laws of the Russian Federation pertaining to the use of nuclear power with due account to IAEA requirements.

The main program documents providing for realization of activities in the area of NRS are the Federal Target Program “Nuclear and Radiation Safety Assurance for 2008 and up to 2015” (FTP NRS) and draft Federal Target Program “Nuclear and Radiation Safety Assurance for 2016–2020 and up to 2030”.

In 2015 it is planned to continue detailed elaboration of the identified areas of local and areal anomalies on the territory of PJSC “MSZ” industrial site.

In accordance with FTP NRS, the Fuel Company subsidiaries scheduled 38 events by 2015, amounting to RUB 10.1 bln, including RUB 7.6 bln from the federal budget, and RUB 2.5 bln from other sources. It is planned to liquidate 55 Nuclear and Radiation Hazardous Facilities (NRHF), to put into operation 1.71 thousand m3 of facilities of radioactive wastes (RW) repositories, to put 2.74 RW power blocks into an environmentally safe state, and to rehabilitate 155.9 thousand m2 of radiation-contaminated areas.

Over the period 2008–2014, works on 22 events were accomplished. The total volume of works amounted to RUB 8 bln, including RUB 5.6 bln from the federal budget, and RUB 2.4 bln from other sources. 51 NRHF were liquidated, 1.71 thousand m3 of RW repository facilities were put into operation, 2.74 RW power blocks were set into an environmentally safe state, and 143.28 thousand m2 of radiation-contaminated areas were rehabilitated.

In 2014, the total volume of FTP NRS activities 2008–2015 amounted to RUB 1.2 bln, including RUB 0.9 bln from the federal budget, and RUB 0.3 bln from other sources. 6.5 NRHF were liquidated.

SC AECC received approval from state ecological expertise of a license justification documents in the framework of preparatory work for decommissioning of casing 2, building 802, and casing 4, building 804, as part of the Nuclear Facility for uranium isotope separation.

1.2
RUB bln – total volume of FTP NRS activities 2008–2015

Activities Under the FTP “Nuclear and Radiation Safety Assurance for 2008 and up to 2015” at the Sites of the Fuel Company Subsidiaries at the Expense of the Federal Budget

Subsidiary Scope of finance, RUB mln
2013 2014 2015 (plan)
SC "SGChE" 958 430 250
SC CMP 11.1 135.3 134
PJSC NCCP 27.2 24.8 346.9
SC "VNIINM" 150 350 770
Total 1,146.3 940.1 1,500.9

Pollution of the Environment with Radionuclides (RN)

Indicator 2012 2013 2014
Emission of RN into the atmosphere, Bq 7.81*109 7.54*109 9.49*109
Areas contaminated with RN, thousand m2 13,601.4 15,444.6 16,081.4
Discharge of waste water containing RN, Bq 4.78*109 5.15*109 1.56*109



Radiation hazardous facility was decommissioned, and test station No. 2 of shop No. 14 of SC “VPA “Tochmash” was released from the regulatory supervision. This work was financed by own funds of the subsidiary.

In 2013–2014, Urangeologorazvedka Russian Geoecological Centre conducted radiological survey of the entire area of PJSC “MSZ” under the agreement with PJSC “MSZ”. The survey revealed localized areas of radioactive contamination, areal anomalies and zones of local anomalies. PJSC “MSZ” made a decision to eliminate small areas of radioactive contamination using own resources. In 2014, PJSC “MSZ” began the works — a part of the identified contaminants with a total area of ~ 5 m2 was eliminated.

In 2014, there were implemented 16 activities amounting to RUB 716.95 mln at the expense of the special reserve fund No. 3 “Decommissioning and R&D” of ROSATOM State Corporation, including 12 events that are not included in the FTP NRS 2008–2015 amounting to RUB 437.35 mln.

In 2015 and subsequent years works for liquidation of the nuclear “heritage” will be continued.

In 2015 and subsequent years works for liquidation of the nuclear “heritage” will be continued.

In 2014 RN emissions into the atmosphere were increased as compared to 2012 and 2013 due to increased scope of work at SC “SGChE” and SC CMP, as well as the commissioning of a new site at SC CMP. The emissions of all subsidiaries of the Fuel Company are within the permissible limits.

The area of lands contaminated with RN has increased due to newly discovered territories that were contaminated with RN during the construction of the first nuclear project, and also owing to additional complex engineering and radiation survey of previously identified areas.

Areas contaminated with radionuclides are within the area of professional responsibility of PJSC “MSZ”, NCCP JSC, SC CMP and SC “SGChE”. No industrial activity is carried out at the said areas, access is highly restricted.

All identified contaminated areas are consequence of activities of enterprises that were intended for improving the defensive ability of the country in the period of the “nuclear shield” creation.

As of the end of 2014, the total area of territory contaminated with radionuclides subject to rehabilitation amounted to 16,081.4 thousand m2.

According to the conclusions of regulatory authorities on the results of inspections, it was noted that the radiation and nuclear safety in the Fuel Company subsidiaries, in general, conforms with the regulations and rules in the field of use of nuclear power. TVEL FC registered no cases of cancellation of any license related to nuclear energy application.

A large portion of RW located at the sites of JSC “TVEL” subsidiaries is placed in long-term RW storage facilities (39.6% of the total volume in m3) and RW special disposal sites (60.3%). In the reporting year, 270 thousand m3 of RW were delivered to specialized organization for disposal.

In 2014, no contamination of new areas occurred caused by activities of TVEL FC subsidiaries.
51
nuclear and radiation hazardous facilities were liquidated by the subsidiaries of the Fuel Company under FTP NRS

Pollution of the Environment with Radionuclides as of December 31, 2014, by Subsidiaries of TVEL FC, thousand m2

Subsidiary Areas contaminated with radionuclides
Total Buffer areas Area of professional responsibility Industrial site
PJSC "MSZ" 894.9 0 740.1 154.8
PJSC NCCP 372.3 0 210 162.3
SC CMP 210 0 0 210
SC "SGChE" 14,604.2 333 0 14,271.2
Total 16,081.4 333 950.1 14,798.3

RW on the Sites of the Fuel Company Subsidiaries

Indicator Unit Level of radioactivity
high medium low very low
RW on the sites of the Fuel Company subsidiaries at the year end. total m3 13,110 292,766.6 5,573,321.9 5,678,217.2
Bq 851.00*1014 20,002.80*1014 17.53*1014 1.27*1014
Accumulated before July 15. 2011 ("heritage") [ i ] m3 13,000 291,262 4,073,130.60 5,659,046
Bq 850.00*1014 20,000.00*1014 7.53*1014 1.26*1014
Produced after July 15. 2011. total m3 110 1,504.6 1,500,191.3 19,171.2
Bq 1.00*1014 2.80*1014 10.00*1014 0.01*1014
Produced in the reporting year m3 30 106.6 400,120.6 6,163.4
Bq 2.40*1012 2.70*1012 2.24*1012 0.30*1012

Emergency Preparedness and Response

Work to ensure emergency preparedness and response of the Fuel Company subsidiaries is carried out in the following key areas:

  1. Development of radiation, chemical and environmental situation monitoring systems and local warning systems

To reduce the impact of production activity of the Fuel Company enterprises on the environment the following is developed:

  • automated system of radiation situation monitoring for real-time control of the radiation situation at industrial sites and in adjacent settlements;
  • automated measuring system of industrial and ecological monitoring for continuous monitoring of maxiumum allowable concentration of hazardous chemical and radioactive substances in the workplace, in ventilation units, on the industrial site of the enterprise, in the buffer areas and the control area;
  • system of on-site subsoil monitoring, which controls changes of indicators of subsoil and surface hydrosphere conditions caused by the activity of the enterprises having NRHF; assessment and prediction of these changes in time and space; their management.
  • local warning systems (LWS), which are created in areas of potentially dangerous facilities with a circular area of employees and population alerting with a radius of 2.5 km (for chemically hazardous facilities), 5 km (for radiation hazardous facilities). In recent years the express modernization of LWS is performed in order to replace the hardware with modern equipment. LWS component elements are maintained in technically sound state. The efficiency of the electric sirens, customer devices and loudspeakers is inspected within the established period.
  1. Formation, training and performance review of outside emergency response teams

At the enterprises involved in transportation of dangerous goods, special emergency teams are formed and supported.

At the enterprises with potentially dangerous facilities outside emergency response teams are kept ready.

In the reporting year, special attention was paid to the quality of recruitment, training and performance review of outside rescue workers in special educational institutions. In 2014, to improve the readiness of such units, Divisional Personnel Review Board was established at JSC “TVEL”, and On-site Personnel Review Boards headed by Technical Managers of the companies were established at the enterprises included in the management system of the Fuel Company. The structure of On-site Personnel Review Boards was reviewed and approved by the decision of the Personnel Review Board of JSC “TVEL”.

These Boards carried out periodical review of four emergency response teams, initial performance review of citizens, holding the status of a rescuer (72 persons), periodical review of rescuers with confirmed qualification of 1st class rescuer (49 persons), 3rd class rescuer (108 persons), 2nd class rescuer (12 persons). Emergency response teams confirmed the high level of emergency preparedness.

In the reporting year, special attention was paid to the quality of recruitment, training and performance review of outside rescue workers in special educational institutions.
  1. Updating of emergency response plans at major industrial facilities

In accordance with the current legislation, accident prevention and response plans developed at all potentially hazardous facilities of the Fuel Company must be updated every two years (for hazard Class I facilities), every three years (for hazard Class II facilities), and every five years (for hazard Class III facilities). The plans must be reviewed at least fifteen days prior to the expiration of the previous plan. The plans must provide for possible accidents scenarios at the facility, composition, organization and interaction of material and human resources, their disposition, activities aimed at ensuring the safety of the population.

  1. Emergency response drills under the accident and emergency response plans

Preparedness and response of the subsidiaries to accidents (emergency situations), is controlled by the State Supervisory Authorities, and is checked by commissions of JSC “TVEL” structural subdivisions responsible for security issues.

Sudden drills are used to control the readiness of management bodies, material and human resources of the subsidiaries to prompt response in cases of emergency.

In 2014, the enterprises of the Fuel Company held eleven sudden emergency response drills (SC “VNIINM”, PJSC NCCP, PJSC “MSZ”, SC “SGChE”, SC CMP).

Emergency response drills include interaction between emergency response teams of the Fuel Company enterprises and Departmental Services of ROSATOM State Corporation and the Russian Federation (EMERCOM of Russia, FMBA of Russia, etc.).

Subsidiaries that have passed the tests, have worked out the plans on corrective actions, organized control of correction.

  1. Setting up and maintenance of emergency response packages at hazardous industrial facilities

Plans of accident prevention and response at hazardous production facilities provide for logistics, engineering and financial support. Subsidiaries, included in the management system of the Fuel Company annually form stock of means for accident response at hazardous production facilities. Availability of the required resources is monitored in the course of comprehensive and targeted inspections conducted by the Supervisory Authorities, Department of Mobilization Work, CD and ES, and the Department of nuclear, radiation, industrial safety and ecology of JSC “TVEL”.

  1. Introduction of corrective and compensatory measures to prevent industrial accidents

In accordance with legislative requirements and procedures stipulated by the internal standards of the integrated management system, emergency preparedness of subsidiaries is ensured by the following:

  • dentification of accident (emergency) situations at each production site (laboratory) with regard to the risk of an accident (nuclear, radiological, chemical, industrial), explosive or flammable situations, leaks, uncontrolled emissions, emissions of hazardous chemicals, infections, situations involving significant deviations from efficient energy characteristics, etc., including the analysis of:
    • used (stored) materials, semi-finished products, chemicals;
    • manufactured (stored) products;
    • location of production equipment and communications;
    • produced emissions, discharges, wastes, and places of their accumulation;
    • types of production activity associated with the significant energy use/application;
  • inventory of potentially hazardous facilities (including production facilities) that require the preparation of emergency response plans.

Annual drills allow to determine requirements to the sufficiency of the measures taken for incident and emergency prevention and response.

11
sudden emergency response drills were performed by the Fuel Company in 2014
Subsidiaries establish procedure and practical methods of personnel training in possible emergency situations and accidents.
  1. Interaction with Emergency Centre SPb and its affiliates to ensure emergency preparedness in transportation of dangerous goods and industrial safety

JSC “TVEL” takes steps to prevent traffic accidents, emergencies, and eliminate their consequences with the assistance of regional emergency teams of the Emergency Centre SPb FSUE. JSC “TVEL” annualy pays for services rendered by the Emergency Centre SPb using the special-purpose reserve funds. The Contract between JSC “TVEL” and the Emergency Centre SPb FSUE stipulates targeted funding to keep in constant readiness the professional emergency response team, fitted with the necessary equipment, devices and means of communication, which must implement the action plans for protection of workers and population in the event of an accident.

JSC “TVEL” subsidiaries developed documents defining the procedure of interaction with the Emergency Centre SPb FSUE and its affiliates to ensure emergency preparedness in the transportation of dangerous goods and industrial safety.

  1. Preparedness of on-duty dispatching service system

The established on-duty dispatching service system (ODDS) performs everyday control over the functional subsystem of emergency response of JSC “TVEL” and companies included in the management system of the Fuel Company.

ODDS ensures receipt, processing and transmission of information on current activities, emergency situations at the Fuel Company enterprises and drills under emergency response plans.

To maintain the sustainable management of the ODDS, JSC “TVEL” updates data on the organization of information exchange with FC enterprises on a monthly basis.

Every day the Duty Dispatcher of JSC “TVEL” prepares a report based on the data from subsidiaries’ ODDSs about the situation in the Fuel Company, which reflects the results of the monitoring of radiation, chemical, fire, natural environment, transportation of special cargo and major events in the current activities of the subsidiaries.

On a quarterly basis, ODDS checks the communication with of the officials of JSC “TVEL” and the heads of FC subsidiaries in order to maintain readiness to alert in case of emergency (accident).

In 2014, a training seminar of the heads of the Fuel Company ODDSs was held in JSC “TVEL” to improve the work of ODDSs and develop a unified algorithm and methods of actions in case of emergency situations.

Formation and Operation of the Unified State Radiation Situation Control Automated System of the Russian Federation

At the Fuel Company enterprises, the Automated Radiation Monitoring System (ARMS) has been successfully functioning and has been constantly improved.

ARMS of the enterprises are a part of the Sector Automated Radiation Monitoring System (SARMS) of ROSATOM State Corporation. IARSMS is linked to the Unified State Automated Radiation Monitoring System (USARMS).

ARMS control stations work at all NRHF of the Fuel Company and are located at production sites, sanitary protection zones and monitoring zones (professional responsibility areas) of the subsidiaries.

The radiation situation is measured in real-time mode, data from monitoring sensors of the subsidiaries’ ARMS are transmitted to the Situation and Crisis Management Centre of ROSATOM State Corporation.

In the period 2013-2015, the Investment Project "Modernization of the ARMS system" aimed at ensuring compliance of the ARMS of SC UEIP with the requirements of the Regulations on the industry automated radiation monitoring system of ROSATOM State Corporation has been implemented at SC UEIP.

In 2014, ARMS of SC AECC was modernized as follows: obsolete and worn-out control and measuring equipment of eight existing control stations was replaced with modern one, providing high stability of system operation and improvement of the efficiency of measurements.

Since January 1, 2014, the ARMS of SC "VNIINM" was accepted for commercial operation. Measuring equipment of the ARMS provides continuous measurement of an ambient dose equivalent rate of gamma radiation on the territory, volumetric activity of radioactive aerosols (containing alpha and beta emitting nuclides) in the emissions of special ventilation systems, meteorological parameters (direction and speed of wind, temperature, atmospheric pressure, humidity, amount of precipitations).

Physical Protection of Nuclear Facilities

In general, the state of physical protection in subsidiaries of the Fuel Company is assessed as complying with the rules and departmental normative documents. In 2014, no stealing and sabotages in relation to the objects of physical protection were registered; there were no cases of failure to prevent unauthorized actions; the deficiencies identified by departmental and technical inspections were eliminated completely and promptly; performance of technical equipment and preparedness of personnel and security teams were at acceptable level.

Physical protection systems were improved in accordance with the approved plans. Works were financed mainly at the expense of the funds of reserve No. 2 of ROSATOM State Corporation and own funds of the subsidiaries of TVEL FC. All activities were performed in a timely manner.

In terms of nuclear terrorism threat countermeasures, anti-terrorism security certificates were developed at all nuclear hazardous facilities and approved in the prescribed manner. The facilities are subject to departmental inspections and inspections by the State Regulatory Authorities.

Fire and Disaster Prevention

In 2014, the Fuel Company continued to improve emergency prevention, and response and fire safety systems.

The second phase of the “Concept of the complex threat and emergency warning system” approved by the Government Commission on emergency prevention and response and fire safety in 2013, was implemented.

JSC “TVEL” drafted and presented a summary of the Fuel Company’s offers for the Project of “Guidelines on the development of action plans on suppression of fires and other emergency situations of natural and technogenic character in the territories of restricted administrative and territorial entities of the nuclear industry” prepared by EMERCOM of Russia.

In pursuance of the instructions of the Government of the Russian Federation and ROSATOM State Corporation, control over the response to emergency (accident) announcing was made a part of the compulsory audit of the Fuel Company subsidiaries.

In order to improve the emergency preparedness of the Fuel Company subsidiaries there were carried out training exercises and drills with the deployment of material and human resources of the Fuel Company subsidiaries and the interacting structures of the Unified State System of Emergency Prevention and Response (EMERCOM of Russia, FMBA of Russia, Internal Troops of the Ministry of Internal Affairs of the Russian Federation, Atom-Okhrana FSUE, etc.). More than 500 trainings and drill were carried out in 2014.

To control the preparedness of the Fuel Company to floods and natural fires, divisional drill with the deployment of material and human resources of subsidiaries and interactive structures of the Unified State System of Emergency Prevention and Response was conducted under the leadership of JSC “TVEL” on April 25, 2014. It revealed sufficient readiness of the subsidiaries to address potential natural threats, and good cooperation of all material and human resources.

From 4th to 7th October, 2014, the Fuel Company took part in the nationwide civil defence drill intended to control interaction with local government bodies and territorial bodies of EMERCOM of Russia in dealing with possible emergency response. The Fuel Company subsidiaries were positively appraised by the drill staff.

To enhance motivation of proper solution of emergency prevention and fire safety problems, a competition for “The Best enterprise of the Fuel Company in civil protection” award was held in 2014; the winner was SC “PA ECP”.

Owing to the ongoing purposeful work in the Fuel Company, there were no emergency situations of natural and technogenic character registered in the reporting period.

In 2014, the Fuel Company made considerable efforts to improve fire safety by carrying out organizational and technical measures, which allowed:

  • to reduce the number of violations identified by the State Fire Supervision bodies of the EMERCOM of Russia by 19% in comparison with 2013;
  • to improve the timeliness of compliance with the proposed instructions up to 94%;
  • to bring the equipping of the facilities with automatic fire fighting systems to 84%;
  • to organize in 2015 the implementation of investment projects aimed at re-equipment of facilities with automatic fire fighting systems to 100 %;
  • to improve the quality of training of managers and specialists responsible for fire safety in specialized training centres, and to upgrade the system of fire safety briefing of employees;
  • to ensure continuous monitoring of the fire situation in forests, on industrial sites and surrounding areas, and the complex of preventive measures that would prevent wildfires;
  • to ensure the further development of the volunteer fire-fighter movement with engaging them in contests and competitions.

Effective organizational and technical fire protection activities allowed for the first time ever to prevent fires at industrial sites of the subsidiaries and to continue the positive trend of reducing their number.

Number of Fires and Catching Fires in the Fuel Company in 2012–2014, ea

Respect

We always treat our customers, partners, and suppliers with respect. We are always eager to listen and to hear each other, irrespectively of positions held and workplace. We respect the history and traditions of the industry. The history of past achievements inspires us to new victories.

Excerpt from the Decision of the Strategic Council of ROSATOM State Corporation d/d July 03, 2014

Development of the Regions of Presence

Opinion of the heads of municipal units

Andrey Aleksandrovich Sukhanov

Head of Electrostal urban district administration (the Moscow Region)

PJSC “MSZ” is one of Elektrostals’ major city-forming enterprises. Its contribution into social, economic, cultural, educational and sport development of the city can hardly be overestimated.

Besides major tax payments to the local budget, the enterprise renders material and other assistance to the Moscow regional polytechnical college under MEPhI NRNU, practices charity activities. Charitable donations of PJSC “MSZ” to municipal needs in 2014 made RUB 1,617 mln.

The enterprise actively develops vocational-oriented education: TVEL FC and Elektrostal Department for Education jointly hold annually educational contest for schoolchildren “First Step into the Nuclear Project”. Besides, information centre of PJSC “MSZ” holds year-round lectures for all upper-formers of the city.

Much attention is paid to environment safety. Besides obligatory execution of actions aimed at monitoring, provision and maintenance of favourable ecological situation in the region of presence, employees every year organize various ecological events and volunteer clean-up. PJSC “MSZ” is a permanent participant and winner of land improvement contest “City flowers”. This interaction is permanent and fruitful in all spheres”.

The generated, distributed and direct economic value [ i ], RUB mln

Indicator 2012 2013 2014
The direct generated economic value 137,913.8 162,788.6 159,538.6
Distributed economic value Including: 124,772 142,265.1 142,158.1
— Operational costs 63,875.2 84,316.4 89,714.0
— Salaries and other benefits provided to employees 24,727.3 21,957.5 20,155.7
— Payments to capital providers 20,054.2 19,710.7 17,035.5
— Investments into associations and charities 560.5 170.3 245.3
— Gross Tax Payments [ i ] 15,554.8 16,110.2 15,007.5
Undistributed economic value 13,141.8 20,523.5 17,380.6
In order to implement its projects for development of regions of presence, TVEL FC continuously interacts with all stakeholders, first of all, public and local authorities.

Pavel Evgenievich Korchashkin

Mayor of Zelenogorsk of the Krasnoyarsk Territory

“According to ROSATOM State Corporation, today city-forming enterprise of Zelenogorsk, SC “PA ECP” has good prospects. It overcame the period of restructuring, a measure necessitated by and implemented under the market conditions. Zelenogorsk is in the list of “Industrial development cities” group. Mainly these are flagships of the nuclear industry, having good prospects for the development. State Corporation considers it desirable and necessary to establish another core enterprise in the Closed Administrative Territorial Units, so that the city could develop as an industrial cluster. It is practicable, but the process of business search and attraction of investments is not a matter of one day. We have submitted our proposals to ROSATOM State Corporation, to the Governor and the government of the Krasnoyarsk Territory. Project support by the constituent of the Russian Federation is guaranteed.”

Achievement of strategic objectives of TVEL FC is impossible without social accord or in terms of non-compliance with social and environmental acceptability requirements. Social strain in regions and on territories may cause irreparable damage to the reputation of the Fuel Company in the world market in the part of supplies reliability, and therefore may cause foreign partners’ re-orientation towards the Company’s competitors.

In this connection, while determining its strategic development objectives, JSC “TVEL” has taken into account the potential social and economic consequences of taken decisions and has worked out projects for development of regions of presence and assurance of their social stability.

To implement projects for the development of regions of the enterprises’ presence, TVEL FC has elaborated and approved the Program “Formation and preservation of social accord environment in regions of the Fuel Company’s presence” which is oriented at all subsidiaries of the JSC “TVEL”, systemizes the Company’s experience in this area and includes three groups of projects:

  • cooperation with local and regional public authorities with respect to the concept of the territories’ development, the growth of regional taxes and maintenance of social and economic stability for the years 2016–2018;
  • social programs at the enterprises and in the cities of presence, development of social partnership with RUNPIW;
  • building multi-level internal and external communications.

Agreements on cooperation with the regions

In 2012, JSC “TVEL” initiated the drawing up and signing of Agreements on cooperation between ROSATOM State Corporation and public authorities of the constituents of the Russian Federation.

Now there are agreements with the Sverdlovsk Region, the Tomsk Region, the Krasnoyarsk Territory and the Udmurt Republic.

The key point of each of the Agreements is the understanding on the return of regional taxes surplus from operation of enterprises of ROSATOM State Corporation in the territory of a constituent entity of the Russian Federation to the municipal budget for activities aimed at social and economic development of nuclear power cities. Moreover, the agreements determine the terms of co-funding of Entrepreneurial Development and Supporting Fund and establishment of Physical and Mathematical Lyceums.

In pursuance of Agreements, in 2013 the Entrepreneurial Development and Supporting Fund was organized and Physical-Mathematical Lyceum was opened in CATU Zelenogorsk with the aid of TVEL FC, local and regional authorities. The Entrepreneurial Development and Supporting Funds and Physical and Mathematical Lyceums also operate in CATU Seversk and Glazov.

Program for Social and Economic Development of the Cities of FC Subsidiaries Presence, 2014

City Scope of finance, RUB mln Events
CATU Novouralsk 878.0 including
780.0 Dealing with the debts of city's energy sales organizations
98.0 Power use meters installation in town apartments
Glazov 387.4 Construction of an ice hall, a gym hall of Physics and Mathematics Lyceum, major repair of sport facilities, city improvement, city sport teams supporting.
CATU Seversk 37.0 Construction of a gym hall of Physics and Mathematics Lyceum
CATU Zelenogorsk 58.5 Activities provided under the agreements shall be implemented within regional programs of CATU Zelenogorsk social and economic development.
Total 1,360.9

Working-age Population Employed by Subsidiaries of TVEL FC

City Region % of working-age population employed by subsidiaries of TVEL FC
Angarsk (SC AECC ) Irkutsk Region 0.8
Vladimir (SC "VPA "Tochmash") Vladimir Region 0.7
Kovrov (PJSC "KMP") 1.5
Glazov (SC CMP) Udmurt Republic 6.1
Zelenogorsk (SC "PA ECP" ) Krasnoyarsk Territory 6.0
Novouralsk (SC UEIP) Sverdlovsk Region 5.2
Seversk (SC "SGChE" ) Tomsk Region 5.9
Elektrostal (PJSC "MSZ") Moscow Region 4.5

CATU Development Programs

Following the results of the working meeting of the Director General of ROSATOM State Corporation S.V. Kirienko and the President of the Russian Federation V.V. Putin, the commissions of the Russian Federation President and of the Government of the Russian Federation No. PR-335 d/d December 17, 2014 and No. DM-P16-1257 were given on the issues of CATU development.

To carry out the said commissions there were:

  • established working teams in subsidiaries of the Fuel Company and JSC “TVEL”,
  • drawn up CATU passports for CATU Integrated Development Planning,
  • worked out CATU Integrated Development Programs (IDP).

IDP were approved by local and regional authorities, and submitted for inspection and approval to the Government of the Russian Federation.

IDP are aimed at consistent, staged sustainable development of CATU economics and social sphere, removal of existing disparity in functioning of territories with special status based on the rational use of city-forming enterprises’ production and technological potential, social and economic natural-resources potential of cities, detection and rationale of CATU development goals and objectives for a mid-term period, and include a package of policy measures to reach those objectives.

For IDP projects the following has been determined:

  • assessment of target scenario of CATU development;
  • assessment of current state of city economy and social sphere;
  • problems and priorities of development;
  • assessment of possible directions of CATU economy development with due account for corporate development plans, provisions of federal and regional documents, strategic documents of CATU;
  • target indicators of IDP implementation;
  • assessment of social and economic effect and IDP operational results.

Basic Scenarios and Vectors of CATU Development.

Goals and objectives of IDP are centred around the following:

  • economic development;
  • social development;
  • urban environment development,
  • municipal administration improvement.

On December 29, 2014 Federal law No. 473-FZ “About the territories of advanced social and economic development in the Russian Federation” was adopted. IDPs underlie the concept of the territory of advanced social and economic development of nuclear industry in CATU.

Charitable Activity and Support of External Social Programs

The contribution of the Fuel Company to the social and economic development of the regions of presence means not just the participation in the formation of the regional and local budgets income base, but also the implementation of the whole body of social and charity programs.

The principles of charitable activity of the Fuel Company:

  • Support for charitable programs and projects in the cities of TVEL FC subsidiaries presence;
  • Backing-up common values (promotion of business environment, creation of new jobs, development of the educational, health-care, culture and sports infrastructure);
  • Co-funding of charitable programs jointly with the local authorities and central government bodies of the Russian constituent entities.

Since 2012 the Charity Council has been working within JSC “TVEL”; its functions include the determining of purposes and priority areas of charitable activity, approval of the budget and charity events, efficiency assessment of the charitable activity of TVEL FC etc.

Charity Council comprises of managers of TVEL FC in charge of economics, finance, HR, regional and social work, public relations. Scheduled meetings of the Charity Council are held on a monthly basis to consider appeals on financial assistance from individuals and organizations.

The Fuel Company sponsors annual city contests “Businessman of the year”, contests of social projects in the regions of TVEL FC subsidiaries presence. The Fuel Company supports socially important projects in cultural, educational and sports spheres in the cities of the Fuel Company presence.

One of the primary areas of the Fuel Company charitable activity is the creation and development of Physics and Mathematics Lyceums for training of future skilled specialists for the nuclear industry.

This project is designed to create conditions for children’s self-expression, to reveal and support talented schoolchildren, bring up of the prospective scientists.

Presently the project is implemented in three cities: CATU Seversk, CATU Zelenogorsk and Glazov under the terms of co-funding with the local authorities and government bodies of the Russian constituent entities.

Coordination Board for Physics and Mathematics Lyceums development coordinates their work and serves a site where teaching stuff and managers of the Fuel Company can exchange ideas. All-Russian training conference for Physics and Mathematics Lyceums is held on a quarterly basis; the teachers discuss essential problems of education in the sphere of physics and mathematics and possible ways to solve them in an actual teaching practice.

In September 2014 Physics and Mathematics Lyceum sport complex was opened in CATU Seversk (jointly with the Tomsk regional administration and local authorities of CATU Seversk).

Funding of Charity and Social Initiatives of TVEL FC in 2014

No. Events (Projects) Funding in 2014, RUB mln
1 Support to the activities of the nuclear industry information centres in the regions of TVEL FC subsidiaries presence (ANO "Data Centre of Nuclear Field") 30.46
2 Support to the sports activities in the cities of presence of TVEL FC subsidiaries. 40.87
3 Support to the Russian Sports Society "Atom-Sport" 4.59
4 Support to Atomclasses activities in the cities of presence of TVEL FC subsidiaries. 4.00
5 Support to educational institutions in the regions of TVEL FC subsidiaries presence. 14.24
6 Support to social and cultural events in the regions of TVEL FC subsidiaries presence. 34.17
7 Support to public organizations, charity funds, orphan asylums, boarding schools, disabled persons and people in need. 6.00
8 Support to public and ecological initiatives in the regions of TVEL FC subsidiaries presence. 1.45
9 Aid to Russian Orthodox Church parishes 2.93
10 Participation and holding of a contest "Businessman of the year" (in Elektrostal, Novouralsk, Zelenogorsk, Seversk) 1.20
11 Corporate assistance to military units, combat veterans 3.13
12 Holding of contests in the framework of social and charitable events in the regions of TVEL FC subsidiaries presence. 4.40
13 Participation in ROSATOM State Corporation social projects. 36.25
14 Support to health care institutions (CATU Zelenogorsk) 4.75
15 "Mercy" program of support to retirees of TVEL FC subsidiaries (Angarsk) 34.00
16 Expenses for maintenance of city's social facilities (CATU Seversk). 20.80
  Total 245.32

There are atomclasses that operate in the cities of FC presence (Angarsk, Glazov, Zelenogorsk, Kovrov, Nizhny Novgorod, Novouralsk, Seversk, Elektrostal). Atomclasses are specialized classes in the best schools of each of the cities with advanced studying of physics and mathematics. The specific feature of such classes is the profound study of nuclear physics and nuclear technologies. The important part of the project is procurement of advanced laboratory equipment for teachers to demonstrate innovative physical presentations, and for students to have their training laboratory courses and carry out research. Such advanced training will help the students to succeed at academic competitions, contests, school children’s academic achievements festivals. Further on Atomclasses graduates will be able to continue their education in relevant technical universities.

In accordance with the instruction of ROSATOM State Corporation from December 1, 2014 there was introduced a weekly monitoring of social and political situation in CATU (Zelenogorsk, Seversk, Novouralsk) and Glazov prodiving for 29 scenarios of social and political crises and their relevant indicators:

  • inter-elite conflicts;
  • emergency situations;
  • growth of social strain.

Monitoring purpose: reduction of social strain risks and possible impact of protest moods. The findings help to develop and to correct plans of preservation of social cohesion environment in regions of presence of the Fuel Company subsidiaries.

Indicators of social and political monitoring in the cities of the Fuel Company subsidiaries presence:

  • social sphere (recorded unemployment level, events held by employment centre, acute social problems of city, hazards related with the Fuel Company strategy),
  • political sphere: (influential figures in city and in region; situation in city; possible scenarios; major decisions taken at local and regional levels).
  • mass media monitoring (character and availability of publications about ROSATOM State Corporation).
By decision of “ROSATOM Territory of Culture” program Fund, “ROSATOM Theatre Capital” award was established in 2014. In 2014 this award was given to Seversk CATU.

Stakeholders Engagement

TVEL FC always applies the principles of transparency, and constantly interacts with stakeholders, systematizes, analyzes and takes into consideration their requests. This approach allows to respond quickly to potential risks connected with stakeholders relations, in particular with those of social and reputational nature.

In 2014 on the base of the Fuel Company top managers survey, the rank chart of stakeholders was updated, reflecting their interaction with the Company.

System of relationships with each group of stakeholders influences and will influence operation of TVEL FC, that’s why due consideration of their interests in planning and in the course of daily operations is the most important condition of sustainable development. Analysis of key events, major financial and production outcomes and the Company’s performance in the sphere of sustainable development demonstrates that social capital is among major sources of business stability.

JSC “TVEL” is a member of all-Russian industrial association of employers “Association of the Employers of the Nuclear Industry, Energy and Science of Russia” (President of the Company is a member of the Board), and National Association of Procurement Institutes (NAPI).

29
social indicators

JSC “TVEL” Stakeholders Rank Chart


Stakeholder Engagement

Target group of stakeholders Key interests Performance indicators for TVEL FC Institutes and system-based interaction Programs and events
Stakeholder TVEL FC
ROSATOM State Corporation Better manageability.
Efficiency.
Quality.
Implementation of advanced management technologies.
Efficiency.
Labor efficiency increase.
Resource saving.
Positive dynamics of financial, economic and production indicators.
ROSATOM production system.
Project management application.
Management system (HR, production, finance, innovations etc.).
Organizational chart transformation.
RPS introduction plans.
Replication of information solutions for all TVEL FC subsidiaries.
Consumers Stability of supplies, price, quality and reliability of supplies, products and services. Orders stability.
Market development.
Growth of income.
Market share.
Orders portfolio.
Rise of income.
Fuel failure probability decrease.
Long-term contracts.
Satisfaction appraisal.
Feedback system.
Quality appraisal.
Expectation analysis.
“Zero Failure” project.
Subsidiary companies Assistance to operating business and development of new ones.
Debureaucratization.
Expansion of areas of responsibility on individual managerial decisions-making.
Management efficiency.
Completion of production tasks.
Earnings growth.
Dividend growth.
Percentage of completion of production tasks.
Non-nuclear products sales result.
Centralized management.
Decomposition of business processes and information decisions.
Intercorporate communications:
  • Informing days;
  • Industry-specific paper “STRANA ROSATOM” [ i ];
  • Corporate papers of JSC “TVEL” subsidiaries [ i ].
Labor collective and trade unions Stable wage and payment.
Socially responsible employer.
Professional growth.
Effective work.
Qualified personnel.
Employee loyalty.
Labor efficiency increase.
Staff turnover reduction.
Earnings growth.
Salary growth.
Rate of average salaries in subsidiaries and in regions of their operation.
Collective agreement.
HR policy.
Values system.
Intercommunication buildup design.
Staff development programs.
Involvement assessment.
Informing days.
Social programs.
Value strengthening project.
Industry
partners
Mutually beneficial cooperation.
Competitiveness enhancement.
Growth of income.
Client and resource base expansion.
Joint ventures.
Joint projects and contracts.
ALVEL joint venture.
UEC TVS-KVADRAT.
"Proryv" Project.
Nuclear fuel production facility in Ukraine.
Suppliers Procurement system transparency.
Financial solvency.
Orders stability.
Quality, stability and reliability of supplies.
Favourable price.
Cost saving. Compliance with contractual terms of delivery , compliance with time, quality and quantity. Uniform Industrial Procurement Standard. E-Procurement with feedback.
Uniform Industrial Procurement Standard enforcement.
Local authorities, regional authorities Social and economic development of regions.
New investors attraction.
Formation of business environment.
Employment of population.
Favourable environment.
Stability in regions of presence.
Staff density.
Unemployment level.
Average salary.
Tax allowances.
Ecological situation.
Number of new jobs.
Agreements with regional authorities.
Agreement on consolidated taxpayer group formation
Entrepreneurship promotion funds.
Upcoming: Strategic development program for nuclear industry in CATU.
Joint social and charitable projects with authorities.
Territory development programs (industrial parks, technoparks).
Ecological reports.
Meetings.
Conferences.
Dialogues.
Nuclear Power Information Centres.
Federal authorities Taxes.
Ecology.
Safety.
Financing.
Legal framework perfection.
Scope of funding.
Gross tax allowances.
FTP indicators execution.
Considered proposals on legal framework improvement.
Federal target programs Intergovernmental agreements.
Statutory legal acts.
FTP events.
Compliance with terms of intergovernmental agreements.
Participation in ROSATOM State Corporation legislative initiatives.
Public and environmental organizations Compliance with legal requirements and international standards.
Charity support.
Social stability in regions of presence. Charity donations.
Number of comments and suggestions.
Share of positive and neutral publications in mass media.
Committee of stakeholders.
Public dialogues.
Charity council.
Public hearings on the Fuel Company projects.
Activities held in Information centre of nuclear industry.
Scientific and expert community Order, funding and commercialization of prospective developments. Breakaway developments. R&D outcome. Scientific and technical councils.
Stakeholder commission.
Public dialogues.
Programs for implementation of cooperation agreements between JSC "TVEL" and core universities of ROSATOM State Corporation.

Complaints and Appeals Handling

Indicator Requests Disclosure
Complaints concerning environmental impact
  1. received
    including BREST-OD-300 project
  2. resolved
  3. received in previous period and resolved in the reporting year
  1. 15
    12
  2. 15
  3. 0
Complaints concerning social impact
  1. received
  2. resolved
  3. received in previous period and resolved in the reporting year
  1. 27
  2. 28
  3. 1
Labor Practices Complaints
  1. received
  2. resolved
  3. received in previous period and resolved in the reporting year
  1. 19
  2. 19
  3. 0
Other appeals (proposals for technical improvement, appeals for material and charitable support etc.)
  1. received
    including proposals for technical improvement
  2. resolved
  3. received in previous period and resolved in the reporting year
  1. 53
    22
  2. 54
  3. 1

Complaints and Appeals Handling

Complaints and appeals handling in JSC “TVEL” is performed in conformity with the Federal law “On procedure for handling the appeals from citizens of the Russian Federation” No. 59-FZ d/d February 2, 2006. Feedback is compulsory: every appeal shall be registered, as well as every answer.

To establish direct communication “employee/President of JSC “TVEL””, “post boxes” are installed in all subsidiaries of the Company, and any employee may address top management of TVEL FC confidentially.

Awards of Subsidiaries of the Fuel Company

Numerous awards and letters of appreciation granted to subsidiaries in 2014 prove public recognition of the Fuel Company’s active position. These are awards for environmental safety, occupational culture and labor safety, charitable activity and social programs in regions of presence, work with young generation and participation in exhibitions. Within the reporting period subsidiaries of TVEL FC won more than 50 different awards.

Cooperation of the Fuel Company with ANO “Nuclear Power Information Centres”

JSC “TVEL” and its subsidiaries have been cooperating with ANO “Nuclear Power Information Centres” since 2010.

International Activities of TVEL FC in 2014

Tonality of publications in 2012–2014, %

One of the main directions of the cooperation is an information and training program “First Step to the Nuclear Project” carried out in regions of presence of the Fuel Company subsidiaries. Program organizers and participants: JSC “TVEL”, SC, educational and public agencies in regions of presence of the Fuel Company subsidiaries, Nuclear Power Information Centres, community.

A closing ceremony of TVEL FC information and training program “First Step to the Nuclear Project” took place in December 2014 in the museum of history of SC “SGChE”. The program overgrew the frames of municipal educational program and became interregional, intended for schoolchildren from the biggest cities of the Siberian Federal District. 9 teams participated in the game, winners of municipal stages from three cities of presence of TVEL FC subsidiaries — Novosibirsk, Seversk (the Tomsk Region), Zelenogorsk (the Krasnoyarsk Territory). Contest was held online within the framework of the regional Nuclear Power Information Centres, in a teleconference bridge format.

Besides, under cooperation with ANO “Nuclear Power Information Centres” the photo exhibitions “Art of TVEL” were held in Russian regions, telling about products and services of the Fuel Company by means of comprehensive creative means.

Stakeholders Engagement Events During the Preparation of the Report 2014

References to the Fuel Company in the Media in 2012–2014

While preparing the Report the principles of Standard AA1000APS were adhered to, in particular,there was ensured the compliance of the published information with the requests of the involved stakeholders. Three on-site dialogues were held for the implementation of this principle while preparing this Report.

Participants of dialogues were the representatives of ROSATOM State Corporation, industry partner organizations, subsidiaries, environmental, public, trade union organizations, higher educational institutions, local governmental authorities, mass media, consultants and auditors.

In December 2014 the TVEL FC held the dialogue on the concept of the Annual Report 2014.

The Report concept developed by the Company with account of the proposals of stakeholders committee was presented; the participants advanced recommendations which allowed finalizing and specifying the concept of the Report.

Results of the reporting campaign 2013 were summed up during the public dialogues held on February 19, 2015. The participants of the dialogue discussed the matters of preparation of TVEL FC Public Annual Report 2014, summarized some outcomes of the reporting year, marked the priority issues to be disclosed in the Report:

  • TVEL FC: Reliable Supplier
  • Human Capital as the Main Value of the Fuel Company.

The draft annual report of JSC “TVEL” for the year 2014 prepared subject to the comments of the stakeholders in the course of the dialogues was presented during the public consultations on April 29, 2015.

Following the events the proposals were made on improvement of the text content of the Report and the process of interaction.

Public Reporting System of TVEL FC

Due to the specific nature and scale of its activities TVEL FC is in the area of interests of the great number of stakeholders; it influences on and it is influenced significantly by its environment. The business success of the Company depends on the development of the constructive and trust-based relations both inside the Company and with the society. With the purpose to ensure the openness, TVEL FC in 2011 elaborated its public position in the area of sustainable development (see details in the annual reports 2011–2012).

In accordance with the Policy of ROSATOM State Corporation applicable to public reporting, JSC “TVEL” generated the system of public accountability which represents the combination of elements, processes and connections between them ensuring the activity with regard to public accountability and its development.

The primary elements of the public reporting system are the following: the operational centre of responsibility, regulatory framework, the representatives of stakeholders (participating in preparation of the reporting data), and infrastructure support (consultative and instructional support, audit, etc.).

Public Reporting System Diagram

Regulatory Framework

Documents governing the public reporting of JSC “TVEL”:

  • The Standard of Public Annual Reporting of JSC “TVEL”;
  • The Rules of Public Annual Reporting of JSC “TVEL”;
  • Charter of the Committee of Stakeholders of JSC “TVEL”;
  • Charter of the Committee on Public Annual Reporting of JSC “TVEL”.

Data Collection System for Public Annual Report

The Company has developed and successfully operates data collection system for Public Annual Report, covering Russian regulations for annual reports of open joint-stock companies, Public Annual Reporting Standard of JSC “TVEL” and Sustainability Reporting Guidelines GRI G4. Every indicator is controlled by responsible subdivision and employee.

Operational Centre of Responsibility

The operation of the public reporting system of JSC “TVEL” is based on the work of variety of subunits. The main functions are divided between the vice-presidents of JSC “TVEL”, the Committee on public annual reporting of JSC “TVEL”, and the Public Relations Department (see details in the Report 2011–2012).

For the purpose of development of awareness about the Company’s activities the annual reports of JSC “TVEL” participate in federal, sectoral and other contests; the KPI card of the Head of PR Department includes the index “Awards in Federal Contests”.

Development of the Public Reporting System in 2014

  • Updating of internal normative base of the Public Reporting System (Standard of Public Annual Reporting, Rules of Public Annual Reporting, Charter of the Committee of Stakeholders, Charter of the Committee on Public Annual Reporting) due to adoption of a new version of GRI G4 Guidelines.
  • Processing of internal forms of information collection for Public Annual Report.
  • Drawing up a chart of priority matters (aspects) of the Fuel Company operation.
  • Increased access to the dialogues with stakeholders in the course of preparing Public Reporting.

JSC “TVEL” Integrated Annual Report 2013 was highly estimated by independent experts:

  • The report won contest of “Expert RA” agency (RAEX) in nomination “For proper disclosure of information about supplier relationship”;
  • the report is in the Top 10 in information disclosure amongst 140 major companies in Russia, Kazakhstan, Latvia and Ukraine; Novolipetsk steel mill, FGC UES, Severstal, Atomredmetzoloto, Gazprom neft, ROSATOM State Corporation, RZD, Transkonteiner, Bashneft are also among the Top 10 ;
  • the report was second in rating of corporate transparency of major Russian state companies made by Russian regional network for integrated reporting;
  • “Social Capital. Responsibility and Transparency” special supplement of Kommersant newspaper on June 3, 2014 named JSC “TVEL” amongst 20 of 100 biggest Russian companies providing the most full disclosure of information on social activity and environmental responsibility in a public report.

Following the results of industry-specific contest of public reporting of ROSATOM State Corporation for the year 2013, the Annual Report of TVEL JSC was the third in nominations “Best information disclosure level in annual report”, “Best stakeholder engagement practice” and “Best practice of annual report promotion”. In the overall rating the report ranked fourth.

The Annual report of SC “PA ECP” subsidiary was named among the best reports in public reports contest of ROSATOM State Corporation organizations.

Public Reporting System Improvement Plans 2015

  • To improve quality of Public Reporting System in subsidiaries of the Fuel Company, a Hot Line shall be organized and a series of seminars shall be held on issues of preparation of public reports by subsidiary companies, in particular, on applied issues of using new version of GRI G4 Sustainability Reporting Guidelines.
  • To hold a series of presentations of the Annual Report 2014 at subsidiaries, and, to underline the priority issue of the Annual Report 2014 “TVEL FC: Reliable Supplier” during a meeting with partners within frameworks of “ATOMEXPO 2015”.
  • Advanced training of company’s staff engaged in preparation of Public Reporting at certified management training GRI G4, specialized seminars and round-table conferences.
  • Follow-up of corporate data-collection forms for Public Reporting.

Statement on Public Assurance of the Report

Introduction

JSC “TVEL” management contacted us with an offer to assure the Annual Report 2014 of the Fuel Company (hereinafter “the Report”) in terms of completeness and relevance of information disclosed therein, and to assess the performance of management in response to re-commendations and comments of stakeholders.

Draft Report Evaluation Procedure

We are sufficiently competent and skilled in the sphere of corporate social liability, sustainable development and non-financial reporting.

We hereby confirm that we are acting independently and commit ourselves to providing objective assessment, thereby expressing our personal expert opinion rather than the opinion of companies we represent. No remuneration has been received from TVEL FC for our efforts and time invested in this project.

Our conclusion is based on the study of the Report and the analysis of information obtained in the course of dialogues and public consultations, where we and our representatives were allowed to participate and freely express our opinion on the matters under discussion.

We are not aware of any facts that compromise reliability of data set forth in this Report. However, checking of the data collection system and verification of reliability and completeness of information is not the subject matter of public assurance.

The results of our work are formalized in this Statement of public assurance containing the agreed opinions.

Estimates, Comments and Recommendations

We all share positive opinion about the Report and note the endeavours of TVEL FC management to apply advanced international standards. Another characteristic feature of the Report 2014 is disclosure of all key performance indicators under the GRI G4 Sustainability Reporting Guidelines (comprehensive option), public reporting indicators of ROSATOM State Corporation and TVEL FC, and compliance with IIRF recommendations.

TVEL FC prepared an informative and well-structured document that meets our expectations. It is our opinion that the issues prioritized by the management and stakeholders of the Company, such as: “TVEL FC: Reliable Supplier” and “Human Capital as the Main Value of the Fuel Company” are fully disclosed.

The Report sums up the results 2014 and demonstrates the dynamics over the period of three years. Detailed description of the value creation process, business model, disclosure of information about contribution of the reporting year into strategy implementation definitely contribute to the merit of this Report. Another obvious advantage hereof is performance disclosure through the prism of the values of TVEL FC. We would like to point out the constructive approach to stakeholders’ engagement demonstrated by the management in the course of preparation hereof and during the dialogues and public consultations, as well as top quality organization of these events.

Complete and relevant information

In our opinion, the Report covers all spheres of core activity of the company, and social, environmental and economic aspects of its sustainable development, essential for stakeholders. The Report contains relevant information that is sufficiently complete for proper understanding of the current state and prospects of the Company by the stakeholders

Company’s response to comments and recommendations of stakeholders

The Company noted the recommendations of the stakeholders in the minutes of dialogues and public consultations, and conducted thorough analysis and used them in the Report and in the Company activities. Hereby we confirm that all our suggestions and comments are set forth in the Table of Comments of Stakeholders (Appendix No. 3 to the Report).

Therefore, TVEL FC demonstrated responsible approach to implementation of requirements set forth in the Public Reporting Policy of ROSATOM State Corporation, and showed constructive attitude to wishes and suggestions of stakeholders.

We are confident that traditionally high quality of interaction of TVEL FC and stakeholders will be preserved and applied in the future.

Director of the Institute for Industrial Nuclear Technologies of National Research Nuclear University MEPhI E.M. Glagovsky
Leading Expert of the Federal Service for Environmental, Technological and Nuclear Supervision A.I. Kislov
Executive Director of the Association of Closed Administrative Territorial Unit of the Nuclear Industry A.I. Makarenko
Secretary of the Central Committee of RUNPIW A.G. Vanichkin
Deputy Director for Research and Development, Vice-President of the Russian Society for Non-Destructive Testing and Technical Diagnostics N.R. Kuzelev
Head of Project Department of the Nuclear Fuel Life Cycle ROSATOM State Corporation O.I. Linyaev
Deputy Head of Electrostal Urban District Administration V.P. Davydov
Member of Public Council of ROSATOM State Corporation Member of the Board of the Centre for Russian Ecological policy V.F. Menshikov
Chairman of the All-Russian Public Children’s Environmental Movement “Green Planet”, member of the Academy of Medical Sciences M.D. Medvedeva
Head of the Centre for Corporate Social Responsibility and Non-financial Reporting of the Russian Union of Industrialists and Entrepreneurs E.N. Feoktistova
Executive Director of Interregional Public Ecological Organization “GREENLIGHT” O.V. Plyamina
Deputy Head of Kovrov Municipal Administration, Head of Department for Economics, Property and Land Regulations S.R. Khapalov
Director General of the Institute of Natural Monopolies Issues Yu.Z. Saakyan