Why does Russia need energy alliance?

Azerbaijan, Baku / Trend / Two major state-owned Russian companies building energy projects - Atomstroyexport and Technopromexport - have agreed to develop strategic partnership and establish a joint venture.

Atomstroyexport will have the controlling interest - 51%. The new joint venture will build energy facilities and operate them both in Russia and abroad.

The gist of this ambitious step is pragmatic. The memo on cooperation, adopted by the partners on February 19, reads: "It is necessary to create a major national player in order to strengthen each other's positions in the market."

The new joint venture will allow Russia to enhance its status abroad and at home. This is required by the logic of economic progress.

Building alliances is one of the most effective ways of using economic resources. In France, for example, the following three companies have set up an alliance - AREVA (nuclear plants construction), SUEZ (nuclear plants operation), and the oil company Total, which operates in the Saudi market. Having united, they are keeping their positions in the region and supporting their partnership's reputation.

The Russian energy alliance is borrowing from foreign experience. It will proceed from common interests and offer comprehensive solutions, while profile specialists will carry out projects. Atomstroyexport can share with Technopromexport technologies for building thermal power plants; in turn, it can borrow from the experience of its partners in new markets.

Having consolidated the available resources (finances, engineering, management, and international experience), the new player is going to be active both at home and abroad. But what are the chances of the two companies? What are their assets?

Atomstroyexport is implementing foreign contracts for the construction of nuclear power plants. It is the world's only company simultaneously building five energy units abroad (in India, Iran, and Bulgaria). In 2007, it commissioned two energy units of the Tianwan nuclear plant in China.

Technopromexport is also well known. Its specialty is construction of energy facilities. It is Russia's biggest engineering plant specializing in turn-key projects of any level and type - thermal, steam-gas, gas-turbine, geothermal, diesel, and hydroelectric plants, power transmission lines, and boosters.

The alliance between the two companies has been produced by the effective operation of the nuclear industrial sector in the last two years. The military component of Russia's nuclear industry has always been immune to interference - everyone understands the measure of responsibility. But in the civilian nuclear industry many plants were privatized. By now, Russia has re-established government control over it.

The new alliance is a product of its modernization. Its tremendous potential will make Russia more confident in the foreign markets. Today, Russian experts are conducting negotiations on the construction of nuclear power plants with 20 countries. Some of them are closer than others to the conduct of a tender for economic, moral, or legal reasons. Russia can choose its construction sites and partners.

Next-door neighbors are high on the list of priorities - Ukraine, Belarus, and Kazakhstan. Turkey, Egypt, and Morocco are interested in cooperation.

But the Chinese are again the closest partners. As a result of effective cooperation, China received in 2007 two powerful VVER-100 megawatt units (water-water power reactor) for the Tianwan nuclear power plant. Now Russia and China have signed a contract for the construction of a third and fourth units.

India has recently signed a memo with Russia on the building of new reactors in Kudankulam. Tehran has long been hinting that if it dares increase the number of its nuclear power plants, it will choose Russian projects.

(RIA Novosti commentator Tatyana Sinitsyna)

The opinions expressed in this article are the author's and do not necessarily represent those of RIA Novosti.

Pakistani Airlines requests permission to operate flights to Uzbekistan
Pakistani Airlines requests permission to operate flights to Uzbekistan
Uzbekinvest eyes expanding volume of insurance, reinsurance services
Uzbekinvest eyes expanding volume of insurance, reinsurance services
Apples supplies from Kyrgyzstan to Uzbekistan significantly increase
Apples supplies from Kyrgyzstan to Uzbekistan significantly increase
Loading Bars
Latest
Turkey to ask Russia for discount on natural gas imports
European Council President Charles Michel to visit Georgia
Spain lowers import of Azerbaijani crude oil
WB, BSEC and Georgia start consultations on 'blueing the Black Sea'
Azerbaijani ombudsman makes statement on 29th anniversary of Khojaly genocide (VIDEO)
There will be good opportunity for cooperation between our relevant agencies and international companies - President Aliyev
Azerbaijan issues data on 2020 oil export to Greece
France raises imports of Turkish made cars
Turkey records increase in car exports to Georgia
Turkey discloses foreign trade turnover in Jan. 2021
We are preparing master plan for reconstruction of each city - President of Azerbaijan
Process of modernization of Azerbaijani cities continues - President Aliyev
Armenia ruined almost all religious monuments in Azerbaijani de-occupied lands - State Committee
Turkish president reveres memory of Azerbaijani brothers and sisters ruthlessly murdered in Khojaly
Memory of Khojaly genocide to live forever, says Azerbaijan's ombudsperson
Azerbaijan sees decline in crude oil exports to India
Azerbaijan nearly doubles oil supplies to Ukraine
Turkey discloses number of ships received at Antalya port in Jan.2021
Turkmen Airlines to receive new Boeing 777-200LR aircraft
Georgian Oil and Gas Corporation reveals amount of oil extracted in country
Turkmenistan extends suspension of flights
We were preparing for war all these years, we never concealed that - President of Azerbaijan
Pakistani Airlines requests permission to operate flights to Uzbekistan
According to our information, about 6,000-7,000 invaders were killed - President of Azerbaijan
Armenia has never been in such miserable state - President of Azerbaijan
State of Azerbaijan and I as President will always be with members of martyrs` families and war disabled - President Aliyev
Starting from July 17 until last day of war, several planes brought free weapons to Armenia every day - President Aliyev
Blood of victims of Khojaly was also avenged in second Karabakh war - President Aliyev
Current, former leaders of Armenia to be blamed for country’s current tough situation - Azerbaijani President
President warns about 'revanchism sentiments' regarding Azerbaijan's lands
Did Armenia buy those Iskander missiles for money? It got them for free - President Aliyev
Bangladesh PM’s younger sister gets first shot of Covid-19 vaccine
Thai-Sikh girl wins Bangkok award, dreams of Bollywood
We have shown that people of Azerbaijan are victorious - President Aliyev
Relatives of those in Armenia killed in war didn't even receive a hut, let alone a house - President Aliyev
Families of our children killed in Karabakh wars will be given apartments - President Aliyev
Eurasia Drilling Company reduces well drilling y-o-y
There was not single deserter in Azerbaijani army - President Aliyev
Surrender of Shusha, Lachin and Kalbajar during Musavat government was great act of betrayal - president
Uzbekinvest eyes expanding volume of insurance, reinsurance services
Baku Higher Oil School honors memory of victims of Khojaly genocide (PHOTO)
SOCAR’s Kulevi terminal details maintenance strategy
President Ilham Aliyev makes Facebook post on Khojaly genocide (PHOTO)
CBI governor expects Expediency Council to approve Palermo bill
Nagorno-Karabakh conflict ended, Azerbaijan resolved this issue - President Aliyev
Perpetrators of Khojaly genocide must be punished - Turkish ambassador
Prices for Azerbaijani oil continue to rise
Azerbaijani currency rates for Feb. 26
New Ambassador of Turkmenistan accredited in Kazakhstan
Apples supplies from Kyrgyzstan to Uzbekistan significantly increase
US Ambassador to Azerbaijan honors those who lost their lives in Khojaly genocide
Child who was saved from Khojaly genocide with help of torch in his hands... – “The light of hope” on AzTV (VIDEO)
Azerbaijan plans to build airports in Lachin, Zangilan - President
Georgia reports 337 new cases of coronavirus for Feb.26
S. Korean Eximbank accelerates preparations for creation of pharmaceutical cluster in Uzbekistan
Oil prices drop amid U.S. dollar strength, expectations for supply gains
Kazakhstan boosts imports of France-made goods in 2020
Kazakhstan’s largest gas supplying company opens tender to buy UPS
Uzbekistan, US irrigation company talk implementation of smart farming project
Georgian economy shrinks in January 2021
Armenia continues hostile rhetoric despite new reality in region - Azerbaijani FM
Japan to end state of emergency for six prefectures this month
Azerbaijan shares Tarnaut village of Aghdam district (PHOTO/VIDEO)
Global natural gas demand to grow by 50% till 2050
First Vice-President Mehriban Aliyeva: Tragedies like Khojaly genocide cannot be forgotten
Regional gas markets to become strongly integrated post-2035
UK House of Representatives posts statement on Khojaly genocide
Azerbaijan to hold minute of silence to honor Khojaly genocide victims
International organizations should fairly assess Khojaly events - Azerbaijani FM
Oil prices to follow long-term trend of $60/bbl beyond 2025
India expected to harvest record wheat, rice crops this year
Ghana first to get Indian-produced vaccines from Covax initiative
India's Proposal At WTO For TRIPS Waiver Gets Support From 57 Nations, Says Piyush Goyal
India hailed globally for providing COVID-19 vaccination assistance
Argentina set to receive first shipment of AstraZeneca vaccine from India
Uzbek-Korean JV to buy power cables via tender
Azerbaijani-Turkish relationship has now reached its highest level - President Aliyev
Azerbaijan commemorating Khojaly tragedy as victor - ADA University's rector (PHOTO)
President Aliyev gives press conference for local and foreign media representatives (PHOTO)
Azerbaijani president, first lady visit Khojaly genocide memorial (PHOTO)
President Aliyev congratulates Turkish counterpart
We demand justice for innocent victims of Khojaly genocide - assistant to Azerbaijani president
WB, IFC embarking on two technical assistance projects in Azerbaijan’s energy sector
“Khojaly” composition by Kamancha Virtuoso Imamyar Hasanov premieres in California
Ukrainian expert talks need of punishing perpetrators of crimes in Azerbaijan's Khojaly
Uzbekistan takes measures to develop market mechanisms in electric power industry
Uzbekistan reveals COVID-19 data for Feb. 26
Azerbaijani Foreign Ministry issues statement on Khojaly genocide's 29th anniversary
Israel-Azerbaijan association sends letter to int'l organizations due to 29th anniversary of Khojaly genocide
WB ready to explore new engagements in Azerbaijan’s energy sector
Perpetrators of Khojaly tragedy must be punished - Italian journalist
Total volume of non-bank deposits in Georgian banking sector up
Georgia’s economy expected to shrink
National Bank reveals volume of money deposited in Georgian banks
Export of Georgian honey to EU markets increases
Azerbaijani, Ukrainian companies work to implement "smart" systems project
Turkey plans to vaccinate around 50 million for COVID-19 by May
Medical personnel in east Iran receiving injection
Number of fresh COVID-19 cases up in Kazakhstan, total at 211,212
Experts make forecasts for Georgia's post-COVID tourism industry recovery
All news