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CORPORATE GOVERNANCE AND SUSTAINABILITY

Aidyn Aisin,
Vice President, SE NNEGC Energoatom

Generating over 50% of eco-friendly, safe and low-carbon energy in Ukraine, SE NNEGC Energoatom plays an important role in social and economic development of Ukraine. The figures tell the story best. In 2016, SE NNEGC Energoatom paid UAH 7.190 billion in taxes to the national and local budgets. Over UAH 349 million were paid as the Company’s social and economic compensation for risks faced by the population living in the NPP supervised areas.


SE NNEGC Energoatom employs over 34,000 people. The Company respects and values their commitment, professionalism and a relentless drive for improvement. Corporate values of SE NNEGC Energoatom are enshrined in our Corporate Ethics Code that seeks to encourage the development of corporate culture, ensure compliance of employees with the highest standards of conduct in the nuclear industry.


SE NNEGC Energoatom is going to build a new system of corporate values with zero tolerance to corruption at all levels. To this end, the Company is implementing anti-corruption policies and programmes and has set up special anti-corruption departments. Energoatom was the first Ukrainian government-owned company to hold tenders on the ProZorro platform, a public e-procurement system. The Company closely cooperates with Transparency International Ukraine and constantly implements effective anti-corruption measures, conducts stress tests and improves its anti-corruption activities.


Focusing on the EU integration, SE NNEGC Energoatom has harmonised its management system with the international standards and have it certified according to ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 standards. The Company keeps preparing for the corporatisation as specified by the terms and conditions of the EBRD loan agreement. This process will be in line with the Roadmap developed in accordance with the world's best practises and is to be completed in 2018.


Committed to meeting the highest global standards, SE NNEGC Energoatom widely cooperates with international organisations, shares experience and expertise with government agencies and non-government organisations from all over the world. Key areas of cooperation are the implementation of international programmes that target to improve nuclear safety at Ukrainian NPPs and the effective use of international technical assistance, in particular the assistance provided under programmes of the European Commission (TACIS, INSC), IAEA, INPRO, IFNEC, EUR and others.


We are not being complacent and continue to contribute to the sustainable development of the nation. We continue to create jobs, ensure good working conditions, and provide social protection to employees. We contribute to the development of local communities, take care of the environment and, most importantly, provide access to the reliable and clean source of energy.

COMPANY’S GOVERNANCE SYSTEM

Energoatom is a legal entity established in accordance with Resolution No. 1268 “On the Establishment of the National Nuclear Power Generating Company “Energoatom” adopted by the Cabinet of Ministers of Ukraine on 17 October 1996 in pursuance of the Law of Ukraine On the Use of Nuclear Power and Radiation Safety.


Energoatom is under umbrella of the Ministry of Energy and Coal Industry of Ukraine, which is the government agency responsible for the nuclear energy use and radiation safety. The Company’s Charter outlines the mission, profile, property, rights, obligations, and administrative management principles of Energoatom as a business entity. The goals, objectives, main functions, responsibilities and rights of Energoatom as an operating organisation are defined by the Regulations on Energoatom, the Operating Organisation (Operator) of Nuclear Facilities.


Energoatom obtains licences and permits from licensing agencies to carry out operations in accordance with the current legislation.


Energoatom is on the list of facilities that are not subject to privatisation25 Law of Ukraine On the list of government-owned facilities that are not subject to privatisation, No.847-XIV dd. 7 July 1999, Appendix 2 “List of government-owned facilities that are not subject to privatisation but may be corporatised”. .

INTRODUCING INTERNATIONAL CORPORATE GOVERNANCE STANDARDS


Energoatom’s corporatisation envisages 39 key measures to be implemented in three stages. In these efforts, Deloitte cooperates with all stakeholders, including the Cabinet of Ministers of Ukraine, the State Nuclear Regulatory Inspectorate of Ukraine, creditors, the International Atomic Energy Agency (IAEA) and others.


Stage 1

The stage is to review and evaluate the existing legislative framework in Ukraine. One of the main issues at this stage is to implement the Cabinet’s resolutions No. 142 and No. 143, which relate to the new requirements for the management of government-owned unitary enterprises, Order No. 248 of the Ministry of Energy and Coal Industry of Ukraine, which provides for a restated Charter of Energoatom to be drafted in accordance with the Loan Agreement between Energoatom and EBRD.


Stage 2

It is planned to develop the Energoatom Corporatisation Roadmap, analyse and design an effective organisational and management corporate structure, identify the rights and obligations of the Company following the corporatisation, determine the role of the government, etc.


Stage 3 (final)

It is expected to finalise corporate governance issues, including the role and responsibility of the management board, approve its powers and authorities, and build a system of financial control and accountability of the Company's management, taking into account best practices and international standards. In addition, the final stage will draft a 10-year Energoatom development plan including such areas as financial management, long-term capital raising and cash management.

Energoatom is a unitary enterprise; therefore, the principles of corporate governance has not applied to the Company so far.


Since 2013, Energoatom has been preparing for corporatisation in accordance with the Agreement between Ukraine and the European Bank for Reconstruction and Development and the Loan Agreement between EBRD and Energoatom to implement the Complex (Consolidated) Safety Upgrade Programme of Power Units of Ukrainian NPPs. According to the Loan Agreement, EBRD extends a €300 million government-secured loan to Energoatom for the implementation of measures envisaged by the programme. Corporatisation of Energoatom in line with a road map developed by the Company’s corporatisation consultancy according to the world’s best practices is one of the mandatory conditions of the Loan Agreement.


Corporatisation should create an enabling environment to raise investments, finance capital construction projects, complete nuclear power units, and improve the strategic asset management system.


The European Bank for Reconstruction and Development has selected Deloitte Touche Llc as the Energoatom’s corporatisation consultancy.

CORPORATE GOVERNANCE PLANS FOR 2017 AND A MEDIUM TERM

Energoatom will continue preparing for the corporatisation under the Loan Agreement with the European Bank for Reconstruction and Development. In 2017, Deloitte is expected to develop the Company's Corporatisation Roadmap.


It is expected that the corporatisation will be completed in 2018 provided that the Ministry of Energy and Coal Industry and EBRD approve the Roadmap developed by the consultant.

GOVERNING BODIES

Energoatom is headed by the President. To ensure the performance of the operating organisation’s functions established by the regulatory acts of Ukraine, the President of Energoatom approves the Company’s organisational structure and determines the composition of the Company’s Management Board.


In addition to the President, the management includes the First Vice President – Technical Director, the General Inspector – Safety Director, the vice presidents, as well as the general directors of the separate subdivisions (deputy heads of the operating organisation on the nuclear power plant site).


The President of Energoatom and general directors (directors) of the Company’s separate subdivisions approve goals (strategies, programmes, plans, etc.) in respective areas. The goals are specific, contain achievement criteria, are brought to notice of employees, accessible and updated to ensure their relevance.

ENERGOATOM GENERAL ORGANISATIONAL CHART

COMPOSITION AND STRUCTURE OF GOVERNING BODIES

The highest governing body of Energoatom is the Management Board.


Energoatom’s President is responsible for operational management of the Company’s economic activities. The President, the First Vice President and vice presidents (not more than three) are appointed and dismissed by the Cabinet of Ministers of Ukraine.


The members of the Management Board are appointed and dismissed by the Ministry of Energy and Coal Industry of Ukraine.


The Management Board is governed by the applicable laws of Ukraine, the Company’s Charter and the Regulations on the Management Board.


Powers of the President, First Vice President – Technical Director, and vice presidents are established by the Company's Charter.


Order No. 48 issued by the Ministry of Energy and Coal Industry on 16 January 2017 approved a 17-strong Management Board of Energoatom.

Company’s management

Yuriy O. Nedashkovsky
President of Energoatom

He was born on 14 April 1961 in Kyiv. In 1983, Mr Nedashkovsky graduated from Odessa Polytechnic Institute, majoring in Nuclear Power Plants and Facilities.

Between 1983 and 2000, he worked at Khmelnytska NPP, starting his career as boiler equipment lineman up to the general director of the plant.

2000-2003 — President of Energoatom
2003-2005 — Assistant and Advisor to a Member of Parliament of Ukraine
2005-2006 — President of Energoatom
2006-2008 — Deputy Minister of Fuel and Energy of Ukraine
2008-2012 — President of Energoatom

The Cabinet of Ministers of Ukraine issued Order No. 124-r on 5 March 2014 to appoint Yuriy Nedashkovsky the President of Energoatom.

Olexandr V. Shavlakov
First Vice President – Technical Director of Energoatom

He was born on 30 July 1959 in Horlivka, Donetsk Oblast. In 1982, Mr Shavlakov graduated from Moscow Engineering Physics Institute, majoring in Nuclear Power Plants and Facilities.
Between April 1982 and August 1986, he worked in a reactor plant at Chernobyl NPP.

1986-1987 — a reactor service shift supervisor at Minsk Nuclear Power and District Heating Plant (Belarus).

In January 1987, he started working at Zaporizhzhya NPP, where he rose from a senior engineer in the reactor shop to the chief engineer of the plant.
On 2 March 2011, the Cabinet of Ministers of Ukraine appointed Olexandr Shavlakov the First Vice President – Technical Director of Energoatom.

Awards: High Achiever of Nuclear Power Industry, Honourable Worker of Nuclear Power Industry, High Achiever of Power Industry of Ukraine.

Volodymyr M. Pyshnyi
Vice President of Energoatom»

He was born on 15 January 1955 in Sencha village, Lokhvytsia District, Poltava Oblast.
Mr Pyshnyi started his career in 1972 in Sencha Construction Office and then entered Odessa Polytechnic Institute in 1973.
He gained the qualification of a thermal engineer. After graduation in 1978, he worked as a reactor engineer at Novovoronezh NPP (Russia) and as a senior repairman in a centralised repair shop at Zaporizhzhya NPP.
1988-1990 — deputy foreman of the centralised repair shop at Zaporizhzhya NPP.
1990-1995 — Deputy Chief Engineer for Repairs at Zaporizhzhya NPP.
1995-2000 — Director of Energoatom Control Service, a subsidiary of Energoatom.

In March 2000, he was appointed General Director of Zaporizhzhya NPP.
Since December 2003 — Energoatom’s Vice President for Repairs and Production.
Awards: Distinguished Power Engineer of Ukraine, Honourable Power Engineer of Ukraine.

Aidyn A. Aisin
Vice President of Energoatom

He was born on 21 October 1958 in Baku (Azerbaijan).
Mr. Aisin graduated from Kyiv Institute of Civil Aviation Engineers in 1982 and from the National Academy of Management in 1995, majoring in Finance and Credit.
He held senior positions in commercial and government-owned enterprises.

Between February 2003 and May 2005 — Deputy General Director for Finance at Ukrtransgaz, a subsidiary of Naftogaz of Ukraine.
From October 2006 to March 2008, he was Vice President for Financial Affairs of Energoatom.
From March to June 2010 — Deputy Director for Finance and Economics at Ukrtransgaz.
The Cabinet of Ministers appointed Aidyn Aisin Vice President of Energoatom (Resolution No. 1239-r dd. 16 June 2010). On 18 June 2012, he was transferred to the post of Vice President for Economic and Corporate Development.

Danko V. Biley
General Inspector – Safety Director of Energoatom

He was born on 27 February 1954 in Ploske village, Svaliava District, Zakarpattia Oblast.
From 1973 to 1976, Mr Biley served in the Navy on an atomic submarine. In 1982, he graduated with honours from Odessa Polytechnic Institute, majoring in Nuclear Power Plants and Facilities and qualifying as a thermal engineer.
He worked at Zaporizhzhya NPP, rising from an engineer in a setting and testing shop to the General Director.
1996-2000 — General Director of Zaporizhzhya NPP.
2000-2002 — Quality Director of Energoatom.
September 2002 – January 2003 — Production Director – Deputy Head of Energoatom.
2003 — Technical Director, Deputy Head of Energoatom Since December 2003 — General Inspector – Safety Director of Energoatom.
Candidate of Science (Engineering).
Awards: High Achiever of Power Industry of Ukraine, Honourable Worker of Nuclear Power Industry, Distinguished Worker of Nuclear Power Industry of Ukraine.

Nataliya V. Vashetina
Chief Accountant of Energoatom

She was born on 11 December 1956 in Petrushi village, Ripky District, Chernihiv Oblast.
In 1981, Mrs Vashetina graduated from Ukrainian Agricultural Academy, majoring in Accounting in Agriculture.
She held senior positions in government-owned and commercial enterprises.
October 1999 – January 2003 — chief accountant of Energoatom 2003-2005 — Chief Accountant at Valensye LLC and Financial Investments LLC.
In February 2005, Nataliya Vashetina was again appointed Chief Accountant of Energoatom.
Awards: High Achiever of Nuclear Power Industry of Ukraine, Honourable Worker of Nuclear Power Industry.

MEETING INTERNATIONAL STANDARDS

Compliance of Energoatom’s management systems with international standards



In 2016, the Company confirmed the compliance of its integrated management system with international standards, an achievement driven by the teamwork of separate subdivisions and the head office of Energoatom:

ISO 9001:2008

Quality Management System

ISO 14001:2004

Environmental Management System

OHSAS 18001:2007

Occupational Health and Safety Management Systems

Energoatom’s is Ukraine’s first power generating company to certify its governance system under three international standards.

To date, Energoatom has received the conformity certificates for its integrated management system in the following areas:



Production of electrical and thermal power

Engineering, research and technology support

Preparedness and response to nuclear and radiation accidents

Capital construction

Repairs, assembly and reconstruction works

Supply and management of resources

Development, design and manufacture of equipment, devices and special tools

TRANSPARENCY AND INFORMATION OPENNESS

One of the key objectives of Energoatom is to be a transparent company and demonstrate high-level performance. Being the biggest energy provider in Ukraine Energoatom has set the goal to contribute to creation of a competitive and open energy market. Energoatom fully realizes that development of modern nuclear technologies and energy independence of Ukraine depend on transparency of operations and regular accountability to the society.


The company adheres to the principles of transparency and accountability, openly shares information about its activity with the shareholders on official social pages and the company's website.


Since 2015, Energoatom has been publishing annual reports providing key information about its operational activity. In addition, following the results of 2015-2016 Energoatom has developed a report on social projects.


Thanks to the systematic publication of a very wide list of reports on the Company's website in 2015, Energoatom received the highest score among state-owned enterprises that were evaluated in the project "Transparency and Social Responsibility. Guide for Public Companies." Following results of 2016, Energoatom topped the corporate reporting transparency rating among public and private companies in Ukraine27 The contest was organised by the Centre for CSR Development. http://csrukraine.org/en/ .


Energoatom keeps regular contacts with mass media representatives and openly shares data about its activity with all the stakeholders. The company provides information about its operations and informs the society and the stakeholders on the most important issues in the area of nuclear energy of Ukraine.


NATIONAL AND INTERNATIONAL RECOGNITION

According to a study conducted by experts of a global anti-corruption NGO Transparency International Ukraine (TI Ukraine)26 Transparency International (TI Ukraine) is a Ukrainian branch of a global anti-corruption NGO Transparency International with over 100 chapters worldwide. TI Ukraine focuses on monitoring anti-corruption reform implementation and seeks to reduce corruption in Ukraine by promoting transparency, accountability and integrity of public authorities and civil society. Website: http://ti-ukraine.org/en/ in 2016, Energoatom scored highest among 100 private and public companies and holdings (8.9 scores out of 10 for transparency). Energoatom scores 100% on organisational transparency.


The opinion of independent experts can serve as a strong evidence of transparent business activity of Energoatom.

TRANSPARENT PROCUREMENTS

Transparent procurements are an integral part of modern socially responsible companies. Energoatom is guided by such principles as information openness, regulated and clear procurement processes, transparency of the decision-making process, absence of opportunities for corruption, clear and understandable requirements to contractors and fairness. These principles helped the Company save budget funds, implement anti-corruption laws and cooperate with the world producers.


Seeking to simplify the procurement and open tender procedures and eliminate corruption, Energoatom signed a memorandum with Transparent Procurements NGO as back as in October 2014 to build a transparent and effective public procurement system in Ukraine. In early 2015, the Company was the first among domestic state-owned enterprises to hold electronic tenders on ProZorro28 Launched in February 2015, ProZorro public e-procurement system is designed to ensure transparent and efficient use of public funds and prevent corruption by implementing public control and expanding the pool of suppliers during the procurement procedures. For more information about ProZorro, please go to https://prozorro.gov.ua/en/ .


Following Article 5 On Public Procurement dd. 22 December 2015 No.922-VIII Energoatom adheres to the principle of non-discrimination of participants. This means that the company ensures equal conditions in procurement procedures for domestic and foreign bidders, regardless of their form of ownership and business legal structure; and it also grants free access to bidders to procurement information.


Key principles of fair and transparent tender procedures that are followed by Energoatom are open tenders, a competitive dialogue, no need to submit a wide range of paper documents, a possibility to submit tender participation information within one day, and absence of human factor in determining the winner.

Analysis of agreements signed by Energoatom in 2016 by procurement items


The comprehensive audit of the procurement system of Energoatom conducted by an international audit and consulting firm KPMG Audit did not find any violations of the applicable laws in the area of public procurement.


0 , 0 AGREEMENTS
TO A TOTAL OF UAH 0 . 0 BILLION

CONCLUDED BY ENERGOATOM IN 2016 UNDER TRANSPARENT PROCUREMENT PROCEDURES


0 . 1 MILLION
IN COSTS SAVED BY ENERGOATOM

IN 2016 DUE TO PROCUREMENT PROCEDURES HELD VIA PROZORRO E-PROCUREMENT SYSTEM


For more information about procurements of Energoatom, please go to

www.atom.gov.ua

In 2016, an international audit and consulting firm, KPMG Ukraine, conducted a due diligence of Energoatom's procurement system to check its efficiency, transparency as well as availability of discrimination and corruption elements. The firm made a random checking of material expenditures in the area of public procurement (purchase of items, works and services) in 2015. In particular, KPMG Ukraine checked the compliance of the procurement procedures with the requirements of Ukrainian laws that were in effect at the time of tender and the internal documents of the company. In addition, they conducted a comparative analysis of procurements using public information on the prices of similar items to reveal any cases of overpricing.


Energoatom will continue to enhance transparency and accountability to the society in order to remain a socially responsible participant of the energy market of Ukraine and meet the requirements of the laws of Ukraine on public procurement procedures.


CORPORATE ETHICS

Energoatom is known as the most effective and environmentally friendly energy producer in Ukraine. This has been achieved thanks to committed work of highly skilled specialists, compliance with the highest standards of safety and maintenance of nuclear power stations and also thanks to corporate values promoted by the Company.

Energoatom’s key corporate values

Respecting rights and interests of our employees

Respecting the cooperation terms and conditions suggested by business partners

Creating the enabling environment for the succession planning

Taking ongoing efforts to develop employees’ potential and ensure equal opportunities for professional advancement

Managing knowledge about the nuclear power use

Retaining the Company’s production potential, human resources and other capacities

Maintaining the reliability, high quality, competence, responsibility and expertise in our works and services

Taking actions to improve the safety culture at every level of production management and at every workplace, involving all employees

Placing safety as the absolute top priority in production processes in every subdivision of the Company

Energoatom adopted a code of ethics in 2010. The code sets out corporate values of the company and behavioural standards for employees. It has been designed to ensure the paramount importance of safety at nuclear facilities and raise employees' awareness of their role in achieving strategic goals of the company. Energoatom improved the code in 2016 by using the world's best practices and taking into account the views of the company's employees.


In their work, all employees of Energoatom are guided by the principles set out by the Corporate Ethics Code applied to all employees regardless of their position in the company.


Transparency International Ukraine Report 2016 states that the Corporate Ethics Code applied by Energoatom has set a zero tolerance approach to corruption at all levels of the company's operations. In particular, this means that gifts, money or remuneration may not be offered to or accepted from business partners and other parties of the company. The principle suggests that the company should cooperate with business partners who have a good reputation and operate within the legal framework.


By implementing corporate values at all levels, Energoatom is seen as a socially responsible company, which is open and transparent to business partners, investors and the Ukrainian society.


For more information about the Corporate Ethics Code of Energoatom, please go to

www.atom.gov.ua

Principles of corporate ethics at Energoatom

Safety is our first priority. Zero harm to the environment, health and safety of the company's employees and the population

Relations between the employees that are based on the compliance with the principles of corporate ethics are the key to the company's success

Professionalism of Energoatom employees serves as a guarantee of reliable and failure-free operations of nuclear facilities and ensures the required level of nuclear, radiation and technogenic safety

A zero tolerance approach to corruption at all levels of Energoatom's activity

Openness and honesty as a way to enhance the reputation of Energoatom


CONTRIBUTING TO THE FIGHT AGAINST CORRUPTION

Energoatom has adopted a zero tolerance approach to corruption and bribery in the area of public procurement, production and other activity. The direct or indirect promise, offering or improper benefits in any form must be unacceptable. Zero tolerance to corruption means that any persons acting on behalf of or in the interests of the company are strictly prohibited to participate, directly or indirectly, in any corruption offences or practices.


The basic principles that underpin operations of Energoatom include: embracing openness in relationships with the society, implementing anti-corruption policies and programmes, taking specific actions to fight corruption and adopting a zero tolerance approach to corruption

ENERGOATOM'S COMPLIANCE POLICY

Energoatom has implemented the policy to ensure effective and transparent fight against corruption and bribery at workplace, set out the main principles and elements of the compliance policy and division of responsibilities for compliance with the policy between the structural units.


The Company provides an opportunity to its employees and other persons to use the "Trust Box" to report about any violations of the policy directly to the President of Energoatom or the person responsible for the implementation of compliance policy of the company. They can do this on a voluntary or confidential basis and anonymously.


The principles of the company's compliance policy must be taken into account in the public procurement procedures. In 2016, all agreements (contracts) of the company included anti-corruption clauses. This helped the company avoid non bona-fide companies and cooperate with contractors that share the same anti-corruption principles.


Energoatom declares its refusal to do business that creates, directly or indirectly, corruption opportunities for regulators even if the company can lose material or other benefits because of such a decision.


In 2016, employees of subdivisions in charge initiated internal investigations as part of the compliance policy of Energoatom. Information about findings of the investigations is always published on the Company's website.


In 2015, Transparency International Ukraine conducted anti- corruption audit to consolidate approaches and find priorities where to focus its efforts. The recommendations of the audit are being actively implemented. Energoatom keeps realising its compliance policy and changes it to respond to the exigencies of our time.


Principles of Energoatom's compliance policy binding on all employees of the Company:

  • Zero tolerance to corruption in any form
  • Strict adherence to the compliance policy of the company
  • Response and responsibility
  • Publication of information on the official website of the company about the persons brought to material liability for corruption-related offences or power abuse
  • Cooperation with business partners sharing the principles outlined in the compliance policy of the company.

For more information about the compliance policy of Energoatom, please go to

www.atom.gov.ua

ENERGOATOM'S ANTI-CORRUPTION PROGRAMME

In 2015, Energoatom became the first state-run company that approved an anti-corruption programme according to the requirements of the new anti-corruption law of Ukraine. The current anti-corruption programme of the company contains a set of effective integrity rules that shape the new corporate culture of the company. With the fruitful cooperation with international anti-corruption organisation, Transparency International Ukraine, Energoatom managed to review and improve the internal procedures in order to prevent corruption offences and also started creating the culture of zero tolerance to corruption to embed awareness and understanding of this within the organisation and its contractors.


The anti-corruption programme is one of the key documents of Energoatom that contains a set of rules, standards and procedures to reveal, fight and prevent corruption within the company. In particular, the programme identifies the rights and obligations of anti-corruption officials, the procedures for protection of whistle-blowers that have provided information about corruption or corruption-related offences, the procedures for resolving conflicts of interests faced by the company's officials, etc.


Since December 2014, the company has had a special unit in place – the Centre for Preventing and Counteracting Corruption – that is responsible for the implementation and supervision over the actions that help prevent, combat and reveal corruption at the company. The key goal of the Centre is to ensure the implementation of the provisions of anti-corruption laws, take preventive actions to stop corruption at the company, carry out awareness-raising work among employees, reveal cases of corruption or corruption-related offences, and bring to material responsibility the persons who are engaged in any corruption schemes and offences.


In 2017, the company has established a working group to evaluate corruption risks in the activity of Energoatom. To this end, the company engaged independent experts from the government and civic anti-corruption initiative "Together against Corruption", Ukrainian Corporate Governance Professional Association (UCGPA), DiXi Group analytical centre, and Selepey, Volkovetsky & Partners law firm. Chaired by the President of Energoatom Yuriy Nedashkovsky, the working group has set the priority objectives which include corruption risk assessment, development of the action plan for minimising corruption risks, supervision and professional assistance to the company's specialists.


Energoatom is sincerely interested in the attitude of its employees to the anti-corruption policy pursued by the Company as it helps identify the corruption risks in the company's activities and develop the relevant anti-corruption action plan. To this end, in 2016, for the second year in a row, the company conducted an anonymous survey that covered 227 employees. Despite a low number of respondents the company was pleased to see that its employees were better aware of the needs in anti-corruption activities and had better knowledge of the requirements of anti-corruption legislation.


By having adopted the Anti-Corruption Programme, Energoatom has cemented its commitment to prevent corruption, ensure strict compliance of all the company's employees with the requirements of national anti-corruption laws.


In 2016, Energoatom conducted a number of anti-corruption activities:

  • 40 events to raise awareness of the officials and employees of the company about the requirements and restrictions set out by the anti-corruption laws
  • 1,102 consultations on the content of anti-corruption laws
  • 2,814 cases of assistance in filling in the statements.

Results of anonymous ,anti-corruption survey conducted among Energoatom employees in 2015-2016

Indicator

Survey results 2015

Survey results 2016

Total number of employees offered to participate in the survey

1,978


1,333


Actual number of submitted questionnaires

332


227


Respondents who believe that the company needs to conduct anti-corruption activities29 The data on all indicators include both the company's officials and functional employees and specialists. For more information about the survey results, please go to the Company's website at http://www.atom.gov.ua/en/

Respondents who believe that the company is committed to solving the corruption problem

Respondents who see procurement of goods, works and services as the most corrupted area in the company

Respondents who describe the anti-corruption activities held by the company as mostly effective

For more information about the results of anonymous anti-corruption survey among Energoatom's employees, please go to the company's website:

www.atom.gov.ua

The meeting of the Company's representatives with the experts of the European Council and the National Agency for Prevention of Corruption proves the success of the anti-corruption policy of Energoatom. The meeting was conducted as part of the fact-finding mission developing corruption risk assessment framework. The work was done for public sector of Programmatic Cooperation Framework for Eastern Partnership countries ("Fighting Corruption") developed by the European Council and EU for Ukraine. Energoatom was selected for a visit by experts as it is one of the first companies in Ukraine that has experience in development and implementation of anti-corruption programme in the area of public administration.

"By providing open access to the information on anti-corruption activities on its website Energoatom ensures the efficiency of the anti-corruption policy implemented by the company". Albena Kuyumdjieva, Expert of the European Council.

In addition, Energoatom ranks first among Ukraine’s public-sector companies in the anti-corruption programme ranking conducted by Transparency International Ukraine (with a score of 78.54%). Energoatom scores 100% on organisational transparency.


By gradually implementing the anti-corruption policy, changing the stereotypes in the system, holding dialogues with the company's employees and partners and improving the anti-corruption programme Energoatom eliminates opportunities for corruption and creates a competitive and professional environment at the nuclear energy market.


The experts of Transparency International Ukraine analysed the company’s website and noted that information on anti-corruption tools and events placed in the Compliance Policy section presents complete, well-structured and user friendly data.

SUSTAINABILITY VISION

SUSTAINABLE ENERGY

The UN General Assembly attaches a high priority to sustainable energy30 Sustainable energy is the energy produced and used in ways that support human development over the long term, in all its social, economic, and environmental dimensions. and its significant contribution to sustainable development. To this end, it has declared the decade 2014-2024 as the Decade of Sustainable Energy for All and encouraged the participants to join their efforts to achieve universal access to sustainable energy.


Nuclear power is a reliable and safe source of clean energy. In addition, the nuclear power industry is a strategic sector of economic development that can promote economic efficiency and contribute to energy security and energy independence of Ukraine. That is why the development of nuclear energy facilitates Ukraine’s sustainability.


Reliable and efficient operations of the nuclear sector and uninterrupted power supply are the key to economic development and enhancement of energy independence of our country.

ENERGOATOM’S SUSTAINABILITY PRIORITIES

Energoatom has identified a number of priority areas in the area of CSR and sustainable development. To this end, we took into account the Company’s strategic contribution to the energy independence of Ukraine, the expectations of our stakeholders, as well as the material issues of the nuclear power industry31 To identify the material issues, we have taken into account a number of documents that specify the approaches of the international community to nuclear energy, including the documents of IAEA, the Nuclear Energy Institute (NEI), OECD, the UN, and others. . After all, ensuring a high level of nuclear, radiation, ecological and operational safety of NPPs in line with the highest international standards is one of the main priorities of nuclear power generation.


We believe that our role in contributing to the sustainable development of society is to create jobs, provide decent salaries and social benefits for workers, take care of their safety and encourage their professional development. We are developing local communities by implementing social projects that help develop social infrastructure and educational programmes for schoolchildren, students and young professionals.


Energoatom is embedding the sustainability principles across all aspects of its operations.


Focus areas of Energoatom’s sustainable development

Reliable and safe electricity production

Energoatom ensures reliable and safe supplies of electricity to its consumers: Ukrainian households and companies.

Nuclear, radiation and environmental safety

Safety lies at the heart of all our decisions and actions. To meet the highest safety standards of NPP operators, we are introducing a safety culture as a fundamental principle of the Company's operations. We are aware of the role and footprint of our operations on people and the environment, so we will always see safety as our top priority. Being the only operator of nuclear power plants in Ukraine, Energoatom ensures a high level of nuclear, radiation, environmental and operational safety of NPPs in accordance with the highest national and international standards.

Competitive salaries, social benefits and professional development of employees

Achievement of strategic goals and successful implementation of objectives by Energoatom depends largely on the welfare of the Company's team, which means competitive pay, social security, and the enabling environment for the professional development of employees. We strive to create the best environment for the professional growth and personal development of every employee in our Company.

Employee safety and health at work

The Company is introducing a modern occupational health and safety management system in accordance with the international standard OHSAS 18001. We keep investing in activities that can help increase safety at workplaces and reduce occupational injuries. We closely monitor the compliance with the national H&S requirements and regulations. It is important for us to promote the safety culture amongst all employees, as it is the key to safe operations of nuclear power plants.

Environmental protection and energy efficiency

We are aware of our responsibility and our role in preserving the environment for future generations. The Company ensures safe operations of Ukrainian nuclear power plants and the compliance of our actions with the principles of European and national environmental laws. We produce environmentally friendly electricity that does not contribute to climate change. Energoatom invests heavily in the modernisation of power units at NPPs, use natural resources efficiently, implements energy-efficient solutions and adheres to the existing international waste treatment protocols. We implement investment projects in the field of radioactive waste management, as well as initiate and support projects promoting environmental awareness among our employees and the Ukrainian society as a whole.

Development of local communities

Our efforts help improve the standards of living in local communities, creating comfortable conditions for work, life and leisure. Social partnership is of particular importance for us as it helps consolidate the endeavours of employees, local communities, authorities and stakeholders to jointly improve the living and working conditions, become a driving force for the development of local communities located within the vicinity of NPPs and other subdivisions of Energoatom. We are implementing social programmes that contribute to the social and economic development of the satellite towns of NPPs. In particular, these programmes help solve housing problems, improve the system of medical services, and contribute to the development of education, culture and sports.

Transparency, accountability and fight against corruption

Doing business responsibly also means to ensure transparency, accountability and fulfilment of obligations in good faith. In order to develop modern nuclear technologies and ensure the energy independence of our country, it is necessary to create a competitive energy market, observe the principles of transparency in relations with suppliers and partners of the Company. Therefore, our operations are guided by modern corporate ethics regulations, and we strive to act as a responsible employer and a reliable partner. We keep improving and implementing the most advanced anti-corruption policies and other special programmes that can help prevent all forms of corruption.

Stakeholder engagement

Energoatom is trying to establish ongoing effective engagement with its stakeholders, in particular government authorities, contractors, employees of the Company, academic and expert community, civil society organisations, environmental, industry-specific and anti-corruption NGOs, mass media, international non-profit environmental and energy organisations, CSR institutes, local governments and local communities.

We increase transparency of our operations and constantly inform all the stakeholders (our employees, residents of satellite towns, as well as the public) about all aspects of our operations.

ENERGOATOM’S CONTRIBUTION IN THE UN SDGs

In September 2015, at the UN Sustainable Development Summit, the heads of states and governments adopted the 2030 Agenda for Sustainable Development including 17 SDGs.


The SDGs were developed to help consolidate the efforts of all countries to provide more comfortable, healthier, safer and more harmonious life for their citizens. The implementation of the SDGs at the national and international levels requires global partnership and active engagement of all stakeholders: representatives of government, business, international and public organizations, as well as the public.


The generation and consumption of energy in the context of long-term sustainable development of society, in all its economic, social and environmental dimensions, underpin the energy-related UN SDGs.


As a responsible company and the largest electricity producer in Ukraine, Energoatom accepts and shares the UN SDGs and is contributing to the SDGs.

3

GOOD HEALTH
AND WELLBEING

As the largest electricity producer in Ukraine, Energoatom puts environmental safety, health and wellbeing of staff as its top priority.


The Company makes every effort to ensure that nuclear energy generation in Ukraine does not affect the population or the environment.


The Company has implemented the Emergency Preparedness and Response System to be able to respond to emergencies at NPPs. The programme has been designed to prevent or reduce radiation exposure of staff, population and the environment in the event of an accident at a nuclear power plant or an emergency that may lead to an accident.


According to the Company's main H&S objectives, Energoatom shall put the life and health of workers as the top and absolute priority and create safe and healthy working conditions. The Company has implemented the occupational health and safety management system in accordance with OHSAS 18001.


The Company does everything it can to reduce the risk of occupational injuries, occupational diseases, as well as improve the health of its employees.


In addition, the Company promotes a healthy lifestyle among its workers.


For more information, please see the Safety Culture and Environmental Responsibility sections.



4

QUALITY
EDUCATION

Energoatom has created all the necessary conditions for the training, professional development and career growth of specialists at different levels.


The Company contributes to the development of education by implementing educational programmes that help improve the quality of vocational education in Ukraine and train young specialists for the nuclear power industry.


The Company cooperates with the leading specialist educational institutions in Ukraine to train qualified specialists in the field of nuclear power.


For more information, please see Our Employees and Local Communities section.



5

GENDER
EQUALITY

The staff-related activities of Energoatom focus on creating equal employment opportunities, prevent discrimination at workplaces, provide good and flexible working conditions for workers with family responsibilities and ensure gender equality at workplace.


For more information, please see Our Employees and Local Communities section.



6

CLEAN WATER AND SANITATION

In its operations, Energoatom is guided by the Environmental Policy designed to preserve natural ecosystems in the area of the Company's facilities, reduce the environmental footprint, ensure effective use of the natural resources and provide environmental safety of the Company’s operations.


One of the priorities of the Company's environmental policy is the efficient use of water resources.


Energoatom’s environmental specialists from radiation safety departments, hydrotechnical workshops, supervision services, environmental services, and chemical workshops, which control the state of underground, surface and waste water, soil, sludge, and air, carry out internal audits in the subdivisions of NPPs and check the compliance of NPPs with the requirements of environmental legislation.


For more information, please see the Environmental Responsibility section.



7

AFFORDABLE AND CLEAN ENERGY

Energoatom mission is to ensure safe and reliable electricity generation.


Energoatom fully supports the development of the renewables sector. In particular, the Company operates Olexandrivska Hydro Power Plant, Tashlyk Hydroelectric Pumped Storage Power Plant and Donuzlavskaya VES (located in the temporarily occupied area). Now Energoatom intends to build solar power plants.


The Company contributes to ensuring the access of population to safe, cheap, reliable and environmentally friendly energy, satisfying 55% of electricity needs of Ukrainian households and companies.


The Company is implementing an energy efficiency programme to reduce its own consumption of energy resources and is introducing energy-saving technologies. In addition, Energoatom plans to implement an integrated energy management system in accordance with ISO 50001.


For more information, please see the Environmental Responsibility section.



8

DECENT WORK AND ECONOMIC GROWTH

Energoatom is significantly contributing to the social and economic development of Ukraine and helps strengthen the energy independence of our country.


The Company creates decent working conditions, provides social benefits, takes care of the safety and well-being of its employees, and also promotes their professional development.


The Company cares about the development of local communities, providing locals with jobs, paying taxes to the budget, as well as covering risk-related payments for the population living in the supervised areas of nuclear power plants to the amount of 1% of sales of electricity generated by Energoatom in a corresponding period.


For more information, please see the Our Employees and Local Communities section.



9

INDUSTRY, INNOVATION AND INFRASTRUCTURE

Nuclear power in Ukraine is strategically important for the energy independence and energy security of the country. Moreover, it is one of the most advanced and high-tech sectors of the economy.


Energoatom is implementing 11 investment projects that contribute to the development of nuclear energy and sustainable development of Ukraine.


Energoatom is implementing innovative solutions that are developed by its own specialists in cooperation with external R&D and production partners (including international ones) within the framework of joint projects.


For more information, please see the Energoatom Today and Investment Projects sections.



11

SUSTAINABLE CITIES AND COMMUNITIES32 A sustainable city or eco-city is an innovative city that uses ICT and other tools to improve the standards of living, performance efficiency and services in cities, as well as to boost competitiveness and meet economic, social and environmental needs of present and future generations.

Nuclear power takes one of the first places in the world energy market, particularly because of the most environmentally and climate friendly generation of basic energy.


Conservation of natural ecosystems in the areas of the Company's operations is one of the priorities according to the environmental policy of Energoatom. Therefore, annually Energoatom implements a number of environmental measures that help minimise the environmental footprint.


Energoatom ensures a high level of nuclear, radiation, ecological and operational safety in line with interna-tional and national standards.


The Company contributes to the social and economic development of communities where NPPs are based. The priority goals of the Energoatom’s social policy include improvement of the living standards for employees and promotion of social programmes that help improve the quality of life in satellite towns of nuclear power plants.


Annually, Energoatom pays a social and economic compensation duty to cover risks of the population living in the supervised areas of nuclear power plants. The duty amounts to 1% of sales of electricity generated by Energoatom in a corresponding period.


For more information, please the Safety Culture, Environmental Responsibility and Our Employees and Local Communities sections.



13

CLIMATE ACTION

One of the advantages of nuclear energy is that it is an environmentally friendly and safe power source. NPPs do not produce greenhouse gases that contribute to the climate change.


Energoatom cooperates with the international community in the field of peaceful use of nuclear energy and climate change fight.


For more information, please see the Corporate Governance and Sustainability and Environmental Responsibility sections.



14

LIFE BELOW WATER

Energoatom does not use the oceans, seas and other marine resources in its operations.



15

LIFE ON LAND

Energoatom follows the principles of European environmental laws and applies the provisions of international standards and the EU environmental directives.


The environmental policy of Energoatom seeks to prevent the pollution of land resources in the areas where NPPs are based. Energoatom specialists focus on prevention of contamination of the surface, reduction of the negative environmental footprint caused by substances released through nuclear and thermal power generation.


As part of the implementation of its investment projects that can have an environmental footprint, the Company develops and implements comprehensive measures for the conservation of flora and fauna as well as cultural and historical heritage.


For more information, please see the Environmental Responsibility section.



16

PEACE, JUSTICE AND STRONG INSTITUTIONS

The Company operates in accordance with the Ukrainian legislation. This is one of the key provisions of the Company's Corporate Ethics Code.


Energoatom adheres to the principles of transparency and accountability, publicly informs all the stakeholders about the performance results on the corporate website and through other channels of communication.


The Company is open to the public in all aspects of its activities, takes measures to fight corruption by introducing anti-corruption policies and organising other special events, and declares zero tolerance to corrupted individuals. Energoatom was one of the first state companies to have introduced ProZorro e-procurement system.


For more information, please see the sections: Corporate Governance and Sustainability, as well as Our Employees and Local Communities.



17

PARTNERSHIPS FOR THE GOALS

Energoatom cooperates with professional associations at the national and international levels to ensure sustainable development.


The Company has established cooperation with the international community to strengthen competitiveness of nuclear power generation, raise R&D and financial assistance, as well as to apply international expertise in the implementation of its strategic objectives and ensure safe operation of nuclear power units in line with the world standards.


For more information, please see the Corporate Governance and Sustainability section, as well as Appendix 2.



MANAGING SUSTAINABILITY

At the present stage of Energoatom’s development, the Company is building an integrated system for sustainable development management. We are well aware of the importance of systematic and gradual efforts to address the priority areas of sustainable development. We realise that in order to establish an effective sustainable development management system we need to ensure regular engagement of senior executives and managers at all levels who will communicate their beliefs and convictions in the importance of this system at all levels of the Company. Today Energoatom has a system in place to manage social, environmental, and H&S issues.


Energoatom’s actions in each priority area of sustainable development are disclosed further in the Report.

SOCIAL ISSUES AND HSE MANAGEMENT DIAGRAM

STAKEHOLDER ENGAGEMENT

Energoatom is a strategically important enterprise in the Ukrainian energy sector and has a significant impact on the society and environment. Energoatom strives to ensure a high level of openness and transparency of its operations, embracing the principle of dialogue with stakeholders. The Company maintains active communications with all stakeholders, providing timely information on all aspects of its operations, as well as responding to requests and expectations of the stakeholders.


Energoatom's approach to stakeholder engagement rests on the following principles:

  • Ongoing and constructive dialogue
  • Open productive cooperation
  • Publicity and transparency
  • Raising public awareness of energoatom’s operations in time and in full
  • Meeting commitments.

Energoatom's stakeholder engagement

Stakeholders

Stakeholder expectations

Ways of engagement

Additional information

Ukrainian population

Safe and reliable electricity production
Low electricity tariffs
Openness and transparency
Company’s contribution to the social and economic development of Ukraine

Company’s public reports
Public discussions
Information centres of nuclear power plants
Informing via all available sources of information

Report in its entirety

Central government authorities

Safe and reliable electricity generation
The Company’s sustainable long-term development
Compliance with high standards of business ethics
Openness and transparency
The Company's contribution to the social and economic development of Ukraine
Payment of taxes
Provision of jobs
Partnership development
Compliance with Ukrainian and international laws

Development of partnerships, including public private partnerships
Compliance with the sustainable development principles in all aspects of the Company's operations
Leadership in government-led initiatives of transparency and accountability. Introduction of anti-corruption policy and programme in the Company
Payment of taxes to the national budget
Timely and full payment of the social and economic compensation for risks of the population living in the NPPs’ supervised areas
Participation in lawmaking
Public reporting of the Company
Informing via the Company's official website www.atom.gov.ua

Corporate Governance and Sustainability section
Transparency and Information Openness subsection and Sustainability Vision subsection
Safety Culture section
Our Employees and Local Communities section
Environmental Responsibility section

Contractors

Timely and accessible information on tenders
Transparent public procurement procedures
Openness and transparency
Mutually beneficial cooperation

Trust line on the Company’s anti-corruption efforts
Trading on ProZorro platform
Engaging anti-corruption NGOs to the Company's tender commissions and working groups to assess corruption risks related to procurements and contractor relations
Informing via the Company's official website www.atom.gov.ua

Transparency and Information Openness subsection

Company’s employees

Competitive salaries and social benefits
Safe and comfortable working conditions
Respect for human rights
Transparency of management processes
Professional development opportunities

Open dialogue between the Company's management and employees
Social polls
Training programmes for the Company’s employees
Participation of the Company’s employees in local development projects
Participation of the Company’s employees in corporate volunteering projects
Partnership with educational institutions as part of staff training for nuclear power plants

Sustainability Vision subsection
Safety Culture section
Our Employees and Local Communities section

Academic and expert community

Development of science and technology cooperation
Innovative development of the Company and the nuclear industry as a whole

Engagement of academic and expert community in expert commissions Science and technology cooperation Partnership with educational institutions as part of staff training for nuclear power plants Public discussions Informing via all available sources of information

Our Employees and Local Communities section
Environmental Responsibility section

Mass media

Openness and transparency
Real-time, objective and accessible information on the Company's operations

Presentations, press conferences with representatives of the Company
Public reporting by Energoatom
Public discussions
Information centres of nuclear power plants
Informing via all available sources of information

Transparency and Information Openness subsection
Our Employees and Local Communities section
Environmental Responsibility section

Civil society organisations, environmental, sectoral and anti-corruption NGOs

Openness and transparency
Accountability, compliance with national and international standards
Compliance with high standards of business ethics
Partnership in common projects

Partnership, implementation of common projects
Reporting on the Company's operations in public sources and in accordance with the applicable laws of Ukraine
Information centres of nuclear power plants
Public discussions
Informing via all available sources of information

Transparency and Information Openness subsection
Our Employees and Local Communities section
Environmental Responsibility section

International non-profit environmental and energy organisations, CSR institutions

Openness and transparency
Accountability, compliance with national and international standards
Compliance with high standards of business ethics
Partnership in common projects

Cooperation with international organisations, including participation in international projects and programmes
Engagement with civil society organisations, including environmental organisations
Reporting on the Company's operations in public sources and in accordance with the applicable laws of Ukraine
Public discussions
Information centres of nuclear power plants
Informing via all available sources of information

Energoatom Today section
Corporate Governance and Sustainability section
Investment Projects section

Local governments and communities

The Company’s sustainable long-term development
Contribution to the social and economic development of the regions where the Company operates
Maintaining and creating jobs
Social partnership

Social programmes to improve living standards in the regions where the Company operates
Public private partnership projects in towns where nuclear power plants are located
Social partnership
Public discussions
Information centres of nuclear power plants
Informing via all available sources of information

Transparency and Information Openness subsection
Safety Culture section
Our Employees and Local Communities section
Environmental Responsibility section

INTERNATIONAL COOPERATION

Ukraine is among top five European producers of nuclear energy, with Energoatom playing a significant role among the world's leading energy generating companies.


Energoatom places a special emphasis on international cooperation. The primary goal of such cooperation is to preserve the competitiveness of the nuclear power production, engage R&D and financial assistance, introduce the world’s best practices to achieve Energoatom’s strategic goals and ensure the safe operation of nuclear power units to global standards and with due regard to insights of cooperation with leading energy companies in Europe and international organisations.


Energoatom’s international cooperation in the nuclear industry is governed by bilateral and multilateral intergovernmental agreements, cooperation agreements on the peaceful use of nuclear energy, bilateral partnership agreements, international programmes and projects, memoranda and commercial contracts.

Cooperation seeks to:

Increase the level of safety of nuclear power units

Diversify nuclear fuel supplies

Raise the level of safety culture

Plan the nuclear industry development

Modernise existing power units

Ensure participation in cooperation projects to construct new power units, etc

Important elements of Energoatom’s foreign policy and mechanisms to achieve its goals are the accession to the international US-led initiative, Global Nuclear Energy Partnership (now IFNEC); participation in international IAEA projects, including INPRO; membership in international organisations: WANO (World Association of Nuclear Operators), WNA (World Nuclear Association), EUR International Group (the European Utility Requirement); cooperation within the framework of the EU-Ukraine Action Plan, bilateral partnership cooperation, etc.


Cooperation with the International Atomic Energy Agency (IAEA)


Energoatom cooperates with the IAEA under agreements between Ukraine and the Agency and the conventions to which our country has acceded.


Our specialists continue to take part in the IAEA’s events (seminars, workshops, technical meetings, training courses, international conferences, etc.) held as part of regional and interregional projects of the Agency. At the events, the Company’s specialists, as well as IAEA experts and representatives of the world’s operating organisations, have the opportunity to exchange information and practices and discuss topical issues of the nuclear industry. In 2016, 35 specialists of Energoatom participated in such events.


Under the IAEA Technical Cooperation Programme for 2016-2017, preparations are underway to implement a national project, “Improvements in the management system for non-conformities that affect the safety of nuclear power plants”. The goal of the initiative is to ensure effective control of non-conformities, implement a comprehensive analysis of the effectiveness of the Company's integrated management system and introduce a single management policy.


Cooperation with the European Commission (EC) is line with the European Union – Ukraine Memorandum of Understanding on Energy Cooperation and the EU-Ukraine Action Plan (Action Plan for the implementation of the EU-Ukraine Association Agreement).


Cooperation with the European Commission under TACIS and ІNSC


At present, Energoatom is about to end implementation of the TACIS programme. Projects to construct complex lines for RAW treatment at Rivne NPP and Zaporizhzhya NPP are at the final stage, costing €21.3 million in total.


Under decisions of the European Commission, the Instrument for Nuclear Safety Cooperation (INSC)33 For more about cooperation between Energoatom and the European Commission under INSC, please go to the Company’s web site http://www.atom.gov.ua/en/ shall apply to Ukraine since FY2017. According to Council Regulation (Euratom) No. 300 dd. 19 February 2007, this tool is implemented on the basis of a relevant strategy and indicative programme. For each participating country, action programmes are developed that establish the objectives, expected results, management procedures and the total amount of planned financing in the nuclear safety.


The programme focuses on projects that have an impact on all operating NPPs in Ukraine. This approach involves the implementation of pilot projects and the extension of outcomes to other NPPs by Energoatom.


Under the INSC initiative, Energoatom is implementing ten projects with a total cost of €23 million.


Cooperation with the EBRD and Euratom


The Company cooperates the EBRD and Euratom under the Guarantee and Loan Agreements made on 25 March 2013 and 7 August 2013, respectively. According to these agreements, the EBRD and Euratom extended a €600m loan to Energoatom to implement measures under the Complex (Consolidated) Safety Upgrade Programme of Power Units of Ukrainian NPPs34 For more about the loan from EBRD and Euratom, please go to http://www.ebrd.com/what-we-do/sectors/ukrainenuclear-safety-upgrade.html .

Energoatom cooperates with government agencies and NGOs from

Germany

Czech Republic

Belgium

Finland

Switzerland

Slovakia

Sweden

Austria

Croatia

Spain

Bulgaria

Netherlands

United Kingdom

France

United States

and other countries

PARTNERSHIP IN INTERNATIONAL PROGRAMMES

Energoatom’s international cooperation focuses on international programmes implemented to enhance the nuclear safety at Ukrainian NPPs.


INPRO35 For more about INPRO, please go to https://www.iaea.org/inpro/


Energoatom joined the International Project on Innovative Nuclear Reactors and Fuel Cycles in 2005.


During the implementation, the project built a one-regional model of Ukraine's energy system, made projections about the development of the national nuclear power system of Ukraine until 2100, analysed scenarios of innovative nuclear power systems in line with the INPRO methodology areas: Economics, Infrastructure, and Waste Management, and drafted a report.


EUR36 For more about Energoatom’s participation in EUR, please go to the Company’s web site http://www.atom.gov.ua/en/


Established in late 1991 by European operating organisations, EUR (European Utility Requirement) unites 18 leading European electricity generating companies that operate more than 130 power units with light water reactors (LWR). The organisation seeks to develop technical requirements for designs of new Gen III/III+ LWR nuclear power plants to ensure further development of nuclear industry in Europe. Energoatom has been a full member since 2007.


The assessment of the EPR project's compliance with the EUR requirements provides enough information about the European light water reactor EPR (AREVA) and the methodology for analysing the compliance of reactor designs with European requirements and will facilitate the licensing of reactor facilities in Ukraine. These efforts help the Company strengthen its image in Europe and assert itself as a serious business partner in the nuclear industry.


IFNEC37 FNEC is the International Framework for Nuclear Energy Cooperation, formerly known as GNEP (Global Nuclear Energy Partnership). For more information, please go to https://www.ifnec.org/ifnec/


Global Nuclear Energy Partnership


The programme was announced by the US government in 2006.


IFNEC (International Framework for Nuclear Energy Cooperation) is a forum for cooperation among participating states to explore mutually beneficial approaches to ensure the use of nuclear energy for peaceful purposes proceeds in a manner that is efficient, safe, secure, and supports non-proliferation and safeguards.


Energoatom monitors the IFNEC activities relating to the development and application of advanced nuclear fuel cycle technologies that will champion environmentally friendly technological development throughout the world, improve the environmental situation and reduce the risk of proliferation of fissile nuclear materials.