Russian Nuclear Regulatory Chief Accused of Corruption

MOSCOW, Russia, March 9, 2004 (ENS) - In an emerging scandal that has implications for the safety of many of Russia's nuclear power reactors, Andrey Malyshev, head of the Russian Nuclear Regulatory Agency and an ex-deputy minister of atomic power, is under investigation over allegations of corruption, according to a confidential document obtained by the anti-nuclear activist organization Ecodefense.

The document was prepared by members of the Russian Parliament, the State Duma. Located online in Russian at: http://www.antiatom.ru/pr/pr040218.htm, it alleges that Malyshev was involved in a scheme that has resulted in theft of the equivalent of millions of U.S. dollars from the Russian State budget through various private companies.

"It's understood that very dangerous resource reactors that have reached the end of their life spans are still in operation thanks to widespread corruption when decisions were taken not on a technical basis but on the basis of who paid the Nuclear Regulatory Agency enough funds for that," said Vladimir Slivyak of Ecodefense.

The Kalinin nuclear power plant is located near the town of Udomlia in the Kalinin district between Moscow and St. Petersburg. (Photo courtesy Joseph Stephan Institute)

A source in the Prosecutor General's office who declined to be identified says a special officer has been appointed to pick up the investigation.

The Duma document alleges that Malyshev schemed to defraud the Russian treasury with Sergei Ivanov, executive director of Rosenergoatom, a subdivision of the Russian Ministry for Atomic Energy that operates all but two of Russia's 30 nuclear reactors.

It is alleged that they charged extremely high expenses funds for the construction of reactors in Russia. For example, in 2003 nearly 12 billion rubles (US$400 million) was taken from the state budget to finish Kalinin Unit 3, which was 95 percent completed already. That amount is approximately eight times higher than normal costs.

In another instance, about 15 billion rubles (over $500 million) is currently requested by the nuclear industry from the state budget to finish construction of the Kursk 5 nuclear reactor which is 75 percent complete. That amount is about twice as high as normal Russian costs.

The Duma document alleges that the two men took credits by Rosenergoatom, mostly from the Russian Alfa-Bank, with higher percentages than are usually offered to other companies.

The Kursk 5 nuclear power reactor is located near the city of Kursjatov about 500 kilometers (300 miles) south of Moscow. The plant is owned and operated by Rosenergatom. (Photo courtesy Indymedia)

Another scheme includes renting turbines of nuclear reactors in operation by private companies.

"The most dangerous type of reactor in the world - the Chernobyl style RBMK that is under construction now at the Kursk nuclear plant - is probably under construction for the same reason. The whole policy of the Russian Nuclear Regulatory Agency must be urgently reviewed and dangerous reactors shut down," Slivyak warned.

According to the Duma document, in 2002 about $700,000 was paid by Rosenergoatom' directors to push Malyshev' appointment as deputy minister of atomic power.

It is also stated that Malyshev has about $10 million on his private accounts in several banks, and owns at least two companies - Investment and Banking Products commercial bank, and Iceberg company, whose transactions are detailed in the document.

"A man responsible for nuclear safety in country like Russia must be experienced and not corrupted in order to do his job effectively. According to the information that was obtained, Mr. Malyshev does not satisfy any of that criteria. He must take a leave," Slivyak said.

In 2001, then Russian Minister of Atomic Power Eugeny Adamov was forced to leave the ministry in a similar situation when members of the State Duma found evidence of corruption during an investigation.