Atommash
   HOME

TheInfoList



OR:

Atommash (russian: «Атоммаш») is a multidisciplinary engineering company located in Volgodonsk, Rostov Oblast, Russia. It was established in 1976 as a nuclear engineering corporation. Following
privatization Privatization (also privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when ...
and bankruptcy in 1999, the industrial facilities of the enterprise were owned and managed by ZAO Energomash–Atommash, a part of the diversified engineering company Energomash. Since 2015 the company has been part of
Atomenergomash Atomenergomash (AEM) (russian: Атомэнергомаш) is a power engineering Russian company. Аtomenergomash JSC (AEM Holding company, AEM, Group) is a Russian power engineering company, a supplier of products for nuclear and thermal power ...
, the mechanical engineering division of
Rosatom Rosatom, ( rus, Росатом, p=rɐsˈatəm}) also known as Rosatom State Nuclear Energy Corporation, the State Atomic Energy Corporation Rosatom or Rosatom State Corporation, is a Russian state corporation headquartered in Moscow that speciali ...
. Its current name is "AEM-technology" JSC "Atommash" branch in Volgodonsk.


History


Soviet period: 1975-1991

On May 22, 1970, a state committee for the construction of the plant was assembled. On July 8, 1972, official hiring process for workers and engineers started. On August 30, 1975, the first stilt of the Production Facility #1 was erected. In 1973, the
Politburo of the Central Committee of the Communist Party of the Soviet Union The Political Bureau of the Central Committee of the Communist Party of the Soviet Union (, abbreviated: ), or Politburo ( rus, Политбюро, p=pəlʲɪtbʲʊˈro) was the highest policy-making authority within the Communist Party of th ...
made a decision to establish a major nuclear engineering enterprise in Volgodonsk, Rostov Oblast. There were several reasons for choosing Volgodonsk, and above all, the town's proximity to the country's southern deposits of
iron Iron () is a chemical element with Symbol (chemistry), symbol Fe (from la, Wikt:ferrum, ferrum) and atomic number 26. It is a metal that belongs to the first transition series and group 8 element, group 8 of the periodic table. It is, Abundanc ...
and steel. Equally important was the opportunity to utilize the
Tsimlyansk Reservoir Tsimlyansk Reservoir or Tsimlyanskoye Reservoir (russian: Цимля́нское водохрани́лище) is an artificial lake on the Don River in the territories of Rostov and Volgograd Oblasts at . Completed in 1952, the reservoir ...
and the Volga-Don Canal (which connects the reservoir to the
Volga The Volga (; russian: Во́лга, a=Ru-Волга.ogg, p=ˈvoɫɡə) is the longest river in Europe. Situated in Russia, it flows through Central Russia to Southern Russia and into the Caspian Sea. The Volga has a length of , and a catchm ...
) for shipping raw materials, components and assemblies to the plant and delivery of manufactured goods. Russia's internal waterway system made transportation of heavy and bulky items to the regions of the country and the world through the Sea of Azov, the
Black Black is a color which results from the absence or complete absorption of visible light. It is an achromatic color, without hue, like white and grey. It is often used symbolically or figuratively to represent darkness. Black and white ...
and Caspian seas easier and cheaper. Roads, railways and an airport were created in order to support the plant."IA - ATOMMASH" by S. Sadoshenko. Moskva, "Plakat", 1987 (pages 3-6, 10, 38). Library of Congress code DK651.V557 I18 1987
/ref> Capacity utilization planning revealed that electricity generated by three hydropower stations of Volgodonsk is not sufficient. Therefore, it was decided to build the Rostov Nuclear Power Plant. In November 1974, the
USSR Council of Ministers The Council of Ministers of the Union of Soviet Socialist Republics ( rus, Совет министров СССР, r=Sovet Ministrov SSSR, p=sɐˈvʲet mʲɪˈnʲistrəf ɛsɛsɛˈsɛr; sometimes abbreviated to ''Sovmin'' or referred to as the '' ...
approved the technical design of the first stage of the industrial complex, which was originally called "The Volgodonsk Heavy Machinery Plant" (VZTM). Main tasks for the construction of VZTM (renamed to Atommash in March 1976) for the period from 1976 to 1980 were determined. Atommash started producing equipment for the nuclear energy industry in 1977. The cumulative power capacity produced by the company reached 3 GW by 1978 and 4 GW by 1979. In 1981, Atommash produced its first reactor for the second unit of the
South Ukraine Nuclear Power Plant The South Ukraine Nuclear Power Plant ( uk, Південноукраїнська АЕС), also known as the Pivdennoukrainsk Nuclear Power Plant, is a nuclear power plant in Ukraine, near the city of Yuzhnoukrainsk in Mykolaiv Oblast, about sou ...
. According to the plan of socio-economic development of the region, a whole new city area (the so-called "New City") was built in Volgodonsk in order to support industrial and economical activities of Atommash. Before the construction of Atommash, the population of Volgodonsk was 35 thousand people; in 1981 there were about 135 thousand people living in the city. The expansion of the city area came together with modern residential areas, nurseries,
kindergarten Kindergarten is a preschool educational approach based on playing, singing, practical activities such as drawing, and social interaction as part of the transition from home to school. Such institutions were originally made in the late 18th ce ...
s,
school A school is an educational institution designed to provide learning spaces and learning environments for the teaching of students under the direction of teachers. Most countries have systems of formal education, which is sometimes comp ...
s, hospitals, shopping centers, cafes and restaurants, laundries, sporting and fitness facilities, theatres, cinemas and more. The Chernobyl disaster in 1986 and the Dissolution of the Soviet Union decreased the number of orders for the nuclear equipment, and the company had to expand the assortment of manufactured goods.


First years of the post-Soviet period: 1991-1994

Like most Russian industrial enterprises, Atommash suffered greatly from the collapse of the Soviet Union. In 1991, the time of the collapse of the Soviet Union, the enterprise did not have enough finances to pay salaries. Orders dropped to 15% of the Soviet era volume. The company had to find customers outside Russia and to produce a broader scope of goods.


Bankruptcy of 1995-1999

According to
Decree A decree is a legal proclamation, usually issued by a head of state (such as the president of a republic or a monarch), according to certain procedures (usually established in a constitution). It has the force of law. The particular term used ...
1546-r dated 30.08.1993, 378-r dated 25.03.1994 and 1437-r dated 08.09.1994 of
Prime Minister A prime minister, premier or chief of cabinet is the head of the cabinet and the leader of the ministers in the executive branch of government, often in a parliamentary or semi-presidential system. Under those systems, a prime minister i ...
Viktor Chernomyrdin Viktor Stepanovich Chernomyrdin (russian: Ви́ктор Степа́нович Черномы́рдин, ; 9 April 19383 November 2010) was a Soviet and Russian politician and businessman. He was the Minister of Gas Industry of the Soviet Unio ...
, low-interest earmarked
loan In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations, etc. The recipient (i.e., the borrower) incurs a debt and is usually liable to pay interest on that ...
s were allocated to Atommash in order to preserve its unique facilities and support its development. However, in 1994 those loans have been redirected to commercial structures and only then offered as loans to Atommash, but this time at exorbitant interest rates. For example, from July to August 1994, Atommash OJSC was forced to take commercial loans issued by Commercial Bank Doninvest at 216% interest per annum. On 21.05.1996 Viktor Mikhaylov, Russian Minister for Atomic Energy, wrote an official letter D-M-27/4-01 to Vladimir Gusev, the Chairman of the Committee for industry, construction, transport and energy of the Russian State Duma. In his letter, Mikhaylov says that, according to Instruction P-593ns of the Russian Government dated 04.10.1995, the Ministry of Atomic Energy (MinAtom) made a proposal to the Federal Agency for State Property Management (Goskomimuschestvo), Federal Agency for Bankruptcy Proceedings and the Government of Rostov Oblast to convert the "golden share" into an ordinary stock and keep the unsold shares of Atommash OJSC in the federal property for up to 3 years. However, this proposal was not accepted, and the Ministry of Atomic Energy lost all control over the activities of Atommash OJSC. Hence, writes Mikhaylov, having decided to introduce external management on Atommash OJSC and having declined MinAtom's proposal, the three aforesaid agencies - Goskomimuschestvo, Federal Agency for Bankruptcy Proceedings and the Government of Rostov Oblast - took full responsibility for the future fate of Atommash. The financial recovery plan introduced as of November 29, 1995, by the decision of the Arbitration court, brought no results as jobs continued declining and social tensions grew. The Russian Ministry of Atomic Energy proposed the following action plan to save the enterprise: * Write off the debt on loans of Atommash owed to the Ministry of Finance of Russia (22 billion rubles), as well as respective interest and penalties as of September 1, 1996. * Release Atommash from paying all kinds of taxes to the federal and local budgets from September 1, 1996, to December 31, 1997. * Offer an installment plan (
layaway Layaway ('' lay-by'' in Australia, New Zealand, and South Africa) is a purchase agreement in which the seller reserves an item for a consumer until the consumer completes all the payments necessary to pay for that item, and only then hands over the ...
) from January 1, 1998, to December 31, 2000, for the current accruals to the budgets of all levels. * Sell the unsold 30% shares of Atommash to private shareholders under investment conditions.Letter of the Russian Ministry of Atomic Energy to officials dated 12.09.1996 translation
However, those actions were not taken. The Arbitration court of Rostov Oblast appointed Alexander Stepanov the external manager ( bankruptcy referee) of Atommash OJSC. At the time, Stepanov was First Vice President (and, since 1996, CEO) of Energomashcorporatsiya (EMK) JSC, a direct competitor of Atommash. Stepanov's appointment was actively lobbied by Tatiana Gramotenko, the Chief agent for bankruptcy proceedings in Rostov Oblast. Several Founders of EMK JSC were direct competitors of Atommash OJSC, which was a violation of the Russian antitrust law. The audit conducted by the Audit Chamber of Russian Federation showed that in a matter of one year EMK, controlled by its CEO Stepanov (at the same time the bankruptcy referee of Atommash OJSC), managed to buy 10.8% share in Atommash OJSC and more than 40% of its debt, which, according to the competition law, clearly poses a conflict of interest. Governor of Rostov Oblast Vladimir Chub used the letter of MinAtom of Russia №03-2739 from 12.09.1996 in Stepanov's interests. In his appeal №1/6049 to the General Director of the Federal Service for Bankruptcy Proceedings Peter Mostovoy, Chub asks to
write off A write-off is a reduction of the recognized value of something. In accounting, this is a recognition of the reduced or zero value of an asset. In income tax statements, this is a reduction of taxable income, as a recognition of certain expenses ...
, through the reduction of
capital surplus Capital surplus, also called share premium, is an account which may appear on a corporation's balance sheet, as a component of shareholders' equity, which represents the amount the corporation raises on the issue of shares in excess of their par ...
, specific
fixed assets A fixed asset, also known as long-lived assets or property, plant and equipment (PP&E), is a term used in accounting for assets and property that may not easily be converted into cash. Fixed assets are different from current assets, such as ...
and objects under construction of Atommash OJSC for an amount of 878 billion rubles. This led to a reduction of company's assets, the book value of which has already been drastically discounted. Governor Vladimir Chub had no authority to address the General Director of FSBP Mostovoy with a request to approve markdowns and write-offs of assets, which were a legitimate property of thousands of rightful shareholders, of which Russian Federation with its 30% share was the biggest. Apart from the reduction of the asset value of Atommash, its workshops and equipment were leased to various
limited liability partnership A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. It therefore can exhibit elements of partnerships and corporations. In an LLP, each partner is not ...
s (LLP) on conditions that were extremely disadvantageous to Atommash. LLPs, owned by the corrupt external management of Atommash, obtained strategic raw materials, components and semi-finished products at extremely low prices. Products manufactured by those LLPs on the territory of Atommash, were sold at a profit for the LLPs, while the damage (losses) was reflected on the balance sheet of Atommash OJSC. Colossal non-core assets and vast territories of Atommash, including agricultural companies with their land, were also expropriated. According to the Plan of the Bankruptcy referee of Atommash OJSC Alexander Stepanov, a new company called EMK-Atommash JSC was created (Protocol №3 of the Meeting of creditors of Atommash OJSC of 22.11.1996). The new company had two founders: Atommash OJSC (85,7% of charter capital) and Stepanov's EMK (14,3%).(Russian)">"A very illusory investor" / "Novaya Gazeta" newspaper, 17.07.2000(Russian)
In January 1997, 70% of the assets of Atommash were transferred to EMK-Atommash JSC. Atommash OJSC contributed its
liquid assets In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price. Liquidity involves the trade-off between the ...
(fixed assets,
current assets In accounting, a current asset is any asset which can reasonably be expected to be sold, consumed, or exhausted through the normal operations of a business within the current fiscal year or operating cycle or financial year (whichever period is ...
,
intangible assets An intangible asset is an asset that lacks physical substance. Examples are patents, copyright, franchises, goodwill, trademarks, and trade names, as well as software. This is in contrast to physical assets (machinery, buildings, etc.) and finan ...
) and production assets to the charter capital of EMK-Atommash JSC. Illiquid assets (construction in progress, industrial sites, railways, etc.) remained on the balance sheet of Atommash OJSC. After that, EMK-Atommash JSC stock was transferred to EMK JSC. Alexander Stepanov, now the CEO of "Energomashinostroitelnaya corporatsiya" JSC and at the same time the Bankruptcy referee of Atommash OJSC, wrote a letter on 05.05.1997 to the First Deputy Minister for Atomic Energy Lev Ryabev, assuring that he had understood the concern of MinAtom about the financial state of Atommash, and therefore suggested to work together to support EMK-Atommash JSC, his new company. In this letter Stepanov tried to convince MinAtom that there was no reason for worries, since the production facilities of Atommash were preserved, technological routines for manufacturing of core production were uninterrupted, and the establishment of EMK-Atommash JSC would not lead to restraint of competition. According to Stepanov's letter, the fact of trading liquid assets of Atommash OJSC for EMK-Atommash JSC stock would give the nearly bankrupt company a chance for a settlement with creditors. At the same time Stepanov, head of both companies, positions liquid assets which Atommash OJSC contributed to the charter capital of EMK-Atommash JSC as long-term investments. In reality, however, the "Plan of external management and financial recovery on Atommash OJSC for the period from 29.11.1995 to 29.05.1997" did not lead to stabilization. Jobs were cut dramatically,
wage A wage is payment made by an employer to an employee for work done in a specific period of time. Some examples of wage payments include compensatory payments such as ''minimum wage'', '' prevailing wage'', and ''yearly bonuses,'' and remune ...
s were not paid, social tensions were spreading across the entire Volgodonsk city. While the assets of Atommash (through write-offs) and their value (through markdowns) have been reduced sharply, accounts payable, which were growing exponentially, started looking significant in comparison. As a result of the obviously inefficient external management on Atommash OJSC, the Arbitrary Court of Rostov Oblast made a decision to recognize the company bankrupt. Formally, Atommash OJSC was forcibly liquidated as a legal entity on 25.11.1999. Thus, the bankruptcy of Atommash OJSC was, in practice, carried out in the interests of EMK-Atommash JSC which inherited all liquid assets and production facilities of Atommash OJSC. After the forced liquidation of Atommash OJSC, its unique industrial complex was controlled by several affiliates of EMK-Atommash JSC, including Energomash-Atommash LLC and, finally, Energomash-Atommash JSC of the Energomash group. The bankruptcy of Atommash OJSC was inspected by the Audit Chamber of Russian Federation at the request of the Committee for industry, construction, transport and scientific technologies of the State Duma of Russian Federation №3.11-21/1312 dated 21.10.2000. This audit showed that, with the complicity of specific officials, the State suffered colossal material damage. In particular, the State lost a 30% stake in Atommash OJSC. The purpose of the bankruptcy of Atommash OJSC was to deprive its majority shareholders - the State itself and Concern YACONTO JSC (Russia, Moscow) - of their property, and therefore, of control over the economic, financial and production activities of the industrial giant. As a result of the Audit, the College of the Audit Chamber of Russian Federation issued a Definition №6(289) dated 22.02.2002.Report of the Audit Chamber of RF on the bankruptcy of Atommash OJSC dated 22.02.2002 (excerpt)
Bankruptcy of the strategic company caused great resonance in the Russian President’s Administration and the Russian Government. First Deputy Secretary of the
Security Council of Russia The Security Council of the Russian Federation (SCRF or Sovbez; russian: Совет безопасности Российской Федерации (СБРФ), Sovet bezopasnosti Rossiyskoy Federatsii (SBRF)) is a constitutional consultative bo ...
Mikhail Fradkov, in his Letter to the Deputy Prime Minister of Russia
Viktor Khristenko Viktor Borisovich Khristenko (russian: Виктор Борисович Христенко; born 28 August 1957) is a Russian politician who was chairman of the board of the Eurasian Economic Commission from 1 February 2012 to 1 February 2016. H ...
(№A21-1175 dated 28.03.2001), asks to conduct a verification of the actions of the Federal agency for insolvency (bankruptcy) proceedings against Atommash OJSC. On 25.12.2009 the Deputy of the Russian State Duma Anatoly Lisitsyn sent a letter (ref. LIS-767/GD) to
Vladimir Putin Vladimir Vladimirovich Putin; (born 7 October 1952) is a Russian politician and former intelligence officer who holds the office of president of Russia. Putin has served continuously as president or prime minister since 1999: as prime min ...
, the Prime Minister of Russia at the time, asking to conduct an independent investigation of the bankruptcy of Atommash OJSC on the basis of the audit conducted by the Audit Chamber and the Definition issued by its College. The Deputy
Prosecutor General of Russia The Prosecutor General of Russia (also Attorney General of Russia, russian: Генеральный прокурор Российской Федерации, Generalʹnyy prokuror Rossiyskoy Federatsii) heads the system of official prosecution i ...
Viktor Grin replied on 01.02.2010 to the State Duma that the bankruptcy of Atommash OJSC has been verified by the investigation department of Volgodonsk police. However, the police did not take the materials of the Audit Chamber into account, therefore, their resolution "not to initiate criminal proceedings" was cancelled and another inspection prescribed. The second inspection did not bring any result either.A letter from the Prosecutor's Office of Rostov Oblast to YACONTO LLC dated 15.11.2011 translation
Dissatisfied with the answer, on 21.12.2010 Anatoly Lisitsyn sent a letter (ref. №LIS-1282/GD) to the
President of Russia The president of the Russian Federation ( rus, Президент Российской Федерации, Prezident Rossiyskoy Federatsii) is the head of state of the Russian Federation. The president leads the executive branch of the federal ...
Dmitry Medvedev, asking to order the respective authorities to secure Russia's national interests by assisting the Presidential Control Directorate in their inspection (ref. A8-6296-5 dated 02.11.2010) of the unprecedented premeditated bankruptcy of Atommash OJSC. As a result, on 08.07.2011 President Medvedev issued a
Decree A decree is a legal proclamation, usually issued by a head of state (such as the president of a republic or a monarch), according to certain procedures (usually established in a constitution). It has the force of law. The particular term used ...
(ref. Pr-1948), ordering Prime Minister Putin to consider purchasing the facilities of Atommash so they can be managed by
Rosatom Rosatom, ( rus, Росатом, p=rɐsˈatəm}) also known as Rosatom State Nuclear Energy Corporation, the State Atomic Energy Corporation Rosatom or Rosatom State Corporation, is a Russian state corporation headquartered in Moscow that speciali ...
and at the same time ordering Rashid Nurgaliyev, Russia's Minister of Internal Affairs at the time, to conduct another verification of the bankruptcy of Atommash OJSC, as per the materials presented by the General Prosecutor's Office and take action as appropriate.


Modern period (2000-2012)

The restructured Atommash became multidisciplinary. The company started manufacturing technical equipment including single, one-of-a-kind items. For example, a 140-ton vehicle which lifts the rocket and puts it upright on a launcher was manufactured on Atommash for the
Sea Launch Sea Launch was a multinational—Norway, Russia, Ukraine, United States—spacecraft launch company founded in 1995 that provided orbital launch services from 1999–2014. The company used a mobile maritime launch platform for equatorial lau ...
project. In 2001, Atommash manufactured several items for the
Bushehr Nuclear Power Plant The Bushehr Nuclear Power Plant ( fa, نیروگاه اتمی بوشهر) is a nuclear power plant in Iran south of Tehran ( southeast of the city of Bushehr), between the fishing villages of Halileh and Bandargeh along the Persian Gulf. Con ...
, including the footing for the reactor and four 82-ton water tanks. Since 2002 the facilities are utilized for mass production of
gas turbine A gas turbine, also called a combustion turbine, is a type of continuous flow internal combustion engine. The main parts common to all gas turbine engines form the power-producing part (known as the gas generator or core) and are, in the directio ...
s for small capacity CHP plants (up to 36 MW). By 2003, the number of employees on the company shrunk to 4,300 with the volume of output of 1.4 billion rubles. In 2004, the company's management announced a four-fold reduction in output for nuclear energy and the orientation of the main production to consumers in the gas industry. In 2009 Atommash re-initiated the manufacturing of equipment for nuclear power plants. In his interview of May 2006, Sergey Kiriyenko, the head of State nuclear energy Corporation Rosatom, said that Rosatom is interested in employing the capacities of Atommash for the needs of Russian nuclear industry. ''"If the plant can and wants to return to the nuclear power industry, we are ready to discuss the matter. We can also promote the process by making direct contracts with Atommash, creating a joint venture and singling out its nuclear division. Any forms would be acceptable."'', said Kiriyenko.BBC Monitoring Central Asia - "Queuing for atom", Yuzhnyy Reporter - 17.04.2006
In May 2010, VTB bank (Russia, Moscow) filed a petition with the court, asking to initiate bankruptcy proceedings against "Energomash-Atommash" LLC. As per the petition, the company's debt the Bank is 356,5 million rubles (about $12 mln). The total debt of Energomash Group to VTB exceeds 1 billion rubles ($30 million). The total debt of Energomash Group to all Russian banks combined is estimated at nearly 30 billion rubles ($1 billion). Liquid assets, primarily, production facilities of "Energomash-Atommash" LLC were transferred to a new legal entity - "Energomash-Atommash" JSC. On 18.10.2011 Deputy of the Russian State Duma Anatoly Lisitsyn appealed to Russian President Dmitry Medvedev (ref. LIS-1676/GD)A letter of the Deputy of Russian State Duma Anatoly Lisitsyn to President Dmitry Medvedev - 18.10.2011(translation)
asking to support the proposal of YACONTO LLC, the legal successor of Concern YACONTO JSC and the
majority shareholder A shareholder (in the United States often referred to as stockholder) of a corporation is an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the legal own ...
of Atommash OJSC, to restore the status quo of Atommash OJSC through the implementation of the so-called "Project-A" or an alternative option. In his reply from 06.04.2012 №1-13/12160 to the letter that YACONTO LLC sent to
President of Russia The president of the Russian Federation ( rus, Президент Российской Федерации, Prezident Rossiyskoy Federatsii) is the head of state of the Russian Federation. The president leads the executive branch of the federal ...
Dmitry Medvedev on 27.02.2012 (ref. №120227-А01),A letter from YACONTO LLC, the majority shareholder of Atommash, to Russian President Dmitry Medvedev №120227-А01 of 27.02.2012translation
the Deputy Chief of
Rosatom Nuclear Energy State Corporation Rosatom, ( rus, Росатом, p=rɐsˈatəm}) also known as Rosatom State Nuclear Energy Corporation, the State Atomic Energy Corporation Rosatom or Rosatom State Corporation, is a Russian state corporation headquartered in Moscow that special ...
Kirill Komarov says that Rosatom shares the shareholder's concern about the current state of Atommash, since the facilities of the latter, still one of the biggest power engineering companies in Russia, are being used for the production of equipment for the nuclear industry. The letter of Rosatom also indicates that "Project-A" is within the competence of the Federal Agency for State Property Management (Rosimushchestvo), since, according to the Decree of the Russian Government №432 of 05.06.2008, Rosimushchestvo is responsible for protection of legitimate interests of Russian Federation when it comes to state property management. The Investigative Committee of Russian Ministry of the Interior instituted
criminal proceedings Criminal procedure is the adjudication process of the criminal law. While criminal procedure differs dramatically by jurisdiction, the process generally begins with a formal criminal charge with the person on trial either being free on bail or i ...
against Alexander Stepanov, the owner of Energomash Corporation and former bankruptcy Referee of Atommash OJSC. Stepanov is charged with fraud with a commercial loan issued by
Sberbank PJSC Sberbank (russian: Сбербанк, initially a contraction of russian: сберегательный банк, translit=sberegatelnyy bank, lit=savings bank, link=no) is a Russian majority state-owned banking and financial services compa ...
in the amount of 12.7 billion rubles (nearly USD $413 million).
Criminal prosecution A prosecutor is a legal representative of the prosecution in states with either the common law adversarial system or the civil law inquisitorial system. The prosecution is the legal party responsible for presenting the case in a criminal trial ...
against Alexander Stepanov was triggered by a personal Statement from German Gref, the CEO & President of
Sberbank PJSC Sberbank (russian: Сбербанк, initially a contraction of russian: сберегательный банк, translit=sberegatelnyy bank, lit=savings bank, link=no) is a Russian majority state-owned banking and financial services compa ...
. After the investigation, the case was transferred to a Presnensky court of Moscow (Case №1-149 / 2012, art.30 p. 3, art.159 p. 4 of the Criminal Code of Russia - large-scale fraud and attempted crime). Charges in fraudulent bankruptcy of Atommash OJSC, however, were not brought in this criminal case. As Alexander Stepanov told his defense attorneys, his arrest (which took place on 01.02.2011)ITAR-TASS News Agency - Former Energomash holding director sentenced - 31.10.2012
/ref> was preceded by several business meetings with representatives of Sberbank. Each meeting was accompanied by extortion and threats to have Stepanov arrested if he does not fulfill the requests of the extortionists within a month. Stepanov claims that representatives of Sberbank and German Gref personally demanded 100 million U.S. dollars in cash and a 75% share in the Energomash holding, in exchange for cessation of persecution. On top of that, says Stepanov, he was expected to "donate" several assets to Sergey Kiriyenko - the Head of State Corporation "Rosatom" - personally. The above gave Stepanov a reason to announce that the loan issued by Sberbank to Energomash Group was, in fact, a cunning attempt to obtain the unparalleled industrial facilities of Atommash OJSC by arresting his property, the market value of which is several times greater than the commercial loan he took from Sberbank. At the official proposal of State Corporation for Nuclear Energy "Rosatom" regarding restoration of the status quo of Atommash OJSC through the implementation of Project-A, YACONTO LLC has sent two Statements to the Federal Agency for State Property Management ("Rosimuschestvo") (out. №120614-A01 from 14.06.2012 and №120702-A01 from 02.07.2012). In particular, the said Statements imply that the implementation of Project-A will restore the status quo of Atommash OJSC and bring back 30% of its shares to the State, ensure payment of all its debts to third parties and oblige the guilty party to compensate for the inflicted damage. The State will accumulate the
controlling stake A controlling interest is an ownership interest in a corporation with enough voting stock shares to prevail in any stockholders' motion. A majority of voting shares (over 50%) is always a controlling interest. When a party holds less than the major ...
in Atommash OJSC by exchanging the 28.5% interest owned by YACONTO LLC for property agreed with investors and partners. The interest accumulated by the State in Atommash OJSC and other assets, obtained as compensation for the damage dealt to Atommash, may be transferred to an appropriate
trust Trust often refers to: * Trust (social science), confidence in or dependence on a person or quality It may also refer to: Business and law * Trust law, a body of law under which one person holds property for the benefit of another * Trust (bus ...
authorized by the State to carry out the development of nuclear engineering and to implement socio-economic programs in Russia and abroad. As per the Statements, the implementation of "Project-A" will correspond to the interests of nearly all opposing parties, through settlement of conflicts, disputes, claims, by means of a
know-how Know-how (or knowhow, or procedural knowledge) is a term for practical knowledge on how to accomplish something, as opposed to "know-what" (facts), "know-why" (science), or "know-who" (communication). It is also often referred to as street smar ...
framework.Website of YACONTO company - news of 02.07.2012
YACONTO LLC appealed to Russian President Vladimir Putin with a Statement (out. №120815-А01 of 15.08.2012), openly published on www.yaconto.com. The grounds for addressing the Guarantor of
Constitution of Russia The Constitution of the Russian Federation () was adopted by national referendum on 12 December 1993. Russia's constitution came into force on 25 December 1993, at the moment of its official publication, and abolished the Soviet system of gov ...
were set by replies sent by Rosimuschestvo (out. №DP-13/26669 of 13.07.2012 and out. №13/30986 of 03.08.2012), in response to Statements of YACONTO LLC (out. №120614-A01 of 14.06.2012 and out. №120702-A01 of 02.07.2012) regarding restoration of the status-quo of Atommash OJSC through the implementation of Project-A. The reply received from the
North Caucasian Federal District North Caucasian Federal District (russian: Се́веро-Кавка́зский федера́льный о́круг, ''Severo-Kavkazsky federalny okrug'') is one of the eight federal districts of Russia. It is located in extreme southern Ru ...
Headquarters of the Investigative Committee of Russia (out. №301/23-4686-12 of 05.09.2012), which speak of inspections of the premeditated bankruptcy of Atommash OJSC carried out by the branches of the Russian Ministry of Interior and General Prosecutor's Office in Rostov region, prompted YACONTO LLC to address Vladimir Putin with a Complaint (out. №120924-А01 of 24.09.2012). Disappearance of YACONTO LLC's Statement (out. №120815-А01 of 15.08.2012), addressed to Russian President Vladimir Putin personally, from the Presidential Administration of Russia, and the 3 (three) letters from federal authorities, became a reason for YACONTO LLC to appeal to the Russian President once again (out. №121009-A01 of 09.10.2012) with extended information about the activity of corrupt officials, involved in the bankruptcy of Atommash OJSC. On 29.10.2012 Moscow's Presnenskiy district court sentenced the former director of the Energomash group Alexander Stepanov to 4.5 years in prison at the lawsuit from Sberbank of Russia, finding him guilty of attempted 12-billion-ruble fraud and exceeding his authority. This, however, did not prevent the
Saint Petersburg Saint Petersburg ( rus, links=no, Санкт-Петербург, a=Ru-Sankt Peterburg Leningrad Petrograd Piter.ogg, r=Sankt-Peterburg, p=ˈsankt pʲɪtʲɪrˈburk), formerly known as Petrograd (1914–1924) and later Leningrad (1924–1991), i ...
-based Engineering Company AEM-technology JSC (a subsidiary of
Atomenergomash Atomenergomash (AEM) (russian: Атомэнергомаш) is a power engineering Russian company. Аtomenergomash JSC (AEM Holding company, AEM, Group) is a Russian power engineering company, a supplier of products for nuclear and thermal power ...
, a part of the Rosatom State corporation) from leasing the production assets of the former Atommash OJSC. Russia's target of 23% of country's electricity to be generated by nuclear power plants by 2020, as well as works under existing (not including future) contracts for construction of NPPs for different countries, proved to be too ambitious and hardly feasible without the facilities of Atommash. Lease of the production facilities which used to belong to Atommash OJSC, transferred to EMK-Atommash JSC after the bankruptcy of the former, and then again to "Energomash-Atommash" LLC (part of Mr. Stepanov's Energomash Group) appears strange, considering the fact that Stepanov was jailed for large-scale fraud committed in Russia and abroad. The
Federal Antimonopoly Service The Federal Antimonopoly Service of Russia (FAS) (russian: Федеральная антимонопольная служба России, ФАС России) is the federal-level executive governmental organ that controls the execution of the ...
of Russia (FAS), by its decision of October 16, met the petition filed by the Engineering Company AEM-technology regarding the acquisition for temporary ownership and use under a lease contract of up to 100% of fixed production assets of Atommash. Production of modern high-tech equipment for development of nuclear industry around the world will be facilitated by Atomenergoprom JSC and the French corporation Alstom as a joint venture "Alstom-Atomenergomash" LLC (JV AAEM) on the premises of Atommash OJSC, leased by State Corporation Rosatom in late 2012. The joint venture "Alstom - Atomenergomash" was established back in 2007 but did not have sufficient industrial capacity with respective infrastructure; State Corporation Rosatom was not able to provide those either. Thus, unique capacities of the former Atommash OJSC and its developed infrastructure found themselves in high demand in Russia which carries out a long-term large scale program for mass manufacturing of high-end goods for nuclear engineering for Russian and foreign customers alike.


Operations

Being one of Russia's biggest industrial complexes and having 6 million m2 of production facilities, Atommash was equipped with unique imported modern equipment, over 80% of which was purchased in Germany, Japan, France, UK, Italy, Austria, Sweden, United States and other countries, from concerns like Italimpianti,
ESAB ESAB, ''Elektriska Svetsnings-Aktiebolaget'' ( en, Electric Welding Limited company), is an American Swedish industrial company. The ultimate parent company of ESAB is ESAB Corporation, a New York Stock Exchange listed (TickerESAB with its princ ...
,
Varian Associates Varian Associates was one of the first high-tech companies in Silicon Valley. It was founded in 1948 by Russell H. and Sigurd F. Varian, William Webster Hansen, and Edward Ginzton to sell the klystron, the first vacuum tube which could amplif ...
, Mannesmann AG. One of the early successes of Atommash was the manufacturing of a vacuum chamber
toroid In mathematics, a toroid is a surface of revolution with a hole in the middle. The axis of revolution passes through the hole and so does not intersect the surface. For example, when a rectangle is rotated around an axis parallel to one of its ...
al doughnut for the T-15 fusion reactor at the
Kurchatov Institute The Kurchatov Institute (russian: Национальный исследовательский центр «Курчатовский Институт», 'National Research Centre "Kurchatov Institute) is Russia's leading research and developmen ...
- at 6 meters high, 11 meters in diameter and 120 tons.Red Atom: Russia’s Nuclear Power Program from Stalin to Today - Paul R. Josephson, University of Pittsburgh Press, 2005
In addition to nuclear machinery equipment, Atommash was capable of producing over 1000 kinds of products. Those types of products included, but were not limited to: non-standard metal equipment of large sizes, various metal containers for energy systems (heat-, hydro-, wind power), metallurgical,
mining Mining is the extraction of valuable minerals or other geological materials from the Earth, usually from an ore body, lode, vein, seam, reef, or placer deposit. The exploitation of these deposits for raw material is based on the economic ...
, oil and gas production and processing systems, including ready for use plants for deep processing of
petroleum Petroleum, also known as crude oil, or simply oil, is a naturally occurring yellowish-black liquid mixture of mainly hydrocarbons, and is found in geological formations. The name ''petroleum'' covers both naturally occurring unprocessed crud ...
and its residual fractions on the basis of cleaner technologies and processes, compact mini oil refineries with a capacity of 50 to 500 thousand tons per year, mini-factories for recycling and processing of by-products and
waste oil Waste oil is defined as any petroleum-based or synthetic oil that, through contamination, has become unsuitable for its original purpose due to the presence of impurities or loss of original properties. Differentiating between "waste oil" and "use ...
, equipment for the construction industry, including equipment for
launch pad A launch pad is an above-ground facility from which a rocket-powered missile or space vehicle is vertically launched. The term ''launch pad'' can be used to describe just the central launch platform ( mobile launcher platform), or the entir ...
s for missiles and
spacecraft A spacecraft is a vehicle or machine designed to fly in outer space. A type of artificial satellite, spacecraft are used for a variety of purposes, including communications, Earth observation, meteorology, navigation, space colonization, p ...
, for sea water desalination plants, containers for transportation and disposal of
nuclear waste Radioactive waste is a type of hazardous waste that contains radioactive material. Radioactive waste is a result of many activities, including nuclear medicine, nuclear research, nuclear power generation, rare-earth mining, and nuclear weapons ...
, railroad tank cars for transportation of liquid gas, biomass, biomass energy units for reprocessing of agricultural and animal breeding waste into environmentally clean, high-quality fertilizers and methane, etc.A letter from Russian Ministry of Atomic Energy to a foreign investor of 21.01.1997 (translation)
Prior to the Chernobyl disaster, Atommash manufactured more than 100 units of high-tech equipment for Nuclear power plant, NPPs, including 14 VVER, VVER-1000 reactors, 5 of which never left the plant's warehouse. During the bankruptcy of Atommash OJSC these reactors have been transferred to EMK-Atommash JSC (see "Bankruptcy of 1995-1999" section) at dramatically lowered net book value. In a few years, some of those items and their components became a subject of investigation in the Arbitration court of Rostov region, during mutual lawsuits between EMK-Atommash JSC and the Energoatom, National nuclear energy generating company Energoatom under Case №A53-21263/2005 (the claimed value of those goods was several times higher this time), followed by an appellate to the Federal Arbitration Court of the
North Caucasian Federal District North Caucasian Federal District (russian: Се́веро-Кавка́зский федера́льный о́круг, ''Severo-Kavkazsky federalny okrug'') is one of the eight federal districts of Russia. It is located in extreme southern Ru ...
, Case №A53-4049/2006, which was concluded with an according Resolution dated 23.03.2010. Atommash was capable of producing equipment and products with a wall thickness of , diameter up to , length up to and weight up to 1000 tons. Atommash practiced electron beam welding, automatic welding in narrow cutting, automatic welding of nozzles, welding of large-sized products with wall thickness up to . It possessed high-end equipment for heat treatment, welding, non-destructive testing (NDT), laboratories for exceptionally complex material testing and test facilities for finished products. Atommash exported its production to Germany, United States, France, China, Japan, India, Singapore, Bulgaria, Greece, Turkey, Iran, Cuba, Indonesia and others. The company has its own heavy duty mooring berth on
Tsimlyansk Reservoir Tsimlyansk Reservoir or Tsimlyanskoye Reservoir (russian: Цимля́нское водохрани́лище) is an artificial lake on the Don River in the territories of Rostov and Volgograd Oblasts at . Completed in 1952, the reservoir ...
, which allowed shipping bulky and heavy products, which used to be a natural advantage of Atommash over its domestic competition. The quality of items produced by Atommash has been confirmed by an international certificate issued by ASME (American Society of Mechanical Engineers). In 2009 Atommash re-initiated the manufacturing of equipment for nuclear power plants. It is the Russia's monopolist for manufacturing of melt localization devices for nuclear power plants. The first nuclear reactor produced by Atommash after a 29-year long hiatus was a VVER-1200, for the Belarusian nuclear power plant. According to press reports, it took 840 days (2 years and 4 months) to build the reactor; it was shipped from Atommash on October 14, 2015. After being transported by barge over the
Tsimlyansk Reservoir Tsimlyansk Reservoir or Tsimlyanskoye Reservoir (russian: Цимля́нское водохрани́лище) is an artificial lake on the Don River in the territories of Rostov and Volgograd Oblasts at . Completed in 1952, the reservoir ...
, the Volga-Don Canal, the Volga–Baltic Waterway, and the Volkhov River to Novgorod, the reactor was then shipped by a Schnabel car, special rail car to Belarus. Some of the products currently manufactured by Atommash are: refueling equipment and manipulators, spent fuel storages (dry and wet), depleted uranium Radiation protection, shielding, lead shielding, Surface condenser, condensers, Crane (machine), cranes and lifting equipment, specialised doors, heat exchangers, large ferrous components, pool water purification systems, pressure vessels, storage tanks, pumps, valves, nuclear steam supply systems, pressurizers, reactor control rods, drives and mechanisms, reactor internals, reactor pressure vessel seals, containers/casks handling equipment, hydraulic integrated circuits, packaging design and engineering and more.


Ownership

After privatization, Atommash was a joint-stock company; 30% of the shares were controlled by the state. The remaining 70% interest belonged to private persons and companies. Concern YACONTO JSC (an industrial conglomerate headquartered in Moscow) was the second largest shareholder of Atommash OJSC after the State itself, holding 28.5% shares as of 1997. The Board of Directors included 9 members. Since 2012, Atommash plant is a part of Atomenergomash, the Rosatom's machine building division.


Interesting facts

* Alexey Ulesov, Twice Hero of Socialist Labour (USSR), Hero of Socialist Labour of the USSR, the famous innovator, used to work on the construction of Atommash as a welder. In his radio interview, Ulesov mentioned, inter alia, that the construction of the automobile giant AvtoVAZ required 11 cubic meters of concrete per each basement column of production sites; construction of KAMAZ - 23 cubic meters, whereas the construction of ATOMMASH - as much as 760 cubic meters of concrete per single column. Comparison of these figures clearly demonstrates the magnitude of nuclear engineering giant Atommash, one of the largest construction projects of the USSR of the 20th century.Alexey Ulesov's radio interview - podcast (in Russian)
* Vladimir Vinogradov, an oligarchy, oligarch who was ranked 12th in the list of the top 20 richest Russians in 1996, worked on Atommash as a construction engineer from 1979 until 1985. * In 1987 the Plakat publishing house (USSR, Moscow) published a book ''YA - ATOMMASH'' (''I am Atommash'') in 25,000 copies. A well-illustrated 176-page book describes the construction of Atommash, its production activity and its influence on the socio-economic life of the Volgodonsk city and Rostov region. A copy of the ''YA - ATOMMASH'' book is available at the Library of Congress, code DK651.V557 , 18 1987.


Extra materials


A booklet about Atommash OJSC (1993) - in English

An Atommash photo gallery: 30+ photos from 1987-2012


Gallery


References

{{Rosatom Technology companies established in 1973 1973 establishments in Russia Engineering companies of Russia Nuclear technology companies of Russia Companies based in Rostov Oblast Rosatom Nuclear technology in the Soviet Union Manufacturing companies of the Soviet Union