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Viewing cable 08TALLINN431, ESTONIA: RESPONSE TO CIVIL-NUCLEAR WORKING

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Reference ID Created Released Classification Origin
08TALLINN431 2008-12-17 14:51 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Tallinn
VZCZCXRO8648
RR RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG
DE RUEHTL #0431/01 3521451
ZNR UUUUU ZZH
R 171451Z DEC 08
FM AMEMBASSY TALLINN
TO RUEHC/SECSTATE WASHDC 0968
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
UNCLAS SECTION 01 OF 03 TALLINN 000431 
 
SIPDIS 
SENSITIVE 
 
STATE FOR EUR/NB AND T (MARC HUMPHREY) 
COMMERCE FOR SARAH LOPP AND ITA LEAH MARKOWITZ 
ENERGY FOR MICHAEL APPICELLI 
 
E.O. 12958: N/A 
TAGS: ENRG TRGY BEXP BTIO KGHG PREL PGOV EN
SUBJECT: ESTONIA:  RESPONSE TO CIVIL-NUCLEAR WORKING 
GROUP QUESTIONS 
 
REF: STATE 127423 
 
ΒΆ1. (SBU) Embassy Tallinn's responses below are keyed 
to questions in reftel.  Questions are repeated below 
for ease of reading.  POC for follow-up questions is 
Economic Officer Rob Hollister, Jr. at 
hollisterrm@state.gov, tel. +372 668 8107. 
 
-- Describe any plans for the development of nuclear 
power in your country.  Also, describe any existing or 
planned nuclear power related facilities in your 
country, such as uranium mining, if any.  Do you 
foresee an expansion of these facilities? 
 
The Prime Ministers of Estonia, Latvia and Lithuania 
agreed in 2006 (the Trakai Communique) to partner on 
building a new nuclear power plant (NPP) to replace 
the Ignalina plant at Visaginas, Lithuania.  The NPP 
was supposed to be in operation by 2015, but little 
progress has been made in implementing the project 
(which now also includes Poland).  Recently, in public 
discussions, GOE officials and other opinion leaders 
have advocated in favor of Estonia building its own 
NPP.  However, there has been no government decision 
on this yet. 
 
The company Silmet was established in 1946 for the 
production of uranium oxides.  Silmet developed a 
process for extracting uranium from black shale, which 
is widely available in Estonia.  It became the largest 
phosphate-uranium operation in the former Soviet Union 
and the site where uranium for the Soviet Union's 
first nuclear weapon was refined.  In 1990, Silmet 
stopped refining uranium and there have been no 
discussions on restarting the refining. 
 
-- If your country is considering the pursuit of 
nuclear power, describe the underlying motivations 
(e.g., current or anticipated power shortages, energy 
security, or other industrial uses, such as 
desalination) 
 
Estonia has a large domestic supply of oil shale. 
This fuel is used in two power plants in eastern 
Estonia which produce enough electricity to meet 
domestic demand and for export. Production of 
electricity using oil shale will become more expensive 
as Estonian's allocation of "free" CO2 emission quotas 
from the EU diminishes to zero by 2020.  In 
preparation for this, the GOE is actively assessing 
alternate energy sources, including nuclear power.  An 
alternative to nuclear power would be gas, but Estonia 
wants to avoid importing more gas for reasons of 
energy security.  (Note:  Estonia imports of all the 
gas it currently uses from Russia.) 
 
-- If there are plans to pursue nuclear power, 
describe the anticipated government role in the 
financing of its civil nuclear sector.  For example, 
does the government plan to provide subsidies, tax 
breaks, loan guarantees, or other financial 
incentives?  Would some or all nuclear power plants be 
state-owned and operated?  Would you seek financing 
from international investment banks and organizations 
or consortium arrangements? 
 
In 2009, the GOE is scheduled to formally approve its 
draft energy strategy for the period 2008-2018.  The 
plan includes several scenarios for nuclear 
electricity production, including through 
participation in a regionally-based power plant (e.g. 
in Lithuania) or building a plant in Estonia.  No 
decisions on financing have been made.  In 2009, the 
GOE is also slated to begin drafting legislation that 
will govern the use and control of nuclear power in 
Estonia. 
 
-- What are the names and titles of the key nuclear 
decision making government bodies and top officials? 
 
Einari Kisel, Deputy Secretary General of Energy, 
Ministry of Economy and Communication 
 
Andres Tropp, Head of the Nuclear Energy Department, 
Eesti Energia (state-owned energy company) 
 
TALLINN 00000431  002 OF 003 
 
 
 
-- Does your country have an existing nuclear 
regulatory authority?  What are its 
inspection/enforcement powers?  If so, how large is it 
(i.e., how many people does it employ)? If not, are 
there plans to establish such an authority? 
 
Estonia does not have a nuclear regulatory authority. 
However, the GOE has acknowledged the need to 
establish one in the future (if/when the GOE decides 
to build a nuclear power plant in Estonia.) 
 
-- Does your country have a domestic nuclear liability 
law? If so, please summarize its major elements.  In 
particular, is there a minimum level of required 
liability coverage required for operation?  If your 
country is not party to an international liability 
regime, is there any consideration being given to 
joining one?  If so, which international liability 
regime (Vienna Convention, Paris Convention, 
Convention on Supplementary Compensation for Nuclear 
Damage) is being considered. 
 
Estonia does not have a domestic nuclear liability 
law. 
 
-- Is the manufacturing base in your country 
(including high- tech components and heavy industry) 
involved in nuclear- related products or services? 
Does it seem likely that any components or contracting 
services for new plants could be sourced locally, or 
would the majority of these need to be imported? 
 
Currently the manufacturing base is not involved in 
nuclear-related products but there are companies which 
were involved in nuclear related products and services 
during the Soviet era. Estonia's manufacturing base 
has some experience in nuclear- related services, 
having recent success cleaning up Soviet-era 
radioactive waste storage. 
 
-- How extensive is your country's nuclear-trained 
workforce? Does your country have a significant 
engineering, technician and construction base that 
could be readily converted into a nuclear workforce 
(e.g., engineers, high precision manufacturing, robust 
quality assurance programs, high-quality 
construction)?  Will the development of civil nuclear 
power require a significant foreign workforce?  Are 
programs in place, or being developed, for training of 
domestic personnel 
(e.g., in skilled trades and nuclear regulation)? 
 
It is unlikely that development of civil nuclear power 
in Estonia will require a significant foreign 
workforce.  There is already a limited (less than 100) 
nuclear-trained workforce, with experience primarily 
in the area of managing nuclear waste.  Estonia would 
need approximately 250 skilled workers if the GOE 
moves to build a local NPP.  Estonia's energy strategy 
identifies the need to establish training and 
retraining programs for domestic personnel. 
 
Opportunities for U.S. Industry 
------------------------------- 
 
-- Does your country have any current or anticipated 
nuclear- related tenders?  If so, please describe the 
tender/selection process for new contracts, its 
timing, and indicate any U.S. firms considering 
bidding. 
 
At present, there are no nuclear-related tenders. 
However, in November 2008, Eesti Energia joined the 
reactor development program called IRIS, led by 
Westinghouse Electric Company.  Eesti Energia did this 
to signal to Westinghouse that there is a potential 
interest in IRIS reactors for Estonia. 
 
-- What nuclear sector opportunities do you foresee 
for U.S. industry (e.g., feasibility studies or other 
consulting services, plant construction management, 
reactor sales, fuel cycle service provision, plant 
operations, waste management, or logistics)? 
 
 
TALLINN 00000431  003 OF 003 
 
 
Feasibility studies or other consulting services 
related to the building and operation of a nuclear 
power plant, reactor sales, and waste management are 
areas of opportunity for U.S. industry.  In January 
2009, officials from the Estonian Ministry of 
Environment will meet with the U.S. Department of 
Energy to discuss nuclear waste management safety. 
 
-- If applicable, what are the primary companies 
(domestic and foreign) involved in (or considering 
involvement in) your country's civil nuclear sector? 
Please include utilities, plant operators, fuel cycle 
service providers, technology vendors, and major 
construction or consulting firms. 
 
Estonia does not have a civil nuclear sector.  Eesti 
Energia (the state-owned energy company) has currently 
the best outlook for developing this capacity. 
 
Foreign Competitors 
------------------- 
 
-- Are there other nuclear supplier countries engaging 
your country?  Please describe any available details 
on formal agreements including existing or potential 
(1) MOUs on nuclear cooperation; (2) legal frameworks 
for nuclear commerce; or (3) arrangements for 
technical or information exchanges. 
 
The Prime Ministers of Estonia, Latvia and Lithuania 
agreed in 2006 (the Trakai Communique) to partner on 
building a new Power Plant to replace the Ignalina 
plant at Visaginas, Lithuania.  The plant was supposed 
to be in operation by 2015, but little progress has 
been made in implementing the project.  Lithuania 
later invited Poland to join the project. 
 
-- Are there any political considerations your country 
may take into account when choosing to cooperate with 
competing nuclear supplier states? 
 
Estonian energy plans are driven by the goals of 
ensuring a diverse energy supply in the long term. 
For legal, regulatory and political reasons, the GOE 
prioritizes cooperate with other European Union member 
states. 
 
DECKER