published by WISE News Communique on March 23, 2001

Russia: Adamov accused of corruption


Evgeni Adamov, the Russian Minister for Nuclear Power, has been the subject of an investigation by the State Duma (parliamentary) anti-corruption commission. Adamov is alleged to have had private business interests while working for the nuclear power ministry Minatom, which is forbidden for Minatom employees, and continued these when he was appointed as a minister, which is forbidden under the Russian penal code.

(545.5261) WISE Amsterdam - The report was presented at a closed session of the anti-corruption committee on 20 February, but was not made public until 2 March, when it was made public by Greenpeace Moscow. It documents dozens of private business activities carried on by Adamov since the early 1990's. It lists ten companies set up by Adamov since 1990, two of which were set up after he became Minister in 1998. As well as Russian companies, the list includes one French and three US companies.

In one of these companies, Omeka Ltd., Adamov controlled US$3.15 million of the company's US$5 million in assets at the end of 1999, and his wife controlled a further US$1.5 million. According to Greenpeace Moscow, this consulting and management company has current contracts with Tekhsnabexport, the wholly owned import arm of Minatom, and stands to benefit from imports of spent fuel. Greenpeace speculated that this was the real reason why the Duma decided on 22 February - two days after the anti-corruption committee meeting - to delay the second reading of the law amendments allowing import of spent fuel (see WISE News Communique 544.5254, "Duma delays decision"). This was denied by Minatom and others.

DUMA DELAYS DECISION AGAIN
The Russian Duma voted on 22 March by 339 votes to 10 to postpone indefinitely the second reading of the bill that would allow foreign nuclear waste to be imported. The Duma environmental committee is expected to reconsider the proposals, but not before the end of April. Crucial for the postponement was the support of the pro-Kremlin Unity faction, which according to sources considered that the image of Russia had already been tarnished by recent events such as Mir falling to earth, and so this was not the right time to decide on nuclear waste imports.
Source: WISE Kaliningrad (ecodefense@ecodefense.ru)

Omeka's activities are not just limited to consultancy in the nuclear field. According to the report, Omeka bought a US$200,000 house for Adamov in the US State of Pennsylvania and opened a US$250,000 bank account in Switzerland, where Adamov's daughter attends university in Bern. The company owns stock in a housing services company in Pennsylvania and a medical services company in Michigan, plus other investments in Russia and Ukraine. Omeka also provided US$34,000 worth of flooring to NIKIET, the secret energy technologies institute headed by Adamov from 1986 to 1999, and continues to provide US$50,000 a year of computer equipment to the institute.

Other Adamov companies including the US-based Energy Pool, Inc. and the Russian real estate company Logic Realty, based at the same address as NIKIET, were also involved in transferring hundreds of thousands of US dollars for Adamov and other Minatom officials, according to the report.

Besides the allegations of financial benefits, Adamov was also accused of appointing people with no nuclear experience to key positions in the ministry. Some of these people were listed as shareholders of Adamov's companies before he became Minister.

Further allegations concern Adamov's handling of international contracts. Under Adamov's direction in 1996, NIKIET signed a contract with Iran to assess plans for a nuclear facility in violation of regulations, according to the report. These allegations come on top of Adamov's support for supplying reactors to India (see WISE News Communique 539.5225, "Pakistan, India: New nuclear weapons race?") which would be in violation of the Non-Proliferation Treaty.

MORE CASH FOR EURATOM?

Before the end of March the European Commission will discuss and most probably recommend to the Council of Ministers of Finance (ECOFIN) a proposal to increase the lending ability of Euratom.
In March 1977 the Council of the European Communities agreed on "empowering the Commission to issue Euratom loans for the purpose of contributing to the financing of nuclear power stations".
Initially this was restricted to nuclear facilities inside the European Union with a ceiling of 500 million Euros (US$442 million). As funds were used the ceiling was extended and currently stands at 4,000 million. Euratom has, including the two loans signed in 2000 (Kozloduy, Bulgaria and K2/R4, Ukraine) awarded 3,696 million Euros which is very close at the trigger level of 3,800 million Euros at which the commission must present the Council with a revised request.
In parallel to the imminent discussions on re-funding the Euratom facility for loans it is possible that a discussion will take place on broadening the type of projects which the loans could be used for (MOX production facilities in Russia and maybe even non-nuclear projects.)
The final recommendation on the increasing of the loan ceiling must be approved by the Commission as a whole and will then be submitted to the ECOFIN where a unanimous approval will be necessary.
And that's where it becomes interesting; if just one EU country rejects the proposal the Euratom budget for upgrading risky plants and building new ones could be blocked, at last giving a chance to finally thoroughly discuss the aims and purposes of the Euratom loan facility.

People and organizations within the EU interested to be of help in putting pressure on their Minister of Finance should contact Patricia Lorenz, at FOE Europe, Rue Blanche 29, 1060 Brussels, Belgium
Tel.: +32 2 542 01 84, Fax.: +32 2 537 55 96,
Email: patricia.lorenz@foeeurope.org
Website:www.foeeurope.org

Minatom rejected the allegations. "Some groups want to shake up the government, which supports the program of importing foreign spent fuel to Russia", Minatom representatives said. Allegations of corruption have been made before and denied by Adamov, who stated in the Duma on 23 April 1999 that he had never received any business revenues on his private bank account since becoming Minister. By comparison, the report of the anti-corruption commission said that when Adamov applied for a Diner's Club card in 1996, he stated his total annual income at over US$120,000. However, even if Adamov was correct in saying that he did not receive money through his private bank account, this does not invalidate the allegations involving money channeled through company bank accounts, or other benefits such as company-owned houses.

Tobias Muenchmeyer of Greenpeace International said, "Adamov has to be fired immediately and the activities of the Ministry of Atomic Energy must be investigated. Plans to import radioactive waste must be stopped when they come before the Duma on March 22".

It is not just environmental groups that are callling for Adamov to be fired. Adamov has many rivals including directors of Unified Energy Systems of Russia. He also made enemies by firing many top Minatom officials. Whether or not Adamov survives will therefore depend on the outcome of the power struggle within the Russian energy sector.

Sources:

  • Greenpeace press release, 2 March 2001
  • The Moscow Times, 5 March and 6 March 2001
  • Bellona, 7 March 2001

Contact:Bellona Foundation, P. O. Box 2141 Grunerlokka, 0505 Oslo, Norway
Tel: +47 23 23 46 00. Fax: +47 22 38 38 62.
Email info@bellona.no
Web: www.bellona.no


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