Zio-Podolsk Scandal – Save Our Souls Part – 3 #nuclear


Rosatom-owned company accused of selling shoddy equipment to reactors at home and abroad, pocketing profits

CharlesDigges, 28-02-2012

Russian Federal Prosecutors have accused a company owned by the country’s nuclear energy corporation, Rosatom, with massive corruption and manufacturing substandard equipment for nuclear reactors under construction both at home and abroad.

The ZiO-Podolsk machine building plant’s procurement director, Sergei Shutov, has been arrested for buying low quality raw materials on the cheap and pocketing the difference as the result of an investigation by the Federal Security Service, or FSB, the successor organization to the KGB.

It is not clear how many reactors have been impacted by the alleged crime, but reactors built by Russia in India, Bulgaria, Iran, China as well as several reactor construction and repair projects in Russia itself may have been affected by cheap equipment, given the time frame of works completed at the stations and the scope of the investigation as it has been revealed by authorities.

“The scope of this scandal could reach every reactor in Russian and every reactor built by Russia over the past several years and demands immediate investigation,” said Bellona President Frederic Hauge. “Were is the political leadership in the Russian government to deal with such a crime?”

Hauge expressed outrage that an alleged crime of such a massive scale was not leading to immediate action to check each reactor that may have been affected by the profit pocketing scheme, and he was frustrated that the FSB and prosecutors were not naming specific reactors that may be involved.

“As long as the Russian government is not investigating this case correctly, we will have to ask international society to do it,” he said.  “Bellona will be taking further action in this case.” Vladimir Slivyak, co-chair of Russia’s Ecodefense agreed.

“Stopping and conducting full-scale checks of reactors where equipment from ZiO-Podolsk has been installed is absolutely necessary,” said Slivyak. “Otherwise [there is] the risk of a serious accident at a nuclear power plant with cleanup bills stretching into the tens and even hundreds of millions of dollars [that] will have to be footed by taxpayers.”

The criminal case was opened against ZiO-Poldolsk in December, but information about the investigation was released in the Russia media via the official Rosbalt agency only last week –  a common circumstance in FSB-associated investigations.

The charges leveled against ZiO-Podolsk, which is Russia’s only manufacturer of steam generators for nuclear plants built by Rosatom domestically and by its international reactor construction subsidiary Atomstroiproyekt are a staggering blow to Rosatom’s credibility.

ZiO-Podolsk is a subsidiary organization of Atomenergomash, founded in 2006. Atomenergomash was acquired by Atomenergoprom, which is 100-percent state-owned, in 2007. Atomenergoprom is a part of Rosatom.

But the paperwork is rather a technicality for a machine works that has been involved with the nuclear industry since its inception. Founded in 1919, ZiO-Podolsk produced the boiler for the first electricity-producing nuclear reactor at Obninsk in 1952, and has produced the boilers for every Russian reactor built ever since.

A shudder in the environmental community

According to prosecutors, ZiO-Podolsk began shipping shoddy equipment in 2007 or perhaps even earlier. This has implications for the safety of nuclear power plants built by, or that bought equipment from, Rosatom in Bulgaria, China, India and Iran – as well as Russia – striking a chord of outrage and distress among environmental groups.

ZiO-Podolsk is also making critical parts for the reactor pressure vessel and other main equipment for the BN-800 fast reactor at Beloyarsk Nuclear Power Plant, in Russia’s Sverdlovsk Region in the Urals, a source told Bellona on the condition of anonymity.

The machine works giant is also making steam generators for Russia’s Novovoronezh, Kalinin, and Leningrad Nuclear Power Plants, and Belene in Bulgaria, according to the London-based World Nuclear Association.

The case assembled against ZiO-Podolsk involves embezzlement of state funding intended for purchases of raw material that are compatible with contemporary safety standards for nuclear reactors, Rosbalt reported.

The FSB investigation

According to the FSB investigation – which was described in unusual detail by the news wire – procurement director Shutov allegedly purchased low-grade steel for equipment in collusion with ZiO-Podolsk’s supplier AТОМ-Industriya. That company’s general director, Dmitry Golubev, is currently at large after embezzlement charges were filed against him by the same Moscow court that ordered Shutov’s arrest, Rosbalt quoted FSB sources as saying.

The scheme between Shutov and Golubev allegedly involved Shutov turning a blind eye to inferior quality steel in return for a large portion of the profits reaped by ATOM-Industriya, the FSB told Rosbalt, citing transactions that were accounted for in bookkeeping documents the security service said it confiscated from the financial director of ATOM-Industriya.

“This company purchased cheap steel in Ukraine and then passed it off as [a] more expensive [grade]; the revenues were shared by the scam’s organizers,” an FSB source was quoted by Rosbalt as saying.

FSB agents said that ATOM-Industriya produced some 100 million roubles’ (€2.5 million) worth of pipe sheets, reactor pit bottoms, and reservoirs for ZiO-Podolsk – equipment that was delivered to Russian and foreign reactors – including an order of so-called tube plates for high-pressure heaters at Bulgaria’s Kozloduy NPP. High-pressure heaters, while having no relation to the safe operation of reactors, are used to improve efficiency of power output.

Bulgarian plant expressing concern

When Rosbalt ran its detailed story last week, the management of Kozloduy NPP was quick to respond by releasing an early statement saying its two heaters had been “functioning flawlessly”  since their installation dates in 2010 and 2011.

A statement released 10 hours later that day carried by a different news agency, however, reported that Kozloduy NPP CEO Alexander Nikolov had sent off a letter to ZiO-Podolsk and Atomstroiexport demanding that they certify the quality of the metal in the heaters.

The FSB alleged to Rosbalt that the use of shoddy steel in the case of the heaters manufactured for Kozloduy NPP alone netted a black profit of 39 million roubles (€1 million) for ATOM-Industriya.

Detailed report likely true

Ecodefense’s Slivyak said he believed the Rosbalt report and its copious quotations from the typically secretive FSB to be on the level.

Aside from the suspicions raised by Kozloduy NPP, Slivyak also said that the Russian built Tianwan Nuclear Power Plant in China had previously complained to Rosatom with over 3,000 grievances regarding the low quality of materials delivered to construct the plant, lending credence to the FSB’s version of events.

Slivyak further noted the FSB, which functions as an attack dog for the government of Vladimir Putin, has nothing politically to gain by giving Rosatom – a pet corporation in Putin’s  “power vertical” – a black eye.

The week following Robalt’s article, Rosatom, which had previously refused comment, and Atomenergomash, released a bristling denial as interesting for what it does say as for what it leaves unsaid.

“Rosatom and Atomenergomash deny information related to substandard equipment at nuclear power station that was delivered by ZiO-Podolsk,” read the joint statement. The companies say that “all possible announcements about unsuitable production quality at ZiO-Podolsk are knowingly incorrect and mistaken.”

The statement continued, saying: “A stringent multi-layered system of quality control is in place at ZiO-Podolsk, encompassing all level of production: from expert evaluations of received materials and ores to final inspection of products. Evaluations of the compliance of equipment’s quality delivered to foreign nuclear power stations is carried out by the authorized organization OAO Zarubezhatomenergostroi.”

But the joint statement failed to contradict information supplied to Rosbalt by prosecutors concerning the arrests of upper-management officials at ZiO-Podolsk and ATOM-Industriya.

Two spokesmen for the FSB contacted by Bellona confirmed the version of events their colleagues described to Rosbalt, but refused to discuss “an ongoing investigation” further. They also refused to comment on what other nuclear power plants besides Kozloduy may have been affected by defective materials from ZiO-Podolsk.

http://www.bellona.org/articles/articles_2012/podolsk_corruption

https://kractivist.wordpress.com/2013/04/14/zio-podolsk-scandal-save-our-souls-part-1-nuclear/

https://kractivist.wordpress.com/2013/04/14/zio-podolsk-scandal-save-our-souls-part-2-nuclear/

https://kractivist.wordpress.com/2013/04/14/india-zio-podolsk-scandal-save-our-souls-part-4-nuclear/

 

Zio-Podolsk Scandal – Save Our Souls – Part 2 #Nuclear


Zio-Podolsk: The Complete Story

By- CharlesDigges

It all started on May 2, 1919 as the repair assembly plant called the Steam-Engine. Repair of locomotives was carried out until 1930. A total of 863 locomotives repaired.

In 1931, the plant was converted to KES – Cracking-electric locomotive and in the same year, in a record time (for 3 months and 25 days), produced the first Soviet cracking unit for the petrochemical industry. In those years, the company, except for crackers, produced narrow-gauge steam locomotives, railroad cars, industrial and mining locomotives locomotives, tubing for the Moscow metro, and many other products.

At the request of the workers on April 8, 1936 the plant was named commissar of heavy industry, and the plant was called Podolsk Engineering Plant named after Ordzhonikidze (ZIO).

In 1941 the factory ceased production of civilian products (part of the equipment along with the workers had been evacuated to the Urals), and all the facilities were transferred to large-scale production for the needs of the defense industry. The plant manufactured the case of grenades, anti-tank obstacles, repairing tanks and guns were equipped with armored combat aircraft IL-2.

In 1942, after the evacuation in Podolsk Taganrog Boiler plant, ZIO was carrying out repair of steam boilers, and then, in 1946, made the first steam boiler with the trademark “ZIO”. The plant has priority in the field of domestic quick steam generators, production of which began in the late 40’s. For 70 years, has produced over 700 boilers of different capacities and options for 152 domestic and foreign power plants with total capacity of over 66 million kW, including more than 16 million kWh for export.

Since 1952, starting with the construction of the world’s first nuclear power plant in Obninsk, the plant produced the most responsible of mechanical equipment for nuclear power plants. Equipment labeled “ZIO” installed on all nuclear power plants built in the Soviet Union. Foreign nuclear power plants with VVER-440 and VVER-1000 is also equipped with the equipment of the plant.

Since 2000, the plant is called of “Mashinostroitelnyyzavod” ZIO-Podolsk. ” Since 2007, the factory is a holding company “Atomenergomash” – power engineering division of the State Corporation “Rosatom”. The main customers include the State Corporation “Rosatom”, OAO “Gazprom”, and “Mosenergo.”

General manager:        Igor Kotov

Tel.: +7 (495) 747 25 October dob.2022
Fax: +7 (495) 747 25 October dob.2325
E-mail: zio@eatom.ru

Executive director :     Andrei Davydov, S.

Tel.: +7 (495) 747-10-02
Fax: +7 (495) 747-10-25 ext. 2325
E-mail: zio@eatom.ru

Chief engineer:                        Anatoly Rubtsov

Tel.: +7 (495) 747-10-25 ext. 2012
Fax: +7 (495) 747-10-25 dob.2325
E-mail: m.dragomir @eatom.ru

Director of Production: Sergeants Vladimir V.

Tel.: +7 (495) 747-10-25 dob.2004, +7 (4967) 65-42-89
Fax: +7 (495) 747-10-25 dob.2211
E-mail: ziopr@eatom.ru

Chief Technologist – Deputy Chief Engineer: Viktor Terekhov

Tel.: +7 (495) 747-10-25 ext. 2031
Fax: +7 (495) 747-10-25 ext. 2213
E-mail: ogt@eatom.ru

Director of Quality:    Lizunova Tatiana

Tel.: +7 (495) 747-10-25 ext. 2013
Fax: +7 (495) 747-10-23
E-mail: t.lizunova @eatom.ru

Purchasing Director:   Bruises Andrey

Tel.: +7 (495) 747 10 25 * 2002
Tel.: +7 (495) 747 May 10
Fax: +7 (495) 747 25 October 2170 *
E-mail: a.sinyakov@eatom.ru

Director of Development and Investment: Arkady V. Kuznetsov

Tel.: +7 (495) 747 25 October 2007 *
E-mail: av.kuznecov@eatom.ru

FSB looked into nuclear reactor, atom industry

As the “Rosbaltu,” the Investigative Committee of the Russian Federation is investigating the theft in the production of assemblies for nuclear power plants operating in Russia and abroad. According to the Russian Federal Security Service, the equipment for nuclear power plants was made from cheaper than normal steels, and the proceeds of fraud were divided among managers of several major companies of the nuclear industry. The Purchasing Director of Engineering Plant “ZIO-Podolsk” Sergei Shutov has been taken into custody.

As the “Rosbaltu” RF IC criminal case filed back in 2011 based on the Federal Security Service (into the theft of funds allocated by the state for the purchase of blanks for equipment for nuclear power plants). In December, in fact there were specific suspects. It is the leaders of the “Atom-Industry” (the supplier of products for the nuclear and power engineering) CEO Dmitry Golubev and Managing Director Olga Fedorova, as well as purchasing director of “Machine-Building Plant” ZIO-Podolsk “Sergei Shutov.” ZIO-Podolsk “- one of the largest Russian manufacturers of equipment for the nuclear industry (in particular, it supplies the machines for the nuclear power plants in Iran, India, Bulgaria and China ).

In the “Atom-industry” and “ZIO Podolsk” SK and the FSB raided, during which, according to a source in the security services agency, were seized documents showing that the misappropriation of funds of the nuclear industry have been put on stream. Believe in the RF IC, “Atom-Industry” supplied the blanks from cheaper brands of metal “ZIO-Podolsk,” and there are manufactured equipment for nuclear power plants. The plant on the poor quality of incoming goods “blind eye” Purchasing Director Sergei Shutov.

During a search of the “Atom-Industry” has been removed “black accounting”, hosted by Chief Financial Officer Diane Dmitrieva. The documents indicated that Shutov receive a share of profits received by JSC “Atom-industry” of large-scale fraud. The decision of the Basmanny Court of Moscow December 27, 2011 Sergei Shutov was arrested. He was charged under Section 4 of Article 159 of the Criminal Code (fraud on a large scale). Similar charges were brought against the leaders of the “Atom-industry”, and Dmitry Golubev – in absentia.

As explained by “Rosbalt” a source in the security services, “ZIO-Podolsk” since 2007, signed with JSC “Atom-industry” a series of agreements (the supply pipe plates, heads, shells, etc.) for a total amount of more than 100 million rubles. These blanks later used for the production of equipment supplied to the largest nuclear power plants in Russia and other countries. In particular, the tube sheets shipped “Atom-industry”, used in the production of high pressure heaters for the NPP “Kozloduy” (Bulgaria). Later, however, it became clear that the “Atom-Industry” delivered “ZIO-Podolsk” tube plate and the bottom, made of much cheaper grades of steel than was stipulated in the contract.

As a result of such substitution only on the supply of four tube sheets illegal proceeds “Atom-Industry” was 39 million rubles. “This company bought cheap steel in the Ukraine, and then betrayed her for the more expensive, the proceeds divided between the organizers of the fraud,” – said the source “Rosbalta” in the security services. He declined to say whether such fraud has affected the quality of the machinery supplied to nuclear power plants, as well as what other stations, except for Bulgaria, was sent with the equipment to use products from the “Atom-industry.”

In most of the “Atom-Industry” correspondent “Rosbalt” said they would not comment on the situation until the investigation is completed. “In 2010, the materials were considered SU UPC Russia in St. Petersburg, there passed a resolution not to institute proceedings in connection with the absence of crime, – one of the company’s employees. – However, more than a year after that the RF IC case filed. We did not do anything illegal, confirmed our right of arbitration awards. ” It is noteworthy that the site is “Atom-Industry” states that in March 2010, the company delivered the blanks for the hydro-power plant, which was then rebuilt after a major industrial disaster.

Notes:

[1] http://aozio.ru/company/predpr/

[2] Alexander Shvarev, http://www.rosbalt.ru/moscow/2012/02/22/949018.html

https://kractivist.wordpress.com/2013/04/14/zio-podolsk-scandal-save-our-souls-part-1-nuclear/

https://kractivist.wordpress.com/2013/04/14/zio-podolsk-scandal-save-our-souls-part-3-nuclear/

https://kractivist.wordpress.com/2013/04/14/india-zio-podolsk-scandal-save-our-souls-part-4-nuclear/

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