Toyako, Japan (Platts)--9Jul2008

Russia's president Dmitry Medvedev said Wednesday that nuclear energy
could be "a serious addition" to fossil fuel after pointing out the potential
for its use worldwide to the leaders of the Group of Eight countries.

"We especially stressed that a comprehensive, significant use of nuclear
power could be a serious addition to existing sources of energy. There is
potential [for its use] in Russia and other countries, including the G8,"
Medvedev told reporters after the closure of the three-day G8 summit in
Toyako, northern Japan.

Energy security and the situation on the markets amid a recent sharp
increase in crude prices was in the focus of attention at the G8 summit, he
said.

Nuclear energy is cleaner and does not create greenhouse gas emissions,
he said, adding that there is potential for cooperation between countries in
this area.

ALTERNATIVE ENERGY DEVELOPMENT LAGS BEHIND GROWTH
Medvedev said, however, that the development of alternative energy
sources has not kept pace with fast economic growth and traditional energy
sources continued to dominate, although its supply was not sufficient.
"The situation in the energy sector is not easy. Development is very
fast, but new energy sources do not appear that fast, while there is a far
from sufficient [supply of] traditional energy sources," Medvedev said, adding
that this affected prices.
"We must think how we need to provide energy security, taking into
account new challenges," he added.
The solutions to food and climate issues will depend largely on how the
situation on the oil and gas markets develops, he added.

BIOFUELS' IMPACT ON FOOD A COMPLEX ISSUE

On other energy sources, he said the G8 leaders discussed the production
of biofuels in connection with concerns about both high crude and food prices.
"In our opinion, the situation here is more difficult. On the one hand,
it is a promising new energy source. On the other hand, and I spoke about it
yesterday, in some experts' opinions, biofuels create significant problems on
the food market," he said.

He cited estimates that some 75% of the hike in food prices stemmed from
changes in food policy and the allocation of fields for biofuels production.
"But we agreed that, first of all, we will develop second-generation
biofuels that do not affect food security," he said.

Medvedev said energy security will remain in the focus of G8 attention
in the years to come, "given the importance of this problem for the
development of the global economy and, of course, separate economies."
--Anna Shiryaevskaya, Vandana Hari, Takeo Kumagai, Wendy Wells,
newsdesk@platts.com