Moscow (Platts)--23May2008

Russia and China have signed an agreement worth more than $1 billion on
construction of a uranium enrichment factory as well as supplies of Russian
low-enriched uranium to China, the head of Russia's state-run Rosatom nuclear
corporation Sergei Kiriyenko said in televised comments Friday.

The agreement provides for "the construction of the forth stage of the
uranium enrichment factory as well as supplies of [Russian] low-enriched
uranium to China," Kiriyenko said in Beijing as broadcast by Russia's Vesti
channel.

"This is a big good contract for 10 years to come," he said.

Russia has built several uranium-enrichment factories in China and the
Asian partners "now want us to build another, more up-to-date factory," he
said, adding that the parties had also agreed to increase volumes of
low-enriched uranium supplies to China.

The agreement was signed during Russia's president Dmitry Medvedev's
visit to Beijing, following his meeting with China's leader Hu Jintao.

Medvedev paid his first official visit abroad as Russian President to
Kazakhstan on Thursday and Friday and earlier in the day arrived to
neighboring China for the two-day visit.

After the meeting with Hu, Medvedev said that Russia and China agreed to
further develop cooperation between the two countries, with the priority to be
given to high-technology industries such as civil aviation, nuclear energy,
space, information and nanotechnologies.

"We have agreed this year to approve a new program to fulfill 'the major'
agreement for 2009-2012," Medvedev said.

Following the talks between Medvedev and Hu, Russia and China have signed
a joint declaration on international issues as well as several agreements on
cooperation in the aviation, defense, tourism, forest industries as well as in
banking sphere.

Medvedev had invited Hu to pay a visit to Russia in 2009, Russia's
Itar-Tass news agency said.

"We will be waiting for the China's leader Hu Jintao in Russia next
year," Medvedev was quoted as saying.

--Nadia Rodova, nadia_rodova@platts.com