The Russian nuclear agency, Rosatom, will build two nuclear reactors in South Africa as part of a nuclear medicine deal, but still holds out hope for the mega nuclear deal which President Cyril Ramaphosa has put on ice.
Russian President Vladimir Putin reminded Ramaphosa on Thursday about the inter-government deal on nuclear the two nations had signed in September 2014 in Vienna and Rosatom's CEO for central and southern Africa, Dmitry Shornikov, told Business Times: "We do still believe that nuclear has an important role to play in the country's energy mix and its future economic development.
"We remain ready to provide a proposal should a nuclear energy procurement programme arise in the country. We are proud of our world-class generation III+ technology and are confident of our offer."
Shornikov said Rosatom had not officially been told that the governing ANC had cancelled the request for information on a massive nuclear reactor procurement it put out in December 2016, which was separate to the inter-governmental agreement signed by former energy minister Tina Joemat-Pettersson for the acquisition of eight nuclear power plants.
We are not in a position to go further
— Khusela Diko, spokeswoman for Ramaphosa
"We have not heard anything to date. Only what we have read in the news," said Shornikov.
The cancellation of an inter-governmental deal between South Africa and Russia on nuclear procurement as well as the subsequent cancellation of the request for information has cooled relations between the two countries. When he arrived late at the Brics summit on Thursday, Putin brusquely moved to his car and failed to greet Higher Education Minister Naledi Pandor who had been assigned to welcome him, said officials.
The first intervention Putin made was to try to put the nuclear deal back on the table and South Africa has now been pushed into a more reconciliatory position on this form of energy, which is at the heart of Russia's export ambitions. Rosatom is a global leader in nuclear power generation as well as in the ancillary industries of medicine.
"Our economic situation means we are not in a position to go further in terms of the nuclear build programme," Ramaphosa's spokesperson Khusela Diko said.
"Our economy is stagnant, it's not growing at the rate that we want, so while we remain committed to an energy mix that includes nuclear, South Africa is not yet at the point where it is able to sign on the dotted line," she said.
The Russians understood this, Diko said. But she added that Putin "was also very frank in the discussion around nuclear and the fact that South Africa and Russia have already signed an inter-governmental agreement around nuclear.
"There are no procurements that have taken place at this point but there is an understanding of co-operation between the two countries."
Ramaphosa reiterated that nuclear expansion would take place at a scale and pace that South Africa can afford, said Diko.
The relationship between the presidents remained warm and Putin had congratulated Ramaphosa on his election as well as South Africa's election to the UN Security Council. He also pledged Russia's co-operation with South Africa on the council, Diko said.
The countries are now considering the expansion of trade. Agreements were signed on Thursday to co-operate in water resources and agro-processing.
"We are also considering with the Russians gas exploration just off the coast of South Africa in the Indian Ocean where there may be reserves of gas," said Diko.
Russia's bilateral relations with South Africa are not the same as they were under former president Jacob Zuma. The intergovernmental agreement on nuclear was placed in abeyance and the later RFI was cancelled after a pushback by civil society and a court order declaring that the government had to redo nuclear procurement because its attempt to splurge on nuclear had been unprocedural.
Reports from whistleblowers in the state have suggested that commissions related to the deal had already been paid to officials linked to Zuma. These have been denied by Rosatom and have never been proven.
Instead of the mega nuclear energy deal, Rosatom and South Africa's state-owned nuclear company, Necsa, signed a much smaller agreement to extend co-operation in nuclear medicine by building two reactors in South Africa specifically for healthcare.
In a statement on Thursday Rosatom said: "The reactors are small-scale and relatively inexpensive reactors that are designed specifically for the cost-effective production of nuclear medicine products."
Necsa CEO Phumzile Tshelane said: "Nuclear medicine is the most effective method in the early detection of cancer. The earlier cancer is detected the more likely it is to respond positively to treatment and this generally results in a greater probability of recovery."
Rosatom and Necsa will set up cancer treatment centres across the continent where the nuclear agency has had more success in extending its energy ambitions.
While Putin and Zuma enjoyed a close relationship, Xi Jinping this week sealed a "special relationship" with Ramaphosa in a summit dominated by the Chinese leader.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.