Over the last 20 years, Russia has to a very significant extent lived off the Soviet legacy of oil and gas investment in western Siberia. Those years of relatively cheap exploitation of those resources are coming to an end, says John Lough.
The strike price is roughly double the current market price. Antony Froggatt points out that EDF's submission to the government's energy review in 2006 stated the development of a European pressurised water reactor would cost £23.50/MWh (£28.80 in 2013 values).
'In 2006, [EDF stated the type of reactor to be used] would cost £28.80 per megawatt-hour in 2013 values,' said Antony Froggatt. 'This more than threefold increase [to £92.50], over eight years, puts the cost of nuclear electricity at about double the current market rate.'
Under the terms of the deal, the British government has promised to pay the investors who will build the reactor as much as $150 per megawatt hour for 35 years, plus inflationary increases. Experts like Antony Froggatt say that's double the current market rate.
In a speech last year to Chatham House, David Cohen, the top US Treasury official in charge of disrupting the finances of terrorist groups, acknowledged the 'gut-wrenching dilemma' faced by governments that know payment of a few million dollars could save the life of a citizen.