Energoatom said in a statement that the $152 million deal with the U.S. company Holtec International foresees the development of a facility where spent nuclear fuel rods from Ukrainian nuclear power plants will be stored before being sent for reprocessing in Russia.
Energoatom chief Yuriy Nedashkovskiy said that work on the facility should begin next year and take about four years.
The project still needs to be approved by Ukraine's government and parliament.
RFE/RL's World: 2005 In Pictures
A slideshow of images related to the top news stories of 2005 from throughout RFE/RL's broadcast region with links to RFE/RL's reporting.