U.S. Could Join Russian “Fuel Bank” Project

Russia in coming weeks could receive a U.S. proposal that would allow the countries to collaborate on an international nuclear fuel enrichment station in Siberia, Reuters reported yesterday (see GSN, April 4).

Federal agencies are vetting the proposal for cooperation on the Russian “fuel bank,” which could offer nuclear power plant fuel to Iran and other nations with the goal of discouraging development of production capacities that could generate material for nuclear weapons.

“We can't isolate ourselves from Russia and then expect that these are the proposals that are going to be the solution to the Iranian nuclear program," a high-level State Department official said.  "If there is an interest in the U.S. in investing in this consortium that Russia is establishing, getting U.S. industry involved in that whole international enrichment center, this (nuclear) agreement would be a useful baseline for that sort of cooperation."

Congress must approve a “123 agreement” before United States can conduct fuel storage or other nuclear cooperation with another country. 

For lawmakers to approve the deal during this congressional session, President George W. Bush would have to sign and submit the final proposal “in the next month or so,” the official said.  "If we're to get it done, it will have to be soon." 

The agreement would enter into force within 90 legislative days of its submission if it is not formally rejected by Congress.  However, House lawmakers have already expressed opposition to nuclear cooperation with Russia because it has exported nuclear fuel and equipment to Iran’s Bushehr nuclear power plant (see GSN, July 27, 2007).

Congressional opponents might “wave off” the Bush administration from trying to submit the proposal, according to one House aide.

"Obviously we are going to have to deal with it (the opposition) head-on and really talk to members and explain the rationale and thinking," the State Department official said.

If Bush signs the proposal but does not submit it for approval, it could be up to the next occupant of the White House to decide whether to move forward on the deal.  Bush leaves office in January.

One independent expert indicated he shares the concerns of the deal’s opponents, saying that Russia remains a questionable partner in this area.

"A nuclear cooperation agreement should be icing on a cake of trust and accomplishment with regard to nonproliferation.  Instead, there's no cake," said Henry Sokolski, head of the Nonproliferation Policy Education Center (Susan Cornwell, Reuters, April 29).

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