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8/13/2002: WEAPONS SCIENTISTS
FROM NUCLEAR CITIES TO STUDY DIRTY BOMB THREATS
According to Steve Black, the acting assistant deputy
administrator at the United States' National Nuclear Security Administration,
the Russian Ministry of Atomic Energy and the US
Department of Energy initialed an agreement in Moscow that sets the terms of
access to Minatom ZATOs for US experts. The
access agreement, which is an important step in the implementation of the
Nuclear Cities Initiative, is expected to be approved by the Russian government
in January 2002. The basic access principles will be the same for both US state
officials and private businessmen interested in launching commercial projects
in Russia.
On 13 August 2002, the US Department of Energy (DOE) announced that it planned to hire scientists from the Russian Analytical Center for Nonproliferation to study the potential threat from a radiological weapon, also known as a "dirty bomb." The center will employ scientists and resources from the Sarov and Snezhinsk laboratories to conduct a one-year study into this issue. The project is funded by the Nuclear Cities Initiative. [Bryan Bender, "U.S.-Russia: Russian Weapons Scientists Study Radiological Threats," Global Security Newswire, http://www.nti.org/, 22 August 2002.] {Entered 10/28/2002 DA} 12/28/2001: US AND RUSSIA AGREE ON TERMS OF ACCESS TO CLOSED CITIES [Ivan Lebedev, "Minatom RF i Minenergo SShA razrabotali pravila dostupa amerikanskikh spetsialistov v rossiyskiye yadernye tsentry," ITAR-TASS, 28 December 2001; in Minatom news digest, http://www.minatom.ru/presscenter/text.php?ssd=9468.txt, 3 January 2002.] {Entered 2/12/2002 DA} 11/12/2001: NCI AND IPP COMBINED INTO ONE PROGRAM On 12 November 2001, President Bush signed the Energy and Water Development Appropriation Act for fiscal year 2002. The act combines the Nuclear Cities Initiative and the Initiatives for Proliferation Prevention into a new program entitled Russian Transition Initiatives and provides $42 million for its activities, which is $12 million more than was requested by the administration. The law stipulates that the Department of Energy shall have a single manager responsible for both the NCI and IPP programs. DOE will have the flexibility to allocate the funding between the two programs. The new program manager is requested to ensure close coordination with other federal agencies that provide funding for scientists from closed nuclear cities. The law does not specify the amount or percentage of funds to go directly to facilities in Russia but calls for increasing the level of funding provided to Russia (thus reducing the funding that remains in the United States) and directs DOE to apply the lowest possible laboratory overhead rates. [Energy and Water Development Appropriations Act, 2002; in Library of Congress Web Site, http://thomas.loc.gov/cgi-bin/query/z?c107:H.R.2311.ENR.] {Entered 12/21/2001 ES} 5/21/2001: US GENERAL ACCOUNTING OFFICE REVIEWS NCI On 21 May 2001, the United States General Accounting Office (GAO) released its review of the Department of Energy's (DOE) Nuclear Cities Initiative activities. (See the the full-text copy of the GAO report "Nuclear Nonproliferation: DOE's Efforts to Assist Weapons Scientists in Russia's Nuclear Cities Face Challenges.") The report sharply criticizes the way DOE has administered the program. According to the GAO report, 70% of the expenditures for the NCI has been spent in the United States, with the bulk of these funds spent by the US national laboratories for such items as overhead, labor, equipment, and travel. In 1999-2000, $4.7 million (or 30%) of the total $15.9 million NCI expenditures was spent in Russia. In 1999-2000, NCI funded 26 projects which employed approximately 370 people in the closed cities. However, only half of these projects were designed to create jobs for weapons scientists, while the rest were aimed at improving cities' infrastructure, training, and community development. In addition, only one-third of the NCI projects were able to develop sustainable commercial ventures due to a lack of rigorous screening and market feasibility studies. According to the GAO report, the Russian Ministry of Atomic Energy is also dissatisfied with the amount of funds spent in Russia and with the selection of projects for the NCI, which increases the negative view of the program by various Russian government officials. While recognizing numerous reasons for the limited success of the NCI, such as poor economic conditions in Russia, the remote location and restricted status of the nuclear cities, the lack of entrepreneurial culture among weapons scientists, and low interest in the program on the part of the Russian government, the review held the Department of Energy accountable for inadequate project selection processes, duplication and overlap of NCI activities with the Initiatives for Proliferation Prevention projects, the absence of clear and quantifiable goals and milestones for the program, and the high costs of program implementation by US national laboratories. The GAO report recommends that ongoing projects be evaluated and those projects that do not focus on creation of jobs in the nuclear cities be eliminated, that project selection process be improved, and that the Nuclear Cities Initiative and the Initiatives for Proliferation Prevention programs be consolidated into one effort in order to reduce program costs and to increase administrative efficiency. [US General Accounting Office, Nuclear Nonproliferation: DOE's Effort to Assist Weapons Scientists in Russia's Nuclear Cities Face Challenges, GAO-01-429 (Washington, DC: US General Accounting Office, 21 May 2001.] {Entered 7/17/01 ES} 4/9-10/2001: WORKING GROUP TO SUPPORT EUROPEAN NUCLEAR CITIES INITIATIVE IS FORMED On 9-10 April in Como, Italy, the International Forum on Energy and Environmental Opportunities in the Russian Nuclear Cities established the International Working Group (IWG) for the European Nuclear Cities Initiative (ENCI). The working group will concentrate on two areas of concern for the Russian closed nuclear cities: chronic financial problems and an overabundant workforce. Furthermore, the IWG will study and identify strategies and financial plans to facilitate the conversion and restructuring of the Russian nuclear weapons facilities. The IWG will be primarily funded by the European Union but will be co-chaired by a representative from the European Union and another representative from the Russian Federation. The ENCI is a European effort to complement other international efforts, including the US-Russia Nuclear Cities Initiative and the Russian Nuclear Complex Conversion Consortium, which is coordinated by the Russian-American Nuclear Security Advisory Council (RANSAC). ["European Countries Form Group to Support Russian Nuclear Cities," Nuclear Weapons & Materials Monitor, Vol. 5, No. 9, 1 May 2001.] {Entered 6/1/01 GG} 8/30/2000: US SECRETARY OF ENERGY VISITS SAROV, ATTENDS COMMISSIONING CEREMONY OF NEW TECHNOPARK AT AVANGARD For details, please see the 8/30/2000 entry in the Sarov and VNIIEF Developments section of the database. {Entered 9/14/2000, GD} 3/23/2000: AVANGARD, LLNL SIGN NCI CONTRACT TO MANUFACTURE KIDNEY DIALYSIS EQUIPMENT On 23 March 2000, representatives from Lawrence Livermore National Laboratory (LLNL) and the Avangard Foundation signed a contract to manufacture kidney dialysis equipment in Sarov under the Nuclear Cities Initiative (NCI). The Avangard Foundation is an independent business entity that represents Avangard Electromechanical Plant and can contract with western partners. The foundation will be subject to scrutiny to ensure that funds are being properly used. Avangard also agreed to move fences surrounding former weapons production buildings, placing the factory in the open area of Sarov. The dialysis equipment manufacturing contract will create jobs for several hundred former weapons specialists, who will produce parts for the dialysis machines and eventually fabricate complete dialysis systems.[1] As a preliminary arrangement, a German company will purchase three of Avangard's dialysis components and install the components in dialysis machines to be distributed internationally.[2] Sources: [1] "Russian Weapons Plan to Manufacture Medical Equipment," US Department of Energy Web Site, http://www.doe.gov, 24 March 2000. [2] "Nuclear Cities Program Contract Signed for Dialysis Equipment, " Post-Soviet Nuclear & Defense Monitor, Vol. 4, No. 8, 7 April 2000, p. 18. {Entered 7/5/00 SS} 3/14/00: EUROPEAN STATES DISCUSS CREATION OF EUROPEAN NUCLEAR CITIES INITIATIVE During the conference "Helping Russia Downsize its Nuclear Weapons Complex" held on 14 March 2000 in Princeton, New Jersey, the Italian-based non-governmental organization Landau Network-Centro Volta promoted the creation of a European Nuclear Cities Initiative (ENCI) to complement the US DOE's Nuclear Cities Initiative. Initially, the ENCI would be limited to two pilot cities, Snezhinsk (Chelyabinsk-70) and Sarov (Arzamas-16). The general ENCI framework would include government-to-government, agency-to-agency, and lab-to-lab programs, and the framework could be expanded to include direct cooperation between the European Union and Russia. ENCI would focus on three areas: business training and economic development, nonproliferation and disarmament, and environmental and energy issues. Nonproliferation centers would be established to conduct studies and strategic analyses related to nonproliferation. The proposed energy efficiency centers and environmental centers would concentrate on R&D, methodology and management of energy efficient technologies, and environmental decontamination. Proposed ENCI guidelines do not exclude cooperation in dual-use technology projects. ENCI's architects estimate that the project would cost around $10 million annually for an initial period of three years, and they suggested three possible funding mechanisms: contributions from ENCI member countries, European Commission-financed ENCI institutional grants, or funding from the budget of the "Common Strategy of the European Union on Russia." [Paolo Cotta Ramusino, Antonino Lantieri, and Maurizio Martellini, European Nuclear Cities Initiative (ENCI): Background Concepts and Tasks (Princeton, NJ: Russian American Nuclear Security Advisory Council, 14-15 March 2000).] {Entered 7/21/00 SS} 3/17/00: LLNL AND VNIITF'S SPEKTR SIGN TWO NCI CONTRACTS On 17 March 2000, representatives from Lawrence Livermore National Laboratory (LLNL) and Spektr State Unitary Enterprise signed two contracts as part of the strategic planning process for the city of Snezhinsk under the DOE's Nuclear Cities Initiative. According to the first contract, which will last for one year, Spektr will receive $200,000 in US support to develop oil well casing perforators for the Russian civilian market. The second contract, which will last for two years, focuses on the development of multi-mode optical fiber for use in local area networks. As part of the second contract, Spektr will develop business relationships with cable suppliers to help commercialize the multi-mode fiber. LLNL and VNIITF also agreed in principle to establish an open computer center at Snezhinsk similar to the open computing center established in Sarov in October 1999. ["U.S. Department of Energy Announces Russian Contracts," US Department of Energy Web Site, http://www.doe.gov/news, 21 March 2000.] {Entered 4/12/00 SS} 11/13/99: NUCLEAR CITIES INITIATIVE TO CONTINUE IN THREE PILOT CITIES On 13 November 1999, US Assistant Secretary of Energy for Nuclear Nonproliferation and National Security Rose Gottemoeller announced that sharp budget cuts will force the US Department of Energy to scale back the Nuclear Cities Initiative (NCI). In October 1999, the US Congress appropriated $7.5 million for the program, essentially halving NCI funding for FY 2000. According to Gottemoeller, NCI will continue its programs in the three pilot cities of Sarov, Snezhinsk, and Zheleznogorsk in spite of the budget reductions.[2] Congress's decision to cut NCI funding resulted from a report by the General Accounting Office, which stated that some NCI funds "appeared to be going to Russian scientists who were still working on weapons."[1] Congress also included a provision in FY 2000 NCI appropriations that requires Energy Secretary Bill Richardson to certify that Russia will close some nuclear weapons facilities. (For a copy of the GAO report, please see the Russia: Full-Text Documents: GAO Reports section of the NIS Profiles Database.) Sources: [1] Walter Pincus, "US Pulls Nuclear Funding," Washington Post, 13 November 1999; in Moscow Times online edition, http://www.moscowtimes.ru , 13 November 1999.] {Entered 1/13/2000 SS} [2] Rose Gottemoeller, "Three Nuclear Cities," Washington Post, 27 November 1999, p. A24; in Lexis-Nexis Academic Universe, http://web.lexis-nexis.com. {Updated 1/19/2000 SS} 11/11/99: NCI COORDINATING COMMITTEE MEETS IN MOSCOW On 11 November 1999, the Russian-US United Coordinating Committee for Implementing the Nuclear Cities Initiative (NCI) met in Moscow to review projects from 1999 and lay plans for 2000. Russian First Deputy Minister of Atomic Energy Lev Ryabev, US DOE Deputy Undersecretary for Nuclear Nonproliferation Rose Gottemoeller, and representatives from US national laboratories and Russian research institutes attended the meeting. In FY 1999, US officials appropriated $8 million to finance 23 NCI projects, and Minatom predicted that the implementation of these projects will create 270 new jobs. During the meeting, discussion focused on strategic planning to increase the tempo of restructuring at the three nuclear enterprises in Sarov (Arzamas-16), Snezhinsk (Chelyabinsk-70), and Zheleznogorsk (Krasnoyarsk-26). Delegates also discussed proposals to be financed at the expense of the NCI Coordinating Committee for the Russian-US Committee for Economic and Technological Cooperation (the Gore-Chernomyrdin Commission). According to the US participants, 65 percent of the funds appropriated for NCI by the US Congress in FY 1999 will be spent in Russia. The NCI Coordinating Committee also reviewed projects already implemented under NCI, including the open computing center in Sarov; international business development centers in Sarov, Snezhinsk, and Zheleznogorsk; nonproliferation centers in Sarov and Snezhinsk; and the development of telecommunications systems in the three closed cities. [E. Mazanova, "S chego by vdrug?" Gorodskoy kuryer online edition, http://infra.sar.nnov.ru/~courier, No. 129, 25 November 1999.] {Entered 5/22/00 SS} 9/27/99: US AND RUSSIAN OFFICIALS WORK TO MAKE CLOSED CITIES MORE ACCESSIBLE On 27 September 1999, US and Russian officials signed a memorandum of understanding under the auspices of the DOE's Nuclear Cities Initiative to work to improve US access to Russia's closed nuclear cities. According to press reports, officials from the city of Snezhinsk agreed to work with the Russian Federal Security Service (FSB) to reduce the current 45-day advance notice required for access to the closed city. The United States and Russia also agreed to develop multi-year visas for lab-to-lab exchanges. ["U.S., Russia Working to Improve Access to Closed Nuclear Cities," Nuclear Weapons & Materials Monitor, 27 September 1999, p. 9] {Entered 4/7/00 SS} 6/21/99: LUONGO: INADEQUATE FUNDING AND LACK OF POLITICAL ATTENTION THREATEN NCI PROGRAM Russian American Nuclear Security Advisory Council (RANSAC) Executive Director Kenneth Luongo called the Clinton administration's requests to provide the US DOE Nuclear Cities Initiative (NCI) with $30 million annually in the FY1999 and FY2000 budgets a "glaring mismatch that has to be corrected." Speaking before the Sixth International Policy Forum on the Disposition of Weapons Grade Plutonium and HEU, Luongo added that NCI lacks the necessary high-level political and inter-agency attention from Russian and US officials, and he warned that NCI "cannot survive as a program with a $30-50 million per year budget." Luongo noted that the US Congress's decision to halve the Clinton Administration's FY2000 budget request for NCI has contributed to the program's early difficulties, and he contended that the General Accounting Office (GAO) conducted its audit of NCI too soon in the life of the program. Luongo also noted that Russian officials have not reached an agreement on taxation, duties, and customs exemption for all NCI projects, and Luongo warned the absence of an exemption agreement impeded NCI's implementation. He further observed that the Russian government has not yet developed a plan to clearly downsize the nuclear weapons complex and offered that a joint US-Russian effort may be needed to draw up a plan to scale back the complex. ["Aid to Russian Nuke Cities Inadequate, Says Former DOE Official," Nuclear Weapons & Materials Monitor, Vol. 3, No. 13, 21 June 1999, p. 13.] {Entered 6/1/00 SS} 2/24/99: US TO APPROPRIATE $60 MILLION FOR CONVERSION AT RUSSIAN NUCLEAR CITIES Speaking at a press conference in Moscow on 24 February 1999, Rose Gottemoeller, US Assistant Secretary of Energy for Nuclear Nonproliferation and National Security, stated that the US government plans to appropriate $60 million for nonproliferation and conversion programs at 10 of Russia's closed nuclear cities over the next two years.[1,2] According to Gottemoeller, $30 million dollars will be appropriated in 1999, with roughly $15 million reserved for conversion projects at the closed cities and $15 million used to resolve problems related to nonproliferation of nuclear materials.[1,2] Gottemoeller added that the US DOE would appeal to Congress to renew funding for these programs in the FY 2000 Budget.[2] Initially, the US funding will focus on conversion work at the three largest nuclear cities, Sarov (Arzamas-16 ), Snezhinsk (Chelyabinsk-70), and Zheleznogorsk (Krasnoyarsk-26).[2] According to Interfax, funds will be used to establisha high-speed computing center at Sarov and a pharmaceutical center at Snezhinsk.[1] A telecommunications center will also be established.[2] Sources: [1] "SSHA vydelyat Rossii $60 mln na resheniye problem 'yadernykh' gorodov," Interfax, No. 3, 24 February 1999. [2] "SSHA vzyazlis za rossiyskiye yadernyye problemy," Segodnya, No. 42, 25 February 1999. {Entered 12/3/99 SS} 9/22/98: MINATOM AND DOE SIGN AGREEMENT ON CONVERSION AT RUSSIAN NUCLEAR WEAPONS FACILITIES On 22 September 1998, Russian Minister of Atomic Energy Yevgeniy Adamov and US Secreatary of Energy Bill Richardson signed a five-year agreement according to which the United States will allocate $30 million for the conversion of Russia's closed nuclear cities. The agreement affects10 of Russia's closed nuclear cities, including Zheleznogorsk (Krasnoyarsk-26), Sarov (Arzamas-16), and Snezhinsk (Chelyabinsk-70). According to Minatom, the US-Russian agreement would facilitate the creation of 15,000 jobs in coordination with the Russian program "Reconstruction and Conversion of Enterprises of the Atomic Industry (the Nuclear Weapons Complex) in 1998-2000," which the Russian Government approved on 24 June 1998. Izvestiya reported that some of the US financial assistance will be used to stop the emigration of nuclear specialists to other countries. (For the complete text of this document please see the NCI Agreement file. For more information please see the NCI Overview.) [Maria Kalugina, "Amerikantsy platyat za konversiyu 'atomnykh gorodov' Rossii," Izvestiya online edition http://www.online.ru/rproducts/izvestia-izvestia-year/, 24 September 1998.] {Entered 12/2/99 SS} Last updated 20 December 2003 Comments or questions? Contact Elena Sokova at MIIS CNS: esokovaATmiis.edu 
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