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Nuclear News - 05/10/02
RANSAC Nuclear News, May 10, 2002
Compiled by David Smigielski

A. Cooperative Threat Reduction
    1. American Team To Destroy Uzbek Anthrax, Far Eastern Economic Review, May 16, 2002
    2. House Bill Would Free CTR Funds, Kerry Boyd, Global Security Newswire, May 10, 2002
    3. Russia And U.S. Create Joint Group To Fight Nuclear Terrorism, RFE/RL Newsline, May 10, 2002
B. HEU Purchase Agreement
    1. Russia Makes Two Shipments Of Warhead Uranium To USA, Interfax, May 8, 2002
    2. Kazakhstan Wins Anti-Dumping Case Against Uranium Supplies To U.S., Interfax, May 8, 2002
    3. Kazakh National Nuclear Company To Increase Uranium Production In 2002, Interfax-Kazakhstan, May 9, 2002
C. Russia-U.S.
    1. Nuclear Agreement With USA Will Be Major Step Forward - Russian Foreign Minister, Interfax, May 10, 2002
    2. US Push For Storing Nuclear Warheads Roils Many Russians, David Filipov, Boston Globe Staff, May 10, 2002
    3. Russia, US Increase Nuclear Cooperation, Scott R. Burnell, UPI, May 9, 2002
    4. Rumyantsev To Present Nuclear Cooperation Proposal, RFE/RL Newsline, May 6, 2002
D. Russia-Iran
    1. Moscow, Washington Move Closer To Iran-Related Nonproliferation Deal, Ivan Lebedev, ITAR-TASS, May 10, 2002
    2. Russian, US Energy Talks Flounder Over Cooperation With Iran, Russian Public TV (ORT), May 10, 2002
    3. Put A Cork On Iran's Weapons Program, Richard Sokolsky, Christian Science, Monitor, May 9, 2002
    4. U.S. To Penalize Foreign Firms Over Iran Ties, Reuters, May 9, 2002
    5. Russia Calls On United States To Set Up Bilateral Groups On Iran As Well As On Nuclear And Missile Technologies, Marina Philippova,, May 7, 2002
E. Russia-India
    1. Russia To Supply India With Two New Nuclear Reactors, RFE/RL Security and Terrorism Watch, May 8, 2002
F. Russian Nuclear Waste
    1. Georgia Asks OSCE To Assess Russian Bases For Radiation, ITAR-TASS, May 8, 2002
G. Nuclear Safety
    1. Radioactive Guest From China Turned Back At Border, RFE/RL Newsline, May 9, 2002
    2. Number Of Nuclear Malfunctions Increases In Ukraine, Associated Press, May 8, 2002
H. Announcements
    1. Secretary Of Energy Spencer Abraham's Opening Remarks At Press Conference With Russian Federation Minister Of Atomic Energy Alexander Rumyantsev, U.S. Department of Energy, May 9, 2002
    2. Department Of State Daily Press Briefing (Excerpted), Richard Boucher, May 9, 2002
I. Links of Interest
    1. The Nuclear Threat Reduction Campaign Announces Support For The Nuclear And Terrorism Threat Reduction Act Of 2002, Nuclear Threat Reduction Campaign, May 9, 2002
    2. Iran's Ballistic Missiles: Rhetoric Outpacing Reality? Andrew Krepps Carnegie Endowment for International Peace, May 9, 2002
    3. House Completes Mark-Up Of FY03 Defense Authorization Bill, Council for a Livable World, May 2, 2002
    4. U.S. Government Funding For Science And Technology Cooperation With Russia, Caroline Wagner, Irene Brahmakulam, D.J. Peterson, Linda Staheli, Amy Wong, Rand, May 2002
    5. Policy Brief: Putin's Agenda, America's Choice, The Brookings Institution, May 2002
    6. Summit With Substance: Creating Payoffs In An Unequal Partnership, Andrew C. Kuchins, Carnegie Endowment for International Peace, May 2002
    7. Following The Money: The Bush Administration FY03 Budget Request And Current Funding For Selected Defense, State, And Energy Department Programs, Elizabeth Turpen and Victoria K. Holt, The Henry L. Stimson Center, April 24, 2002

A. Cooperative Threat Reduction

American Team To Destroy Uzbek Anthrax
Far Eastern Economic Review
May 16, 2002
(for personal use only)

An American-led team will begin destroying anthrax bacteria at anUzbekistan site that was the former Soviet Union's main open-airbiological testing ground. It will be the first time the United Statesgovernment has carried out such an operation overseas. The VozrozhdeniyePathogen Destruction Operation is expected to take about 30 days tocomplete.
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House Bill Would Free CTR Funds
Kerry Boyd
Global Security Newswire
May 10, 2002
(for personal use only)

House lawmakers are discussing legislation today to allow the UnitedStates to provide cooperative threat reduction funds to Russia even whenU.S. officials doubt Russian commitment to arms control treaties.

The House Armed Services Committee reported the fiscal 2003 defenseauthorization act out of committee last week with a provision forlimited presidential authority to waive certification that former Sovietcountries are demonstrating commitment to arms control treaties.

U.S. law now requires such certification for many funding programsdesigned to prevent proliferation and safeguard weapons of massdestruction in the former Soviet Union. The bill, however, would allowthe president to waive the requirement if the administration determinedthat the funds are important to U.S. security interests.

The waiver authority would be limited. It would expire at the end of2005, and the president would have to submit a report to Congress within30 days after issuing a waiver. The report would detail to which armscontrol agreements commitment is in doubt, how the administrationplanned to promote commitment and why the waiver is important tonational security.

The committee report on the bill also notes that while cooperativethreat reduction programs in the former Soviet Union might be in interests, Russian compliance with arms control agreements -especially those involving weapons of mass destruction - is "even moreimportant to the nation's security."

Several nonproliferation programs have recently "ground to a halt,"Steve LaMontagne of the Council for a Livable World Education Fund saidTuesday. Current U.S. law provides no waiver authority for several CTRprograms, and the State Department said in March that it could notcertify Russian compliance with biological and chemical weaponsagreements. The Bush administration told Russia last month that theUnited States would cut back funding for several CTR programs based onthe inability to certify.

Russia has said it is committed to its arms control agreements.

Providing the waiver authority to the president is a "good idea," DarylKimball, executive director of the Arms Control Association, told GlobalSecurity Newswire yesterday.

"Congress should approve the waiver . without delay . so that theimportant work that CTR does can continue," he said.

Kimball added that the Bush administration, which requested the waiverauthority, created a "speed bump" to implementing CTR programs when itdecided to signal to the Russians that the United States is unhappy withRussian progress on dismantling chemical and biological weapons.

The authorization bill will take months to pass through Congress andprobably will not go to the president for signature until September atthe earliest, he said. By then, the suspension of funds will havealready hurt CTR programs, Kimball added.

Meanwhile, two House members last week introduced the Nuclear ThreatReduction Act, legislation to provide a permanent waiver authority forthe president.
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Russia And U.S. Create Joint Group To Fight Nuclear Terrorism
RFE/RL Newsline
May 10, 2002
(for personal use only)

U.S. Energy Secretary Spencer Abraham and Russian Atomic Energy MinisterAleksandr Rumyantsev announced at a joint press conference in Washingtonon 9 May that they have agreed to tighten the security of radioactivematerial and to create a joint group to combat nuclear terrorism,Russian and Western news agencies reported.

According to Abraham and Rumyantsev, the group will create a registry ofpotential sources of fissile materials that might enable terrorists tomake so-called "dirty" nuclear weapons. Such weapons do not have theexplosive yield of other nuclear weapons, but are designed to maximizethe spread of dangerous radiation and can be made from more easilyobtainable materials. The potential sources of material for such weaponscould include medical equipment using radioactive isotopes and compactnuclear electrical-power generators, Reuters reported.
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B. HEU Purchase Agreement

Russia Makes Two Shipments Of Warhead Uranium To USA
May 8, 2002
(for personal use only)

At the end of April Russia resumed supplies of weapons-grade uranium ina diluted, low enriched form under the 12bn-dollar so-called HEU-LEUcontract to the United States, the Russian Ministry of Atomic Energy hastold Interfax.

"During the last third of April, we made two uranium shipments to theUnited States," a ministry official said, without specifying how muchuranium was supplied.

This year Russia stands to earn 500m dollars from the contract, theofficial continued. Russia stopped supplying the uranium at the end ofJanuary this year when the Americans started to demand a lower price.Russian and US officials spent January and February discussing theissue. Eventually the Russian nuclear ministry backed down and reducedthe price of the uranium. Media reports said at the time that Russia hadlowered the price for low-enriched uranium from 90 dollars perseparative work unit (SWU) to 15-20 dollars. Under the 20-year HEU-LEUdeal, Russia must dilute 500 t of highly-enriched weapons-grade uranium(HEU) extracted from about 20,000 warheads into commercial low-enricheduranium (LEU) used as fuel for power plants. According to the AtomicEnergy Ministry, Russia has supplied the USA with 4,200 metric tonnes ofLEU, equivalent to 141.4 tonnes of HEU, as of January 2002.
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Kazakhstan Wins Anti-Dumping Case Against Uranium Supplies To U.S.
May 8, 2002
(for personal use only)

Kazatomprom, Kazakhstan's national nuclear corporation, has won ananti-dumping case against the U.S. Enrichment Corporation (USEC) in theU.S. Court of International Trade which has removed all restrictions onsupplies of Kazakh uranium to the United States, Kazatomprom said in anews release.

The U.S. halted all uranium imports from the former Soviet republics inNovember 1991 as ananti-dumping investigation was launched. Kazatomprom said that inOctober 1992, Kazakhstan's government signed an agreement with the U.S.Department of Commerce to suspend the probe into Kazakh uranium. Thisenabled Kazatomprom to sell uranium in the United States at free pricesand under quotas stipulated by the agreement. The U.S. governmentreviewed the terms of the agreement on several occasions, and quotasvaried between 1,200-1,650 tonnes.

Since December 1999, American uranium producers have twice lobbied theDepartment of Commerce to restart the anti-dumping investigation, butKazatomprom won both cases in the Court of International Trade.

The American producers filed their most recent appeal in May 2001, butthe court ruled in favor of Kazatomprom when it considered the appeal onMay 2 this year.

Kazatomprom controls Volkovgeologia, a geological outfit (90%), UlbaMetallurgical Plant (90%), Mine No. 6 and the Stepnoye and Centralmines, all of them in southern Kazakhstan.

Kazatomprom mined just over 2,000 tonnes of uranium in 2001.
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Kazakh National Nuclear Company To Increase Uranium Production In 2002
May 9, 2002
(for personal use only)

Kazakhstan's national nuclear company, Kazatomprom [Kazakh nuclearindustry], plans to extract 2,500 tonnes of uranium in 2002, as against2,300 t last year, the president of Kazatomprom, Mukhtar Dzhakishev,told the Interfax-Kazakhstan agency.

He said that this year 1,900 t of uranium would be extracted in uraniummines in southern Kazakhstan alone.

The amount of extraction given does not include the output of jointventures in which Kazatomprom has certain stakes.

The company now carried out all uranium extraction work on the basis ofspecific orders, and in addition to orders from such traditional[customers] as France and Russia, orders from South East Asia and theUSA have been received recently.

The deputy director of the Tsentralnoye Rudoupravleniye [the centralmine directorate], which is part of Kazatomprom, Sergey Firsov, told theInterfax-Kazakhstan agency that an increase in uranium extraction hadbeen forecast following the commissioning of a second mine in the SouthMoinkum deposit (in the south) a few days ago.

The mine is expected to reach its rated capacity in 2004. The outlay forthe project will be recovered in three-and-a-half years, the mine hassufficient resources of uranium for the next 15 years. The uraniumcontent in the ores from South Moinkum is 0.072 per cent.

To date, 4,217,000 dollars has already been invested in the mine.

[Passage omitted: about the method of extraction used in the mine; themine employs 70 people]

In addition, Mukhtar Dzhakishev said, Kazatomprom will increase uraniumproduction through developing the Inkay and Budenovskoye deposits insouthern Kazakhstan, which, he said, are "the largest in the world".

A joint Kazakh-Canadian joint venture (60 per cent of its shares belongsto Cameco and 40 per cent to Kazatomprom) is now working at the Inkaydeposit, and it is engaged in the experimental extraction of the first100 t of uranium. Investments in Inkay totalled 3m dollars last year,and it is planned to invest 3.4m dollars [in it] this year.

The Budenovskoye deposit, he said, will be developed jointly with theRussian Ministry of Atomic Energy. Agreements to this effect areexpected to be signed towards the end of [this] summer.

At present, the experimental extraction of uranium is also beingcompleted by Katco, a Franco-Kazakh joint venture, in southernKazakhstan.

[Passage to end omitted: Kazakhstan may become the world's leadinguranium producer by 2030; uranium prices have gone up in the past twoyears]
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C. Russia-U.S.

Nuclear Agreement With USA Will Be Major Step Forward - Russian ForeignMinister
May 10, 2002
(for personal use only)

"A solid package of documents" that will be important not only forRussia and the United States but international stability as a whole willbe signed during the upcoming summit, Russian Foreign Minister IgorIvanov told the Moscow press today.

"The question at the talks held now to work out documents on reducingnuclear warheads is to establish a level which the two biggest nuclearpowers - Russia and the United States - will reach in ten years, namely1,700-2,200 nuclear warheads," he said.

"This is about one third of the level provided by START-I," Ivanov said.

He criticized the political analysts claiming that the coming agreementon arms limitation will be purely declarative. Given the parameters ofthe coming agreement "it is irresponsible, to say the least, to speak ofits declarative nature", he said.

"This is a very serious document, which if signed will constitute a verysignificant step forward in the sphere of control over nuclearwarheads," Ivanov said.

"Preparations for the coming summit are very active," he said. Most ofthe documents prepared for signing "are at a high degree of readiness",Ivanov said.
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US Push For Storing Nuclear Warheads Roils Many Russians
David Filipov
Boston Globe Staff
May 10, 2002
(for personal use only)

Major General Pavel Kukushkin spent most of his 48-year military careerdefending the Soviet Union, and later Russia, against a possible attackfrom the United States. But he really loves Americans.

Linking up with American troops outside Prague at the end of World WarII was one of Kukushkin's greatest thrills. His Katyusha rocketbatteries performed best against Nazi troops when mounted onAmerican-made Studebaker trucks, he said.

But when asked about President Bush's summit here with Russian PresidentVladimir Putin later this month, Kukushkin's tone changed. The general,like most Russians, supports a measure proposed by both leaders to slashnuclear weapons on both sides to 1,700-2,200 warheads over the next 10years from the current total of more than 6,000.

But he doesn't understand why the United States wants to put the weaponsin storage rather than destroy them, as Russia has proposed. As far asKukushkin can see, these warheads could someday be used against Russia.

"What does it mean to store them?" Kukushkin said as he took a breakfrom a Victory Day celebration - marking the 1945 defeat of Nazi Germany- yesterday in Moscow's Gorky Park. "Another American leader will comeand put them back and use them against us. Why don't the Americans trustus?"

Kukushkin's comments - similar to those of other Russian soldiers andofficers - illustrated the suspicion and misgivings many in Russia feeltoward the United States only two weeks before the May 23-26 visit andare another sign of the growing anti-American mood here since Putinbegan pursuing strongly pro-Western policies after the Sept. 11terrorist attacks.

The nuclear weapons agreement has become such a central part of thesummit that both Washington and Moscow have decided to ignore the majorsticking point on how to disarm. Apparently determined to make thesummit a success, officials in both countries have described the deal asa symbol of the end of Cold War-era tensions.

"We are hoping for a turning point in terms of consolidating Russia'snew, more westward orientation in foreign policy and a real major stepforward in cementing its integration in the West," a senior USdiplomat, speaking on condition of anonymity, told reporters in MoscowTuesday.

Russia disagrees with the Pentagon's plans to store hundreds of thewarheads when they are removed from missiles and bombs. Washington wantsthe warheads available in case of emergency. But for many in the Russianmilitary, the proposed deal is symbolic of everything they feel is wrongwith US-Russian relations, which they see as bullying and distrustfulbehavior by their former Cold War enemy, even as the two presidents talkabout "friendship" and "partnership."

Some officers complain that Putin may be putting Russia at adisadvantage by allowing the Americans to store their warheads.

"Our leaders are always bending over backwards to the West," saidretired Lieutenant General Venedikt Mariasov. "This deal is the same asputting the bombs in a warehouse next to the planes. The Americans saywe are not enemies. We want friendly relations, but this is a problem."

Putin's popularity remains high, with approval ratings still above 70percent. But anti-American sentiment is as high as it has been in Russiasince Moscow backed former Serbian leader Slobodan Milosevic during the1999 Kosovo crisis. A recent survey of 1,600 Russians by the VTsIOMpolling agency found that 52 percent see bad relations between the twocountries despite Putin's support for Bush's war on terrorism and theonce unthinkable presence of US forces in Central Asia and the Caucasus.

Many Russian analysts and politicians increasingly are asking whatrewards they have reaped from Putin's pro-American line.

Russia has seen its efforts defeated when the White House last year saidit would scrap the 1972 Anti-Ballistic Missile Treaty, which Moscow hadvowed to save. NATO is planning to continue its expansion to includeEastern European countries that were once Soviet satellites, whichMoscow has vehemently opposed. Washington has failed to cancel theSoviet-era Jackson Vanick amendment, which links trade policies withRussia's human rights performance, and it has continued to blockMoscow's entry into the World Trade Organization by not declaring Russiaa market economy.

Continued US criticism of Russia's human rights record in Chechnya,Bush's recent imposition of steel import quotas, and a dispute over USchicken imports and Russia's continued nuclear cooperation with Iranhave all added to the sour feelings.

"The majority, who didn't support the president's plans from thebeginning, now are washing their hands of them, saying, `We warned you,you won't get anything from the Americans,"' said lawmaker AlexeiArbatov at a roundtable discussion of US-Russian relations last month.

Arbatov, a retired colonel, was one of the more moderate speakers.Lieutenant General Leonid Ivashov, who until last year headed theRussian military's foreign relations department, went further, callingPutin's moves since Sept. 11 "an attempt at geoategic suicide."

US officials are well aware of this mood. Alexander Vershbow, the USambassador to Moscow, attended a roundtable with Ivashov and came awaywith the impression that "many in the Russian military have not gottenover the idea that everything the US does is a threat," as he put it inan interview last month.

The idea of signing a treaty on nuclear arms reduction with Moscow wasintended as a concession to Putin, Vershbow said. Aware that Russia'snuclear arsenal would shrink over the next decade because of a lack offinancing and decay, Bush had stated the United States was willing tocut its stockpiles but was prepared to strike only an oral agreementwith Russia. But in February, Washington signaled its readiness to signa binding document, giving Putin a victory of sorts.
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Russia, US Increase Nuclear Cooperation
Scott R. Burnell
May 9, 2002
(for personal use only)

U.S. Energy Secretary Spencer Abraham said Thursday Russian and Americannuclear specialists will work jointly on improving security forindustrial and medical radiation sources.

Speaking at a news conference with Alexander Rumyanstev, Minister ofAtomic Energy in Russia, Abraham said the bilateral task force willstudy the threat posed by such isotopes and how to decrease theirvulnerability to terrorism. Existing funds from the Energy Department'snonproliferation budget will help launch the program, he said.

"This effort will be a logical extension of the work we're already doingtogether on protecting nuclear materials in the Russian Federation,"Abraham said. "This has been a highly successful program, but Sept. 11has made clear to both Russia and the United States that more needs tobe done."

The main area of concern with the radiation sources is their possibleuse in radiological weapons, where something other than a nuclearexplosion is used to spread radioactive contamination among a civilianpopulace. Casualties from an isotope-dusted conventional explosive orother attack would likely be light, but guidelines on radiationexposure, as well as public misconceptions and fears, could prompt thelong-term abandonment of contaminated areas.

Such sources are used frequently in Russia, especially for remotewilderness facilities, Rumyanstev said, and he welcomed the opportunityto work with Abraham.

"All our strategic aims at using nuclear technologies are in sync,"Rumyanstev said through an interpreter. "They are in line with ourtimes, they support the process of disarmament and the use of nuclearmaterials for peaceful purposes."

The two countries' efforts to better account for and control Russianmaterials have improved markedly since Sept. 11, Rumyanstev said. Thecooperation is paying off, Abraham said.

"We now expect to complete the work of protecting some 600 tons offissile material by the year 2008, a full two years earlier than weexpected at this time last year," Abraham said.

The bilateral task force will be very useful, as long as it is not usedas an excuse to stall further action, said Henry Kelly, president of theFederation of American Scientists.

"They've got to start somewhere, and there's a lot of work to be done onboth sides," Kelly told United Press International. "There's a lot ofshared technology we can talk about -- tracking the movement ofmaterials, monitoring ports of entry, and so on."

Abraham said the United States would also restart a program forpurchasing Russian plutonium 238, a non-weapons-grade isotope used inapplications such as providing electrical power for spacecraft.
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Rumyantsev To Present Nuclear Cooperation Proposal
RFE/RL Newsline
May 6, 2002
(for personal use only)

Atomic Energy Minister Aleksandr Rumyantsev arrived in Washington on 6May for a weeklong series of meetings with U.S. Energy Secretary SpencerAbraham and other officials, Western and Russian news agencies reported.According to AP, Rumyantsev will present a proposal for cooperation onthe peaceful uses of nuclear energy. "We want an agreement that willprovide a durable foundation for cooperation," the news agency quotedAtomic Energy Ministry spokesman Yurii Bespalko as saying. Bespalko alsotold AP that Russia's ongoing program of nuclear cooperation with Iranwill be a "major subject" of Rumyantsev's talks. "The Americans arealways talking about Iran. There are many issues we want to clarify,"Bespalko said, according to AP.
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D. Russia-Iran

Moscow, Washington Move Closer To Iran-Related Nonproliferation Deal
Ivan Lebedev
May 10, 2002
(for personal use only)

Russian Atomic Energy Minister Aleksandr Rumyantsev believes Moscow andWashington "are close to reaching an agreed solution" to the question ofnuclear nonproliferation in the light of Russia's cooperation with Iran.Addressing a news conference here on Thursday [9 May], he said thatduring his working visit to the USA he had discussed this subject, which"is a sensitive one in scientific and technical relations between Russiaand the USA".

Over the last two days the atomic energy minister has had meetings with,amongst other people, Energy Secretary Spencer Abraham; President Bush'snational security adviser, Condoleezza Rice; the under secretary ofstate responsible for arms control and international security affairs,John Bolton, and the administrator of the US Energy Department'sNational Nuclear Security Administration, Gen John Gordon.

Rumyantsev recalled that for several years Russia had been building anuclear power station in Iran and this "will be commissioned in twoyears' time". However, he stressed, this nuclear power station "is not asource of proliferation of nuclear materials". The atomic energyminister gave an assurance that Russia is not involved in "otherscientific research and technical programmes with Iran" in the nuclearsphere.

For his part, Abraham noted that the problem of nonproliferation in thelight of cooperation between Moscow and Iran was a "complex" one andstill worried Washington. He said the US administration intended tocontinue discussing it at various levels with the government of theRussian Federation. He described the present discussions with hisRussian colleague as "positive".
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Russian, US Energy Talks Flounder Over Cooperation With Iran
Russian Public TV (ORT)
May 10, 2002
(for personal use only)

[Presenter]: Russia and the USA are holding talks on radiation safety.The main participants are the head of the Atomic Energy MinistryAleksandr Rumyantsev and the US energy secretary, Spencer Abraham. Themain aim of the talks to prevent terrorists gaining access toradioactive materials.

[Correspondent] After three days of talks, US Energy Secretary SpencerAbraham and Russian Atomic Energy Minister Aleksandr Rumyantsev held ajoint news conference in Washington. Their talks had several aims: todraft an agreement on the nonproliferation of nuclear weapons and thepeaceful use of nuclear power, the reliable protection of nuclearmaterials released during strategic weapons cuts and joint actionagainst the manufacture of what are called "dirty bombs".

An accord was reached to the effect that the US will fund a six-yearprogramme to reprocess and store 600 tonnes of Russian nuclear waste.There is one other specific agreement, as well: the USA is to resumepurchases of uranium-238 from Russia. We use this uranium isotope toproduce energy in space.

Russia's construction of a nuclear power station in Iran remains asource of discord. We believe this is a question of providing Iran withpurely civilian nuclear technology. The Americans disagree with thisoutright.

[Rumyantsev] The point is that, peaceful or not, all technology isdual-purpose technology because an ordinary nail hammered into the deckof an aircraft-carrier also has a dual purpose. This is why in thenuclear field a perfectly clear distinction is drawn between nuclearweapons and nuclear technology that is, however, dual-purposetechnology. So it's always hard to draw the line and that is the basisfor our cooperation.

[Correspondent] The Russian atomic energy minister and his departmentalcounterparts in the USA are continuing their work on a bilateralagreement on the nonproliferation of nuclear weapons and nuclearmaterials. To date, agreement has to reached in each individual instanceas to what is military technology and what isn't.
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Put A Cork On Iran's Weapons Program
Richard Sokolsky
Christian Science Monitor
May 9, 2002
(for personal use only)

Over the past year, the United States and Russia have built a closerrelationship, overcoming many hurdles. But on one issue, a huge gapremains: Russian assistance to Iran's nuclear weapons andmissile-development programs. The Bush administration needs to takebolder actions on this, beginning later this month at the presidentialsummit in Moscow.

Iran's acquisition of weapons of mass destruction (WMD) would threatenthe United States and its friends in the Middle East and Europe. Formany years, Russia has been Iran's principal supplier of technology,equipment, and components for ballistic missiles and nuclear-weaponsdevelopment. Ending the aid would make it far more difficult for Iran todevelop advanced weapons.

US efforts to halt Russian transfers of dangerous technologies to Iranhave met with little success, for several reasons. The US has yet tooffer Russia many positive incentives that would offset for powerfuldomestic interests the value of such assistance. The United States' useof sanctions against Russia has poisoned the atmosphere for cooperation.And Russian officials either do not see Iran as a threat or believe theycan manage the consequences if Iran does acquire WMD capabilities.

Ending Russia's weapons assistance to Iran should be an important USstrategic priority, and the Bush administration should take steps thatare commensurate with its importance. At the same time, the US cannotsubmit to Russian blackmail or compromise other core security interestsin pursuit of a US-Russian deal. What options are available?

First, the US should offer major financial incentives to compensateRussia for the economic losses it would suffer from ending itsassistance to Iran. Much of this increased aid - for example, UScooperation in improving the commercial value of Russia's nuclear energyindustry - could also be used to downsize Russia's bloated nuclearinfrastructure.

Second, it is time to "think outside the box." Other issues may be moreimportant to Russia than supplying nuclear and missile technologies toIran. These include support for early entry into the World TradeOrganization on terms favorable to Russia, greater access to Westerninvestment and technology, and debt relief. The US should seek toleverage these issues to get what it wants on Iran.

Third, Washington should link its missile defense program, US strategicforce reductions, and Russian transfer of sensitive militarytechnologies to Iran. Iranian success in acquiring long range ballisticmissiles for delivery of nuclear, biological, and chemical weapons willinfluence the future capabilities of a US missile defense system and USstrategic force levels.

The United States should underscore that, in return for concrete actionsto cut off dangerous assistance to Iran, the US would consider morefavorably Russian proposals to limit missile defense deployments and toreduce the size of our nuclear stockpile. Washington also needs toemphasize that significant US-Russian ballistic missile-defensecooperation will not be possible if Russia does not shut off its WMDspigot to Iran.

Last, the US should press for greater European support. The importanceRussian President Vladimir Putin assigns to deepening ties with Europegives America's European allies considerable leverage over Russianpolicies. The US should urge its European allies to condition theirgrowing economic assistance and investment in Russia on concrete Russianactions to cut off WMD assistance to Iran.

At this month's summit, beginning May 23, President Bush will need toimpress on President Putin that stanching the flow of Russian WMD aid toIran will be critical to strengthening the US-Russian partnership.Coming up with the right incentives for Russia is no guarantee ofsuccess, but neglecting to do so is a sure recipe for failure.

Richard Sokolsky is a distinguished research fellow at the NationalDefense University's Institute for National Strategic Studies. These arehis personal views.
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U.S. To Penalize Foreign Firms Over Iran Ties
May 9, 2002
(for personal use only)

Revealing heightened concerns about Iran, the Bush administration hasdecided to impose new penalties on Chinese, Armenian and Moldovancompanies accused of aiding Tehran in its reported development ofweapons of mass destruction, a senior American official said today.

The official said Congress would soon be formally notified of thedecision, which is being made under the Iran Nonproliferation Act of2000.

The sanctions are imposed because of "weapons transactions with Iran"and to demonstrate that "we're paying increased attention to the IranNonproliferation Act," said the official.

He did not disclose the names of the companies, how many were affectedor the exact nature of their activities. But he said the number ofpenalties imposed and the number of companies and individuals beingpenalized were "going up."

Those to be sanctioned are engaged in activities prohibited bymultilateral export control lists like the Missile Technology ControlRegime, which seeks to curb the transfer of longer-range missiles, andthe Australia Group, a 33-nation nonproliferation regime that seeks toprevent the spread of chemical and biological weapons.

The official said companies and individuals in Moldova and Armenia to bepenalized may be a "front" for Russian entities, given that thosecountries are former Soviet republics.

Since Sept. 11, the administration has vowed to crack down on statesthat are developing nuclear, chemical, biological and missile technologythat could be used by terrorists.

The United States last invoked the Iran Nonproliferation Act in January2002 when it imposed penalties on two Chinese companies and one Chinesenational for the transfer to Iran since January 1999 of "sensitiveequipment and technology controlled by the Australia Group."

Those penalized were Liyang Chemical Equipment, China Machinery andElectric Import and Export Company and Q.C. Chen.

Under the sanctions, in force until January 2004, the accused partiesare barred from entering into contracts with the American government,receiving American assistance, obtaining new American licenses for itemscontrolled by American export regulations and buying defense and othercontrolled items.
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Russia Calls On United States To Set Up Bilateral Groups On Iran As WellAs On Nuclear And Missile Technologies
Marina Philippova
May 7, 2002
(for personal use only)

Moscow is ready to set up a Russian-American working group to considercooperation with Iran, including that in the nuclear sphere. In hisspeech at Stanford University in California on Tuesday, Russian ForeignMinister Igor Ivanov recalled that Moscow's nuclear cooperation withTeheran was peaceful and was in compliance with international laws.However, Russia is ready to discuss these issues at bilateral talks, ifthe United States has any such concerns, by means ofpromoting trust and cooperation.

"The United States is constantly raising questions about illegal leaksof technological information on nuclear and missile programs. If theUnited States presents any facts causing such concerns, we are ready tostudy them together with the USA in order to remove these threats," theRussian national news service Strana. ru quoted Ivanov as saying.

The Russian foreign minister also suggested setting up bilateral workinggroups for nuclear and missile technologies. Russia is againstproliferation of weapons of mass destruction and wants to strengthen thenon-proliferation regime, Ivanov said, explaining that those weaponscould get in the hands of extremists and terrorists. "At the same time,Russia cooperates with Iran exclusively for peaceful purposes. TheInternational Atomic Energy Agency oversees the Russian-sponsoredconstruction of a nuclear plant in Bushehr, Iran. The IAEA has nevercomplained about any violations of international standards and rules,"Ivanov stressed.
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E. Russia-India

Russia To Supply India With Two New Nuclear Reactors
RFE/RL Security and Terrorism Watch
May 8, 2002
(for personal use only)

Atomstroieksport, the construction department of the Atomic EnergyMinistry, has signed a contract to supply two new reactors for India'sKudankulam nuclear power plant in the southern state of Tamil Nadu, and reported on 27 April. Under the terms of the$294 million deal, an Atomstroieksport subcontractor, UnitedMachine-Building Works, is due to deliver the reactors and the otherequipment in 2005
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F. Russian Nuclear Waste

Georgia Asks OSCE To Assess Russian Bases For Radiation
May 8, 2002
(for personal use only)

Georgia has asked the Organization for Security and Cooperation inEurope (OSCE) to help it find and dispose of radioactive waste on itsterritory. A military-diplomatic source in Moscow told ITAR-TASS onWednesday [8 May] that it has already been practically decided to chargethe OSCE mission in Georgia with this task. A group of specialists arebeing prepared in Vienna for a flight to Tbilisi and further work toassess the radiation situation in Georgia.

According to preliminary data, the period of time during which radiationassessment has to be completed is relatively short. For this reason, theGeorgian government's list of priority facilities to be examinedincludes the Russian military bases in Akhalkalaki and Batumi, theofficial said. He believes the real purpose of these efforts to engagethe OSCE for radiation assessment in Georgia is to give an internationaldimension to the ongoing gathering of incriminating evidence and claimsagainst the Russian bases in order to begin a new campaign of theirdiscrediting and withdrawal from Georgia.
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G. Nuclear Safety

Radioactive Guest From China Turned Back At Border
RFE/RL Newsline
May 9, 2002
(for personal use only)

Interfax-Eurasia reported on 8 May, citing the press service of the FarEastern Customs Administration, that the previous day a Chinese citizenexiting from a train in Vladivostok set off a gamma-detector, whichregistered more than 500 times the normal level of radiation emanatingfrom his throat. The passenger said that he had taken a medication forhis thyroid. However, he did not have proper medical documents and wassent back to China.
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Number Of Nuclear Malfunctions Increases In Ukraine
Associated Press
May 8, 2002
(for personal use only)

All 13 of Ukraine's nuclear reactors were unstable last year and thenumber of malfunctions rose substantially, Ukraine's State NuclearRegulatory Commission said in a report issued Wednesday, according to anews agency.

Sixty-seven malfunctions, including 22 that caused reactor shut downs,were registered at Ukraine's four nuclear power plants last year, thecommittee reported, according to the Interfax news agency.

However, most of the malfunctions had a zero-level environmental impactaccording to the international INES scale of nuclear incidents.Seventeen cases were registered as posing a grade one or slightenvironmental danger, Interfax said.

The number of grade-one incidents rose by 70 percent in 2001 compared to2000, when only 10 cases were registered, the report said.

The most troubled reactors were the Khmelnytskyi and Rivne power plants,which had 15 and seven malfunctions respectively.

Reactors at Ukraine's four nuclear power stations are frequently shutdown for both planned and unscheduled repairs. Currently, 10 out of 13nuclear reactors are functioning, producing about 40 percent ofUkraine's electricity output, the Energoatom state nuclear company said.Reactors at the Rivne, Khmelnytskyi and Yuzhna power plants areundergoing repairs.

Ukraine was the site of world's worst nuclear catastrophe in 1986, whena reactor at the Chernobyl power plant exploded and caught fire, spewingradiation over much of Europe. Chernobyl was closed down for good in2000.
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H. Announcements

Secretary Of Energy Spencer Abraham's Opening Remarks At PressConference With Russian Federation Minister Of Atomic Energy AlexanderRumyantsev
U.S. Department of Energy
May 9, 2002

Before I begin, I want to express the sorrow and outrage of thegovernment and people of United States at the cowardly bombing thatoccurred at a Victory Day parade in southern Russia earlier thismorning. Our deepest sympathies go out to the families of the thirty-twovictims and to all the Russian people. This new reminder of the threatfrom terrorists makes our mutual efforts this week all the moreimportant.

Minister Rumyantsev and I have had almost three days of discussions. Wemet both in large groups and privately, and the Minister and his staffalso met with General Gordon, and with Under Secretary Card.

In addition, he and I will be meeting with Dr. Rice, the President'sNational Security Advisor, and have had a number of meetings withSenators and Congressmen.

These talks served two purposes. First, and most important they are oneof a series of cabinet level consultations being held in preparation forPresident Bush's May 23 summit in Moscow and Saint Petersburg withPresident Putin.

Although it is too early to announce any specifics, we had veryproductive discussions as to how our two organizations can advance thenew strategic relationship.

But this meeting had another important purpose. It was a follow up on myvisit to Moscow in December and another step in our deepeningcooperation.

In Moscow, we agreed to accelerate our work on protecting nuclearmaterials. As a result of our agreement, we have intensified our effortsin Russia. We now expect to complete the work of protecting some 600tons of fissile material by 2008, a full two years earlier than weexpected at this time last year.

This progress has been made possible by the strong support of theCongress and by Minister Rumyantsev's personal efforts to helpaccelerate our work.

We also agreed in Moscow to conduct periodic reviews of our cooperation.This meeting was part of that process. During this meeting we reviewedthe whole range of our ongoing cooperative programs. We also discussedways to advance our mutual non-proliferation goals.

Perhaps the most important step we took this week was an agreement towork together to improve the security of radiological sources that mightbe used to develop so called "dirty bombs". This effort will be a newlogical extension of the work we are already doing together onprotecting nuclear materials in the Russian Federation.

Since 1993 the United States and Russia have been working to securenuclear materials in Russia through our Materials Protection, Controland Accounting program, or MPC&A. This continues to be a highlysuccessful program.

Nonetheless, September 11 has made clear to both Russia and the UnitedStates that more needed to be done.

In particular, both countries have become concerned with radioactivematerials that, while not capable of causing a nuclear explosion, wouldbe very suitable for use in a so-called "dirty bomb," or radiologicaldispersal device.

Such materials exist in many forms -- medical isotopes, radiographysources, and sources that provide electric power in remote areas forthings like beacons. The nature of these sources makes them potentiallyattractive targets for theft.

It is not that we believe such "dirty bombs" would be hugely devastatingin terms of loss of life. But they can he highly disruptive. Thus weneed to look at what we can do to preclude such sources from becominguseful to terrorists.

Russia has also identified this material as a potentially grave threatand we both believe that we can more effectively counter this threat byworking together to address it.

Accordingly we have agreed to create a joint U.S.-Russian task force toimmediately start looking at this threat, and recommend appropriateresponses. We are prepared to provide some initial funding for thiseffort from within the MPC&A program.

This is clearly the next logical step for our materials protectioncooperation and the United States looks forward to collaborating closelywith Russia on addressing this threat.

In addition to making preparations for the summit, reviewing our ongoingprograms, and establishing a new area of cooperation, we also agreedthat the United States will resume purchase of plutonium 238 fromRussia. This material is used as power sources in the U.S. spaceprogram. We expect to be placing orders immediately.

Finally, on a personal note, I want to say how fortunate I am to haveMinister of Atomic Energy Rumyantsev as a partner in this effort.

We've met three times now. I know personally the depth of the Minister'scommitment to reducing nuclear dangers and making the world safer forall future generations.

Presidents Bush and Putin have set forth a vision for a new strategicframework between the United States and Russia. I'm very pleased thatthe Minister and I are forging such a strong partnership in implementingthat new framework.
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Department Of State Daily Press Briefing (Excerpted)
Richard Boucher
May 9, 2002


QUESTION: Richard, can you please clarify one more unofficial source.The question is regarding new sanctions of the Administration imposedagainst Armenian, Moldovan and Chinese companies selling to Iran itemsto develop weapons of mass destruction. Do you have any official remarkson that?

MR. BOUCHER: I can tell you a little bit about that, if I can catch upwith it. Here's what I can tell you for the moment, that we will beimposing some penalties on Armenian, Chinese and Moldovan entities,pursuant to the Iran Nonproliferation Act of 2000. The sanctionsdetermination will be published soon in the Federal Register. We have todeliver -- we have I think at this moment delivered a report to theCongress, which was one of the requirements. Now we are in a position topublish in the Federal Register and thereby disclose the identities ofthe entities that are being penalized.

The penalties are being imposed on entities, as provided in the IranNonproliferation Act for the transfer to Iran of equipment andtechnology listed on multilateral export control lists. The penaltiesare specific to the named entities, do not extend to the Armenian,Chinese or Moldovan Governments. Indeed, we appreciate the efforts thatMoldova and Armenia in particular have made in nonproliferation.

I'm afraid that's about as much as I can say about the transfers of thespecific items or roles of these entities.

QUESTION: Can you say anything about the impact of this? How big will bethe impact of sanctions on --

MR. BOUCHER: The penalties last for two years. They are that nodepartment or agency of the US Government may procure or enter into anycontract for the procurement of any goods, technology, or services fromthese entities. No department or agency of the US Government may provideany assistance to these entities, and these entities shall not beeligible to participate in any assistance program of the US Government.

US Government sales of any item on the US Munitions List to any of theseentities are prohibited, and sales of any defense articles, defenseservices or design and construction services controlled under the ArmsExport Control Act are to be terminated. And new licenses are to bedenied, and existing licenses suspended for the transfer to theseentities of items controlled under the Export Administration Act of1979, or the Export Administration Regulations.

So the actual impact depends on what contracts, assistance, procurement,purchases of dual-use technology or munitions items these entities mayhave or may depend on to do their business.

QUESTION: Do you expect the impact (inaudible)?

MR. BOUCHER: I don't know.

QUESTION: Do you have the names of the companies?

MR. BOUCHER: Not yet. That will appear in the Federal Register.

QUESTION: When were these alleged transfers -- or when were thetransfers -- when did the transfers take place? And also, when was theHill notified?

MR. BOUCHER: The Hill was notified today, and I don't think I am able toshare the information on when the transfers took place.

QUESTION: Are there any of those companies that already had sanctions onthem?

MR. BOUCHER: No, not at this point. That would be apparent, though, onceyou -- once it's published in the Federal Register. I am told that thereare now 14 entities, once this is done, that will be subject tosanctions under this act.

QUESTION: Including all three countries?

MR. BOUCHER: Including entities in these three countries.

QUESTION: (Inaudible.)

MR. BOUCHER: Sorry, I can't go into that.

QUESTION: -- companies in all three countries --

QUESTION: (Inaudible.)

QUESTION: -- seven-day exempt?

MR. BOUCHER: I have to double-check on that.

QUESTION: They won't do it because it's secret?

QUESTION: -- because it has to --

MR. BOUCHER: I can't go into -- the entities will be published, but theinformation on what was being sent, what was being transferred and towhom it's being transferred is not information I'm able to disclosebecause of the way we get such information.

QUESTION: -- able to handle repeat offenders, though, without telling uswho they are?

MR. BOUCHER: I'm not in a position to talk about the entities yet, so Ihaven't had a chance to look through and see if they're repeatoffenders. But it will be apparent because you have the existing list,and once the new Register comes out you'll be able to see if they're onit or not.

QUESTION: Does it involve weapons of mass destruction?

MR. BOUCHER: Again, it involves items that are on multilateral controllists. That's as far as I can go.

QUESTION: If I can just get one more. The sanctions don't come intoeffect until the publication of the Register, right?

MR. BOUCHER: I believe that's true, yes.

QUESTION: It was reported that the Moldovan and Armenian companies wereactually fronts for Russian entities. Do you have anything to say aboutthat?

MR. BOUCHER: We have no evidence that these entities are acting asfronts for other entities or for any governments. That much I can say.

QUESTION: Thank you. The Middle East.

QUESTION: (Inaudible.)

MR. BOUCHER: No, hang on, Beth. Back there. She has one on the samesubject.

QUESTION: Middle East.

MR. BOUCHER: Were you on the same topic or not?


MR. BOUCHER: Please.

QUESTION: Secretary -- Under Secretary Bolton said there will be --might be changes in proliferation policy regarding China and/or Russia.Can you say anything?

MR. BOUCHER: He did? In his speech on Monday?

QUESTION: Yeah, in the Q&A section.

MR. BOUCHER: I'd have to look more closely and see what it is, but ifthere's anything I'll be glad to tell you if there's anything new toannounce at this point.

QUESTION: Who were the intended recipients of the sales from thesefirms?

MR. BOUCHER: That's, again, the same kind of information that we're justnot going to be able to disclose because of the way we get it. Entitiesinside Iran were the intended recipients, but that's as far as we cango.

QUESTION: Just for background purposes, are you able to say, withoutgoing into huge technical detail, what the government's responsibilityis in establishing the fact of these transfers? Or is it that you getinformation and that reaches a point where you're then obliged by law totell Congress? I mean, if you don't have --

MR. BOUCHER: It's sort of what's the standard in the law is really whatwe'd have to look at. You know, what is the standard of, you know -- I'msure it's not beyond a reasonable doubt, but some comparable standard inthe law. I don't know. I'd have to check on the law and see what weestablish before we report.

QUESTION: One more question. So you did say, I think, that China -- theChinese Government cooperated with you fully on this now?

MR. BOUCHER: I said we appreciate the efforts Moldova and Armenia inparticular have made, and that the penalties that are specific to thenamed entities do not extend to the Armenian, Chinese or Moldaviangovernments.

QUESTION: But can you say the last part again? I didn't hear.

MR. BOUCHER: The penalties are specific to the named entities and do notextend to the Armenian, Chinese or Moldavian governments.

QUESTION: They weren't (inaudible)?

MR. BOUCHER: I said and particularly Moldavians and the Armenians havebeen very helpful.

QUESTION: Just one last thing. I don't know if this was raised byothers. The Chinese Foreign Ministry has said this is unreasonablesanctions. Do you have any comment on that?

MR. BOUCHER: No, I don't.

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I. Links of Interest

The Nuclear Threat Reduction Campaign Announces Support For The NuclearAnd Terrorism Threat Reduction Act Of 2002
Nuclear Threat Reduction Campaign
May 9, 2002

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Iran's Ballistic Missiles: Rhetoric Outpacing Reality?
Andrew Krepps
Carnegie Endowment for International Peace
May 9, 2002

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House Completes Mark-Up Of FY03 Defense Authorization Bill
Council for a Livable World
May 2, 2002

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U.S. Government Funding For Science And Technology Cooperation WithRussia
Caroline Wagner, Irene Brahmakulam, D.J. Peterson, Linda Staheli, Amy Wong Rand
May 2002

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Policy Brief: Putin's Agenda, America's Choice
The Brookings Institution
May 2002

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Summit With Substance: Creating Payoffs In An Unequal Partnership
Andrew C. Kuchins
Carnegie Endowment for International Peace
May 2002

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Following The Money: The Bush Administration FY03 Budget Request AndCurrent Funding For Selected Defense, State, And Energy DepartmentPrograms
Elizabeth Turpen and Victoria K. Holt
The Henry L. Stimson Center
April 24, 2002

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DISCLAIMER: Nuclear News is presented for informational purposes only.Views presented in any given article are those of the individual authoror source and not of RANSAC. RANSAC takes no responsibility for thetechnical accuracy of information contained in any article presented inNuclear News.

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