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RANSAC Nuclear News, September 17, 2003 Compiled By: RANSAC Staff A. Plutonium Disposition
 A. Plutonium Disposition 1. We are not quite happy with export contracts, says SCC DG Shidlovski In spite of the future trend of the Russian separation capacities� development mentioned in London, still we are not quite happy with the export contractual arrangement, said Vladimir Shidlovski (the Director General of Siberian Chemical Combine) to Nuclear.Ru while commenting on the World Nuclear Association (WNA) annual symposium held in London earlier this month. �We would like to change them to reflect the increase in enriched uranium productions rather than production of natural uranium equivalent from tails or operations with recovered uranium�, he said. The Russian uranium export was discussed in London, in particular, in the course of negotiations of Mr. Shidlovski, Tekhsnabexport officials and RWE Nukem of Germany. �As of isotope separation plants, in this connection we are interested in sublimate productions, which are charged only 70% of their capacities today�, SCC DG said. He believes that the combine�s amount of work will be increasing proportionally the Russian nuclear power development. �Other regions of the world are also developing, primarily in South-East Asia, Shidlovski noted. �We have to seize these markets and enlarge our share in the world market. I may say that judging from the session results there are potentials for that. One just has to be wise to use them. Seek for and not to miss.� Mr. Shidlovski also informed that the work continues to adapt SCC site to house the MOX-fuel fabrication facility. �In fact, we were offered the US project, which is actually French, and impose the American standards and solutions on the Russian design�, he said. It raises rather difficult problems: on the one hand, Russia must ensure transparency of the production; on the other hand, we cannot disclose the isotopic composition of weapons plutonium. �Besides, it runs that the conversion facility is to become an independent section of the project, but the US solution does not cover this aspect�, Shidlovski said adding that the specific technological solutions are still subject to discussions. �No doubt, the main issue is financing, SCC DG noted. �The US and the world community insist on Russia�s not being limited by intellectual contribution only but also participating financially that was not planned initially.� According to Shidlovski, at present the Russian side is trying to work out a certain compromise to this new requirement considering its limited financial capabilities. �I think we�ll come to something. On the other hand, the project is long-term and capital-intensive. What is happening today is design and R&D. When the first large cash comes, we, perhaps, may state that the project has been actually launched�, Shidlovski said. Return to Menu B. Multilateral Threat Reduction 1. Canada to finance decommissioning of Russian nuclear multipurpose submarines Canada is intending to finance decommissioning of the Russian nuclear multipurpose submarines at the navy shipyard Zvezdochka in Severodvinsk, Archangelsk region, Prime-Tass reported. The shipyard�s press secretary Nadezhda Scherbinina said the preparation of the appropriate documents had already begun. The project will be a part of the Global Partnership program adopted in 2002 at the G8 summit. The program stipulates allocating $20 billion for elimination of the excessive weapons in the former USSR. Russia suggested spending some sum on the decommissioning of the multipurpose nuclear submarine, even if they are unable to carry nuclear weapons. Norway and Great Britain promised to fund decommissioning of two nuclear multipurpose submarines each. Return to Menu C. Counterproliferation 1. John Bolton comes to Russia for non-proliferation consultations. U.S. Undersecretary of State for Arms Control and International Security John Bolton came to Moscow on Wednesday. He is planning to discuss here some proposals to toughen control over all the types of international carriages in order to strengthen the non-proliferation regime, Itar-Tass was told at the Press Service of the U.S. Embassy in Russia. President George Bush made this proposal in St.Petersburg on May 31, an Embassy official recalled. This initiative is, in fact, a multilateral answer to the mass destruction weapons proliferation menace, he added. In view of the continuing dialogue on this problem, Bolton will seek Moscow's backing of the principles of this plan, Itar-Tass was told at the U.S. Embassy. Return to Menu 2. Russia, China asked to join WMD hunt Russia and China will be asked to take part in an international dragnet aimed at choking off the global trade in weapons of mass destruction. The move comes after the temperature over the North Korean nuclear crisis rose following the first naval exercise in the US-led Proliferation Security Initiative off Australia's north coast on Saturday. Involving China would certainly further raise temperatures, but it could also help in applying a stranglehold on any trade in WMD or missile technology by North Korea. As part of the training exercise, warships from Australia and the US, customs vessels from Australia and Japan and a French maritime patrol aircraft were involved in intercepting and seizing WMDs from a merchant ship. The PSI is aimed at ensuring WMDs do not fall into the hands of terrorists. While the PSI is aimed at all proliferators, North Korea is a known trader in missile technology as well as contraband. The conduct of the exercise provoked North Korea to warn it was a "blatant military provocation" and claim it could have "explosive" consequences for the region. The 11 PSI members -- the US, Australia, Portugal, Spain, Italy, The Netherlands, Japan, Britain, France, Germany and Poland -- are soon expected to begin formally approaching near neighbours in an effort to establish a truly global dragnet. Australia will approach its Southeast Asian neighbours, while Britain is expected to approach Scandinavian countries. The move is expected to be formally sanctioned at a further meeting of the nations in London on October 9 and 10. More exercises are expected to be held, with four more set to be held before the end of the year. These are likely to involve Australia in either sending further ships and aircraft or observers to exercises in European, Mediterranean and Arabian waters. "Certainly, Russia and China will be approached as part of an outreach program," a senior source close to the initiative told The Australian last night. "The nations we're approaching wouldn't necessarily need to formally join (the PSI core group) but could still join in exercises." The source also confirmed that an exercise to intercept and force down aircraft suspected of carrying WMDs was likely to be held in 2004. He said the involvement of Russia and China could also pave the way to securing a UN resolution to provide watertight legal backing for interception exercises. Another source told The Australian that despite the plans to expand the reach of the dragnet, it was still hoped diplomacy could defuse the crisis. Return to Menu D. Nuclear Terrorism 1. US, Russia see threat of Pak nukes reaching terrorists Russia and the US now see the threat of Pakistani nuclear weapons falling into the hands of terrorists as "no more purely theoretical" and have repeatedly discussed the issue, Russian First Deputy Foreign Minister Vyacheslav Trubnikov has said. "The threat of Pakistani nuclear weapons falling into the hands of terrorists is no more purely theoretical due to presence of large number of extremist groups in Pakistan," Trubnikov told Moscow-based Indian journalists in an interview. "We have a sub-group with the US, which has repeatedly discussed the threat of MDW, not only the nuclear weapons, falling into the hands of the terrorists," Trubnikov added. He said this problem can be solved only through the United Nations and the Security Council, as well as by the global anti-terror coalition. He reminded that Moscow has presented its draft of the UN convention for combating nuclear terrorism and New Delhi has proposed a Global convention on combating the scourge. "India and Russia could actively interact for the adoption of these conventions by the United Nations to tackle this threat," Trubnikov said. Return to Menu E. US-Russia 1. Russian, American presidents to meet on September 26-27 Presidents Vladimir Putin of Russia and George W. Bush of the USA will meet in Camp David on September 26-27. The American President regards the upcoming meeting with his Russian counterpart as a new opportunity to deepen cooperation between the United States and Russia in facing the common challenges of the 21st century. Russian Atomic Energy Minister Alexander Rumyantsev told Itar-Tass on Tuesday that cooperation in nuclear energy might be a subject for discussion at the upcoming Putin-Bush summit in the United States. "The Russian-American cooperation in this sphere develops successfully in all directions," the Russian minister said. "The Russian and American leaders will most likely focus the discussion of nuclear energy issues on cooperation in protecting fissionable materials and nuclear facilities from terrorist strikes," Rumyantsev went on to say. "Nuclear energy projects of the 21st century may also be discussed," he stressed. Return to Menu F. Russia-Iran 1. Don't pressure us, Russia says as US arms control chief holds Moscow talks Russia warned the United States Wednesday not to pressure it over its nuclear links with Iran as the top US arms control official arrived in Moscow for talks on non-proliferation and an upcoming Russia-US summit. "I think our American colleagues understand very well that it is pointless to put pressure on us," Deputy Foreign Minister Sergei Kislyak said in an interview published Wednesday in the Vremya Novostei daily. "We have our points of view. To the extent that they coincide with that of the Americans, we are ready to work and we are working together to prevent the profileration of weapons of mass destruction," he added. The Russian official's comments came ahead of his meeting Wednesday with John Bolton, the under-secretary of state for arms control and international security. On Tuesday Washington, which has repeatedly urged Moscow to halt its construction of Iran's first nuclear reactor at Bushehr, accused it of delivering arms to Iran, although it waived sanctions against Russia in the US national interest. At the same time, the State Department imposed penalties on Tula KBP, a Russian government-owned arms manufacturer that it said had sold laser-guided artillery shells to Iran, a nation Washington considers a "state sponsor of terrorism." The United States has made similar charges against Russia in the past and has expressed deep and growing concerns about Russian cooperation with Iran's nuclear program, which Washington believes is a cover for atomic weapons development. The Russian government and the companies have repeatedly denied the charges. Iran and other proliferation issues were expected to top Bolton's agenda during his two-day visit to Russia. "He is here to discuss non-proliferation issues with Russian officials," a US embassy spokesman told AFP. As always with Bolton's visits to Moscow, US and Russian officials issued few details of the content of his talks. Officials in Washington said Bolton's trip was not expected to deal with the new sanctions on Tula KBP but is rather intended to focus on a new US initiative to prevent the proliferation of weapons of mass destruction and missiles by boarding and seizing such cargo from freighters on the high seas. Bolton "will be seeking support for this initiative from Russian officials," they said. The US envoy is also expected to discuss preparations for Russian President Vladimir Putin's visit to the United States in a week's time. Moscow has recently hardened its non-proliferation stance with regard to Iran, endorsing an October 31 deadline by the UN nuclear watchdog for Tehran to address concerns about its atomic program. But Russia's powerful nuclear industry lobby is determined to press ahead with the 800-million-dollar construction of Bushehr, regardless of concerns that Tehran is seeking to develop nuclear weapons. The US official said Bolton would also be looking for Russia's support on the so-called "Proliferation Security Initiative," a US-led program that 10 other nations have signed on to thus far. The initiative is aimed at preventing the export -- primarily by Iran and North Korea -- of weapons of mass destruction and missile delivery systems by seizing such materiel from ships and planes even if they are in international waters. Return to Menu 2. Russia stresses continuation of nuclear cooperation with Iran Russian Atomic Energy Ministry said here Wednesday it would continue nuclear cooperation with Iran despite the negative propaganda of the West. Talking to IRNA, Russian Atomic Energy Ministry spokesman Nikolai Shingarev said bilateral cooperation between Iran and Russia continues at a high level. "Currently, the operations to complete and launch Bushehr nuclear power plant are going ahead according to schedule," he said. He stressed that nuclear cooperation between Iran and Russia is in the interest of the two countries, adding that bilateral cooperation would have a promising prospect if there were no political obstacle. "There are no obstacles in the way of bilateral cooperation since Iran has repeatedly announced it does not follow military goals in its nuclear programs," Shingarez added. The official noted that nuclear cooperation between Iran and Russia is within the framework of regulations of the International Atomic Energy Agency (IAEA) which is currently making progress. "Russia can participate in construction of other units of Bushehr nuclear power plant and establishment of new power plants in Iran after completing and launching the first unit of this power plant," he added. He further stated that Russia can play an active role in Iran`s scientific research in nuclear fields including the application of nuclear technology in medical sciences. The spokesman said Iranian experts have great skills and are able to perform their scientific research independently and play an active and successful role in international scientific arena. He noted that Iran and Russia will sign the additional agreement on construction of Bushehr nuclear power plant regarding supply of the power plant`s needed fuel and return of its waste fuel in the near future. Return to Menu 3. U.S. Says Russia Sold Arms to Iran The United States on Tuesday accused Russia of supplying arms to "state sponsors of terrorism," chiefly Iran, and slapped sanctions on a Russian defense company. The charges -- which mirror U.S. accusations concerning Baghdad after the Iraq war started -- appear to be an attempt to pressure Moscow over its cooperation with Tehran, analysts said. "The United States government has determined that the government of Russia transferred lethal military equipment to countries determined by the secretary of state to be state sponsors of terrorism," the U.S. State Department said in a notice published in the Federal Register. A State Department official said the decision -- made Aug. 25 but announced only Tuesday -- was connected to the sale of laser-guided Krasnopol-M artillery shells to Iran. He said sanctions have been imposed for one year on KBP Tula, the maker of the shells. KBP Tula is a state-owned company that produces anti-aircraft and anti-tank missile systems. The sanctions bar KBP Tula from doing business with the U.S. government and from buying U.S. defense equipment. KBP Tula said Tuesday that the sanctions were meaningless since it has no business in the United States and suggested that they were a warning to Moscow. "This may be a way to put political pressure on the country," KBP Tula deputy chief engineer Andrei Morozov said by telephone from Tula. He said KBP Tula does not have any contracts with Iran and has never sent it any arms. Ruslan Pukhov, director of the Center for Analysis of Strategies and Technologies, agreed that Tuesday's charges carried political overtones. "This is some kind of political game," he said. The accusations came a day before U.S. Energy Secretary Spencer Abraham was to arrive in Moscow to attend an international nonproliferation conference and less than two weeks before U.S. President George W. Bush hosts President Vladimir Putin at a summit at Camp David. The timing may have something to do with U.S.-Russian differences over Iran's nuclear capacity and could be a message to Moscow that "the U.S. is very concerned about Iran and is willing to pick at anything," said Ivan Safranchuk, director of the Moscow office of the Washington-based Center for Defense Information. In addition, with the gap closing on Moscow's and Washington's positions over the Iranian nuclear issue, the White House may be testing whether the Kremlin is willing to yield on other positions, such as on the sale of conventional weapons, Safranchuk said. In 2000, Russia pulled out of a 1995 Gore-Chernomyrdin deal under which it agreed not to deliver weapons to Iran. Analysts predicted at the time that Iran might become Russia's third largest client after China and India, but aside from a batch of helicopters and armored personnel carriers, there have been no reports of arms deliveries. Washington has been most concerned about Russia's role in helping Iran build its nuclear industry through the construction of the Bushehr nuclear power plant. To address concerns that Iran is secretly developing nuclear weapons, Russia has said it will freeze construction of the $1 billion plant and not supply any fuel unless Iran agrees to return all spent fuel. The State Department official said Tuesday that the new charges were not connected to Iran's nuclear program or the Bush-Putin summit. "I would not read into the timing," he said, speaking by telephone from Washington. "It is not linked to the upcoming summit and not designed to introduce any sour notes into the meeting." He refused to say how the United States had learned about the Iran deal or when it was believed to have taken place. "We would not like to go into this. It is a sensitive issue," he said. The finding means that Washington could have imposed sanctions on Russia, a move that would cut off all U.S. assistance to the country. The State Department, however, said it had decided this would not serve the national interests of the United States. The United States directly accused the Russian government of supplying arms to "state sponsors of terrorism" last September and slapped sanctions on three Russian defense companies, including Tula KBP. In 1999, the State Department placed sanctions on Tula KBP for the first time, after the company delivered Kornet anti-tank missiles to Syria. In late March, Bush complained that Tula KBP and another Russian defense company had supplied Iraq with anti-tank guided missiles, GPS jammers and night-vision goggles in violation of UN sanctions. Moscow, along with Berlin and Paris, was fiercely opposed to a war against Saddam Hussein's Iraq, and the U.S. complaint was widely seen as an attempt to pressure Russia into softening its stance. KBP Tula has the right to export arms independently from state-owned arms mediator Rosoboronexport. It delivered $350 million worth of arms last year. Return to Menu 4. No creating nuke weapons with equipment and fuel for Bushehr NPS Russian equipment and nuclear fuel for the Iranian nuclear power station at Bushehr cannot be used for the creation of nuclear weapons, Russian Minister for Atomic Energy Alexander Rumyantsev told a news conference on Tuesday after the ending of the talks with Iranian Vice President, Chairman of Iran's Organization for Nuclear Energy Gholam Reza Aqazadeh. "The construction of the nuclear power station can bring Iran closer to the creation of nuclear weapons only in the measure in which raising the level of education in any society enhances its defence potential", Rumyantsev said. "Studies in nuclear physics, in such areas of knowledge as chemistry or biology can be used in peaceful purposes and for possible creation of military technologies", Rumyantsev said. He recalled in this connection that Iran has a research reactor of the US make that can well be used for "working on ways of uranium enrichment with slow neutrons". At the same time the Russian minister noted that the inspections carried out in Iran had "not established any technologies approaching those that are necessary for creating nuclear weapons". Return to Menu 5. No reasons for stopping nuclear cooperation with Iran Russian Atomic Energy Minister Alexander Rumyantsev said there are no reasons for stopping nuclear cooperation with Iran. He told Itar-Tass on Monday, "The construction of the nuclear power plant in Bushehr will be continued." Rumyantsev is taking part in the IAEA General Conference currently under way in Vienna. "Russian-Iranian cooperation does not breach international legislation," he stressed. "Moreover, under the IAEA Charter, nuclear great powers obliged to help other states develop nuclear energy for peaceful purposes," the minister added. He said after Iran signs an additional protocol on the return of spent nuclear fuel to Russia "certain amendments will be made to the contracts." "Then we can raise the question of supplying fresh nuclear fuel to Iran," he pointed out. A member of the Russian delegation at the IAEA General Conference told Itar-Tass, "Russian-Iranian cooperation in the nuclear field is peaceful and is in strict compliance with international agreements. The nuclear power plant in Bushehr is under constructed under the IAEA auspices. During the inspections, specialists have not revealed any violations." In addition, he said, "Moscow reiterated that nuclear fuel supplies will begin to Iran only after it signs an additional agreement on its obligatory return to Russia." U.S. Energy Secretary Spencer Abraham held talks with the Russian minister as part of the IAEA General Conference. He said the U.S. concern about Russia's cooperation with Iran in the nuclear field increased. On Washington's position on the Iranian nuclear programme and Russia's participation in the construction of the nuclear power plant in Bushehr, he said in light of the recent events regarding Iran's nuclear programme, the U.S. concern about Russia's cooperation with Iran not abated, but on the contrary increased. Return to Menu 6. Russia Announces Support for IAEA Resolution on Iranian Nuclear Program The Russian nuclear energy minister says he has not seen anything to suggest that Iran is close to making atomic weapons, but he says Russia supports the resolution approved by the International Atomic Agency Board last week, demanding that Iran come clean on its nuclear program. He made the remarks in Vienna, where the IAEA is holding its general conference. The Russian minister, Alexander Rumyantsev, told reporters that he supports last week's resolution. The resolution called for Tehran to fully disclose its nuclear program by the end of October. The Iranian delegation walked out of the meeting in protest against what it called, the poisonous language of the resolution. Mr. Rumyantsev said Iran does not have much experience in the field of nuclear energy and does not know how to manage spent fuel. Russia is constructing a nuclear power plant in Iran at Bushehr and is currently negotiating with Tehran on the return of all spent fuel to Moscow. An agreement was expected to be signed this week in Vienna, but Mr. Rumyantsev said there are still some technical points to be finalized. The United States is concerned that Iran could reprocess spent fuel to produce plutonium that could be used to develop nuclear weapons. Iran says it needs the plant to supply its 66 million people with electricity. The Bushehr plant is expected to go on line next year. Mr. Rumyantsev said scientific nuclear research going on in Iran could be used for civilian or military purposes, but there is no evidence the work is of a military connection. Minister Rumyantsev said there is no indication the Iranians have the research and technical capabilities that would enable them to develop nuclear weapons. And he says numerous inspections by the IAEA have not revealed such capability. Mr. Rumyantsev also said Russia did not provide any design information for a heavy water plant that Iran has built in the town of Arak. Experts say the plant's existence is an indication that Iran has a nuclear-weapons program. Return to Menu 7. Russia Bewildered with Reports on US Sanctions Against Tula-Based Arms Producer The Russian Committee for Military-Technological Cooperation with Foreign Countries was perplexed with reports saying that the US has allegedly imposed economic sanctions against an instrument engineering plant based in Tula, 300 km southwest of Moscow. Media reports say the US has accused the plant of selling weapons to Iran. "This is at least strange since Russia is maintaining no contacts whatsoever in the area of military technology with Iran," a senior Committee official told RIA Novosti Tuesday. This is not the first time the Tula plant, Russia's major conventional arms producer, is subjected to such accusations from the US. In 2000 and last September, for one, the US accused the enterprise of supplying arms to Iraq and imposed sanctions, but had to lift those ungrounded sanctions later on, recalled the source. The Tula arms producer had just signed a large contract with the United Arab Emirates at that time, recalled the source. The US' accusations were therefore treated as an attempt to throw mud at its rival on the world arms market. The current situation is very much the same, according to the official. The Tula-based plant manufactures anti-tank and artillery systems, anti-aircraft, small and cannon weaponry, and sporting and hunting guns. Return to Menu 8. Russia, Iran Near Nuclear Fuel Deal Moscow and Tehran are close to an agreement on the return of spent nuclear fuel from a reactor Russia is building in Iran, the Kremlin's nuclear power minister said Tuesday. "We will agree," said the minister, Alexander Rumyantsev. "We don't have any contradictions." The Bush administration has voiced concern about the $800 million deal at Bushehr, Iran, since Russia and Iran signed it in 1995 and urged Moscow to stop all nuclear cooperation with Tehran. The Kremlin has shrugged off U.S. warnings the deal could help Tehran build an atomic bomb but has recently indicated it shares U.S. concerns about the Iranian nuclear program. Last week, Russian officials said the Iranians' demand that Russia pay for the spent fuel it would take back for reprocessing was unacceptable. Rumyantsev, talking to reporters outside the general conference of the International Atomic Energy Agency, said who would pay still appeared in dispute, but he suggested the issue could be put on hold and resolved after the agreement is signed. The main delay now was a pending decision by Iran on who would sign on behalf of it and where - in Moscow or Tehran - and an Iranian delegation was expected to meet in Moscow in the next few days, Rumyantsev said. The IAEA's board of governors on Friday gave Tehran until the end of October to prove it is not running a nuclear weapons program. The deadline was agreed on the basis of a report by IAEA Director General Mohamed ElBaradei listing the discovery of weapons-grade enriched uranium and other evidence that could signal an atomic weapons program. Tehran insists that its nuclear program is aimed only at generating electricity. Russian officials last week said there was no political reasons behind the latest Russian-Iranian dispute over the return of spent fuel, saying Russia wasn't linking its cooperation with Iran to Tehran accepting tighter international oversight of its atomic facilities. Rumyantsev reconfirmed the Russian position on the dispute over who pays, saying if Iran insists on charging for the transport of spent fuel to Russia, "the price for the fresh fuel" supplied by Moscow will likely be higher. Previously, Russian and Iranian officials have made repeated pledges to sign the agreement quickly and said the only obstacle was a technical argument relating to environmental protection. Rumyantsev suggested the Kremlin backs the U.S.-led board's resolution on the October deadline and considers the worries raised by the IAEA report valid, but said suspicions against Iran had not been proven. "All the scientific research conducted in Iran can be used for nuclear energy as well as for possible military technology," he said. Return to Menu 9. Tula arms makers say US sanctions aim to damage their position Tula arms makers have not given the United States a reason for sanctions, sources at the plant manufacturing Kornet-E anti-tank missile systems told Itar-Tass on Tuesday. "It seems that the U.S. sanctions against the Instrument-Making Design Bureau based in Tula are aimed to undermine the leading positions of Russian manufacturers of anti-armor weaponry, which exceeds American armaments by combat characteristics," head of the Instrument-Making Design Bureau press service Valery Vozbranny told Itar-Tass. "Our enterprise has not had military-technical contacts with Iran in the post-Soviet period. Our products have never been supplied to that country," he stressed. The U.S. Department of State has imposed a one-year ban, starting from August 25, on the Design Bureau's dealings with the American government and licenses to buy American-made military goods, Vozbranny said. "As for the licenses, the Design Bureau has never bought them and does not need them at all," he said. Return to Menu 10. US Imposes Sanctions Against Russia's Tula Enterprise On September 16 the United States has imposed one-year sanctions against the Tula-based Instrument-Making Design Office, accusing it of passing military equipment to Iran. On Tuesday this information was officially confirmed to RIA Novosti at the United States' Federal Register. Tula, found 300 kilometers from Moscow, has long been called "the capital city" of Russian gunsmiths. The American administration is reported by Washington to have found out that Russia passed dangerous military equipment to countries which sponsor terrorism. For this reason, the Tula design office will be refused assistance from the American administration for one year, including the issue of export and import licenses for defense commodities and services. The Russian Committee for Military-Technical Cooperation with Foreign States has voiced surprise over the report on sanctions against the Tula design office. "It is at least strange because Russia today has not a single contract with Iran in the sphere of military-technical cooperation," a high official in the committee told RIA Novosti on Tuesday. The Tula enterprise manufactures antitank and artillery systems, antiaircraft weapons, small arms and artillery pieces, sporting and hunting guns. Among its most renowned products are the Kalashnikov assault rifles, sniper rifles, guided missiles, launchers, grenade launchers. Return to Menu G. Russia-North Korea 1. Commentary: North Korea Needs Security Guarantees While not overestimating the significance of the meeting of six countries in Beijing late in August, its psychologically advantageous aspect can (and should) be given due attention. It brought a touch of optimism and vivacity to not only the participants in the meeting, but also among other states that are interested in normal negotiations to settle North Korea's nuclear problem. Though we have failed even to agree on the next round of talks, their venue and date, everyone involved was returning from the hospitable Chinese capital with not only a feeling of gratitude to the hosts for a cordial welcome, but also a better understanding of each other's positions and the well-grounded hope, if not confidence, that sooner or later we shall continue our meetings. Nevertheless, it is no less significant that there are already six of us and everyone without exception (the North Korean representative spoke about this as well) wants one thing - to retain the nuclear-free status of the Korean Peninsula. It is significant in this context that everyone who took part in the Beijing talks is still prepared to concentrate on the most important issue , putting aside some problems and claims, of which there are many, or leaving them to later stages of the negotiating process. Now that the six participants in the talks have assumed responsibility for the further development of the situation in Korea, the chances for substantial progress in the negotiations have increased accordingly. So, what is the stumbling block? I think that since the Beijing meeting it has become even more obvious that North Korea should be given security guarantees, possibly on a multilateral basis, taking its concerns duly into account. This would help install confidence and demonstrate goodwill, which is crucial during negotiations. This refers in the first place to the key figures in the talks - the US and North Korea. I see the chief mission of the other partners as giving every possible form of assistance in promoting this positive process, without which it will be difficult to reach agreement. So, the Beijing process is under way. I am sure that it will be continued. Return to Menu 2. Russian Minister questions availability of nukes in NKorea Alexander Rumyantsev, Russian Minister of Nuclear Energy, has told Itar-Tass here in view of the forthcoming continuation of the six-sided talks on the nuclear problem of the Democratic People's Republic of Korea (DPRK) that he doubts that the DPRK possesses nuclear weapons. "It is difficult to speak about a country's possessing nuclear weapons if it did not test them," he said. At the same time the Russian Minister pointed out that he in no way questions the availability of fissionable materials -- including plutonium and enriched uranium produced at a graphite-moderated reactor -- in North Korea. However, the amount of accumulated material is very small for the development of nuclear weapons either in quality or quantity, he added. The Russian Minister supposed that the DPRK's tough stand at the talks is possibly the consequence of discontent over the results of cooperation within the framework of the KEDO international consortium that involves the United States, Japan, and South Korea. "It is difficult enough to get a clear idea of Pyongyang's nuclear programme owing to the lack of complete and reliable information," Rumyantsev said. "But, on the strength of the existing fragmentary data, one can judge that over the past decade North Korea has not made much headway from the viewpoint of large-scale nuclear power engineering". Return to Menu H. Nuclear Industry 1. Kazatomprom takes good forth in the uranium mining in 2002 According to the World Nuclear Association (WNA) annual report released September 15, NAC Kazatomprom is rated forth among the world�s uranium mining companies, as Nuclear.Ru was informed by the company�s press-service. The world�s mighty three include French Cogema (19 % of world mining), Canadian Cameco (17 %), and Australian ERA (11 %). The Kazakhstan�s company mined 8% of the world�s share in 2002 or 2,800 tons of uranium. Thus, Kazatomprom stepped one point up as compared to its 2001 uranium output. The company increased uranium mining output by exploring old deposits Uvanas, East Mynkuduk, Kanzhugan, South Moinkum, and North Karamurun and launching new deposits South Karamurun and South Moinkum. Kazatomprom�s programmatic task is to build up annual output up to 15,000 tons by 2028 and gaining by that the first place in the world�s uranium mining. Such build up is planned to base on exploration of surveyed yet undeveloped deposits: Zarechnoye, Zhalpak, Irkol with totaling 2,000 tons, Central Mynkuduk of 81,000 toms, Kharasan � 160,000 tons, a section of Inkai deposit capable of 130,000 tons and a unique Budenovskoye deposit which forecasted capacity is 300,000 tons. The National Atomic Company Kazatomprom is the national export-import operator for uranium and other dual-use materials. The company incorporates affiliates-uranium mining administrations (Central, Stepnoye and Mining Administration # 6), affiliated enterprises JSC Ulbinsk Metallurgical Plant (90 %) and JSC Volkovgeologiya (90 %), MAEK-Kazatomprom (100 %), the Institute of high Technologies (50 %), and shares in joint ventures Inkai, Katko, Zarechnoye and UKR TVS. Return to Menu 2. Russian Government to Consider Feasibility of Floating Nuke Plants The Russian Atomic Energy Ministry has proposed that the federal government consider the possibility of providing loan guarantees for the construction of floating nuclear power plants. The proposal was discussed at a conference on the ministry's premises Wednesday, with Vice Premiers Boris Aleshin and Vladimir Yakovlev in attendance, Deputy Minister Valery Govorukhin told reporters. Such mobile power plants could serve as a reliable source of energy for remote areas of Russia, he pointed out. Russian specialists have designed a KLT-40 station that is capable of generating electricity and heat energy and can also be used as a desalination facility, Govorukhin said. According to him, the new project has already passed environmental tests and received a license from the State Monitoring Committee for Atomic Energy. The nuke station's two reactors and one generator are united into a single unit, and it is capable of generating up to 70 MW of electricity and 140 Gcal of heat energy. It can be easily trawled on board a barge, Govorukhin said. The plant will cost an estimated $180 mln to install, the deputy minister said. Some $30 mln has already been put into preliminary research and development. The remaining $150 mln could be borrowed from commercial banks if the government agreed to provide loan guarantees, Govorukhin said. He added that the project was expected to pay off in eight years' time. According to the deputy minister, China, Indonesia, and several Mediterranean nations have already displayed interest in the project. In those countries, the investment could be returned sooner than in Russia, as they have higher electricity prices, he noted. Return to Menu 3. Vienna forum to discuss future of nuclear power engineering A regular annual session of the General Conference of the International Atomic Energy Agency (IAEA), which began here on Monday, continues its work on Tuesday. The chief delegates of the participating countries are to speak in a general discussion of the agenda and an IAEA annual report for 2002. Simultaneously, working committees of the session are to get down to preparing and fixing draft resolutions. On Monday, speeches by representatives of Russia, the United States, Iran, China and other countries drew special attention. A scientific forum on the theme of "New Horizons: Nuclear Energy in the Changing World" begins here on Tuesday within the framework of the IAEA General Conference session. Those present at the forum will consider, in particular, an item concerning the implementation of a project for the use of thermonuclear fusion. A report on the subject is to be made by Russian Academician Yevgeny Velikhov. Alexander Rumyantsev, Russian Minister of Nuclear Energy and the leader of the Russian delegation at the IAEA General Conference session, is to continue bilateral consultations with the chief delegates of other countries. His working meetings with representatives of Iran and Israel, in particular, will be of special interest. On Monday, Rumyantsev met with his counterparts from the United States, Japan, the Republic of Korea, China, Indonesia, and France. Return to Menu I. Nuclear Safety 1. World Bank to allot Kyrgyzstan $5 million for uranium storage rehabilitation The World Bank will allot $5 million to Kyrgyzstan to finance a project on rehabilitating storage facilities for uranium wastes, the Kyrgyz government press service told Interfax on Tuesday. "The money will be directed primarily to the rehabilitation of storage facilities near the town of Maili-Suu in the Jalal-Abad region in southern Kyrgyzstan," the press service said. The country will also soon be granted $370,000 to carry out a feasibility study on the Maili-Suu storage facilities, the press service said. The same amount of money will be allocated for conducting a feasibility study on rehabilitation of the Kajisai storage facilities in the Issyk-Kul region in northern Kyrgyzstan. Kyrgyzstan has 44 facilities for storing uranium wastes and 28 dumps from uranium extraction and processing. According to World Bank estimates, the rehabilitation of uranium storage facilities in Kyrgyzstan will cost over $20 million. Return to Menu J. Official Statements 1. Daily Press Briefing (excerpted) [�] QUESTION: In the Federal Register today, and in The Washington Times as well today the Russian entity Tula KBP, why the acknowledgement of Iran as the buyer of such, I think the quote was "lethal military equipment"? I mean, usually you don't acknowledge the buyer of such equipment, only the seller, but in the Federal Register today Iran was notified. Economics thing. MR. ERELI: Without getting into past patterns or practices, we would simply say that we made a determination that lethal military equipment had been transferred to a state sponsor of terrorism -- Iran -- and pursuant to the Foreign Assistance Act of 1961, we made that determination known in the Federal Register. So I'd say the determination was fully consistent with the relevant legislation. QUESTION: The seller? MR. ERELI: Yes, yes. QUESTION: Oh, I thought Iran was the buyer. Okay. MR. ERELI: Yes. Iran is -- the sanctions were -- we made two decisions: one, a determination to impose and waive mandatory assistance prohibitions against the Government of Russia for its role in the transfer of lethal military equipment; and, second, to impose sanctions against the Russian entity Tula Design Bureau for its involvement in the transfer. QUESTION: Adam, on this, I understand that -- well, on Russia particularly, it was announced by someone on the Hill today that Under Secretary Bolton was going to Moscow immediately after his testimony. Is this something -- I would imagine this is now a case closed on this, that he will likely be talking about Iran and the nuclear cooperation that they have with Russia when he goes. Who is he meeting? How long is he going to be there for? And what are the topics of these -- MR. ERELI: I believe I checked on this just before coming out. He's going for two days, the primary purpose of -- which is to discuss issues related to the Proliferation Security Initiative. For more details on his trip, we'll get back to you. Eli. QUESTION: Don't call us, we'll call you. QUESTION: Okay. Does the publishing of these sanctions -- I don't know if this is the first time -- but does that mean that the Gore-Chernomyrdin agreement, I think of 1998, that said that the United States wouldn't impose sanctions on Russia for giving (inaudible) is now over? MR. ERELI: No, we didn't impose sanctions on Russia. We waived -- QUESTION: Oh, you waived them? MR. ERELI: We waived them for -- QUESTION: But you didn't even list them before for a while. There was no even, like, consideration in the Federal Register. MR. ERELI: Again, without speaking to past -- QUESTION: -- prior administration's agreement with the Russians were -- MR. ERELI: So, Teri. QUESTION: Can you explain the foreign policy purposes behind waiving sanctions on them? MR. ERELI: Sure. Simply put, we believe that continuing to provide assistance to Russia is in the U.S. national interest. U.S. assistance to Russia is critical to achieving national security and foreign policy objectives in a number of areas where we have shared interests, including -- and active programs of cooperation including nonproliferation, WMD threat reduction, cooperation in the war on terror, economic and democratic reform. So there is a wide range of programs that is in our national interest to continue, and that justify a waiver of the sanctions. QUESTION: So, and what kind of -- I mean, what kind of punishment is this, basically? It's embarrassing to be in the Federal Register? MR. ERELI: Anyway. QUESTION: Do you have anything on awareness, on Moscow's awareness of what was going on, the level of knowledge? MR. ERELI: No, I do not. I do not. QUESTION: So that may or may not be a factor in waiving? MR. ERELI: Without getting into the -- I think the major factor was the national interest, the national interest and continuing assistance. [�] Return to Menu 2. Testimony before the House International Relations Committee, Subcommittee on the Middle East and Central Asia (excerpted) [�] Nuclear As I informed Congress last fall, we are concerned about Syria's nuclear R&D [research and development] program and continue to watch for any signs of nuclear weapons activity or foreign assistance that could facilitate a Syrian nuclear weapons capability. We are aware of Syrian efforts to acquire dual-use technologies -- some, through the International Atomic Energy Agency (IAEA) Technical Cooperation program -- that could be applied to a nuclear weapons program. In addition, Russia and Syria have approved a draft program on cooperation on civil nuclear power. Broader access to Russian expertise could provide opportunities for Syria to expand its indigenous capabilities, should it decide to pursue nuclear weapons. The Syrians have a Chinese-supplied "miniature" research reactor under IAEA safeguards at Dayr Al Hajar. Syria is a party to the Non-Proliferation Treaty, and has a standard safeguards agreement with the IAEA but, like Iran, has not yet signed or, to our knowledge, even begun negotiations on the IAEA Additional Protocol. The Additional Protocol is an important tool that, if fully implemented, could strengthen the IAEA's investigative powers to verify compliance with NPT safeguards obligations and provides the IAEA with the ability to act quickly on any indicators of undeclared nuclear materials, facilities and activities. We believe the Additional Protocol should be a new minimal standard for countries to demonstrate their nonproliferation bona fides. [�] Advanced Conventional Weapons Damascus has sought to acquire Russian SA-10 and SA-11 air defense systems, MiG-29 and Su-27 fighters, and T-80 or T-90 main battle tanks, as well as upgrades for the aircraft, armored weapons, or air defense systems already in its inventory. But its inability to fund large purchases and its outstanding debt to Russia have curbed substantial upgrades and acquisitions. [�] Return to Menu 3. Alexander Yakovenko, the Official Spokesman of Russia's Ministry of Foreign Affairs, Answers a Question from Russian and Foreign Media Regarding the Adoption by IAEA of a Resolution Concerning Iran's Implementation of Its Safeguards Agreement Pursuant to the Nuclear Nonproliferation Treaty Question: On September 12 a session of the Board of Governors of the International Atomic Energy Agency (IAEA) adopted a resolution concerning Iran's implementation of its Safeguards Agreement Pursuant to the Nuclear Nonproliferation Treaty. Please comment on the adoption of this decision. Answer: The resolution is based on the provisions of the IAEA Director General's report on questions pertaining to Iranian nuclear programs. It notes that the Agency in Iran has carried out work on the removal of a number of gaps that had existed with regard to Iran's informing the Agency about the activities subject to accounting under the Safeguards Agreement. Simultaneously the resolution expresses serious concern over the uncertainties still remaining on that score. The Board of Governors called upon Teheran within the shortest possible time to present the fullest information concerning all the aspects of its past and present nuclear activities. The most important thing in the resolution is the clear, straightforward, but respectful signal that it sends to Iran about the necessity to continue and expand its cooperation with the Agency and to ensure complete transparency of its nuclear program. We are confident that such cooperation is in the interests of Iran itself. And it is therefore in the interests of Iran to accede to the Additional Protocol to the Safeguards Agreement with the IAEA, which would be a good confidence-building measure, a demonstration of openness with respect to nuclear activities (incidentally, a confidence-building measure which has already been introduced in their countries by dozens of non-nuclear-weapon states parties to the Nuclear Nonproliferation Treaty). It is in the interests of Iran in cooperation with the Agency, to which all the countries parties to the Treaty, including Iran, have entrusted control activity under the Treaty, to clear up questions still outstanding in a constructive and quick manner, thus confirming the peaceful character of its programs in the nuclear energy field. We regard the resolution as a Board-formulated plan of work between the IAEA and Iran necessary for urgent clarification of the questions still left open. We would like to hope that in just this way - seriously and constructively - it will be regarded, including by Teheran. The plan is not an ultimatum and was therefore approved without a vote by the Board of Governors. We hope that by the Board's next session it will be possible to note serious progress in the implementation of the measures proposed in the resolution, and the question will then be set back from a plane of political debates on the track of the Agency's normal work in one of its member countries - in Iran. Same way as it daily takes place in a large number of countries of the world. Return to Menu 4. Russian Deputy Minister of Foreign Affairs Sergei Kislyak Converses with Mariusz Handzlik, Chairman of the Missile Technology Control Regime On September 12 Russian Deputy Minister of Foreign Affairs Sergei Kislyak received the Chairman of the Missile Technology Control Regime (MTCR), the Ambassador at Large of the Ministry of Foreign Affairs of the Republic of Poland, Mariusz Handzlik. In the course of the meeting the tasks facing the MTCR were discussed, including the prospects for the accession to it of new countries. The Russian side reaffirmed its support of the activities of the Regime for the prevention of the proliferation of missiles and missile technologies. Consideration was given to the situation that has been evolving in the area of missile nonproliferation since the launching of the Hague Code of Conduct against Ballistic Missile Proliferation in November 2002. The necessity was also noted of continuing multilateral efforts for the enlistment in this process of missile significant countries which have not yet acceded to it. The commitment of Russia to politico-diplomatic methods in dealing with missile proliferation problems was stressed, and its intention to lead matters towards the elaboration of a legally binding agreement on the creation of a global missile nonproliferation regime was expressed. Return to Menu 5. Russian MFA Information and Press Department Comment in Response to a Media Question Regarding Associated Press Report on Unnamed US Sources Claim That Russia Helps DPRK Develop a Long-Range Ballistic Missile Capable of Reaching US Territory Question: Please comment on the Associated Press report alleging, with reference to unnamed US sources, that Russia has been helping the DPRK develop a long-range ballistic missile capable of reaching US territory. Comment: The Associated Press report came as bewildering news to Moscow. Citing unnamed US sources, it alleges that Russia has been helping the DPRK develop a long-range ballistic missile capable of reaching US territory. As a responsible participant of the Missile Technology Control Regime, the Russian Federation is not engaged in any cooperation that would run counter to the principles of the MTCR. And these principles call for refusal by its participants to cooperate on such types of arms with other countries. In this regard, we make no exceptions, including for the neighboring DPRK. We think that the appearance of this kind of misleading information does not help the aims of ensuring peace, stability and security on the Korean Peninsula and in the Northeast Asian region, for the achievement of which Russia has been persistently working, inter alia at the recently-held six-sided talks in Beijing on Korean problems. Return to Menu 6. U.S.-Russia: Bioindustry Initiative - New Collaboration to Reduce the Threat of Bioterrorism The Department of State is pleased to announce a $1.7 million contract to support collaboration between the Boston-based Center for Integration of Medicine and Innovative Technology (CIMIT) and the International Science and Technology Center (ISTC), Moscow, to implement the Department's BioIndustry Initiative. This new effort supports a 2001 commitment between U.S. and Russian Presidents, George W. Bush and Vladimir V. Putin, to pursue cooperation to counter the threat of bioterrorism, including a focus on health-related measures. The BioIndustry Initiative (BII) is the Department of State's newest proliferation threat reduction program. It aims to counter the threat of bioterrorism through targeted transformation of former Soviet biological weapons research and production capacities by creating US-Russian research partnerships. Based on its successful consortium model, the Center for Integration of Medicine and Innovative Technology will facilitate formation of systems in Russia to link scientists, physicians, and engineers to solve medical and scientific problems. Working with the International Science and Technology Center, it will create collaborative linkages among Russian scientists, U.S. academic institutions and industry to identify innovative technologies and commercialization opportunities. Additional information is available from Anne Harrington and Jason Rao in the Bureau of Nonproliferation's Office of Proliferation Threat Reduction, (202) 736-7141. Return to Menu K. Links of Interest 1. Canadian Statement to the 47th General Conference of the International Atomic Energy Agency Return to Menu 2. Bureau of Nonproliferation; Imposition of Lethal Military Equipment Assistance Prohibitions Against the Government of Russia and Waiver of These Assistance Prohibitions and Imposition of Discretionary Measures Against Russian Entity Tula KBP Return to Menu 3. Statement by Hon. Ileana Ros-Lehtinen before the Subcommittee on the Middle East and Central Asia Committee on International Relations Return to Menu 4. Statement of the Deputy Foreign Minister of Italy H.E. Roberto Antonione on Behalf of the European Union to the 47th IAEA General Conference Return to Menu DISCLAIMER: Nuclear News is presented for informational purposes only. Views presented in any given article are those of the individual author or source and not of RANSAC. RANSAC takes no responsibility for the technical accuracy of information contained in any article presented in Nuclear News. RANSAC's Nuclear News is compiled two to three times weekly. 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