ASIA: RUSSIA’S URANIUM ENRICHMENT CENTER WINS INTERNATIONAL SUPPORT
By Akiyoshi Komaki, The Asahi Shimbun

Asahi Shimbun, Japan
Aug 30 2007

ANGARSK, Russia–The Russian government plans to set up an
international center here to enrich uranium for nuclear power plants
in foreign countries.

The center, to be established in the premises of the Angarsk
Electrolysis Chemical Complex in eastern Siberia, is expected to
prevent the proliferation of nuclear technologies to countries that
do not have them.

Recently, Japanese reporters were allowed to see the inside of the
50-year-old complex for the first time.

Several facilities dot the complex’s 8-hectare premises, which are
located near Lake Baikal and covered with birch and pine trees. A
huge portrait of Vladimir Lenin (1870-1924) is posted on the wall of
one of the brick buildings.

Visitors need to go through checkpoints to get to the site. Even in
the compound, the Ministry of Internal Affairs has stationed armed
guards at several locations.

Japanese reporters were permitted to enter one of the facilities,
the Central Laboratory, in which engineers measure and control the
qualities of various materials produced in the process of uranium
enrichment.

The inside of the laboratory has a modern atmosphere which is
unimaginable from the external appearance of the old building.

State-of-the-art facilities, which are well air-conditioned, are
lined up on both sides of the corridors.

The Japanese reporters accompanied Sergei Kiriyenko, chief of the
Russian Atomic Energy Agency (RosAtom), on his visit there. In the
compound, Kiriyenko attended a ceremony to sign an agreement with
local municipalities for the opening of the international center for
uranium enrichment.

The Japanese reporters were not allowed to enter a building for
uranium enrichment–a key facility in the complex. By accepting them
in the central laboratory, however, the Russian government apparently
tried to show to the world that the international center is open to
foreign countries.

"Russia voluntarily decided to put this center under the inspection of
the IAEA (International Atomic Energy Agency). It is an unprecedented
decision," Kiriyenko said.

Russia, the United States, China, Britain and France, the five
countries which are recognized as nuclear powers under the Nuclear
Nonproliferation Treaty (NPT), are not obliged to accept IAEA
inspections.

However, the four countries except for Russia have voluntarily
accepted IAEA inspections to their nuclear facilities except for
those for military purposes.

The prime reason Russia has refused inspections is that, since
the days of the Soviet Union, its nuclear facilities have not been
separated clearly between those for military purposes and those for
non-military purposes. All of the facilities have been placed under
strict controls as military secrets.

The Angarsk chemical complex was previously used to enrich uranium
for nuclear weapons. However, in order to establish the international
center that is open to the world, the Russian government decided to
accept the IAEA inspections for the first time.

"All quality controls in the center will be conducted in accordance
with the U.S. standards," said Victor Krivov, vice director of the
central laboratory. By saying so, he emphasized that the international
center will meet global standards.

He added that Russian government officials had already held a meeting
with IAEA officials for the inspections.

The plan to establish the international center was announced by Russian
President Vladimir Putin in January 2006. The idea of enriching uranium
for nuclear power plants in foreign countries resulted from Russia’s
cooperation with the Bushehr plant in Iran whose nuclear development
program is causing a concern around the world.

In the idea, Russia will first set up joint ventures with countries
which want to develop nuclear powers, and then enrich uranium. The
enriched uranium will be used as nuclear fuels in the plants in
those countries.

Russia will never disclose information on uranium enrichment
technologies to those countries. By refusing the disclosure, Russia
will prevent the proliferation of nuclear technologies to them.

A Russian expert said, "The plan (to set up the international center)
will meet two requirements. One is the growing demand for nuclear
power and the other is nuclear nonproliferation."

Former Soviet republic Kazakhstan, which has the second-largest
uranium reserve following Australia, has already decided to join the
international center. Ukraine is also expected to agree with Russia to
a joint project by the end of this year. Besides, Armenia is showing
interest in the international center.

India, which is constructing nuclear power plants in cooperation
with Russia, is also a candidate to join the international center. In
addition, Iran and North Korea could expand or start cooperation with
Russia through the center if their nuclear problems are resolved.

The United States, which places much importance on nuclear
nonproliferation, also supports Russia’s project of setting up the
international center. The project is one of a few policies for which
Russia wins support from international society.

Meanwhile, Russia’s nuclear industry has a huge structural problem.

Though it has sufficient uranium enrichment abilities, it can dig
out only about 3,300 tons of natural uranium a year. The figure is
much less than the country’s annual total demand of 20,500 tons for
domestic use and exports.

In order to supplement the shortage, Russia is not only using its
stocks but also importing uranium.

In such circumstances, Russia has started to realign the domestic
nuclear power industry on a large scale. Last month, the government
established a state-run holding company, Atomenergoprom, which controls
all the affiliated companies for non-military purposes–from those for
uranium mining to those for the construction of nuclear power plants.

By putting the entire nuclear power industry under the direct control
of Putin, the government is trying to strengthen its international
competitiveness.

The ongoing rise in the price of uranium, which results from increasing
global demand for nuclear power generation, is also leading Russia
to reform its nuclear policies.

The primary index of the uranium price–the price of triuranium
octaoxide (U3O8) per pound (about 454 grams)–sharply increased
from $7 (815 yen) in 2000 to $136 (15,837 yen) in June this year,
according to a survey of Ux Consulting Co.

Russia plans to build 26 new nuclear power plants for itself in the
next 12 years and raise the nuclear power ratio in the total energy
production from the current 15 percent to 30 percent.

By setting up the international center, the government is trying to
strengthen the highly lucrative processing division in which uranium
will be processed into nuclear fuels. At the same time, the government
is trying to attract more investment in the domestic uranium mining
sector by realigning the nuclear power industry.

Meanwhile, Japan is welcoming the Russian plan of setting up the
center.

"We will be able to increase the countries to which we can entrust
uranium enrichment," said a senior official of the Japanese Ministry
of Economy, Trade and Industry.

Presently Japan is storing uranium, which has been collected from
spent nuclear fuels, in Britain and France. However, Japan can entrust
re-enrichment of the collected uranium only to France.

Therefore, the Japanese nuclear industry has been forced to pay
extravagant fees to France for re-enrichment, the senior official said.

As for the enrichment of natural uranium, a facility in the village
of Rokkasho in Aomori Prefecture is able to meet only several percent
of the entire domestic demand for enrichment.

If Japan can also entrust re-enrichment to Russia, it could reduce
fees paid to France. The Japanese electric power industry has already
started to consider entrusting the re-enrichment of collected uranium
to Russia.

In order to realize the plan, however, Japan must conclude a bilateral
agreement with Russia.

"All of the preparations for signing the agreement will be completed
within this year if there are political wills in both countries,"
Kiriyenko said.

However, some Japanese government officials are cautious of the plan of
entrusting re-enrichment to Russia, as Russia has not separated nuclear
facilities for military purposes from those for non-military purposes.

The key issue is how Japan can obtain an assurance that Russia never
use Japanese nuclear technologies and related materials for military
purposes. Russia is requesting Japan’s understanding by accepting
IAEA inspections into the enrichment facilities in Angarsk.

However, a senior official of the Japanese Foreign Ministry said,
"Even if Russia accepts the international inspections on some part
of the facilities, the acceptance will not assure that Russia will
not convert Japan’s nuclear technologies for military purposes."

Japan has held meetings with Russia twice. However, the Japanese
Foreign Ministry official said, "The gap of views between the two
countries is very big."

As for Russia’s hope for signing of the agreement this year, the
official added, "It’s almost impossible."

* * *

Yusuke Murayama in Tokyo contributed to this article.(IHT/Asahi:
August 30,2007)