Identifier
Created
Classification
Origin
07ASTANA1730
2007-06-22 03:51:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Astana
Cable title:  

KAZAKHSTAN REQUESTS IMPLEMENTING ARRANGEMENT ON ALL ALATAU

Tags:  PTER KGIC MCAP KNNP KZ 
pdf how-to read a cable
VZCZCXRO2707
PP RUEHAST
DE RUEHTA #1730/01 1730351
ZNR UUUUU ZZH
P 220351Z JUN 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC PRIORITY 9891
RUEBAAA/DEPT OF ENERGY WASHDC
INFO RUEHAST/USOFFICE ALMATY
UNCLAS SECTION 01 OF 02 ASTANA 001730 

SIPDIS

DEPARTMENT FOR ISN, SCA/CEN (M. O'MARA),SCA/RA (A. CUMMINGS)

DOE/NNSA FOR BIENIAWSKI/CUMMINS/KENNEDY

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: PTER KGIC MCAP PTER KNNP KZ
SUBJECT: KAZAKHSTAN REQUESTS IMPLEMENTING ARRANGEMENT ON ALL ALATAU
ACTIVITIES

REF: ASTANA 219

UNCLAS SECTION 01 OF 02 ASTANA 001730

SIPDIS

DEPARTMENT FOR ISN, SCA/CEN (M. O'MARA),SCA/RA (A. CUMMINGS)

DOE/NNSA FOR BIENIAWSKI/CUMMINS/KENNEDY

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: PTER KGIC MCAP PTER KNNP KZ
SUBJECT: KAZAKHSTAN REQUESTS IMPLEMENTING ARRANGEMENT ON ALL ALATAU
ACTIVITIES

REF: ASTANA 219


1. (SBU) Summary: In a June 12 meeting in Astana, Vice Minister of
Energy and Mineral Resources Satkaliyev told Assistant Secretary
Rood and Deputy Administrator Tobey that Kazakhstan preferred to
sign an Implementing Arrangement covering all Department of Energy
activities at the Institute of Nuclear Physics, rather than handling
the various projects (downblending of fresh fuel, spent fuel return,
and reactor conversion) in different ways. Satkaliyev also reported
that the Kazakhstani side was not yet ready to sign the communique
on discussion of permanent disposition of the BN-350 spent fuel.
End summary.


2. (U) On the margins of the third meeting of the Global Initiative
to Combat Nuclear Terrorism in Astana, Assistant Secretary for
International Security and Nonproliferation John Rood and DOE Deputy
Administrator for Defense Nuclear Nonproliferation William Tobey met
with Vice Minister of Energy and Mineral Resources Almasadam
Satkaliyev on June 12 to discuss pending non-proliferation issues.
Satkaliyev was joined by Timur Zhantikin, Chairman of the
Kazakhstani Atomic Energy Committee; Kairat Kadyrzhanov, Director of
the National Nuclear Center; and Almaz Tulebayev and Bakhyt
Shaikhislamova from MEMR. Andrew Bieniawski and Pol-Econ Chief
(notetaker) also participated.

--------------
Communique on BN-350 Permanent Disposition
--------------


3. (SBU) Satkaliyev told A/S Rood and Deputy Administrator Tobey
that the communique negotiated during the January discussions on
permanent disposition of BN-350 spent fuel (reftel) was undergoing
required interagency clearance, but MEMR was doing everything
possible to move it forward and was optimistic that it would soon be
approved. He asked for clarification of the impact of the
communique on the existing bilateral agreement on the disposition of
BN-350 fuel, signed in 1997.


4. (SBU) Tobey explained that the communique would not change the
existing agreement in any way. The U.S. remains fully committed to

the fuel move, and anticipates full FY08 funding. The communique
would guide only the efforts of a working group examining permanent
disposition options after the fuel move. Tobey offered to send a
letter reiterating that signing the BN-350 Communique would in no
way undermine or impact the U.S. commitment to move the BN-350 spent
fuel to Baikal-1 by 2010. Satkaliyev expressed appreciation for the
clarification, commenting that it would help him resolve certain
interagency concerns.

--------------
Downblending of Fresh HEU from Alatau
--------------


5. (SBU) Tobey noted that despite President Nazarbayev's agreement
during his September 2006 visit to Washington on the downblending of
fresh HEU from the Alatau research reactor at the Institute of
Nuclear Physics, the project has not moved forward.


6. (SBU) Satkaliyev noted that negotiations between DOE and the
Institute of Nuclear Physics on converting the reactor from HEU to
LEU use were proceeding well. He stressed that the reactor was very
important to Kazakhstan's economy, as it produced isotopes and other
medical products. Kazakhstan is nevertheless ready to hear more
about the U.S. proposal and financing. Tobey responded that the
Kazakhstani side's concerns were justified, and the U.S. is prepared
to address them. The conversion itself would have a minimal impact
on reactor operations. The Nuclear Threat Initiative was prepared to
cover $1.3 million of the cost, and DOE was prepared to contribute
$2 million for technical support (including $1.3 million for a
laboratory and $700,000 for two separate projects) and to purchase a
new supply of LEU, at a cost of approximately $3-4 million.
Kazakhstan will also be able to keep the LEU resulting from the
blenddown, Tobey added.


7. (SBU) Satkaliyev indicated that the proposal was very good. He
promised to discuss the proposal with his colleagues at MEMR and the
Institute of Nuclear Physics. A written agreement spelling out the
parties involved, the financing, the timeline, and technical
questions was needed, he added. Tobey replied that the U.S.
believed that the 1993 CTR Umbrella Agreement and the Materials
Protection, Control, and Accounting (MPC&A) agreement, together with
DOE's contract with the Ulba Metallurgical Factory to perform the
downblending, provided sufficient legal basis for the project.


8. (SBU) Satkaliyev agreed that the CTR Agreement and MPC&A were

ASTANA 00001730 002 OF 002


relevant, but pushed back that, as with other DOE projects, a
separate Implementing Arrangement was needed for the work at Alatau.
Although the Kazakhstani interagency clearance process for such an
agreement would be lengthy, Satkaliyev said, it would take no longer
than obtaining approval to move forward with the project in the
absence of an agreement. He promised to push the interagency
process to move as quickly as possible; after he received a draft it
would take his experts approximately two months to review the text
and predict a timeline for signature. Tobey thanked Satkaliyev for
his openness and agreed to submit a new draft Implementing
Arrangement covering all the work at the Institute of Nuclear
Physics.

ORDWAY