KAZAKHSTAN: MINISTRY OF ENERGY EXPLAINS DELAYS ON

UNCLAS ASTANA 003206

SIPDIS

SENSITIVE
SIPDIS

DEPARTMENT FOR ISN, SCA/CEN (M. O'MARA),SCA/RA (A.
CUMMINGS)
DOE/NNSA FOR BIENIAWSKI/CUMMINS/KENNEDY

E.O. 12958: N/A
TAGS: PTER KGIC MCAP KNNP KZ
SUBJECT: KAZAKHSTAN: MINISTRY OF ENERGY EXPLAINS DELAYS ON
BN-350 COMMUNIQUE, SPENT FUEL RETURN IMPLEMENTING AGREEMENT

REF: ASTANA 1730


1. (SBU) Summary: In a meeting with Poloff on November 21,
Bakhit Shaikhislamova, Chief of the Ministry of Energy and
Mineral Resources External Relations Office, stated that
several government agencies oppose signing the Communique on
BN-350 Spent Fuel Permanent Disposition. As a result,
Shaikhislamova expressed doubt that the Government of
Kazakhstan will ever approve the communique. She also told
Poloff that Kazakhstan has prepared its own proposed
Implementing Arrangement (IA) on the removal of
Russian-origin HEU spent fuel in response to the Department
of Energy proposal from 2004. The draft IA has received
interagency approval and now awaits the Ministry of Justice's
blessing. End Summary.


2. (SBU) On November 21, Poloff met with Bakhit
Shaikhislamova, Chief of the Ministry of Energy and Mineral
Resources (MEMR) External Relations Office, to discuss the
status of the Communique on BN-350 Spent Fuel Permanent
Disposition and of the Department of Energy's proposed
implementing arrangement for the project to transport Russian
origin HEU spent fuel from the Institute of Nuclear Physics
(INP) to Russia. The Ambassador had raised the same issues
with Timur Zhantikin, Chairman of Kazakhstan's Atomic Energy
Committee, on November 9. Zhantikin had suggested the
Embassy conta#t Shaikhislamova. Shaikhislamova told Poloff
that several government agencies have refused to endorse the
BN-350 Communique. The Ministry of Justice believes the
Communique on Permanent Disposition is in conflict with the
Implementing Agreement on BN-350 Spent Fuel, because the time
frame for the IA is only fifty years.


3. (SBU) Kazatomprom and the Committee for National Security
(KNB) also oppose the communique, according to Shaikislamova.
Both feel that all obligations under the current agreement
should be fulfilled before permanent disposition is
discussed. Shaikislamova told Poloff that because of the
lack of interagency consensus the Security Council is now
reviewing the Communique. When asked by Poloff if she
foresees Kazakhstan ever signing the Communique,
Shaikislamova admitted that she is skeptical. "Even in
January," she said, "we saw problems with the Communique."


4. (SBU) Turning to the Implementing Arrangement for
activities at the INP, Shaikhislamova informed Poloff that
Kazakhstan had reviewed the Department of Energy's proposed
Agreement and found "the interests of the two countries not
equal in the agreement." As a result, MEMR has drafted as a
counterproposal a separate Implementing Arrangement. The
draft has already received interagency approval and now
awaits only the Ministry of Justice's review. MEMR is
pushing for a response from the MOJ, which received the draft
several months ago. Shaikhislamova believes that the MOJ
will approve MEMR's proposed IA.


5. (SBU) Comment: Shaikhislamova's negative assessment of
Kazakhstan's stance on the Communique on BN-350 Spent Fuel
Permanent Disposition is a surprise after months of
reassurances from MEMR that the Communique would ultimately
be approved. Post will purr5e the issue further to gauge
whether opposition to the Communique is as stiff as
Shaikislamova indicated. End Comment.
Milas