POLAND SIGNS REACTOR FUEL RETURN CONTRACT

C O N F I D E N T I A L SECTION 01 OF 02 WARSAW 000223

SIPDIS

SIPDIS

DEPT FOR EUR/NCE, EUR/ERA/ EUR/PRA, ISN/NESS
EUR/NCE FOR BPUTNEY AND TYEAGER
ISN/NESS FOR DFENSTERMACHER
DOE FOR DIANA CLARK, PARRISH STAPLES, IGOR BOLSHINSKY, MIKE
TYACKE, AND BRIAN WAUD
VIENNA FOR UNVIE LHILLIARD

E.O. 12958: DECL: 02/18/2018
TAGS: KNNP KTIA PARM PL RS TRGY ENGR
SUBJECT: POLAND SIGNS REACTOR FUEL RETURN CONTRACT

REF: A. 08 WARSAW 150

B. 07 WARSAW 2381

C. 07 WARSAW 1870

D. 07 STATE 70448

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Classified By: EconCouns R. Rorvig for reasons 1.4(b) and (d).


1. (C) Summary. Wlodzimierz Tomczak, chief of Poland's
Radioactive Waste Management Plant (RWMP),signed a
preliminary contract with Battelle Energy Alliance, a U.S.
Department of Energy contractor, on February 8, putting into
motion Poland's long-stalled participation in the Russian
Reactor Radioactive Fuel Return program (RRRFR). The GOP
estimates that fuel from the "Ewa" reactor could be shipped
as early as September, 2009 but that fuel from the "Maria"
reactor will take longer to prepare and will not be ready for
transport until 2016. End summary.


2. (U) In May 2007, post presented the GOP with a
diplomatic note proposing the terms of Poland's participation
in the RRRFR (ref d). While representatives of the GOP
repeatedly assured post that Poland was willing to
participate, the GOP's formal agreement was not delivered
until January 2008 (ref a). At that time, the GOP also
informed post that the Ministry of Economy would act as its
implementing authority, in place of the State Treasury.


3. (C) The contract signing on February 8 was attended by
representatives of RWMP, the U.S. Department of Energy (DOE),
and Econoff. The meeting was chaired by Jerzy
Niewodniczanski, who heads the inter-ministerial working
group that is coordinating RRRFR within the Polish
government. Under the preliminary contract, the GOP and DOE
can begin preparatory work toward shipping the fuel to secure
storage at the Mayak facility in the Russian Federation.


4. (C) Niewodniczanski said it would take an additional two
months to obtain approvals necessary to sign the implementing
agreement. He said Poland would then start immediately to
prepare fuel from the "Ewa" reactor, which would be sent to
Russia in two shipments. The first shipment could take place
as early as September 2009, and the second in December 2009.
The rest of the fuel is from the "Maria" reactor and would
take considerably longer to prepare. He estimated that the
"Maria" reactor fuel could be shipped in 2016.


5. (C) Niewodniczanski said it would be Poland's
responsibility to transport the fuel to Gdynia. At Gdynia,
the fuel would be loaded onto a Russian ship, at which time
ownership of the fuel will pass to Russia, and then be
shipped to Murmansk. He added that the GOP had decided not
to ship to St. Petersburg because of anti-nuclear sentiments
in the city. Under the RRRFR agreement, Russia will store
the fuel for twenty years at no cost to the GOP.
Niewodniczanski acknowledged that the GOP has not decided
whether to pay Russia for continued storage, or construct
secure storage in Poland and have the fuel sent back after
twenty years.


6. (U) Niewodniczanski stated that the GOP does not expect
the U.S. to pay any VAT or customs fees in connection with
the RRRFR. He added that the inter-ministerial group is
still studying the matter, but said the GOP should cover such
costs if necessary. He also said that the GOP has not
discussed its participation in RRRFR with the European Union,
but would do so sometime this spring.


7. (C) Comment: The GOP's signature of the preliminary
contract for the RRRFR program is a long-delayed and
important first step in Poland's participation in the fuel
return program. While the previous GOP was reluctant to sign
contracts or commit to the program, it did establish the
Inter-Ministerial working group coordinating Poland's
participation in its last days in office. Niewodniczanski, a
well-respected figure in Poland's nuclear research community,
convinced the new GOP to quickly sign the contracts. As
Niewodniczanski is very supportive of the program we expect
future cooperation on this important non-proliferation
initiative to proceed more smoothly. End Comment.

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