KAZAKHSTAN: MINISTRY OF TRANSPORTATION APPROVES BN-350

S E C R E T SECTION 01 OF 02 ASTANA 002105 SIPDIS STATE FOR SCA/CEN, EUR/RUS NSC FOR JOYCE CONNERY ENERGY FOR NNSA/GTRI E.O. 12958: 12/02/2029 TAGS: PGOV PREL KNNP MNUC RS KZ SUBJECT: KAZAKHSTAN: MINISTRY OF TRANSPORTATION APPROVES BN-350 SPENT FUEL SHIPMENTS TO BEGIN BY EARLY JANUARY REFTELS: A. ASTANA 02070 ¶B. STATE 120133 ¶C. ASTANA 02000 ¶D. ASTANA 02007 ¶E. 08 ASTANA 02316 ¶F. ASTANA 01541 ¶G. ASTANA 01886 Classified By: Charge d'Affaires, a.i. Pamela L. Spratlen, 1.4 (b), (d) ¶1. (S) SUMMARY: On November 30, Kazakhstan's Minister of Transport and Communications, Abelgazi Kusainov, opened a meeting with Post's Department of Energy (DOE) representatives, at which Kazakhstani officials approved beginning the BN-350 dry run on December 1 and actual "hot runs" no later than early January. The train departed Kurchatov on December 1 for the round-trip dry run. It is expected to depart Aktau on December 8, carrying an empty cask after completion of loading procedures. Vice Minister of Energy and Mineral Resources, Aset Magauov, affirmed that even if hot runs begin in January, the Ministry of Economy and Budget Planning has sufficient funds for this priority project. Post believes the start of the dry run is a positive step towards conclusion of the spent fuel transportation project and looks forward to using the momentum from solving this decade-long project to further other bilateral non-proliferation-related programs. END SUMMARY. NATIONAL RAILWAY COMPANY AGREES TO START DRY RUN DECEMBER 1 ¶2. (S) On November 19, KTZh agreed to begin the dry run on December 1, but asserted that it would only allow actual BN-350 spent fuel shipments, if the Railcar Commission certified the specialized railcars during its biannual senior representatives meeting in Riga, scheduled for January 20 (ref A). On November 25, the CIS Railcar Commission agreed to the request by representatives of Kazakhstan's Temir Zholy (KTZh) national railway company that the non-standard railcars be included in the Commission's catalog. In response to Post's request for a meeting, on November 26, the Minister of Transport requested a meeting with Ministry of Energy and Mineral Resources (MEMR) representatives to discuss the BN-350 spent fuel transportation project. Immediately following the meeting, MEMR representatives reported to the U.S. DOE representative that Kusainov decided waiting until the Riga meeting would be an unnecessary delay (ref B). KTZh's Kanat Almagambetov conceded that he was ordered to pursue hot runs immediately following the dry run, even without completing the railcar registration process. ¶3. (S) Post believes the November 25 Railcar Commission decision is a positive step towards conclusion of the spent fuel transportation project, because registration of the specialized fuel-transport railcars will provide KTZh with a modicum of cover in case of an accident. (COMMENT: An American citizen employee of KTZh told EconOff that liability issues are of particular concern to KTZh employees, because the company's two previous Presidents were dismissed in connection with corruption scandals. This environment explains KTZh's seemingly excessive concern about the minor details of transport operations under its supervision, despite the fact that MEMR, and its subordinate nuclear-related organizations, would also have responsibility and liability for the transport. MINISTER OF TRANSPORT ORDERS RAILWAY COMPANY TO PERMIT HOT RUNS ¶4. (S) On November 30, by formally announcing his approval to begin hot runs as soon as possible after completion of the dry run, Minister of Transport Kusainov joined his counterparts among Kazakhstan's senior officials -- National Security Council Secretary Marat Tazhin and Minister of Energy Sauat Mynbayev -- in announcing his support for quick forward movement on the BN-350 spent fuel transportation project (Refs C-D). Although Kusainov ordered KTZh to allow the railcars to be used based on the Railcar Commission's November 25 decision, pending a successful dry run, the National ASTANA 00002105 002 OF 002 Nuclear Center must provide a letter of guarantee and purchase special insurance, in order to relieve KTZh of liability. CHRONOLOGY OF POSSIBLE TRANSPORT OPERATIONS ¶5. (S) During the November 30 meeting, Ministry of Interior representatives confirmed their organization's internal troops are already pre-staged for the dry run. If the dry run, which began on December 1, takes the maximum possible scheduled time of 19 days, it will be completed on December 20. The relevant Kazakhstani ministries have 15 days to complete various assessments of the dry run. Therefore, hot runs could begin on January 5. (NOTE: January 7 (Orthodox Christmas) is a nationally-observed holiday in Kazakhstan, which may also affect start dates. END NOTE.) Even with the expected start date of early January, it is still technically possible, if no other delays occur, to complete transport operations by the beginning of December 2010. KAZAKHSTAN EAGER FOR SUCCESSFUL HOT RUNS BEFORE APRIL SUMMIT ¶6. (S) Kazakhstani government representatives, including KTZh officials, are fully aware that if a compressed schedule for 12 hot runs is not approved and initiated by the beginning of the year, or if any additional delays occur, the bilateral effort will not meet its scheduled completion date. It will be clear by March, just prior to Kazakhstani President Nursultan Nazarbayev's April trip to the United States to attend the Global Nuclear Security Summit, if the project is likely to be completed on-schedule. (COMMENT: President Nazarbayev, who believes his international prestige is closely linked to his record on non-proliferation, is eager to meet with President Obama. Post believes Kazakhstani officials are very anxious to complete several hot runs, in order to be able to report positive results prior to Nazarbayev's visit. END COMMENT.) NEXT STEPS -- AFTER THE SPENT FUEL TRANSPORT IS COMPLETE ¶7. (S) The BN-350 project, which involves transportation of nuclear fuel over almost 4000 kilometers of rail and road, is one of the most technically-ambitious spent fuel transport operations ever attempted. EmbOffs have observed the close relationships that Kazakhstani and U.S. scientists have built over their decade-long collaboration. The teams developed confidence through solving unique technical challenges, such as cask design, together. Post looks forward to applying the momentum that will hopefully be generated from successful completion of this decade-long project to resolve other non-proliferation tasks, such as specifically negotiating and moving the BN-350 spent fuel into permanent storage, completing the reactor conversion project at the Institute of Nuclear Physics, and urging the government of Kazakhstan to fund and complete the geo-cement stone facility, located on the territory of the decommissioned BN-350 reactor (Refs E-G). SPRATLEN