NUCLEAR FUEL BANKS - SEEKING CO-SPONSORS FOR

UNCLAS STATE 120282

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: AORC KNNP IAEA ENRG TRGY TU AJ CH GM SZ BR RO AR
EG, AS, VE, DA, CM, PK, AF, UP, MY, PE, UK, SP, UY, RS, KE, UV, CA,
IN, FR, SF, KS, NL, JA, MG, NZ
SUBJECT: NUCLEAR FUEL BANKS - SEEKING CO-SPONSORS FOR
RUSSIAN RESOLUTION ON THE ANGARSK RESERVE

REF: A. 09 STATE 117710

B. 09 UNVIE 527

Sensitive but unclassified ) please protect accordingly.


1. (U) This is an ACTION REQUEST: Please see para 4.


2. (SBU) SUMMARY: At the November 26-27, 2009 meeting of
the International Atomic Energy Agency (IAEA) Board of
Governors, the Board will be asked to formally approve the
first proposal for an international nuclear fuel bank.
Specifically, the Board will be asked to vote on a resolution
from the Russian Federation that would authorize the IAEA
Director General to enter into the necessary agreements to
establish a nuclear fuel reserve in Angarsk, Russia. This
guaranteed reserve of low-enriched uranium fuel would be used
in cases of fuel supply disruption. By strengthening the
international nuclear fuel market, it would remove an
incentive for states to develop indigenous uranium enrichment
capacity. The United States supports this initiative as a
means of expanding access to nuclear power while addressing
nonproliferation risks (ref A).


3. (SBU) The Government of Russia has now formally proposed
a draft resolution that would lead to the establishment of
the Angarsk reserve (ref B). We support Russia's resolution
and plan to co-sponsor it. This cable seeks co-sponsors of
this resolution from Board members that Washington believes
are likely to support the Angarsk reserve. END SUMMARY.


4. (SBU) ACTION REQUESTS:

-- All action addressees with the exception of Moscow are
requested to transmit to appropriate officials the text of
the Russian resolution in para 6, on the Angarsk nuclear fuel
reserve, which will be considered at the November 26 meeting
of the IAEA Board of Governors. Posts are requested to
encourage host governments to co-sponsor this resolution.
Posts can draw from the talking points in para 5 to introduce
this resolution.

-- For Moscow only: Post is requested to inform appropriate
government officials that the United States has transmitted
the Angarsk resolution to action addressees and requested
their co-sponsorship.


5. (SBU) BEGIN TALKING POINTS:

-- Last week, we expressed our support for the Angarsk
nuclear fuel reserve, which will be considered this week by
the IAEA Board of Governors.

-- The Government of Russia has now formally put forward a
draft resolution that would authorize the IAEA Director
General to enter into the necessary agreements to establish
the Angarsk reserve.

-- The United States plans to co-sponsor this draft
resolution.

-- We believe that, if co-sponsored by the majority of the
Board Members, the draft resolution has a good chance of
being adopted without a vote.

-- We request that (host country) give serious consideration
to this proposal and instruct its delegation to the November
Board meeting to become a co-sponsor of the draft resolution.

-- We would ask for your reply not later than the 24th of
November, 2009.

END TALKING POINTS.


6. (SBU) BEGIN TEXT OF DRAFT RUSSIAN RESOLUTION:

On the Establishment by the Russian Federation of a Reserve
of Low Enriched Uranium to the IAEA for Its Member States

The Board of Governors

(a) Recalling the Report by the Director General
GOV/INF/2007/11 "Possible New Framework for the Utilization
of Nuclear Energy: Options for Assurance of Supply of Nuclear
Fuel";

(b) Recalling the document GOV/INF/2009/1 "Russian Federation
Initiative to Establish a Reserve of Low Enriched Uranium
(LEU) to the IAEA for Its Member States",

(c) Recalling the Report by the Director General GOV/2009/31
"Assurance of Supple - Russian Federation Initiative to
Establish a Reserve of Low Enriched Uranium (LEU) to the IAEA
for Its Member States";

(d) Noting the provisions of the Article IX of the IAEA
Statute allowing Member States to make available to the
Agency nuclear materials for supply to other Member States;

(e) Noting the discussions which have already taken place in
the Board on a number of concepts of assurances of supply of
nuclear fuel, and the importance of developing a range of
options for such assurances.

Hereby

(1) Welcomes the offer of the Russian Federation to establish
on its territory a reserve of LEU to the IAEA for its Member
States.

(2) Authorizes the Director General to conclude and
subsequently implement the Agreement with the Russian
Federation to establish a reserve of LEU for supply to the
IAEA for its Member States, attached as Attachment 1 to
GOV/2009/76;

(3) Approves the Model Agreement, attached as Attachment 2 to
GOV/2009/76 as the standard text for agreements that are to
be concluded with Member States for the supply of LEU by the
IAEA from the reserve; and

(4) Authorizes the Director General to conclude and
subsequently implement future Agreements with Member States
for the supply of LEU by the IAEA when the Director General
considers that the request of the Member State fulfils the
eligibility criteria included in the Agreement with the
Russian Federation, without the requirement for case-by-case
authorization by the Board and requests the Director General
to keep the Board informed throughout the entire process.

END DRAFT RESOLUTION.


7. (U) Department thanks Posts for their assistance in this
matter, and requests that any responses be transmitted by
Tuesday, November 24. Department point of contact for
working-level fuel assurance issues is Marc Humphrey
(ISN/NESS); please include USMISSION UNVIE VIENNA as an info
addressee on all responses.
CLINTON