IAEA: URGENT RUSSIAN REQUEST FOR DEMARCHE TO

C O N F I D E N T I A L UNVIE VIENNA 000527

SIPDIS

FOR T, ISN/NESS, S/SANAC, IO/GS, EUR/PRA, EUR/RUS

E.O. 12958: DECL: 11/19/2014
TAGS: PREL ENRG KNNP RS IAEA
SUBJECT: IAEA: URGENT RUSSIAN REQUEST FOR DEMARCHE TO
SECURE CO-SPONSORS FOR LEU RESERVE

REF: A. UNVIE 505

B. STATE 117701

Classified By: Ambassador Glyn Davies, reasons 1.4 (b) and (d)


1. (C) Summary and Action Request: Mission recommends
Washington immediately instruct posts in selected IAEA Board
capitals, consistent with Russian request, to try to secure
co-sponsorship commitments for a resolution to approve the
LEU reserve proposal to be considered by the IAEA Board of
Governors November 26-27. Russian IAEA Governor Berdennikov
requested co-sponsorship of a majority of Board states in
group meetings supported by Ambassador Davies, who stated to
all the U.S. decision to co-sponsor. Russian draft
resolution text is below, as are talking points Berdennikov
requested the U.S. deploy with the aim of securing signatures
in Vienna by November 24. With evidence that a majority of
the Board will carry the resolution, the Russians aim to
persuade skeptics or opponents to accept consensus adoption
of the project. End Summary and Action Request.


2. (C) Russian IAEA Governor Berdennikov and resident
Ambassador to International Organizations Zmeyevskiy
conducted November 19 and 20 meetings with groups of IAEA
Board of Governors member states to recruit co-sponsors of a
resolution, the effect of which would be approval of the
Russian LEU fuel reserve proposed for the IAEA (ref A, paras
14-16). Ambassador Davies and Msnoff consulted the Russian
side before the conduct of each meeting and Ambassador
affirmed to each group the U.S. decision to co-sponsor.
Septel will report those discussions in detail.


3. (C) Familiar with the recent U.S. demarche (ref B),
Berdennikov requested that the U.S. make a second approach to
specific countries we agree may be persuaded to co-sponsor
the Russian resolution. Russian mission proposed the talking
points in para 4 for use in capitals no later than Monday,
November 23 with the following Board states:

Afghanistan
Australia
Azerbaijan
Canada
Denmark
France
Germany
Japan
Korea (Rep of)
Mongolia
Netherlands
New Zealand
Peru
Romania
Spain
Switzerland
Turkey
Ukraine
United Kingdom
Uruguay

Berdennikov affirmed the Russian Federation would approach
many or all of these states in capital as well. But, in view
of specific U.S. relationships with some, he said, Russia
favored frank bilateral demarches by the U.S. For example,
in Kyiv, Berdennikov said "Your ambassador can talk to the
President, and should; we can't, but will talk to the Foreign
Minister."


4. (C) Begin Russian-proposed talking points:

-- A number of initiatives on multilateral approaches to the
nuclear fuel cycle have been put forward during the last
several years.

-- The Russian Federation has made clear it believes the
establishment of nuclear fuel banks would support expansion
of nuclear energy worldwide by increasing confidence of all
countries in the stable availability of nuclear fuel. At the
same time its importance for strengthening of the
non-proliferation regime should not be underestimated.

-- The proposal of the Russian Federation to Establish a
Reserve of Low Enriched Uranium (LEU) for the supply of LEU
to the IAEA for its Member States is ready for adoption after
extensive negotiations between the Agency and the Russian
Federation. It is based on Article IX of the Statute of the

IAEA. The initiative is non-restrictive -- no state is being
asked to give up any rights to peaceful nuclear technologies
in order to benefit from the reserve. Its establishment
would not put any additional financial burden on the IAEA or
its Member States. All costs would be covered by the Russian
Federation. The Russian proposal does not conflict or
compete with any other proposal in the field of multilateral
approaches to the nuclear fuel cycle and its adoption will
facilitate progress in the development of similar initiatives.

-- Upon the request of the Russian Federation, a draft
agreement between Russia and the IAEA on the establishment of
the LEU reserve (GOV/2009/76),agreed between Russia and
IAEA, has been circulated in the IAEA and an appropriate item
is included on the agenda of the forthcoming Board of
Governors meeting (26-27 November).

-- The Russian Federation seeks that the IAEA Board of
Governors approve the proposal and authorization for the IAEA
Director General to sign the above-mentioned agreement
together with Russia.

-- Together with the IAEA, Russia has prepared and is
circulating in Vienna a draft resolution on this issue and
would like to invite the Board Members to join it as
co-sponsors (draft is attached for the transmittal to the
interlocutor).

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

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

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

End Russian-proposed talking points.


5. Begin draft resolution, to accompany talking points:

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/xx;


3. Approves the Model Agreement, attached as Attachment 2 to
GOV/2009/xx 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.


6. (C) Current draft came from the Russian mission after
discussion with potential co-sponsors (seven EU states on the
BoG plus Canada and Switzerland) and includes preambular
paragraph (e) drafted by the United Kingdom and endorsed by
others in the November 20 meeting. The Russian Mission
circulated it by e-mail to target group missions November 20.
No commitments to co-sponsor were enunciated in the group
meetings on either day, but Mission has learned and conveyed
to the Russians here that the Japanese Mission was instructed
overnight to co-sponsor.


7. (C) Action Request: Consistent with agreement between
Special Assistant to the President Samore and Ambassador
Berdennikov, UNVIE recommends dispatch of a corresponding
instruction to embassies in the BoG countries listed in para
3, in order to secure a minimum of eighteen co-sponsors.
Mission will continue bilateral outreach to secure
co-sponsors, including the target group above and sub-Saharan
African BoG members Burkina Faso, Cameroon, and Kenya.
Berdennikov undertook to approach China and South Africa
(Governor Minty) here in Vienna.
DAVIES