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13026 Russian Federation - Agreement Regarding Assurances Concerning the Source Material Transferred From the US to the Russian Federation


   
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TREATIES AND OTHER INTERNATIONAL ACTS SERIES 13026


ATOMIC ENERGY

 

 

Agreement Between the
UNITED STATES OF AMERICA
and the RUSSIAN FEDERATION

Effected by Exchange of Notes
At Washington March 24, 1999

with

Annex

and

Agreement
Signed at Washington March 24, 1999

with

Annex and Administrative Arrangement

 


 

NOTE BY THE DEPARTMENT OF STATE

Pursuant to Public Law 89—497, approved July 8, 1966
(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued
under the authority of the Secretary of State shall be competent
evidence . . . of the treaties, international agreements other than
treaties, and proclamations by the President of such treaties and
international agreements other than treaties, as the case may be,
therein contained, in all the courts of law and equity and of maritime
jurisdiction, and in all the tribunals and public offices of the
United States, and of the several States, without any further proof
or authentication thereof.”

 

RUSSIAN FEDERATION

Atomic Energy

Agreement effected by exchange of notes
At Washington March 24, 1999;
Entered into force March 24, 1999.
With annex.
And agreement signed at Washington March 24, 1999;
Entered into force March 24, 1999.
With annex and administrative arrangement.

The Department of State of the United States of
America presents its compliments to the Embassy of the
Russian Federation in the United States of America and
has the honor to propose the following Agreement
concerning the transfer of source material from the
United States of America to the'Russian Federation
pursuant to the Agreement between the United States
Department of Energy and the Ministry of the Russian
Federation for Atomic Energy Concerning the Transfer of
Source Material to the Russian Federation ("the
Transfer Agreement"), signed March 24, 1999.
1. The agreement proposed hereinafter shall
constitute the Agreement Between the Government of the
United States of America and the Government of the
Russian Federation ("the Parties") regarding
assurances concerning the source material transferred
from the United States to the Russian Federation ("the
Assurances Agreement"), in implementation of the
Agreement Between the Government of the United States
of America and the Government of the Russian Federation
Concerning the Disposition of Highly Enriched Uranium
Extracted from Nuclear Weapons, signed on February 18,
1993 ("the HEU-LEU Agreement").
2. The Government of the Russian Federation agrees
that no special nuclear material shall be produced by
the Russian Federation or under the jurisdiction or
control of the Russian Federation through the use of
source material transferred pursuant to the Transfer
Agreement.
3. The Department of Energy of the United States of
America ("DOE") and the Ministry of the Russian
Federation for Atomic Energy ("MINATOM") are
establishing an Administrative Arrangement in order to
provide for the effective implementation of the
- 2 -
provisions of the Assurances Agreement. This
Administrative Arrangement may be amended by written
agreement between DOE and MINATOM. The principles of
fungibility, equivalence and proportionality shall
apply to nuclear material subject to the Assurances
Agreement and the Transfer Agreement and the detailed
provisions thereof shall be set out in the
Administrative Arrangement.
4. The Government of the Russian Federation agrees
that:
(a) Source material transferred pursuant to the
Transfer Agreement, or any nuclear material that is
substituted for such material pursuant to the
Administrative Arrangement, shall be subject to agreed
bilateral tracking and monitoring arrangements.
(b) Source material transferred pursuant to the
Transfer Agreement, or any nuclear material that is
substituted for such material pursuant to the
Administrative Arrangement, shall not be used for any
nuclear explosive device or for research on, or
development of, any nuclear explosive device, or for
any other military purpose.
(c) Adequate physical protection measures shall be
maintained with respect to source material transferred
pursuant to the Transfer Agreement or any nuclear
material that is substituted for such material pursuant
to the Administrative Arrangement. To fulfill this
requirement, such measures shall be applied in
accordance with levels of physical protection at least
equivalent to the recommendations published in the IAEA
document INFCIRC/225/Rev.4 entitled "The Physical
Protection of Nuclear Material," or a subsequent
revision accepted by the Parties.
(d) Source material transferred pursuant to the
Transfer Agreement, or any nuclear material that is
substituted for such material pursuant to the
Administrative Arrangement, shall not be transferred to
- 3 -
unauthorized persons or beyond the jurisdiction or
control of the Russian Federation without the prior
consent of the Government of the United States of
America.
(e) Source material transferred pursuant to the
Transfer Agreement, or any nuclear material that is
substituted for such material pursuant to the
Administrative Arrangement, shall not be reprocessed or
altered in form or content without the prior consent of
the Government of the United States of America.
(f) Source material transferred pursuant to the
Transfer Agreement, or any nuclear material that is
substituted for such material pursuant to the
Administrative Arrangement, shall not be enriched
without the prior consent of the Government of the
United States of America.
5. The Government of the United States of America
agrees that source material transferred pursuant to the
Transfer Agreement and low enriched uranium substituted
for source material transferred pursuant to the
Transfer Agreement may, pursuant to contracts existing
on the date of entry into force of the Transfer
Agreement, be retransferred by the Russian Federation
to countries or groups of countries with which the
United States of America has in force an agreement for
peaceful nuclear cooperation and that are otherwise
acceptable to the United States. The list of
acceptable countries or groups of countries is set
forth in the Annex to the Assurances Agreement. The
Government of the United States of America may add
eligible countries or groups of countries to the list
at any time, and may delete countries or groups of
countries from the list following consultations with
the Government of the Russian Federation. MINATOM
shall keep records of such retransfers and shall
promptly notify an agency designated by the Government
of the United States of America of each retransfer.
Prior to each retransfer, MINATOM shall confirm in
writing to the aforesaid agency of the Government of
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the United States of America that the nuclear material
to be retransferred will be subject to an agreement for
peaceful nuclear co-operation between the United States
of America and the countries or groups of countries
receiving the nuclear material.
6. The Parties agree that if the Transfer Agreement
is terminated, any source material transferred pursuant
to the Transfer Agreement, or any nuclear material that
is substituted for such material pursuant to the
Administrative Arrangement, will continue to be subject
to the conditions set forth in the Assurances
Agreement.
7. Subject to the above, source material transferred
pursuant to the Transfer Agreement may be used, as
specified in Article 7 of the Transfer Agreement, for
diluting HEU for delivery as LEU to the United States
of America under the HEU-LEU Agreement or for sale in
accordance with the Commercial Agreement and paragraph
5 of the Assurances Agreement.
If these proposals are acceptable to the
Government of the Russian Federation, it is further
proposed that this note, together with the Embassy's
affirmative note of reply, on behalf of the Government
of the Russian Federation, shall constitute an
agreement between the Government of the United States
of America and the Government of the Russian Federation
(the "Assurances Agreement"), which shall enter into
force on the date of the Embassy's note in reply.
Enclosure: One page as indicated.
Department of State,
Washington, March 24, 1999.
List of Countries and Groups of Countries Specified in Accordance with
Paragraph 5 of the Assurances Agreement
The Argentine Republic
Australia
The Republic of Bulgaria
Canada
The People's Republic of China
The Czech Republic
European Atomic Energy Community
The Republic of Hungary
Japan
The Republic of Korea
Norway
The Republic of Poland
The Slovak Republic
The Republic of South Africa
Switzerland
Annex
Agreement Between the United States Department of Energy and the Ministry of
the Russian Federation for Atomic Energy Concerning the Transfer of Source
Material to the Russian Federation
The United States Department of Energy ("the U.S. Party") and the Ministry of the Russian
Federation for Atomic Energy ("the Russian Party"), hereinafter referred to as the Parties,
Desiring to facilitate implementation of the Agreement between the Government of the United
States of America and the Government of the Russian Federation Concerning the Disposition of
Highly Enriched Uranium Extracted from Nuclear Weapons, signed at Washington on
February 18, 1993 (the "HEU-LEU Agreement"),
Have agreed as follows:
ARTICLE 1
The U.S. Party shall, in accordance with and subject to applicable treaties, laws,
regulations and licensing requirements of the United States of America, arrange for the
distribution to the Russian Party of uranium hexafluoride delivered to the Russian Executive
Agent under section 3112(b)(3) of the USEC Privatization Act, 42 U.S.C. 2297h-10(b)(3). The
amount of such uranium hexafluoride to be so distributed ("source material transferred pursuant
to this Agreement") shall be the amount of such uranium hexafluoride not initially sold or
transferred by the Russian Executive Agent pursuant to the conclusion of the commercial
contract between AO Techsnabexport and the Compagnie General des Matieres Nucleaires
(COGEMA), Cameco Uranium, Inc., Nukem, Inc. and Nukem Nuklear GmbH, contract no.
08843672/90100-02D ("the Commercial Agreement"), entered into in accordance with
Article II.1 of the HEU-LEU Agreement.
ARTICLE 2
1. The Russian Party agrees to use source material transferred pursuant to this Agreement only
for the following purposes:
a) storage and use in accordance with Article 7 of this Agreement.
b) sale in accordance with the Commercial Agreement.
2. Source material transferred pursuant to this Agreement, or any other nuclear material that is
substituted for such material pursuant to the Administrative Arrangement entered into pursuant
to paragraph 3 of the Agreement effected by the exchange of diplomatic notes between the
Government of the United States of America and the Government of the Russian Federation
-2-
dated March 24, 1999 (the "Assurances Agreement"), shall be subject to the conditions set forth
in the Assurances Agreement.
ARTICLE 3
The activities of the Parties under this Agreement shall be subject to the availability of
appropriated funds.
ARTICLE 4
The Parties may, as appropriate, enter into implementing arrangements to carry out the
provisions of this Agreement. In the case of any inconsistency between this Agreement and any
such implementing arrangements, the provisions of this Agreement shall prevail.
ARTICLE 5
The Russian Party takes responsibility for preparing for transportation and for
transporting to the Russian Federation the source material transferred pursuant to this
Agreement. Any cost incurred by the U.S. Party, with the concurrence of the Russian Party, in
arranging for such transportation shall be reimbursed by the Russian Party.
ARTICLE 6
1. Pursuant to the Implementing Agreement contained in the Annex, which is an integral part of
this Agreement, the U.S. Party shall purchase from the Russian Party feed component associated
with the 1997 and 1998 LEU deliveries under the HEU-LEU Agreement.
2. The Russian Party shall make available for purchase feed component associated with the 1997
and 1998 LEU deliveries under the HEU-LEU Agreement.
ARTICLE 7
In order to facilitate the implementation of the HEU-LEU Agreement,
1. The U.S. Party shall, subject to applicable U.S. law, maintain for ten years a stock of no
less than 22,000 metric tons of natural uranium equivalent, including the uranium
associated with the 1997 and 1998 LEU deliveries pursuant to Article 6 of this Agreement.
By written agreement of the Parties, the stock may be reduced, through the withdrawal of
uranium, in order to ensure the reliability of deliveries under the Commercial Agreement,
in accordance with Article 4 of this Agreement.
-3-
2. The Russian Party shall maintain for the duration of the HEU-LEU Agreement a separate
stock of source material transferred to Russia pursuant to this Agreement. Such material
may be withdrawn from this stock only for the following purposes:
(a) up to 2580 metric tons per year for diluting HEU for delivery as LEU to the United
States under the HEU-LEU Agreement;
(b) sale directly or through its duly appointed agent, in accordance with the Commercial
Agreement and the Assurances Agreement; or
(c) provided that a stock of at least 22,000 metric tons is maintained, any material in excess
of that 22,000 metric tons may be sold in the form of LEU under existing contracts to
countries eligible in accordance with the Assurances Agreement.
ARTICLE 8
1. This Agreement, having been signed, shall enter into force upon the entry into force of the
Assurances Agreement referenced in Article 2, provided that the Government of the United
States of America and the Government of the Russian Federation have also notified each other
that they have endorsed the conclusion of the Commercial Agreement referred to in Article 1.
2. This Agreement may be amended by written agreement of the Parties.
3. Each Party shall have the right to terminate this Agreement upon no less than 12 months'
written notification to the other Party of its intention so to do.
Done at Washington this twenty-fourth day of March, 1999, in duplicate in the English and
Russian languages, both texts being equally authentic.
FOR THE UNITED STATES FOR THE MINISTRY OF
DEPARTMENT OF ENERGY: THE RUSSIAN FEDERATION
FOR ATOMIC ENERGY:
ANNEX TO THE AGREEMENT BETWEEN
THE UNITED STATES DEPARTMENT OF ENERGY AND
THE MINISTRY OF THE RUSSIAN FEDERATION FOR ATOMIC ENERGY
CONCERNING THE TRANSFER OF SOURCE MATERIAL
TO THE RUSSIAN FEDERATION ("TRANSFER AGREEMENT")
Implementing Agreement
WHEREAS, the Government of the Russian Federation is delivering low-enriched
uranium derived from highly-enriched uranium under the Agreement Between the Government
of the United States of America and the Government of the Russian Federation Concerning the
Disposition of Highly Enriched Uranium Extracted from Nuclear Weapons concluded on
February 18, 1993 (HEU-LEU Agreement);
WHEREAS, the Russian Federation owns natural uranium used for manufacturing low-
enriched uranium associated with such deliveries and an equivalent quantity of which is returned
into the ownership of the Russian Federation in the United States territory (hereafter " feed
component");
WHEREAS, in 1998, the United States Congress passed legislation providing $325
million for the Department of Energy to purchase the feed component associated with the 1997
and 1998 deliveries under the HEU-LEU Agreement, provided that certain requirements are met,
including the conclusion of a long-term agreement by the Government of the Russian Federation
and commercial partners for the sale of the feed component to be derived from deliveries
scheduled for 1999 and thereafter under the HEU-LEU Agreement
WHEREAS, the the Department of Energy (DOE) and the Ministry of the Russian
Federation for Atomic Energy (MINATOM) have agreed that MINATOM will be responsible for
transportation of the source material transferred to the Russian Federation under the Transfer
Agreement;
NOW THEREFORE, MINATOM and DOE agree as follows:
1. MINATOM shall make available for purchase by DOE 6,917,225.13 kilograms of feed
component associated with 1997 and 1998 deliveries of low-enriched uranium under the
HEU-LEU Agreement. The feed component is located at Portsmouth Gaseous Diffusion
Plant or the Paducah Gaseous Diffusion Plant in the United States. Title, possession and
risk of loss to one-half of this feed component shall transfer to DOE 30 days after the date
of entry into force of the Transfer Agreement, or 20 days after receipt by MINATOM of
notification from DOE that requirements under U.S. law have been met, whichever is
later. Title, possession and risk of loss to the second half of this feed component shall
transfer to DOE 60 days after the date of entry into force of the Transfer Agreement, or
20 days after receipt by MINATOM of notification from DOE that requirements under
U.S. law have been met, whichever is later.
-2-
2. MINATOM shall make available for purchase by DOE an additional 3,082,774.87
kilograms of feed component associated with orders for low-enriched uranium under the
HEU-LEU Agreement for 1998 but not yet delivered. MINATOM shall seek to deliver
this uranium to the United States as expeditiously as possible in 1999. MINATOM shall
notify DOE when it is prepared to deliver 3,082,774.87 kilograms of this feed
component. Title to this feed component shall transfer to DOE 30 days after the
notification to DOE, unless MINATOM has not received notification by DOE that
requirements under U.S. law have been met; in such case, title shall transfer to DOE 20
days after receipt by MINATOM of notification from DOE that requirements under U.S.
law have been met.
3. MINATOM shall notify the DOE when it is prepared to provide the final 1,000,000
kilograms of feed component associated with 1998 deliveries. Title to this feed
component shall transfer to the Department 30 days after the notificaton to DOE, unless
MINATOM has not received notification by DOE that requirements under U.S. law have
been met; in such case, title shall transfer to DOE 20 days after receipt by MINATOM of
notification from DOE that requirements under U.S. law have been met
4. MINATOM has the responsibility for the above-mentioned feed component until the
dates of transfer.
5. MINATOM has the responsibility for acquisition of the cylinders that contain the feed
component. The purchase price paid by the United States includes rental of the cylinders
that contain this uranium for as long as the uranium is owned by the United States. DOE
has no further obligation to pay for use of these cylinders.
6. DOE shall pay MINATOM or its designee $ 204,372,560.66 upon transfer of the feed
component pursuant to paragraph 1. DOE shall pay MINATOM or its designee
$ 91,081,984.80 upon transfer of the feed component pursuant to paragraph 2. DOE shall
pay MINATOM or its designee $ 29,545,454.54 upon transfer of the feed component
pursuant to paragraph 3. Such payments shall be made electronically to AO
Techsnabexport, Account No. 40702840400000000010, Conversbank, Moscow, Russian
Federation, through the account of Conversbank, Account No. 04-094-462 in Bankers
Trust Company, New York, New York, ABA No. 021001033, within three business days
of each transfer of feed component
-3-
7. All notices and contacts concerning this agreement are to be made in writing, in English,
and shall be submitted to the following address by mail or fax:
DOE:
U.S. Department of Energy
1000 Independence Ave., SW
Washington, DC 20585
phone: 202-586-5569
fax: 202-586-7210
MINATOM:
Ministry of the Russian Federation for Atomic Energy
Staromonetnyy per. 26
109180 Moscow
telephone: 953-17-18
fax: 230-24-20
ADMINISTRATIVE ARRANGEMENT
In order to provide for the effective implementation of the Agreement between the
Government of the United States of America and the Government of the Russian
Federation with respect to the transfer of source material, effected by an exchange of
diplomatic notes on this date (hereinafter "the Assurances Agreement"), the United States
Department of Energy ("the U.S. Party") and the Ministry of Atomic Energy of the
Russian Federation ("the Russian Party") (hereinafter "the Parties") hereby establish the
following Administrative Arrangement.
Channels of Communication
Pursuant to this Administrative Arrangement the Parties will communicate directly using
appropriately secure channels.
Accounting for and Control of Subject Nuclear Material
The Russian Party shall provide nuclear material accounting and control covering all
source material transferred pursuant to the Agreement between the United States
Department of Energy and the Ministry of the Russian Federation for Atomic Energy
Concerning the Transfer of Source Material to the Russian Federation ("the Transfer
Agreement"), signed today, or any nuclear material that is substituted for such material
pursuant to this Administrative Arrangement.
The Russian Party shall provide to the U.S. Party annually by May 1, through diplomatic
channels, an official report on source material transferred pursuant to the Transfer
Agreement, or any nuclear material that is substituted for such material pursuant to this
Administrative Arrangement, which is within the jurisdiction of the Russian Federation as
of December 31 of the preceding year, including a list of permitted withdrawals or sales.
The report shall include beginning and ending inventories, to include quantities, categories
(natural uranium or LEU), cylinder number, gross weight, tare weight, shipper, receiver,
date received, date removed from storage for shipment from Russia (if applicable),
chemical and physical form, and location.
The U.S. Party shall provide prior notification to the Russian Party of each shipment of
source material to include cylinder number, gross weight, tare weight, shipper, intended
receiver, date shipped (if known), chemical and physical form, and location.
-2-
The Russian Party shall provide the U.S. Party notification of receipt of each shipment of
source material indicating cylinder number, gross weight, tare weight, shipper, intended
receiver, date shipped (if known), chemical and physical form, and location.
Nuclear material included on the inventory shall remain listed until (a) it has, consistent
with the Assurances Agreement, been transferred beyond the jurisdiction of the Russian
Federation or (b) the Parties agree that it is no longer usable for any nuclear activity
relevant from the point of view of international safeguards or has become practically
irrecoverable.
The inventory of nuclear material, and the annual report thereon, need not identify
physically the particular nuclear material initially subject to the Assurances Agreement, but
shall at all times identify an equivalent quantity, provided, that the principle of equivalence
shall not be used to reduce the quality of the nuclear material subject to the Assurances
Agreement. In particular, the Russian Party may substitute low enriched uranium of
equivalent U-235 content for source material subject to the Assurances Agreement. It is
understood that such substituted low enriched uranium may be delivered to the United
States of America in accordance with the HEU-LEU Agreement or may be delivered to
eligible countries or groups of countries in accordance with the provisions of paragraph 5
of the Assurances Agreement. Such substituted low enriched uranium, upon delivery to
the United States of America or a third country, will be removed from the inventory of
nuclear material subject to the Assurances Agreement.
Monitoring
In order to provide confidence that the terms of the Assurances Agreement are being
implemented, the United States of America shall have the right to conduct one annual
inventory of cylinders containing uranium subject to the Assurances Agreement in storage
in Russia. During this inventory, U.S. monitors shall have the right to visually check serial
numbers on cylinders in storage and compare them with numbers declared by the Russian
Party in the annual report. Additional procedures, as necessary, may be agreed upon by the
Parties and will be the subject of an annex to this Administrative Arrangement.
Reporting
Each party may, at its discretion, provide access to reports prepared under this
Administrative Arrangement.
Amendment
This Administrative Arrangement may be amended by written agreement of the Parties.
- 3 -
Effective Date
This Administrative Arrangement shall enter into force upon signature.
Done at Washington this twenty-fourth day of March, 1999, in duplicate, each in the
English and Russian languages, both texts being equally authentic.
FOR THE UNITED STATES
DEPARTMENT OF ENERGY:
FOR THE MINISTRY OF
THE RUSSIAN FEDERATION
FOR ATOMIC ENERGY:



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