ML20035C390

Discusses Us Purchase of Russian HEU Recovered from Nuclear Weapons

ML20035C390
Person / Time
Issue date:	03/31/1993
From:	Taylor J NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:
References
SECY-93-082, SECY-93-82, NUDOCS 9304070153
Download: ML20035C390 (40)

Text

o RELEASED TO THE PDR 2

!("*%,,i i

q/g(q5 g

es <

ins

................. $.s :

\\...../

March 31, 1993 SECY-93-082 (Information)

FOR:

The Commissioners FROM:

James M. Taylor Executive Director for Operations

SUBJECT:

U.S. PURCHASE OF RUSSIAN HIGHLY ENRICHED URANIUM RECOVERED FROM NUCLEAP. WEAPONS BACKGROUND:

In SECY papers92-064, 92-410, and 92-244 the staff has discussed the U.S.

purchase from Russia of highly enriched uranium (HEU) recovered from the decommissioning of Russian nuclear weapons.

DISCUSSION:

After nearly one ypar of intensive bilateral discussions, an Agreement on Disposition of HEU was signed between the U.S. and the Russian Federation under the auspices of the Safe and Secure Dismantlement (SSD) program.

The agreement was signed by Major General William Burns, the head of the U.S. SSD program, and Mr. V. Mikhailov, of the. Russian Ministry of Atomic Energy (MINATOM). The provisions of the agreement are expressed in general terms.

One of the issues which caused the lengthy HEU purchase discussions between.

the U.S. and Russia was the U.S. Department of Commerce's anti-dumping investigation prompted by a petition filed on November 8,1991, on behalf of the Ad Hoc Committee of Domestic Uranium Producers and the Oil, Chemical, and Atomic Workers International Union. The investigation was instituted as-a result of a determination by the Department of Commerce that uranium imports t

Contacts:

.Kristen Barnett, NMSS NOTE:

TO BE MADE PUBLICLY AVAILABLE 504-2635 IN 10 WORKING DAYS FROM THE DATE OF THIS PAPER Philip Ting, NMSS 504-3379

' Agreement Between the Government of the United States of America and the Government of the Russian Federation Concerning the Disposition of Highly l

Enriched Uranium Extracted from Nuclear Weapons (the " Agreement on Disposition of HEU"), signed February _18,1993, Enclosure 1.

doW7a@ Wr 210124 G

/

w.- yp J

.The Commissioners 2

fromtheformerSovietUnionwerebeingsoldintheUnitpdStatesatlessthan fair valup,was signed on Octoberwithin the meaning of the existing U.S. law.

The Antidumping 16, 1992, by Ambassador Vladimir Lukin, Agreement representing the Russian Federation, and Assistant Secretary Alan M. Denn, representing the U.S. Department of Commerce.

Some salient terms of the Antidumping Agreement are:

1.

MINATOM will restrict the volume of direct or indirect exports to the U.S. and the. transfer (or withdrawal from inventory) of the merchandise subject to the Antidumping Agreement.

2.

The Department of Commerce will determine the market price for the purpose of determining the applicable quota level. The market price will be expressed in terms of U.S. dollars per pound U 0, obtained from 3s computations based on the weighted average of the spot market price and the long-term contract prices.

3.

The Russian Federation is in no way prevented from selling to the U.S.,

directly or indirectly, any or all of the HEU, in existence at the time of the signing of this Agreement, and/or low enriched uranium (LEU) blended down in Russia from this HEU.

Exports pursuant to such sales will not be counted against the export limits established in accordance with the Antidumping Agreement.

4.

MINATOM and the Department of Commerce will engage in a mutual exchange of information to monitor the implementation of, and compliance with, the terms of the Antidumping Agreement.

5.

The Antidumping Agreement shall remain in force from the effective date of this Agreement through October 15, 2000.

Negotiations on the details of implementation, to be contained in a purchase contract', began ig Moscow on March 8-11, 1993 of the Agreement of Disposition of HEU. The U.S. delegation to Moscow was led by Philip Sewell of the Department of Energy (DOE). The negotiations went well until the last day.

Prior to that time several issues appeared to have been resolved, however, negotiations broke down on March 11 when Mr. Mikhailov of the Russian 2 Section 734 of the Tariff Act of 1930, as amended (19 U.S.C.1673c).

3 Agreement Suspending the Antidumping Investigation on Uranium Extracted from Nuclear Weapons (the "Antidumping Agreement"), signed October 16, 1992,.

' This contract is pursuant to paragraph 1, Article 11 of the Agreement.

State Cable Moscow #07310, March 11,1993.

Limited Official Use.

lbid., Pg. 1.

i 1

.The Commissioners 3

Ministry of Atomic Energy (MINATOM), insisted on a nullification of the Department of Commerce's Antidumping Agreement.or an increase in the price paid by the U.S. for uranium, from $24 per kg to $30 per kg (U.S. dollars), as a condition of his signature on a protocol of the HEU contract. Agreement has yet to be reached on the following issues of the purchasing contract:

1.

Pricing and delivery schedule for LEU 2.

Transparency issue (reciprocal)5 3.

Additional funds requested by Russia for the purchase of HEU.

The U.S. delegation will return to Moscow the week of March 29, 1993, to resume negotiations.

It is anticipated by U.S. delegation officials that a final resolution on these issues will be reached, however, the timing of a final resolution is uncertain.

C0 ORDINATION:

The Offices of the General Counsel and International Programs have reviewed this paper and have no objections.

@W4N ames M. Taylor xecutive Director for Operations l

Enclosures:

1.

Agreemt. Between the Gov't.

of the USA and the Gov't of the Russian Fed. Concern.

the Disposition of HEU Extracted fm. Nuc. Weapons DISTRIBUTION:

2.

Agreemt. Suspend. the Commissioners Antidumping Invest. on OGC l

Uranium Extract. fm. Nuc.

OCAA Weapons G

=

SECY 5 As defined atate Cable Moscow #08643, March 23,1993, Unclassified, transparency is the material control measures applied to HEU to provide assurance that the HEU blended down is that removed from the weapons program, j

J

t k

t I

e:. :

i 1

i

.i

[

f i

q i

AGREEMENT BETWEEN THE COVERNMENT OF THE UNITED STATES OF AMERICA.

l

.AND THE GOVERNMENT OF THE RUSSIAN FEDERATION ~

i l

CONCERNING THE DISPOSITION.OF

'{

MIGHLY ENRICMED URANIUM EXTRACTED FROM NUCI. EAR SfEAPONS I

The Government of the United States of' America and the l

Government of the Russian Federation, hereinafter referred to as the parties,

]

Desiring to arrange the safe and prompt disposition for -

peaceful purposes of highly enriched uranium. extracted from nuclear weapons resulting from the reduction of auclear-i weapons in accordance with existing agreements in the area.

t of arms control and disarmansat, '.

Reaffirming their commitment to ensure that the development j

and use of nuclear energy f>r peaceful purposes are carried out under arrangements that will further the objectives of-the Treaty on the Non-praliferation of Nuclear Weapons,1 Affirmang their commitment to ensure that the nuclear-material transferred for peaceful purposes pursuant to this Agreement will comply with all applicable-men-proliferation, physical protection, nuclear material-i accounting and control, and environmaatal requirements, i

Nave s' greed as-follows:

4 ENCLOSURE 1 r

et-32-03 at:90PW Pat

~ _.

.. 4.

1 1 '

i I

a

~

i ARTICLE I

{

i l

I PUltPOEE i

t The Parties shall cooperate in order to schieve the following objectives (1)

The conversion as soon as practicable of highly

[

enriched uranium (MEU) extracted from nuclear weapons

.tesulting from the reduction of nuclear weapons pursuant 1

to arms control agreements and other commitments of the Parties which is-currently estimated at approximately 300 satric tons in the Russian Federation, having an' average j

assay of go percent or greater of the uranium isotope 235 into low enriched uranium (LEU) for use as fuel in commercial nuclear reactors.

For purposes of this i

Agreement, LEU shall mean uranium enriched to less than 20 percent in the isotope 235; and l

l (2)

The. technology developed in the Russian Federation for I

{

conversion of MEU resulting from the reduction:of nuclear weapons in the. Russian Federation may be used for l

conversion of United States MEU_in the United States of j

America; and l

(3)

The establishment of appropriate measures to fulfill' the non-proliferation, physical protection, nuclear i

naterial accounting and control, and environmental-requirements of the Parties with respect to NEU and LEU l

subject to this' Agreement.

ARTICLE II-

_i IMPLEMENTATION CONTRACTS AND AGREEMENTS

.I 2.

The Parties,-through their Executive Agents, shall l

within six months-from entry into force of this Agreement t

seek to enter into an initial. implementing contract to accomplish the; objectives set forth in Article 2 of this i

Agreement'.' The parties may conclude additional-implementing contracts or agreements pursuant to this l

Agreement, as required.

for-any purchase, the Executive t

• t Agents shall negotiate terms (including price),=which shall be subject to approval by the Parties.

~

l.;

l

........ +......

4

l

_3-l I

i t

i l

I 2.

It is the intent of the parties that the initial l

l implementing contract shall provide for, inter alia:

i (i)

The purchase by the United States Executive Agent of i

LEU converted from HEU at facilities in the Russian yederation and' sale of.such LEU for commercial purposes.

8 The United States will. provide infernation to the Russian rederation on all commerci'al disposition of such LEU; i

(ii)

Initial delivery of LEU converted froen MEU extracted j

from nuclear weapons resulting from the reduction of.

l nuclear weapons pursuant to arms control agreements and

-l other commitments of the Parties by October 1993, if 1

possible; i

(iii)

Conversion of no less than 10 metric tons.having an i

average assay of 90 percent or greater of the uranium l

isotope 235 in each of the first,five years, and, in each year thereaf ter, conversion of no less than 30 metric tons of HEU having an average assay of 90 percent or greater of l

the uranium isotope 235; however, specific amounts will be stipulated in the first and subsequent implementing i

contracts or agreements; j

i (iv)

The participation of the United States private sector i

and of Russian enterprises; l

f I

(v)

The allocation among the United States of America-private sector firms of the United States of America, the Russian rederation, and Russian enterprises of any proceeds i

or costs arising out of activities undertaken pursuant to any implementing contracts; l

4

.i (vi)

The use by the Russian' aide of a portion of the l

proceeds from the sale of LEU converted from HEU for the conversion of defense enterprises, enhancing the safety of' nuclear power plants, environmental clean-up of polluted i

areas and-the construction and operation of facilities in 1

the Russian Federation for the conversion of HEU to LEU; j

t (vii)

By agreement of the Parties an equivalent amount of

-j HEU can substitute for the corresponding amount of-LEU planned for purchase by the United States Executive Agent.

i b

j-i i

i j

I A

l

n. 3+.es n >. nnu en.

[:

s'

• l 4

i i

i.

I ARTICLE III

~

FTFCUTivr ACENTS Each Party shall designate en Executive Agent to implement this Agreement.

For the United States side, the Executive Agent shall be the Department of Energy.

For the Russian side, the Executiv.e Agent shall be the Ministry of the Russian rederation'of Atomic Energy.

After consultation with the other Party, either Party has the right to change its Executive Agent upon 30 days written notice to the other Party.

If a governmental corporation is established under United States law to manage the uranium enrichment

, enterprise of the Department of Energy, it is the intention of the United States Government to designate that corporation as the Executive Agent f or the United States side.

ARTICLE IV ppioRITV cr ACRrrn NT In case of any inconsistency between this Agreement and any implementing contracts or agreements, the provisions of this Agreement shall prevail.

ARTICLE V ADDITioNAi, MrActmrs 1.

The Executive Agent of the Russian Federation shall ensure that the quality of LEU derived from KEU subject to this Agreement is such that it is convertible to LEU usable in commercial reactors.

Specifications shall be agreed upon in the process of negotiating the initial and subsequent implementing contracts.

2.

The conversion of HEU subject to this Agreement shall commence as soon as possible after the entry into force of the initial implementing contract.

I l

3.

The Parties shall, to the extent practicable, seek to arrange for more rapid conversion of HEU to LEU than that l

Provided for in Article II (2) (iii).

02-: -93 02:02fM 70!

j l

~.

_ f

~5-l 8

4.

The United States of America shall use LEU acquired pursuant to this Agreement and its implementing contracts l

and agreements,' when subject to United States jurisdiction l

end control,_for peaceful purposes only.

2 i

5.

LEU acquired by the United States of America pursuant l

to this Agreement, and implementing contracts and agreements related to it, shall be subject to safeguards in accordance with the November 18, 1977, Agreement Between.

I the United States of America and the International Atomic j

Energy ~ Agency (IAEA) for the. Application of Safeguards in.

-l connection with the Treaty on the Non-Proliferation of l

Nucit.r Weapons.

I 6.

The Parties shall maintain physical protection of NED i

and LEU subject to this Agreement.

Such protection shall, l'

at a minimum, provide protection comparable to the recommendation set forth in IAEA document INFCIRC/225/ REY.2 l

concerning the physical protection of nuclear meterial.

i I

7.

If the. Parties enter int) an agreement for cooperation i

concerning the peaceful uses of nuclear energy, nuclear l

material acquired by the United States of America pursuant l

i to this Agreement and its implementing contracts and agreements, when subject to United States jurisdiction or control, shall be subject to the terms and conditions of that Agreement for cooperation.

8.

The activities of the United States Government'under i

this Agreement, or any implementing contract or agreement, shall be subject to the availability of United States l

Government funds, j

a 9.

In the event the United States Covernment dcas not have funds available for implementation of this Agreement, the Executive Agent of the Russian rederation reserves the i

option to obtain funding for implementation of this Agreement from any^ private United States company.

10.

Prior to the conclusion of any implementing contract, l

,the Parties shall establish transparency measures to ensure that the objectives of.this Agreement are met, including I

provisions for nuclear material accounting. sno control and 1

access, from the. time that HEU is made available for conversion until it is converted into LEU._ Specific transparency measures shall be established in the same time j

frame as the negotiation of the' initial implementing i

contract', and shall be executed by a separate agreement.

a

-i c2-n-n o :cuu row

w.

..n

,s.

uvu s*

P.~.GE. C B 7

.~..

'.~

i s-4 i

11.

Prior to the conclusion of any implementing contract, the Parties shall agree on appropriate governing provisions for entry and ezit, liability, and status of Personnel, exn=ptions for taxes and other duties, and applicable law.

12.

The Executive Agent of the United States of America I

~

shall use the LEU converted from EEU in such a manner so as'to minimize disr'uptions in the market and maximise the overall economic benefit for both Parties.

This Agreement shall have no effect on contracts between Russian

- enterprises and United States companies for the delivery of uranium products which are currently in force and censistent wit?. United States and Russian law.

13.

This Agreement places no limitations on the right of the Russian Federation to dispose of LEU derived from HEU extracted from. nuclear'waapons resulting from the reduction of~ nuclear weapons pursuant to arms control agreements and other commitments of the parties beyond the specific co=.itments set forth herein.

ARTICLE VI ENTRY TNTO TORCE. DURATION AND AMENSMENTS 1.

This Agreement shall enter into force upon signature and shall remain in force until the full amount of HEU provided for in paragraph 1 of Article I is converted into LEU, delivered, and supplied to commercial customers.

7.

.Each Party may propose amendments to this Agreement.

Agreed amendments shall en.ter into force upon signature and shall remain in force so long as this Agreement rs=ains in force.

3.

Each Party shall have the right to terminate this Agreement upon 12 months written notification to the other Party.

Done at Washington this 15th day of February,1993, in duplicate in the English and Russian languages, both texts being equally authentic.

e yOR THE GOVEPSMENT OF 'n{E TCR THE GOVERM.UNT OF THE UNITED STATES OF' AMERICA:

RUSSIAN FIDERATION:

L

~~

m

t. t e

d AGREEMENT SUSPENDING THE ANIIQUMPING IhYESIIGATION ON URANIUM FROM THE RUSSLAN FEDERATIOh!

For the purpose' of encouraging free and fair trade in r.rsnam products for peaceful

. purposes, establish!=g more norma (market raladens, and recogn!:ing that this Agreement is necena:y for the proteetion af the avdal security interests of the Unhed States and the Russian Federation, pursuant to tk provisions of secdon 734 of the Tariff Ac of 1930, as amended (19 U.S.C. (1673c) (the %cf), abe United States Depamnest of Ctatneree ("the Depr.mnenf) ed the Rnsdan Federation Mi=ist:y far Ato:nic Energy (hi!NATDM) enter into this espension agreement ("tlk Agre=*rF).

TheDepanmem' Ends that tids Agrtement it in the pub!!cinterer.; that e5cetrve monistr4 of this Agreement by the United Stties is pracicabic; and that this Agreement will prevent the suppress!an or unde.rcutti=g of price levels of United States domestic uranium products by impcrts of the meWhe subfect to this Agreeme.u:.

1 On the basis of this suspe=sion agreement. the Departme:rt shall suspend its andt.z=rping ir:vestigation with respec to uruiuis fro = the Russian Federation, subJoct to tbc terms and provisions set forth below. Furtbed the Depr.r:=ent willinstruct the U.S. Customs Service to te:r "te the inspension ofliquidation and to release a=y cash depodt er bond posted d

en the pmducts c:vered by this Agreement as c'the effecive date of this Agrec=ent.

1.

BASIS FOR THE AGREEMENT In order to p:rvent the suppression or undercutticg of price levels of United States domestic trznium, MINATOM nG restiet the voltme of direc or indirect expens to the United States ofurt=iumproducts from all prodacers/ew.en of uranium predac:s in the Russian Federation subject to the tent.s and provisions set forth below.

1 1

L 54 u

[

ENCLOSURE 2

l i.

1 8

l

.t

= s' 5'

j 2

l i

IL DEF1h ONS For purpo'es d this Agr==aw the following definidons apply:

s (a)

Pounds UA equivalents are skalated asirig the toHoming formulas:

,o mammed aran hun (U) content h aanysriad to UA by s:mhiplying U by 1.17925 j

4 o

UA k -.sd to U coatsat by anddplying by 0.84799 3-i i

o 1 Eg UA = NM ts. UA l

c 1Ig U in UF; = 2.612:3 Es.UA equivalent t

o 1 Kg U in UA = 2.59982 Ibs. UA equivalent l

l o

the namral food componem for 1 Kg U of sark6cd uranium produc:

(TUP') shalf be determined using the feed to pMat factor l

calculated widi the foBowing formadas:

a 1

a 1

[(P - TJ / (Fx-TJ] = L j

l-where:

-i P = Acmal Product Assay of the imported krw enriched.

4 aranism ('LELQ as found in abs iraport 6=-~;

i 1

T= 7ar enrichment contracts, the actual talk assay **I aad 4

)y the customer pursuant to the contract; for other omrsca calling for the delivery of LEU,0.3 weight i

pt U".

Dming the anniversary surmh of this l

@~'*, the ath assy for other contracts caning for 2

le delivery of LEU wSI be amended, as appmpriate.

-j i

M on the optimam taus ammry.

j i

s F=

1711 weight percent U'8 (feed assay) 4

_3= Feodh Facer X

Jrte feede, amf.etorshanthenb.

idpsedby2412:s tor.ach the Ibs.UA equivalem d the hnported LEU.

b b.

i

~

1.

4 i

3 (b)

Dab of Esport for imporu trno the United States *.:+:.gn=Ad by an expon

~

certi5cate bf the mer4=~n=~ subject to thh Apm shall be etar,Idered the date,

i the caport eertiscate was endorsed.

f I

(c)

Pardes to the E---r %= - means any laterestad pany,within the== ='y of 5353.2(k) of the Depanmend repladons,which activelyparddpatas thrmtsh wrinen ab:nisdons of factual hdornation or wrinen ac-t (d)

Indirect "+s - anans any arrangement invoMag the M*==c, sale, or

~

delfvery of uranium prodoen from the Rusdan Federstian to the degree it can bc shown to have rasched in Ibe sale or delivery in the United Estas of uranium

{

]

prodacts from a ecmntry otlier than the Russian FedeMon or esports tom the l

Russ:an Federation throogh ime or more third csmatries, whether or tot such espon i

J h sold in one er mere third :tran:ry prior to L.ginian into the Unhed Sates.

l i

i i

i 1

1 l

4 e

i a

],d I

i a

l a

i i

i i

l i

l l

i e

h l

k.}g

\\

l j

3

o

,o l

i l

4 III.

PRODUCT CDVERAGE

• ac mere aN covered br this Agr==' are the foil: wing producs fra:n the i

Russian Federaden:

Natural ura:i:s b the fc:n of urche cres and concea: rates; me.trs! munks metal and utur I cra:d' J compoun&; alloys, Expersians (Induding eermets),

i etrng mtural urardam or mmral ursnium ceramic products and cogtm*; ura: Jam endied in U" and its covaat alloys, Was (including cermets), ccm:dd prodnets, and mixmrzs containir.g uranbm enriched in US cr ccmpocnds of cra:I.:m enriched in U"; and any other fon s c(nranium within thq same class or kinki.

I Uranium' ore from Rcssia e,dlied into U 0, udfor converted into UF, in another coutry prior to Erect an:!/or indire:r importation into the Unhed 5:ates h conddered cranium from the Russian Federaden and is sabject to the terms of this Apeement.

For purp en of this Agree =ent, uranium endched bU2 or compounds of tranium enriched in US 6 the Rusdan Federaden are covered by this Apeemem, regt.rdless cf their subsequent modificition or blending. Umiz:n enriched in U" b another country prior to direct and/or indirect W.uion into the United States is not ec:ddered uranh=n from the Rusdan Federation and is not subjecs to the terms of th's Ap"- nt.

Highly enriched uranium ("HEU') h within the scope of this im estigation, and HEU is covered by this Agreement. Fcr the purpose of this Ageement, HEU means u anium enti6ed to 20 percent or greater in the botope urarlum 235.

Inrports ofumdumcres and concentrates,natcraluranium-

.and allfe:zts i

of enriched tranium are canently d=Wmble under Harmonized Tariff Schedule

(' HTS') subleadisp: 261110.03,2544.10.20,2644.20.03, terpeedvely. Imports of ta:cral cranium metal and, forms of nat::ral uranimn o6er than compounds are currently ^W=Ne undef H73 sukb=Ma*- 2844.10.10 and 2844.10.50. HT3 subheadings are provided for cocrecience and casta:ss pmposer,. 'The written desr:ipdon of the scope of these prWap is disposidee.

k m.E l l}

k.

u

l i

i 1

5 L

)

IV.

EXPORT 1.IMr1Ti 1

A MINNIDMwGI reeniet the volume of direct or indirect saporm on or eher l

~ he effecdec date of tids Je-to the Unhed States and the transfer or i

t

' withd:nwal fram loventory (ensistent with the provisions of Secdon IV.E.) of the merchandise aihject to this Agr===-* b noconlance with the esport limits and schedule set forth la.Ap* A.

l t

'. limits areespressed in tenus of pounds U 0, equivnics and kDograms l

aranima U). -

Esport Ihnhs are appIIed on the basis of "Date of E p #. as defined in

]

1 sect!anII:

1 For purposes of this Agreement, United States shaII comprise the astoms l

terdtoryof the UnitedStates ofA:nerica (the 50 States, the District of Cohrmbia and -

i Puerto Rico) and foreign trade sones loosed in the tenhory of the Unhed States of America..

i B.

De espon ihnhs of 1zis Agreement shall be ettecuive for the periods October i

1 throngh September 30 (tlie ' Relevant Period").

C.1.

For purposes of datein!ning the applicable quota level, the Department will i

detenrdne the market price. In detenntning the market price for purposes of l

establishing the quota the Depar: ment wGI use price information in terms of U.S. dollars per pound obtamed from the following sources to compute a j

market price based on tbs weighted sverage of the spot snarket and long-term j

contract prices.

~

i

. SpotMarket Pdce: The Uranimn Price luformation System Spot Price (UPls

. SPI) and the Uranium Lh e Spot Pdce (Un Spot). De Depanment will '

j calculate a simple smage of the snonthly values as espresed try abase two sacrces to determim: the Spot Fries.

IIng-term Contract Prios: The shaple average of the UPIS Base Price and

- the long-term prias as determined by the Dep s= on the basis of. -

i

, info.mation provide,d to the D.r 4 by market participants.

In i

detennining the longi term price on the basis of infbanation provided so the i

Department, the D eanment wn! nie cop neh informadon soinnitied to 1

y which the submitter agrees to perndtverification.

l 3

the M

N a

be -

l Depanmem on the basis of.informados avaBeble bom other sourosa. Partbermore.

during the life of the Aamt the Depanment can, as -rr>d.ete,' select j

1 h.M i

+

. - - 1

l t

I 6

I alternadve sources to use m d.etermining the inubet pdce. SMuld the Deputn=nt detemine that try or all ofjtbe idendfled sources are no langer syyiepiis.% the D.*.parcnem wi!! pre pardes at laat 30 days nodce of this dM=1*

l his deter-haden will be rnade se=d =ramily. The Department mEl umounce the muket pdce ahd corresponding quota level on October 1 and AprD 1 cf ca:3 yer, eMts p:mided below with respect to the first period.

.With respect to the f.rst period, midch begns on the efEedre dnte of this Agreement and ends on Much 31,1993, the Deputment wC1 W'~ a muket p: ice no later ths.n October 3h 1992. He quota leve! m.poning tn this pdce will apply to cwered expo:s thrcush March 31,1993.

In determi=ing the market price, the Deparanent will rely on pdce inic~2 den fmm the ident!"ed scurces covering the previous six month period for which pdces are availt.bic.I For e.zample, on October 1, the Department will announce the c2rket price sa determined by rnkw of price Infor=aden reletir.g to the period Ms. reb 1 thrtmfb September 1.

On Apdl 1, the Dept.rtment will i

s.nncr.:. nee the market pdce as determined by redew of price information relating to the period September 1 thro $gh March 1. Mcnvever, for the first period (October 16, 1992 thrtr.igh Much 31,1993.) the Department wiD utilize pdee informadon relating to the peded April 1,1992 through September 30,1992. For the period beginning on April 1,1993, the Departe:ent will utDize price information relating to the period October 16,1992, thrmzgh Fluch 1,1993.

ne quota level annnunced on October 1 (or October 30,1992 for the first.

period) will be equal to oneputif cf the ar~=NA quota, as expressed in Appendix 1

I A, for the cc: responding trptrket pdce. De announced quota level will be the volute, in ter=s of pounds:U 0 egivalent, that mzy be exported to the United 3 3 States in any form frc= the Russian Federados durbg the six nonth period begire.ing on October I and ening on the following Mireb 31.

Re quota level =r~e~d on AprB 1 will be eg.is.1 to one half of the annua] Ired quota, as capressed in Appenix A, for the corresponding market price.

he==md quota level be the volume,in terrns of pourds U 0. eqdvalent, 3

that znay be exported to the ted States in any form froro the Emdsn Federation during the six month peri beginning on April 1 and ending on the following September 30.

1 2.

Ecept as prev ded in Seetion IV.C.3., multi year contracts entered into

, after the 'efredte date of 111s Agreement may not provide for arcmal deliveries in excess ef'the quota 31! awed 2nder the Agreement as of the date of contract. If such muld-year commu=s specify iprice at or above the minimum price in the Appendix A pdce b'.rd then in effect en the date the crm2act is entered into, annuel deliveries s

)

,I l

=.

1 i

j 7

I tmder such co::rac:s wiD be apphed against the annual gotas in effect at the time m the fun amo:mt for the full term of the comract even of delivery batz rybe :ade l

if they exc,eed armual quotasin efect at the dme of delivery.

3. ~ Notwithstangg SeedonIV.C2, muld. year contracts entered into after the effeedre date of this ment may provide for semi deliveries in excess of the quota a!>cd under the ar of the date of contract provided thu they are ec:didoned upon the et 3 additic:al quota being available at the time of deUvery. However, rm 1 delinries under such ooodidanal contracts shad be strictly subject to the an= cal quotasin effect at the time of deuvery.

~

4 If, within the emum lindt permitM under this et, the s.:dum products to the U.S. imder the quota defned Russian Federadon exports pf ect'ched uranium product, the Rnnian F in scetion IV.C in the form o may tale pay:nent for the fe<d cernponent in the EUP in the fortn of cash or in the

' form of an equivalent a=cr.mt of feed. If Russia takes p:y=est in the form of an equivalent amocnt ci feed fr:rm i=ventories aircady in the United States, h snay seu su:h feed in the U.S. tearket without such sale being ccntmed against the appUcab!c i

quota aga!n so !^ 3 as such sa]e is made u a pdce ne less than SU.00 per pound of U 0, eqdvalet Ar:y sul$equent exports from the United States of rain feed 3

reaived by the Rcsdan Federa: inn in payment for the feed ccmponent of EUP sales wiu be perttitted and may be soM outdde the Un!ted States, but sG not be added back into,the g:o:a.

D.

For the fi:st 90 days af:er the efective drie of this Agreement, produc:s experted from the Ru:: sir.n Fpderadon shall be admitted to the United States wMout.

an expon License and cem5cate only upon natiScaxica to the Department by MINATOM.

The voh:me of suct Irnper:s will be counted towards the crport lic:it for the covered pmducts for the dit identified period.

The vo'.mne of such E= ports than be deteriz:!ned in terms of penmds U 0, equivalent and kilograms uri.nlam (Kg U) on the b:uds of U.S. i= port invoice data.

This dra will b: sorted on $c basis of date of azpart.

E.

Any f::ventaries of Rusdan-origin cra:ium, curre::dy beld by the Rmsian Federadan in the United States and imprted imo the United States between the period begircing en or a.!rer March 5,1992 (the date hycading to the Depart =ent's cddcal c! rect: stances determi:ation), thrtr.rgh the effective date of this l

Agreeme:1, SG be s::bJect 10 the foDowing Wh-1 Such leventories wE not be transferred or wMdrawn fmm inventmy fer ennsu=ption in the United!Sta:es without an expert lice:se and certi5cate issued u

• t

1 I

1 8

I

, under Section V. A reqass for a Eceme and ceni5cate under this provision shall,

be accompa:ded by a report specifying the original date of expon, the date of entry into the Ushed States, th6 identIry of the original exponer and hopoeter, the cust=mer, a co=slete descripdon of the product (!adMM lot saunbers and other available identifymg dcamentadun), and the quantfry expressedin original units and b o=uk of UA eqcfvalen.

P Any amounts amberzed by the issuance of an expan ceni5cate under this provis!nn shsIl be counted t:nrard the export E:nft for the covered products for the period during which the Uc mse ud cerd5cate were issued for the product that is trr.mferred or whhtawn. Se volume shaU be deterusined as the basis of k!1ograms and per. tads U 0, equ} vales as set forth in the IIecuse and cerha 3

In the event that therl: Is a surge of sales of Russian. or inventory currem?y held in the Uzdted States, the Depanment will decrease the expon li=its to take hc2 ac:o=:t sud sales.

F.

Direct and h: direct expens wiD be mm"M towards expan li= irs under this Agreement.

G.

Where w d products are irr: ported into the United Stazes and are subseque::tly re.czported or rther processed and re exponed, the expon limits for the emered produe: shall be inceased by the a=ur.r::t of pounds UA equin! cat re-expcned. This becase will be appUcable to the Relevant Period corresponding to the ti=e of such re-export. M is bcrease wiD be appUed only after prese.ntation to the Depamnect and oppar2=ity far veri 5cadan of such evidence demostrating.

original h::ponation, any fnither g-=4 and subseqsem exponation.

H.

For pttrposes cf perm!tti::g processing in the United States of cranium products f:c:n the Fuern Federation, the Government of the Russian Federation remy issce re expon certi5 cans for impon into the United Sates of Fuute uranium pro:2ucu only where ses h:ipxts to the United States are not for sale or chimate consumpdon in the United l States and where re etports wDI take place witin 12 menths of e=ny into the Unhed States. In no erem shall as suport certf5mtre be en6ersed by the Runte Fe{i re expon ceniEcate Such re the United States under sucf no event be issued b amoc:ss greater than one minh pcrands UA ect.dvalem per re-expxt certiscate and in zb case shall the tots! vebame of ura:dum prodacu froni Russia cavered by re expon derd5 cates czceed three mminn pounds U 0, eqdvalent at any one time.

3 The h=poner of record un:st acrtify on the import certi&ste that h will ennzrs re-exportation within'12 mamM of cary into the United States. If uranian:

produca from the Russian Federttien are not re caponed within 12 cm.hs of it h'

~

6.

9 date of entryinto the United States, the Depanment dl refer the matter to Ct:stoms-or the Depanment of Jusum for funber ac. ion and the Urded States will promptly notify the Gm.m af te Ru.uian Federation and the two govemmens shall emer imo consu.hations. ff the uranins prodw:xs are not re-exported within 3 months of the referralto Cnnoun or the Depanment of Jurdes and the problem has not been resobed to the ::nttual satis.faedon of both the United States and the Russian Federsdon, the volpme of the uraniu= product entered pursuzet to the re-expon certist: ate may be mad ap. inst the export limit in efect at such time, or, if there is Em*Fcient quota / the Erst available spots. This volume may be restored to the expon 1h=!t if the pmduct is sobsegaently r+gd.

1.

Erpen Emiu established for rey of the ident!5ed Periods may not be used after Septe=ber 30 of the pedW Relen.nt Period, mpt ttrat Ilmits not so used mey be used during the first three mentin of the respeedee following period up to a mh of 20 perczcl of the czpon limit far the current Relevant Period.

I Expon lindts for the Relevant Periods cry be used as early as August I of the previous p=riod whhin the lim!t of 15 percent of the expon timit for the preneus Relevant Period.

1 De Depanment shaJ provide fair and equNhle treatment for the Ruscas Federation vis.t.vis other crim: ries that expon und.tm to the United States, tr. king into accoent z!! relevant facbal r.nd legal considerations, hMN the anddurnping Laws of the Unhed States.

K.

Ic:portatics of urtrinn products f:um the Russian Federx:lon dtring each Relevant Period purscant to ' ensin pre-existing contracts entered into before Ms.rch c

5,1992, with.a U.S. utility M1 be permitted so long as the Department has received a valid copy of such predisting contrace and has reviewed es:b to deterzsine whether importation of thel uranium produa under the terms of the cxmtract is consisten.t whh the purposes of this Agreement. The contracts which haw been j

i approved will be speci5cally identi5ed In proprietary Appendiz C to this Agreement.

For contracs apprcned by the Department, nothing in this Section shall in any way restrict sales of Russian.origi: uraninm parzuant to transacdocs which do not fmulve delivery or transfer of uraidum products to the. seller, or the seller's account.

However, t.ny uranh:m prodeets delivertxi or returned to the seller or for the seIIer's acco:mt in cannection with in approved car. tract, shall be subject to the conditions speciEed belowt Upon ngung to the Depanment, the seller may dispose of any cranhtm produe:s dellvered tolthe seller or to the seller's acccrarit under such a pre-existing ceness th:mgh:

pm i,

b

6. +

~

+:.

I 7

\\

1

.j to (1) salas ap the U.S. government or any agency thereof or any.

j contractor acging on behalf of the U1 government so hag as och j

agency or contractor will use or sonume the feed in a market neutral manner; i

i (2) anles to a a:Rhy in the Uaked States ander a contract entered into before hdsrch 5,1992, having fhad price asras and substined for appmvni by t6e Deparanent; such contrace absB be w_d by the j

Deparanemar nu by the saBar pmridad that the uranian ymduca l

ars not swaysed, loaned, or used as loan repspnents; -

(3) sale ar deBvery to any ensky outside the United States, L,

inciading the e-h=PI of mch aranhan producss so the Rossian j

Federadon wlare pennissible.

(4) sales to any entity in the United States at a prios at or above 313 perlb. U Os quhalent.

a 1

1.

Becense the Russ'en Federation has no long term pre exisdng contracts under -

which deliveries begin befdre 1994 and because the US Department of Energy l

(" DOE') can consume EUP in a markst-natral ansaner whis releassa no feed into i

the U1 market that couldIsad to the suppression or ;rd

dag of price levels of U1 tranfum pmducts, the Russian Federation wiD be~ granted a one. time only

~

opportunity to sell to DOE,iits comrnctors, asigns, or U1 privata parties sedag in

~

associazam whh DOE or abs U.S. Enriciunent C+. dss, an asummt of 4.1 anillian..

1 pounds UA equienlent for delivery during the period froen the effective date of this l

Agreement to December 31, 1994, subjecs so the same serms and conditiam j

desadbed in secdon IV.bi.2 i

M.

1.

. 'Dzis Agra-=y in as way prevens the Rusian Federation from se!!!ng d! reedy or ledt ;Iy any or all of the HEUin existence at she thne of the

{

algning of this Age-:= r asd/orlow eorised urasian (" LEU") produced in Russia j

from this HEU so the fu governmenad =*aa==ar, its apenassers, assigns, or j

U1 private panies is d'8 = wbb DOE er abe U1 Enrictanent Corporstka and in a manner' not inconsisesst with the Agr===-~ between the

• i 4

Uni'ad States of Amerks add the Rossian Federadon concendag the disposidan of l

HEU r===Wa imm the d=6===I*=== etandear weapons in Russia.

i I

. 2.

. bi. punment a such salas wGl ant be annated against the esport Ilmhs established in assordshoe with permgraph C of this Session. DOE's disposhion -

of the HEU is in the publielinternet besanse: (1) she HEU or prodness from h are FM or delivered by DDE, is governmental suenamors, hs conoscrors, asigns, or U.S. private perdeu acting la a unanner mot '==R M whh the Agmement i

~

p b.

u

I s.

+

11

~

between the United States

• America and the Russian Federttien conoctning the dispostdan ofHEUresul from the ditmsmiement of nuejear weapons in Ruula; (2) any txility owned uradam products dcIlvered jmrsua=t to er#h="t coterse:s

=% cad by purchue of HEU or HEU prodcess are not resold in the United States, cither as natur:1 cradam odas I.EU produced in ems of the cactraemaDNpecified a=tacrt:(3) contracts for the presided to the Departme:d;(purchase of HEU cr HEU products fnzn R

4) nmn1 rummaries of utilization of HEU and HEU produe:s and num#e*A utility feed are provided to the Departmem, and (5) the Deptrt=rst deter =ines thal permftdeg @ wtian of all or any partion of the HEU cr HEU prodae:s In questinn is cccis!rtem with the p:nposes of this W 1

3.

Exports of E U er prodsets made in Ruula from HEU, sonst be awged by a cc:tifiestd es,dorsed by MINATOM. Such cert 15cate shall specify -

the a=cr.mts ei tunterial and cer:ify that rach HEU, or products made in Runit from HEU, were derived frten HEU in existence as of the siping of this Agreeme.u:.

I l

)

1 1

I i

b.

~

l i.

1.

t.

i i

12 i

V.

EXPORTIlCENSE/ CERTIFICATES I

A.

MINATOM wC1 inumet tbc Rmalan Federation FJnistry of Foreign Ecccern!4 RA=h< ('MFER') to provide export h = and certi5cazu for all direct or indirec: exports td the United States fraca the Rmdan Federation of the sner^m'ies covered by this' Agreement. Scch czpo:t!!*ms and cer h wBi be e

hsced b a manner determil:ed by MFER, in acczalance with laws of the Russian Federation,and th!s Agroce:ier:1, and wn! ensure that es* *bW czpan limis are not i

czemedad.

MINATOM shad take acdoc, including the t.,-:4 dan of penaldes, as may be emt*7 to male See:ive'the ob!igathos r-W ko:n the export Hee:ses and eeni5cetes. MINATOM wilfi= form the Depia of any viciniors cancemics the expc t liceses and/ar cerdicatu which ccme to in anention and the acrian taken with repec: thereto.

The Depart:ne=t wEl infxm MINATOM of vim" cc:u:eming the expon

!!cemes sed /or ceni5 cues which ccme to its at:cmfon and the action talza with respect thereto.

B.

Expon licenses shad be krued a::d expen eenifca:es shall be endorsed by MFER fx all direct or ind' ect expans to tbc United States of the merchandise r

subject to this AFecment fd q: amities no greater than the mrmber of pcunds U 0, 3

equihslem and the :mmbet of knogrcos of urarium (Kg U) specified by the urasin= in its varicus forms lIV.C. for each pedad. The formulas for creverzing Department under section to pounds U 0a quhslem are set fceth in section IL 3

e of this Agn ement.

C.

Expon licenses will bt issued and expert ceni5 cates will be endorsed against l

the expon if=is for ReJevai: Periods.

1 Expon certincates for the Relevant Periods reay be used as early as August 1 of the previe:s Relevant Ppriod with!n a lictit of 15 perecci of the expon limit for the previm:a Relevant Pedod.

Export certf5 cates in:.ted far each Reletst Period may not be sned after September 30 for ca:h scbsdquent year except that certi5 cates not so used may be used duri::g the first three inoctim of the rerpec:fve followi::g* period, up to a

=*mm of 20 percent of the expan Ifmit for the ccrrem period.

D.

MINA'IUM wiD rug. tire that an exports of the merA=*h subject to this Agreement shall be a,m-hinted by a cert!5ca:e (form to be speed). The certiscate shall be endorsed pers: ant to a liceme and issued no cartier than one month before the day,inenth, and year on which the mer+ die is accepted by a h.

8-1 i

g 3

13

.c, EUWh company, as indicted in the killof-lading or a %.ble hwpintianWa= for espon. The cenifiests wm aho indiinte the automer, '

the complete dr Wm of the p t.s saponed, soonny of origin of the eranium ora, and quandrysupremed la the original salts and kDograan Up espivalent, and m appropriate, amnber of separades work mahs (SWU).If any of thisinferination is in a language othat than English, the ennlikes must sko sonnain an English w.n.,.c h d this %

E.

1bc Unhed States sh di require pr=manesh ofmeh certi5cstas as a condidon

. for entry isso the Unhad St&tas of the unenhandhe subjem to tids W on or i

after the effective dass af tids W Tbs Unhed States wDI rmthe entry of such products not accompa'?ad by such a sort!5 man, assept as prwided in

'~

Seedcas IV.D. and W.H. afthis Agreement.

1 4

i e

i i

i I

i

[

?

I

-i e

i l

mW

)

IiE i

b.

y 1

l J

I

,l j

i 1-

~

14 vt nainimrunow 4

I In order to e"Cyrestrit the volume of asports of uramina te abe Unhed Sates, 1

MINATOM agress to 5--- *=- - : Ibe ibuowing procesares no knar than R) days aBar ec efective data of this Agreensat:

A.

Establish an espet liosaslag and eerdfkadan program for d esperis of

-i uranium than the Russian Federadan to, or destined.04 er indirectly for.

7

.. =......i.ss in, the Unhad' States.

B..

Ensure compliance by 2 the Randr's Federados p A=% esporters, brokers, traders, aners, and/or related parde6 of och uranium with d procedarts j

esaMN in order to effeamusta shis Agreemaat.

C.

Co!!ect informadan Eram d the Russian Federsdan rh., separters, brokers, traders, users, and/or related panies of sudt on the pMW and sale of uranbm.

D.

Require that ym Q agree not to cframvent this Agr='-% report to the l

Russian Federation subsequent arrangements estered into far the sale, =%. or Ioan to the United States of pranium purchsaed from Rass!A and inelade abase same provisions in any subsequent contracts involving nranium parthased from Russia.

.j i

'b 1

\\

s

?

i l

L h.1_. l

)

i

.l

1 I

t.

15 t

VII.

ANDgCUMVENDON ndNATOMwm talaa!!.yymyihie snaasures under Russian law to prevent A.

ciremnvenden of this Agreement. It wm not enter into any arrangernest for the purpose of cirmmvening tl e esport Ihnis in Section IV. dthis Ag&-' Itwill require that purchasers agne not to ev at this Agreement. It wm require char

{

all purchasers report to the Rusdan Federation =P arrangemants entered imo for the sale, enabange or loan to the United States af uranium pws. sed ham Russia. It will also reqtdra that aB purchasers indude abe same provisions in any subsequent conas as brvoMag uranhan purchased &csa Rassia.

i B.

In addition to the re xening requbsmans af Emesio VHL of this vdan

{

agreement, MINATDM wil share within 15 days of an official request from the U.S.

Deparcnent of th-me, imless a longer thne is amtually agreed, aII paniculars knmen to MINATOM regarding inidal and subsequent arrangements of aranium between the Russian FederLdon and any party regardless of the originalintended j

der % _

i C.

Th'e Deparcnent af C2

=w wm accept etamnems than all pardes for fifteen days aber the recei it ofinformation requested undst paragraph B of his l

4 sedan. 'Ibe Depanment wil determine within 45 days of the date of the information j

request under paragraph B' whether subject arrangements circumvent the espat l

limits of this agreement.

D.

In addition to the abwe requi."--. the Department shall direct the U.S.

Customs Service to require aD Immrters of uranium into' the' Uafted States,.

regardless of stated councy of origm, to subadt at abe thne of entry a written statement..eertifying that thd uranhun being I reced was not obadned under any arrangement, swap, or othed ad=ay d-dgaad to.i,-et the esport limiu for uranium of Russian Feder:1 Eon origin established by this Agreement. Where there is reason to believe that suci a cerdfication has been inade falsely, the Departmem j

will refer the maner to Cusions or the C.y-wa of Jusdos for Airtbar action.

.P The Deparanent of Comunarse sad nENATOM wm eensult regsriting any l

arrangement determined by abe ha of Omannaroe to aansdate j

~ ircumvention of this Agreement. If the Department deterndnes that the Russian c

. Federation andits related perdes did not acdvely wJ4,.te in the anangement, the j

~ Department w!!! regnest aimsuhadons with the 1tandan Federadan to sesolve the problern. If the problem bas!not been resolved to the anusualsatisfaction of both the t

United Sates and the Radian Federation, the volume of the aranhan product -

i invohed in the circumvenddi may be counted agafast the esport Ihnit in efect at t

i be i

d

~.

16 md ti=i. E the Deparaneet deter-br tht the Russian Federation actively Participased in the arrange the vo!nme of sud arrangemem will be cocmed spimt the expo:t !!a*s the Ruu!e Fedendon in eEcet at scch time cr, to the er,ent the Russian Foden on has utilized and espet ihn!n, to tbc next available quota.

F.

If the Deputme::1af Cormmaw or Governmere of the Russian Federation detumines that any cranha has been intendocaIly cuponed to the Unhed States withent the regt: ired capo:t eerM~~'. MINATOM shall thereafter prohibit any Russian pro 6cer, exponer,proke, trader, user, and/or related pany from supplying cranhun to the mncx=cri le for sud cframvention, impose otter penalties as allom:d by law, and/or other merms to prevent such cirmmvention in the future.

G.

Given the fung;Ibni of the world urs=fum market, the Departmem of Cocncee will take imo t the following factors in distingnitag normal uranin = market anangemeets, svaps, or other ~W from anangma-< swaps, or other exdmges widch mry be intendonr.Ily designed to circumvent the expon limits of this suspension agiew-1.

existence of any vedpl or written arrugernems which mry be designed to c!rcemeent the expon Emits; 2.

existence of my anzngement as deEned in Seedon IL(d) that was not reported to the Deputment purnant to Secdon VIILA.;

I 3.

edstence cd Smczian of my subsidiaries or afEliates of the panies i:rvolved; -

edstence ud fecdoln of any histarical and/ar tradMn 4.

among the'panies irivolved; I

5.

deviations (and reasom for deviation) from the above patterns, including phydcal WMm af relevam ura:rfum kNm 6.

existence of any pryments unsecocmed for by previous or subsegrent deliveries, or any paymen:s to one pany far merchandise delivered or rwapped by cather pany; 7.

segence and of the anangc:r44 and e.

_ycee,=_

.reevamt.the n _

1 1

h,

(

/

I

I

\\

n-r1 H.

• Swaps

• indade, but are not limited to: '

i

.t i

06anshi Produca(s)pswaps-trvohe the daa:e of-es4-of anytype of uranima

, without physim! transfer.

'Ibess awy feelude sachange of ownership d uranium products in difEstent constries, no that the partica i

obtain ownersh!p ofl products located in di5erent soustries; or anchange af ownership of uranfutn products produced in different countries, so that the d

Parties obtain owner' ship of produas of differsat nadanal origin.

l t

Flag swaps -involvi the d= age ofindicia dantional origin of tranium Products, without airr exchange af ownerahlp.

]

Displacement swaps - insche the sale or delivery of any type of uranamn prodact(s) from Russian Federsdon so an intermediary soustry (or ccmntdes) which be shown to have resulted in the ultimate delivery or sale imo the States of displaced uranium products of any type, t

regardieu af the seqbence of the transactices.

3 i

3 De bd tnt 2rits daterminatiDDs rtgarding CirculttVtDtIDninto the

{

,re<crd of the scrpendan agreemem.

i l

a l

I

[

h i

l t

1 rr.

3.

18 VIIL MONITORING informadon as h meassary an%at w!Il cogsge in a mutual -"'=nge of s MINATOM and the D d.,,,wihte to mordtor the hnplementarian af and

. cempliance with the ter:ns of this Agreement conshtem whh the Depamnent's s:amtory and regulatory ob" =d-Notwithsta6 ding the above, in ~ cases where inbrmation cannot be provided by reason of nadm=1 secdity, ie h undentood that the Depamnem of Nmm*rce will mais a determ4mde as to st'ai h ranum*hle altemadvs informadm A.

P&r of Dm Beg on the effsedve date et this Agr**-t, MINATOM thall collect and proride to the Depamdent the i::formadon act farth in the agreed fonnat in Apper4h B. All su6 Infortnadanwill be prtnided to the Depamnem upon official request, trat not more dan tie times a year unless rud inforrnation h necessa.ry for comuhrMm t Sn6 informadon wiD be subject to the verz5 cation provision idemi5ed in sec:fon VIILC of thh Agre'ement. Tbc Depamnem may dhregrrt! any in6. hon not submitted in a ti=ely z:d.nner or any information which h is unable to verify to its y M -.: m 3

The Depamnem shaIl prmide send ancial reports to MINA'IDM indicating de vehene ofimports of 6e' subject =crchandisc to the United States, together with r:ch additi:=al informadon as is M~~=ry and appropriate to zannitor the imp!ementation of this Agrwr

~ Both govemmen:s recognize that the effective monitedng cf this Agree =ent.

snay require that MINATOM provide information addidon 3 to that which is it'enti5ed abcue. Acenrdi:%!y, the Depannent cry es:ablith, wid MINATOM's ushtraine, addi:ionaJ reporting require =ents, as appmpriate, dndng the course of Gis A reeroent. The Dept.rtment shall provide notice to MINATOM of a::y 6

addidonal repW requiretne: s no later than 45 days pdor to the penod covered by rach reporting requirements unless a shoner notice period is mutualty agreed.

B.

04er Sorms fer Mn The Depart =ent will. review publidycallable data as well as Customs Farm 7501, entry mm=r. ries, and dier officinJ import data from the Bureau of the Census, on a tnanthly buit, to ddte.rmine whether there hree been in: ports that are inconsistent with the providons of this Ag&ma%

The Depent w!!; me:dtar Burean of the Census IM-n5 w rerized receds, which in:h>de the juandry and value of each emry. Because these records do not prtwide other speciSc entry informatics, such as the idendty of the

'l i

e

-r...

-t 2

1 i

\\

19 prcdicer/ exporter which may be essponsible for och sales, the 4wt may -

requat the UA Customs SeMee to provide such loformadon. Tis Department may request other mMhianal Metion tem the UA Onstoms Earvios.

1

' h Deparanant an also request the UA Castoms servies so direct paru of astry to forward an Antid4aA Repet afimportadons for actries of the anbject _

merchandisc shiring the periW tids Agreement is in eEiset.

l C

Yeriffation MINATDM agrees te permit fnH verillation of aD infortnadan related to the -

,aL

• te. dan of this M-t on an ananal basis or snare W=*#, as the i

Depamnent daems necesary to ensure full ensplianac with the tenas of the Agr==~*

t I

f 9

6 h

.-i e

b l

l 4

l i

M V

~

o.......

+

5

.g 20 i

IX.

DISCICSURE AND COMENT

~

A.

hWWwt sha! make avsDahle to representatives dand pany to the proceeding, under appropridenly drawn adsdnistradve proteedvs orders sensistant with the Departmerfs Regnudons, bus! ness pmprietaryinfonnados submhnad to the -

Department se&~~4 o"r upon raquast, and la any adsdnistrades review d thh Agreement.

i B.

Not 1 star than 30 ds pardes to the pr~-uf== ud)s sher the date d dhdesse under Seedon IX.A y subadt wrinen - to the LH A not to i

azoned 30 pages.

t t

C Duringthe asrJs. err month of thk Agims and party to the proceeding may request a hearing on issues raised during the preceding Relevant Period. lf ach i

a headng h requested, it wDibe a:mdneted in acconiance with secdon 751 d the Act (19 U.S.C $1675) and applidabic regniadons.

f I

!'l D

T Y

-i

.i l

t d

1 i

t I

6.

)

i

9 1

p s

21 h

CDNSUL, ATIONS X.

. A.

MINATDM and the Depamnent shan hold oneschadans regarding matters

'l concerning the kuplanemiadan, aperadan, or suforsement of tids Agrecannt. Such l

conrdtadom wi!!be held eachyear during the anniversary month of thic Agreement, meept l

~..,

that in the inidal year iniloting the signizg of'the Agreement, maamharians wEl be held und-an=naDy. Addidons! sensultitions may be held at any other thne upon request of ei2er MINA7DM or abe % da Emergencycannahadans may be heldin accordance

' with section XLA.

i B.

.If shber MINATOM or the $

idiscovers that substandal quanddes of uraniuzn produce (s) not subject 1o this A mt and

1. 4 bom Russian are are F

i being exported to the Urdted State L MINATOM and the Depamnent wit! promptly enter l

Into consultados to'enmre that sudh esports to the United States are mot undersnising this Agreement.

j C

If, for reasons maraktad determined under See:fon IV.CL sk ura.to sales of Russian..Jesi, the ma nium products remains below US. 513 per pound U 0, eg.dvalent after September 3,ill prompdy estar into consdta 4

0,1993, or for any two consecudvs periods thersaher, 3

MINATOM and the Depenment w l

the nxiet *n=A and M-r ddjurunents to the quota.

4 t

i

)

I e

i I

1 i

f t

1 l

6 I

22 XI.

VIOLATIONS OF THE AGP1mMEhT A.

VII W 6

. %latian*means conmh~ sith the tems of this Agr-*"' cansed by an ad or ambsics by MINATDM exapt, at the discretion of the Secreta:y, an set or ominion which k Inadvenem or b=vd=1 I

MINA'IDM wS1 bform the Depamnem of any vloistiam which came to its mnden and the ac&m tabm wf:b respect thers:o.

Imports in areas of1be szpon Umhs set out in this Agrumsm shad not be mimed a viciation of thd Agreement, or an Indkstion the Agreement no longer z eets the reqcirements of sdt: fos 734(1) of the Act,where such imports an mWmmi b volarne, are the result of th:hdcal shipping cxrecmstances, and are applied agahst the export limi:s of the follching year.Techni:al sh!pping circrmennees that wmdd resch in a Wm=1 vahnne of hnports In crecss of the export E=its are, for crample, those where the shipment df a full drum is req 44 for srfety facturz and such ammmt is beyond the existiz!g czpan Emit.

Prior to making a deterz:i::ation of an alleged violation, the Depart:nem will engzge b emergency censu!fatic:n. Such censuharions shall begin no later than 14 days from the day of regoest and shall prtnide for full review, but in no erem will erceed 30 day. After consultkrions wiA which to pmvide cobm,theDepart=entwillprovide MINATOM10 days

'Ibe Depanzsem will make a dete:m'-=4n within 20 days.

B.

Apmee AAn if the Department determines that this Agree =L-m is being or has been violated, the Depr-*at wil take such action as it determines is appmpiate under sectinn 734(i) of the Act and see: ion 353.19 of the Department's Regu'ations.

l l

l W-i l

l l

i i

I

. J.--

1 l

[

4 3

23 l

i XII. DURATIQN

.l i

la sonalban of the role oflong.eerm canassu in the aranks markef

.tbe provisions of Secdon XIIId this Agreenmat and seedon 353.25 of the cwhs l

' regulations, the export limita paided for in Section IV of this Agreement shall remain in force from the e5eedes date of thid Agreement through Omober 15,2000. '!hereafter,the -

~

vc=e of expats to the Unhed Staise afuranium produce ham Ramla shall not be Ihnhed by te export limitadons provided for in Seedon IV of this Agreement. For the period t

. Oc:ober M,2000, through October L5,2002, both MINATDMand the A, wi. mill payc i

~ paniaolar attendon to the recp..

e.E. for d=4=g by MINA'!OM and the h i

i

. as provided in.Sadans VI and VIII of this Ag&=* Should sec6 monitodag indicate that, in the abe.ee of the espan Emis provided for in section IV, this Agreement no longer prevents the yy lon ai undercutdng of price levels of domesde products by imports of uraniamproducts from Russia, as idendfied and disassed during consultadocs, the erport limits set forth in Sectia t IV may be reinstated within 30 days after completion l

.of the conr.dtations. Ifit is deterndeedin subselpent consultadoos that the condidons that led to the reinstatement of the export limits provided for in Seedon IV no longer suist, such 1

expon lirries shall not remain in fah:e and the monitodag WW above shall resume.

l The Depanment will, opon m'4 a proper respest no later than October 31, 2001, conduct an *M4e.rative re, view under Seedon 751 of the Act. The Depamocnt l

i expects to temsnate this Agrzemed and the underlying invertigation no later than October i

15, 2002, as long as the Russian jFederation has not been found to have violated the l

Agreement in acy substantive manner. Such review and tersdnation shall be conducted eccsistent wi:b section 353.25 af the Departments aguladans.

j i

MINATOM may terminate this Agreement at any thne upon notice to the -

i 1

Depanment.. Termination shall tie effective do days aAer such notice is given to the Department. Upon tert:dnatian at the request of MINA*IUM, the provisions of Section?34 of the Act shall apply.

i i

If the Depanmenz has dewrtnined that a suf5cient ammmt of dane has @M between the effective date of this Agreement and the date of ter-t-taa, the Depanment l

will fouow the provisions af SectioEs XIIL(b). or XIII.(c), of this Agreement.

i i

3 3

i i

j

\\$

b.

I

i i

M XIIL CONDIDONS During the underlying invedpdan, the Department determined that the Russian Federadon is a acr>martet ecoricry constry, h the two genrnme=s share an Interest 6 promoting the transformadan of the Russian Federufen into a market em'amy, the Department ruq;::izes that it nisy deterndne d.: ring the I!re of this Agrew-r that the Russia: urudum indusuy is a z:artet criented bd stry, or that the Russian Federa. tion h a rnuket e q ec:ntry. In either ennt, the Department may:

l (a)

Ext.cr imo a new R, dos specmera under Mdm 734(b) or 734(c) of the Ac:; or W

H the inadgadon was no: completed under section 353.18(i) of the Deparunent's regulado:s, adford MINATDM a fall oppormnity to submit new infonnaton, and take such infamnin, fnto account in r=Ane its Enal deterrinmen; or

~

(c)

If the i=mdgaden = co:npleted under seeden 153.15(1), consi:ier a reg. ten enade no luer than.% days alter tennicadoo of the Agreemect to ec=6c: a changed c.rcumnances review under Mon 751(b).

n 1

3 l

' )

i l

o 25 XIV. OTHER PROVISIONS

~A.

In entedng into this Agnmer. MINA1DM does not admh that any sales of the merchandise rhfee: to this Agree:nent have been anade at less than fair vabe er that sm:b sala have m6edally injured, or threatew matedal inhny to, an Indar:ry or bdustries in the Ud.ed S:sta.

B.. For aII purposes bemunder, the Department and MINATDM shall be represented by, and all -w mications and nodoes shall be given and a&iressed to:

Deeetmem 6 Gr,.erce &mne Urdted States Department of Commerce Assistant Secetary for Impmt AdmMesdon Intema.tionalNde AAmi%cn Washing:on, D.C. 220 Min'sW for Af ede he*rv Gmet Deputy Minirir Mauew 109108 Russia i

e e

iT i

-,w----,-

-,,,- - ~~.--_.,..---,,-,.-.._, -

• * * *.e.

f g.

s 1

XV.EFFECITVp DATE I

h SE44Eive dets Of this Agree m EId S M PSD d h g Ib8 B ERI M b -- k " O E nranium froen tbs Ramian Federsikm is October 141992.

l signed on this sisseenth day of &+,1992.

1 f

b 'h j

A For the Russian Endsration Ministry of Anoede Bosrgy MD Ib.

~

Viadimir Lx.kinI His F=aefleaay,A==ha==adar of tbc Russian Federation 9

For U.S. Department AFL Assistant Seattiry far p

Import @ tion I

l 9

q 3..

1 i

1 e

a APPENDIC A: RUSSIAN FEDERN!10N f

I PRIG 1RVEL QUOTA IN MIIIJONS OF POUNDS UA 50.00- sum

~ as

)

.314.00- $14M E7 i

51100- SISM 10 l

s:d.co-assa 24 i

$17.00- $17M 10 i

818.00- Slam 13 1

$19.00-$19M 32

.j 220.00 -$20s 4A 1

821.00 and up Unlimited U,0, =

l Price h amamrod in U.S. E(Ibs. and k an observed priac in the U.S. market as

~ defined in the v@~r a(astment.

l on arrsemem and reviewed every air membs for i

Quota leveh are erpressed in annikus of pounds of U o. eq*alent as converted by the conversion forinnlae oudiced in the empension agreement.

Russia may only export a gaantity ofIEU which enntnin< a mszinmm of 10 -

i 12% of the U.S. errichment snarket's anmal demand under the sum of this quota plus the longaarm comrmct "=h quota.

l P

i

-l 1

e h.

1

i........ ~..

~... ~

.a.

~

APPENDDC B In accordance with the established format, MINATOM shall collect and provide to the

]

Depantnent d infar==h necessary to ammure ---f== with this W" l

MINATDM wdl adscr and==b =8a sales data to the United States and to comunes t

- ~

. oder than the Unhed States on a' continuous basis and in the fonowing agreed forsnats.

MINA7DM wGI provide a narrath amplanados to substantista d data couected in '

j accordance with the following foripats. MINAIDM will also coHect and provide data on i

the total quantiry of harne marks ' sales, expressed in the unhs of measure sold. Unless

-l such informationis necessary for quasnitatiam, MINATOM wEl provide the information to the Dw a not more than two ti nes a year Unless otherwise WM in the l

cf5dal request, abe infannation plovided shd cover d sales for the six snooth period l

identi5ed in the of5clal request. Ia response to an of5dal request froen the Depamnent, MINATOM will provide the Depamnent within 30 days d such inforation, andsas cierwise nratuaDy agreed.

l a

i i

I i

1 i

l l

r i

I 5.

I

?*

Aspc:drB(exmt) 2 REPORT OFINVEh'IORIES i

a Report, by locatio::, the inve= tories bc3d by the Russian Federadan In the Unhed States and I= ported into the Urlted States be: ween the pe:iod Spe March 5,1992, z

through the effec:fre dr.e of the / gw-_

1.

Q::an:ity:

tom,,.,rtpn=1 r.rdts of measure (Lg. pocnds %Oe, KDograms U, etc.) and h pon:xis U,0, eg.thsicat 2.

Locatice Idemify where the inventory h actre=tly bebg heli Provide the as:ne and address for the lacede 3.

"Iir. led Pany:

!ia=e and address of pany who leg Dy has title to the n+,s;a>_

4 I.icense Nu=Se:(s)t indhate the z:cmber(s) rek:ing to ca h entry now

>cing held in Lm.

5.

Ceni5cate Number (s):

b:S:ste the M (s) rehdog to each entry now 2

seing held in L-y 6.

Date of Original Export: Jate the expan certi5cate h c:dorsei 7.

Date of Entry:

Date the mee=MM entered the United States or 1

'he date book trear took place.

8.

OriginalImpcrter:

Name and ad&ess.

9.

Original Exportet 14mme and address.

10.

Complete Derafptien

)M.ule lot m% and o:her musb!c identifying

. of 1,s.e.4, n u je%

9 v

A

l I

1 l-i i

i AppenditB (exue) 3 i

i l

i UNITED STATES SALES

{

1.

License Number (s):

ra*= the -Ws) raladag to each sale and/or l

mery.

2.

CertiScate Numbe:(s):

'ndicr.e the -b(s) relating to each sale and/or imtry.

3.

i Complete Descrf of McWu :pdon V~ta lot munbers and other tvmilable M ieg of i

<W d=

t i

4.

Quan:ity:

%!iate units of taeasure sold sad /or entered,s,g.,

amds U,0 IBogramr U, etc.

l 5

5.

Total Sales Value:

Jadicate ccnency used.

J 6.

Unit Price:

Indicate currency used.

7.

Date of Sale:

ibe dr.te all terms of order are confirmed.

E.

Sales Order Nanber(s):

Indicate the member (s) relating to one sale and/or f

entry.

9.

Date of Export:

Date the export cc:tificate is endorsed.

i 10.

Date of Entry:

Date the mcWa4 catered the United States or be date book transfer took placc.

I l

I i

11.

Importer cf Record:

Na:ne and address.

22.

Customer:

Name and addre.as.

)

~

13.

esewrye.gamun i

o nm='a whether related or unrelated.

t 14 fin 1} DcE1fDat$att:

Name and addres tf Mdaa for -P-- - -dan in the United States,if knoirn.

e 15.

Other:

2g,, used as collate:al, w31 be re+.ed, etc.

1 e

I g

hs.

a

...... ~..

t

-~

Appemt::B (cant) 4 SALES OTHER THANUNITED STATES 1.

IJeanne NA(s):

Iaeu =+- the==3=(s) reladog m each sale and/or ency.

1 Crtdficate Number (s):

fan =t* the==Ms) raladag so each mie and/or antry.

3.

Quandty:

Indicate nais of snaasms sold and/or entered,as, pounds U,0s, Kilogratas U, etc.

4.

Date of saae:

m date an isram of ander nr. eensnoed.

5.

sales Order Nmnber(s):

Indicate the - Ms) raladag to each sale and/or emry.

6.

Date of Export:

Date the esport certi5cate is endorsed or the date as indicated in the bill <if-lading or a comparabic transponadan damment-7.

Date of Entry:

Date the anerchandise entered the United States or he date a book transfer took place.

E.

Importer of Record:

Tame and addresa.

9.

n&-n Tams sad addrums.

10.

Customer Relationship:

Jadicate whether related or unrelated.

11.

FmalDestinatiom Name and address of location for consanpdan, if 1mourn.

11 Other:

J,s. naod as onllateral, wEl be re< sported, etc.

9 b.