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19 June 2002

U.S., Russia Approve New Terms for Enriched Uranium Agreement

(Pricing will now be based on market factors) (260)
The United States and Russia have approved a new market-based
mechanism for determining the price paid to Russia for reactor fuel
derived from highly-enriched uranium that will be predictable and will
obviate the need for periodic re-negotiation, according to the
following statement by State Department Spokesman Richard Boucher:
(begin text)
U.S. DEPARTMENT OF STATE 
Office of the Spokesman
June 19, 2002
Statement by Richard Boucher, Spokesman
UNITED STATES AND RUSSIA AGREE ON NEW CONTRACT TERMS FOR THE
HIGHLY-ENRICHED URANIUM AGREEMENT
The governments of the United States and the Russian Federation have
approved a new market-based mechanism for determining the price paid
to Russia for reactor fuel derived from highly-enriched uranium (HEU).
The new market-based pricing mechanism will provide a stable and
predictable procedure for implementing the HEU Agreement on a
commercial basis that will obviate the need for periodic
re-negotiation to reflect changing market conditions.
The 1993 HEU Agreement calls for Russia to convert 500 tons of
highly-enriched uranium from dismantled nuclear weapons into reactor
fuel for use in commercial nuclear reactors in the United States.
Shipments began in 1995 and will continue through 2013. To date more
than 150 tons of HEU from the Russian nuclear weapons program has been
converted to peaceful uses under this initiative.
The United States and Russia will continue to cooperate to fully
realize the non-proliferation, national security, and economic
benefits of the HEU Agreement.
(end text)
(Distributed by the Office of International Information Programs, U.S.
Department of State. Web site: http://usinfo.state.gov)