The International Uranium Enrichment Center (IUEC) and

“The International Uranium Enrichment Center (IUEC)
and LEU Fuel Bank in Russia –
Important Steps Towards a Safer World”
A.Panasyuk
Geneva
18 March 2011
Prerequisite to IUEC creation
‰ Increase of interest for the development of nuclear energy all round
the world raises up the issue of the assured nuclear fuel supply for
NPPs
‰ Construction of uranium enrichment facilities and fabrication plants in
the states, which do not possess such sensitive technologies, results
in increase of threat of nuclear weapons proliferation
‰ The only way to overcome this threat is to arrange an international
system of the assured nuclear fuel supply for NPPs in the states,
which truly meet the NPT requirements
‰ Several initiatives to strengthen the nonproliferation regime were
announced by the IAEA, Russia, USA, Japan, …. etc.
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Russian Initiative
The Russian President Initiative
St. Petersburg, EurAsEC Summit, 25 January 2006
«The key element of such an infrastructure should be an international centers
network under the IAEA control for the provision of nuclear cycle services,
including uranium enrichment»
Objectives of the initiative :
™ To increase the role of nuclear energy in provision of global energy
assurance
™ To develop the global nuclear energy infrastructure via the establishment
of an international nuclear fuel cycle centers network
™ To provide the non-discriminatory and assured access to products and
services of the nuclear fuel cycle for those states, which are currently
developing nuclear power
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Establishment of IUEC
Russian Federation
90% shares
Republic of Kazakhstan
10% shares
In accordance with the Intergovernmental Agreement from 10.05.2007 the
authorized organizations of the Russian Federation (JSC «Techsnabexport»)
and the Republic of Kazakhstan (JSC NAC «Kazatomprom») founded the
International Uranium Enrichment Centre (IUEC).
The IUEC was established in the form of an Joint-stock company, which provides:
• IUEC’s financial independence from the state budgets of the countries-participants;
• shareholders rights to participate in the management of the IUEC.
Main activities according to the IUEC’s Articles of association:
• supplying uranium enrichment services at market prices;
•export, import and other transactions pursuant to applicable laws, agreements and contracts
signed by the Company including exports and imports of nuclear and radioactive materials.
Main purpose of the IUEC - to secure supplies primarily (but non-exclusively) for
institutional participants of the IUEC from the states meeting terms and conditions
of the Agreement
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IUEC Organizational and Legislative Chart
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Participation conditions
ƒ Compliance
with the obligations provided by the international nuclear
weapons non-proliferation regime (Agreement*, preamble; JSC «IUEC»
Articles of association, article 1.1)
ƒ Intention
of the IUEC participant to develop nuclear power (Agreement,
preamble), existing or perspective needs in EUP for their own nuclear power
plants, which will be covered by the IUEC deliveries
ƒ Cooperation of the IUEC member-state with the IAEA (Agreement, article 8)
ƒ Use of the enriched uranium produced
by the IUEC and exported from the
Russian Federation for fuel fabrication (powders, pellets, fuel assemblies) for
nuclear power generation (Agreement, article 5)
ƒ Access to the IUEC capacities primarily (but non-exclusively) for institutional
participants from the states which do not develop national uranium enrichment
facilities on their territories (Agreement, article 3)
* intergovernmental Agreement on the IUEC establishment
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Advantages for IUEC shareholders
Participation in IUEC provides to shareholders:
Increase of power production security through the guaranteed EUP/SWU supplies at
market prices (the Russian Federation Government guarantees set forth by
intergovernmental Agreement)
Assured access to uranium enrichment for the purpose of providing uranium
enrichment services to fabricate fuel (e.g. powder, pellets, fuel assemblies) used for
nuclear energy generation.
Availability to ensure supply by using the enrichment capacities of all Russian
facilities.
All rights as shareholder according to the Russian law.
Participation in the strengthening of international non-proliferation regime
The current contribution to the IUEC authorized capital is negligible:
2 600 000 RUR (~ 90 000 USD) - 10 % of shares
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Nuclear Power Industrial Complex of the Russian Federation
Novouralsk
Seversk
Zelenogorsk
Angarsk
-enrichment (4)
- conversion (3)
-uranium
production(4)
- fabrication(2)
- NPPs (10)
- depleted UF6
reconversion projects(2)
Research
Institutes
(>50)
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Procedure of the IUEC new member entry
I. Signing by the government of the new member-state separate
agreements with the governments of the existing member-states of the
IUEC in which the authorized IUEC shareholder-organization from the new
member-state is defined (validity of the Agreement is 10 years from the time
of signing, the Agreement is extended tacitly every ten-year period in the
absence of the Parties’ objections).
II. Execution of corporate procedures to obtain the block of IUEC shares
from the Russian share by the authorized shareholder-organization of the
new member-state.
Upon entry - arranging the General meeting of shareholders to introduce changes
into the Board of Directors’ structure:
1. Change (if required) of the number of Board Directors (currently – 7 members).
2. Election of the new shareholder’s representative to the Board of Directors.
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Storage Facility of JSC IUEC on the industrial site of JSC AECC
http//eng.iuec.ru/press/photos
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LEU Fuel Banks – Principles
The IAEA Director General scenario to create a LEU Fuel Bank
The ideal scenario for the IAEA would be to start with a nuclear fuel bank
under IAEA auspices, based on the following principles:
1.Any such mechanism should be non-political, non-discriminatory and
available to all States in compliance with their safeguards obligations.
2.Any release of material should be determined by non-political criteria
established in advance and applied objectively and consistently
and
3. No State should be required to give up its rights under the Non-Proliferation
Treaty regarding development any part of the nuclear fuel cycle.
Russian proposal to create a LEU Fuel Bank in Angarsk
Objective:
to set up a mechanism of assured LEU supply for all
countries meeting their nuclear non proliferation
obligations in case when commercial supplies have been
disrupted for reasons other than technical or commercial
(in case of political force majeure).
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Establishment and Utilization of LEU Reserve
Fuel bank
‰ The proposal to set up a guaranteed reserve of low enriched uranium (fuel
bank) at the JSC IUEC (GC(51)/OR.3) was announced by Director General of
SC “Rosatom” Sergey Kiriyenko at the 51-st General Conference of the IAEA in
response to the initiative voiced by IAEA Director General Mohamed ElBaradei
concerning the establishing of a nuclear material bank under the auspices of
the Agency.
‰ The proposal to establish a guaranteed reserve of low enriched uranium in
Angarsk as the first step mechanism of guaranteed fuel supplies was outlined in
the Communication of the Permanent Missions of the Russian Federation and
the United States of America regarding a Joint Statement on Multilateral Nuclear
Fuel Assurances (INFCIRC/776).
‰ 27 November 2009, a review of the proposals on establishing a guaranteed
reserve resulted in the IAEA Board of Governors’ authorizing the Agency Director
General to conclude the Agreement with the Russian Federation to establish a
reserve of LEU (GOV/2009/81).
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Establishment and Utilization of LEU Reserve
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Establishment and Utilization of LEU Reserve
‰ On March, 29th, 2010 in Vienna the General Director of the State corporation
«Rosatom» Sergey Kirienko and the IAEA Director General Yukiya Amano signed
the Agreement between the Government of the Russian Federation and the IAEA
to set up the guaranteed reserve on the territory of Russia and supply of low
enriched uranium from the reserve to IAEA for its Member States.
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Establishment and Utilization of LEU Reserve
‰ On March, 29th, 2010 in Vienna the IAEA Director General Yukiya Amano
and the General Director of International Uranium Enrichment Center (JSC
«IUEC») Alexey Lebedev signed the Contract between JSC «IUEC» and IAEA
on execution of specific technical and commercial aspects of the Agreement,
according to which JSC «IUEC» is to provide the supply of low enriched
uranium from the guaranteed reserve of IAEA.
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Establishment and Utilization of LEU Reserve
‰ The fuel bank consists of 120 t of LEU in the form of UF6 with an
enrichment of 2.00% to 4.95%
(sufficient for two 1000 MWe reactor re-fuellings ).
‰ The Reserve is established at the expense of the Russian
Federation.
‰ The Reserve is located in Angarsk at the IUEC storage facility that is
under IAEA Safeguards.
‰ The decision on release of necessary quantities of nuclear material from
the LEU Reserve is to be made by the IAEA Director General.
‰ The price of LEU supplied will be stipulated on market spot indicators
published by internationally recognized companies averaged over a
period, preceding the potential customer request.
‰ The IUEC was designated to provide services for a maintenance of the
LEU Reserve.
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Establishment and Utilization of LEU Reserve
Location of the LEU Fuel Bank in the IUEC storage facility
(Russian Federation, Angarsk, 26.11.2010)
http//eng.iuec.ru/press/photos
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Establishment and Utilization of LEU Reserve
Application of IAEA Safeguards
17 December, 2010
the first comprehensive PIV inspection was
performed by the IAEA in the IUEC storage facility. The Agency obtained
confirmation that the LEU Fuel Bank had been built up in full.
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Establishment and Utilization of LEU Reserve
An inauguration ceremony of the LEU Fuel Bank
After the IAEA inspection had been completed, an inauguration
ceremony of the LEU Fuel Bank was held.
During the ceremony a representative of the IAEA, Mr. Alan McDonald,
delivered a welcoming address on behalf of Yukiya Amano, the IAEA
Director General:
“…I am pleased that, with 120 tonnes of LEU in the Reserve, whose costs are funded by
the Russian Federation, it is now fully stocked at the IUEC under IAEA safeguards. This
week, IAEA inspectors completed their first inspection of the LEU Reserve, which
constitutes now a part of the existing mechanisms of assurances of supply of LEU for
nuclear power generation…”
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Thank you !
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