Russia to Sell Uranium on World Market

Part of: Russian nuclear fuel cycle
Russia's Ministry of Nuclear Energy announced it would terminate a 10-year contract with the United States and begin to sell uranium on the open market, according to the Washington Post. The uranium stems from dismantled nuclear weapons. It was sold to the U.S.-based consortium at a discounted price under the now ruptured contract. Thomas Jandl, 15/12-1997 The decision marks yet another step along the learning curve on Russia's path towards a free-market economy, although this time Washington may be gnashing its teeth about its student's progress. Russia stands to make an additional $300 million to $500 million from the sale on the international markets.

However, the decision is also a snub at the United States nuclear policy towards Russia. Moscow will no longer "accept discriminatory, unprofitable conditions" for its commercial grade uranium, the Washington Post quoted First Deputy Atomic Energy Minister Aleksandr Belesokhov. The West has a keen interest in keeping tight control over Russian nuclear materials.

The contract between Russia and the U.S.-based buying consortium had been signed as recently as August. The group comprises Cameco mining of Canada, Cogema of France and Nukem of the United States.

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