HEU Agreement
The USEC Privatization Act requires the President to report annually to the Congress before December 31on the effect the low enriched uranium delivered under the U.S.-Russia Highly Enriched Uranium Purchase Agreement (HEU Agreement) is having on the domestic uranium mining, conversion, and enrichment industries, and the operation of the gaseous diffusion plants.” The Office of Nuclear Fuel Supply Security assesses potential impacts and prepares an annual report to Congress on behalf of the President entitled, “Report on the Effect the Low-Enriched Uranium Delivered Under the HEU Agreement Between the Government of the United States and the Government of the Russian Federation has on the Domestic Uranium Mining, Conversion, and Enrichment Industries and the Operation of the Gaseous Diffusion Plant.”
The following milestones stem from the HEU Agreement:
February 18, 1993 — |
The HEU Agreement was signed.
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January 14, 1994 — |
Executive Agents for the U.S. and Russia (USEC and Tenex) executed the Implementing Contract to the HEU Agreement.
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June 1995 — |
First delivery of LEU derived from HEU arrived in the United States.
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April 26, 1996 — |
The USEC Privatization Act, P.L. 102-486, was signed by President Clinton. This Act, in part, established the annual amount of natural uranium that can be imported for sale within the United States.
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October 21, 1998 — |
President Clinton signed P.L. 105-277 that, in part, provided for the United States to purchase, for up to $325 million, the unsold natural uranium associated with the 1997 and 1998 deliveries of Russian LEU.
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March 24, 1999 — |
The Transfer of Source Material Agreement was signed by the U.S. and Russian Governments. In addition, the Western Consortium and Tenex signed a Commercial Feed Agreement. These agreements were instrumental in introducing the natural uranium component into the market in a non-disruptive manner.
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November 16, 2001 — |
The Western Consortium and Tenex signed an amendment to the Commercial Feed Agreement that exercised the Western Consortium’s options to purchase the natural uranium for the period 2002 through 2013.
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June 19, 2002 — |
The U.S. and Russian Governments approved an amendment to the contract between USEC and Tenex that implements the HEU Agreement. Under the new amendment, a market-based pricing structure for SWU is used for the remaining term of the HEU Agreement.
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June 16, 2004 — |
The Western Consortium and Russia announced an amendment to the Commercial Feed Agreement that ensures there is sufficient natural uranium in Russia to blend down the HEU to commercially usable LEU through the remaining term of the Agreement.
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September 2004 — |
LEU deliveries reach the equivalent level of 9,000 nuclear warheads eliminated.
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August 2005 — |
LEU downblended from 250 MT of HEU was delivered to the United States. This represents one-half of the 500 MT of HEU; the equivalent to 10,000 nuclear warheads eliminated.
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September, 30, 2005 — |
The U.S. Departments of State and Energy, and the Russian Federation Ministry of Foreign Affairs, and the Federal Atomic Energy Agency issued a joint statement marking the successful midpoint of the implementation of the HEU Agreement. |
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