Saturday, 8 September, 2007

by Meraiah Foley
The Associated Press

Leaders from Russia and Australia signed a deal Friday to export Australian uranium to fuel Russian nuclear reactors, but promised it would not be transferred to Iran's disputed atomic program.

Russian President Vladimir Putin and Australian Prime Minister John Howard signed the deal during bilateral talks on the sidelines of a summit of Pacific Rim leaders in Sydney.

While the agreement forbids Russia from selling Australian uranium to any other nation or using it for military purposes, critics of the deal worry that it could make it easier for rogue states to obtain the raw material.

The U.S. and other Western countries accuse Iran of trying to enrich uranium to develop atomic weapons; Iran says its enrichment program is for peaceful purposes.

Russia, which is building Iran's first nuclear power plant, has walked a delicate line in preserving its financial interests while pressuring Iran to abandon its enrichment program.

Putin said Russia planned to build an extra 30 nuclear power plants over the next two decades and needed Australian uranium to complete the expansion.

Australia has the world's largest reserves of uranium, but has no nuclear program of its own. Exporting uranium for nuclear power remains a touchy issue among many Australians, who are uneasy about its environmental impact and potential for weapons use.

Critics say the inflow of Australian uranium would allow Russia to divert its own supply of the atomic resource for military or export purposes.

"The problem is that there is no way of actually verifying what they do with it," Graeme Gill, a Russia expert from the Sydney University, told the Australian Broadcasting Corp.

Putin has called for the creation of a system of international centers that would enrich uranium to be used for civilian purposes by other countries while easing proliferation concerns, and Russia is developing a facility for this purpose in Siberia.