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    Middle East
     Feb 14, 2006
Iran plays Russian roulette
By Kaveh L Afrasiabi

The genie of Iran's nuclear crisis may be contained if the much-anticipated meeting in Moscow between Iranian and Russian officials bears fruit on the Russian proposal for a joint venture with Iran to enrich uranium on Russian soil.

Officials from Iran and Moscow were due to meet on Tuesday, but Iran announced on Monday that the meeting had been postponed, though it stressed that it had not been canceled.

So far, this proposal has received mixed reviews in Iran and there are indications of a split within Iran's ruling establishment. Ali



Larijani, Iran's chief nuclear negotiator, warned on the eve of the recent International Atomic Energy Agency meeting in Vienna that the Russian proposal would be "killed" if Iran's case were sent to the United Nations Security Council, which it duly was. Larijani also categorically stated that such a move by the IAEA would "end diplomacy".

Yet despite such dire warnings, fortunately neither the nuclear diplomacy nor the Russian proposal is dead, partly as a result of timely intervention by Iran's former presidents, Hashemi Rafsanjani and Mohammad Khatami, as well as Hassan Rowhani, who until recently led Iran's nuclear negotiations and was the architect of the historic Iran-Europe agreement known as Paris Accord of 2004 that resulted, in part, with Iran voluntarily suspending its uranium-enrichment program, since, according to some reports, restarted.

Warning of Iran's isolation and a global consensus against Iran, these and other leading figures, such as the former Speaker of Iran's majlis (parliament), Mahdi Karubi, have definitely leaned on the militants controlling the presidency and the Supreme National Security Council to pursue a less confrontational approach. Yet Iran is not alone in evincing apprehension about the Russian offer, which has come under fire in the United States as well as in Russia.

Last November, Presidents George W Bush and Vladimir Putin discussed the Russian proposal for the first time, on the sidelines of an economic summit in South Korea. Subsequently, Stephen Hedley, the US national security adviser, clarified that Iran's role in this nuclear scheme would be "management participation and financial participation". In other words, the US does not favor a truly joint venture whereby Iran's nuclear scientists would gradually master the critical technology that could ultimately lead to developing a nuclear weapon.

In a recent commentary in the New York Times, Valerie Lincy and Gary Milhollin raised serious misgivings about the Russian proposal, their main argument being that (a) it would not stop Iran's drive toward nuclear weapons, (b) Iran would exploit the Russian "sweetheart deal" to master the nuclear fuel cycle, and (c) it would simply adopt it as a short-term solution.

By all indications, the earlier White House enthusiasm for the Russian proposal has disappeared and one is struck by the peculiar absence of any meaningful follow-up on the part of US Secretary of State Condoleezza Rice and other US policymakers.

Meanwhile, according to Russian Defense Minister Sergei Ivanov, in his press interview of last Friday, "Russia's suggestion to enrich uranium for Iran on Russian territory remains on the table." This is slightly different from the initial pitch for a "joint venture" by Putin, who is gearing up to lead the Group of Eight (G8) summit in St Petersburg in July and, per the advice of the US ambassador to Russia, William Burns, needs to "demonstrate a sense of direction".

To open a parenthesis here, while non-proliferation is not on the G8's agenda for the moment, events surrounding Iran between now and July may force the issue, all the more reason for the G8 working committees to start on this matter immediately, in light of the recent meeting of G8 finance ministers, which addressed risks to oil markets as a result of Iran's nuclear crisis. One reason Russia may wish the subject outside the purview of the G8 summit is that it may complicate Russia's relations with the West and thus diminish Russia's chances for economic support from the West's financial institutions.

This aside, the Russian proposal has its own domestic critics, including Anton Khlopkov, the deputy director of the influential Center for Policy Studies in Russia, who stated on Russian TV last Wednesday: "The Iranian request to have access to enriched technology and centrifuges in the framework of a joint Russian-Iranian consortium is not acceptable to Russia. Russia insists on observing a moratorium on transfer of uranium-enrichment ... technologies."

Khlopkov and a number of other Russian nuclear experts have called for a "feasibility study" before any agreement between Iran and Russia can be reached on this proposal. This may take several months, however, hardly befitting the crisis-prevention momentum generated by Putin's initiative.

The IAEA is due to present a report next month to the UN Security Council on Iran's nuclear program. After this, the possible imposition of sanctions on Tehran will become an issue.

The Russian proposal scrutinized
If accepted, the proposed facility would probably be at Angarsk Electrolysis Chemical Plant in Siberia, where there is already a uranium conversion plant, as well as operational enrichment facilities. Citing safety and economic reasons against the Iranian idea of transporting UF4 (uranium tetrafluoride) from its facility near Isfahan to the proposed site, Russia insists on conducting uranium conversion for Iran on its own territory. Yet in the light of Iran's prior investment in the uranium-conversion facility and the question of national pride, Russia may need to compromise on this issue.

Iran has insufficient uranium ore for its power plant in Bushehr, which alone will deplete Iran's proven uranium reserves in about six years. This is not to mention the extremely uneconomical uranium mining near Ardakan. The Iranian media have recently reported the discovery of smaller uranium deposits in several provinces, including Isfahan, Khorasan, Azerbaijan and Sista-Balochistan.

To assuage Iranian concerns of nuclear-fuel disruption in light of their history of mistrust of Russia, this proposal has to be complemented with another proposal, for a nuclear-fuel bank under IAEA supervision, inside Iran, stockpiling several years of fuel, as well as an international guarantee to substitute Russian nuclear fuel in case there is a disruption in its flow to Iran. In turn, Iran would agree to implement its nuclear Non-Proliferation Treaty right to enrich uranium on a rolling basis.

One of the potential problems of the Moscow meeting is that it may focus too narrowly on the proposal to enrich fuel inside Russia, without tackling the other outstanding issues that may hamper its acceptance in Iran. Above all, this includes the national-security concerns of Iran regarding a possible US and/or Israeli attack on Iran.

Without a firm security guarantee, it is highly unlikely that the Russian proposal can go too far in today's rather militant political climate in Iran. The economic carrot of Western financial compensation to Iran to recover the costs of facilities in Isfahan and Natanz is also, if not equally, important.

From Iran's vantage point, the Russian proposal has several merits, given their own technical struggles with enrichment technology. According to IAEA inspectors, Iran's UF4 is tainted with a large amount of heavy metals, such as molybdenum, which "risks blockages of valves and piping". Iran's plan is to convert UF4, or yellowcake, into uranium hexafluoride (UF6) potentially to be separated into isotopes by centrifuges at Natanz. Iran prides itself for manufacturing key centrifuge parts and if the "voluntary" suspensions continue indefinitely, it may lose that scientific edge.

At present, Iran has assembled more than 1,000 P-1 centrifuges at Natanz and, once operational, the giant facility could manufacture 100-120 rotors per month. Henceforth, the incentives to Iran for giving up its cherished nuclear investments, which are a source of national pride, must be sufficiently high, eg, a guarantee of a steady fuel supply and technological cooperation with Russia and, perhaps, an international consortium. However, at this point it is doubtful that the West is willing to put such necessary incentives on the table. What then may be necessary is an alternative proposal.

Alternative Russian proposal?
As an alternative, Russia could conceivably propose to enrich uranium for Iran on Iran's territory, together with China and other participants. In so doing, Russia and China could build on their own history of nuclear cooperation. Russia has supplied China with an entire uranium-enrichment facility at Janzhun, including a gas centrifuge plant for the production of low-enriched uranium with an annual capacity of 200,000-300,000 separative work units (SWU).

Russian experts have also participated in the installation of a Russian-designed Tokamak-7 experimental thermonuclear fusion reactor at Hefei.

Also, Russia's nuclear transactions with Europe are instructive, in view of the strict stipulations for keeping aspects of technology "black-boxed" so that Russian firms' anxiety about patent control and re-export of technology by the recipient nation to third parties are addressed.

This alternative has the advantage of nuclear safety and likely acceptance by Iran, compared with the current Russian offer, which can be telescoped into a scientific feasibility study that would cover the issue of "objective guarantees" about non-diversion to illicit purposes.

This alternative has yet to be examined by either the IAEA, the US or the European governments, and yet the mere escalation of the nuclear standoff requires a broadening of their horizons to all peaceful options to put this genie back in the bottle.

Kaveh L Afrasiabi, PhD, is the author of After Khomeini: New Directions in Iran's Foreign Policy (Westview Press) and co-author of "Negotiating Iran's Nuclear Populism", The Brown Journal of World Affairs, Volume XII, Issue 2, Summer 2005, with Mustafa Kibaroglu.

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China's energy insecurity and Iran's crisis (Feb 10, '06)

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