Washington (Platts)--13May2008

President Bush on Tuesday sent a recently signed nuclear cooperation
agreement with Russia to the US Congress for review despite opposition from
some key lawmakers.

The 30-year pact would allow the US to transfer "technology, material,
equipment (including reactors) and components for nuclear research and nuclear
power production," Bush said in his letter to Congress.

Last week, two senior members of the US House of Representatives' Energy
and Commerce Committee asked Bush not to submit the agreement until he
addresses their concerns about Russia's assistance with nuclear and missile
programs in Iran. Committee members are investigating transfers of Russian
nuclear technology to Iran from Russian institutes that the US Department of
Energy funds.

The "Section 123" agreement--which refers to a portion of the Atomic
Energy Act of 1954--will "promote, and will not constitute an unreasonable
risk to the common defense and security," Bush said.

It does not permit transfers of restricted data important to the
construction or operation of a nuclear production facility, enrichment plant
or reprocessing plant.

It would allow, however, the transfer of "sensitive nuclear technology,
sensitive nuclear facilities and major critical components of such facilities
by amendment to the agreement," Bush said in his letter. "I have approved the
agreement and authorized its execution and urge that the Congress give it
favorable consideration."

The agreement would allow the US to send its spent nuclear fuel to Russia
for reprocessing. It also would pave a path for the Bush administration's
Global Nuclear Energy Partnership, which aims to promote nuclear power around
the world through new kinds of fast-neutron reactors and spent-fuel
reprocessing plants.

Even without lawmakers' support, the pact will go into effect after 90
days of "continuous" congressional sessions, which is about the amount of time
left in Congress' calendar for this year. Congress also can pass a resolution
of approval, with or without conditions, or a resolution of disapproval.

Before Bush sent the agreement to Congress, sources said both the Senate
Foreign Relations Committee and House Foreign Affairs Committee likely would
prepare a resolution of disapproval.

--Dipka Bhambhani, dipka_bhambhani@platts.com