Washington (Platts)--8Sep2008

A nuclear cooperation agreement with Russia was withdrawn from
congressional consideration September 8 by President George W. Bush. In a
statement, Bush said the presidential determination that he made in May when
he submitted the agreement to Congress was no longer in effect because of
recent Russian military actions that are "incompatible with peaceful relations
with its sovereign and democratic neighbor Georgia."
In a separate statement, Secretary of State Condoleezza Rice said the US
made the decision "with regret." She also said, "The U.S. nonproliferation
goals contained in the proposed Agreement remain valid: to provide a sound
basis for U.S.-Russian civil nuclear cooperation, create commercial
opportunities, and enhance cooperation with Russia on important global
nonproliferation issues." Advocates of the agreement have said it would
solidify Russian support for US work on nonproliferation issues, most notably
to persuade Iran to abandon its indigenous uranium enrichment program. Rice
said the US will "reevaluate the situation at a later date." Congressional
leaders from two key House committees hailed the decision. Even before the
outbreak last month of Russia's military conflict with Georgia, the pact had
received a chilly response from Congress.