Nuclear Nonproliferation

Implications of the U.S. Purchase of Russian Highly Enriched Uranium Gao ID: GAO-01-148 December 15, 2000

In 1993, the United States agreed to buy 500 metric tons of highly enriched uranium from Russia. This uranium was extracted from dismantled nuclear weapons over a 20-year period. USEC, Incorporated, (the company that acts as an executive agent for the United States) paid Russia about $1.6 billion for more than 3,000 metric tons of low enriched uranium blended from highly enriched uranium. Five of these deliveries to USEC have been delayed because, among other reasons, Russia was dissatisfied with the revenue it ws getting from the sales. By the end of 1999, USEC had received about 19 metric tons less than the agreement called for at that point in the contract. The U.S. government and USEC expect that the shortfall will be made up in the next few years. In addition to the uranium obtained from dismantled nuclear weapons, Russia is also proposing that the United States buy newly produced uranium processed in its commercial facilities. GAO recommends that this arrangement be assessed to determine its impact on the nuclear fuel industry and national security.

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