India and Australia have agreed upon a framework agreement for the supply of uranium, which is expected to be signed during the visit of Prime Minister Tony Abbott to New Delhi in September.
This was reported by the Indian newspaper “The Economic Times”. Volumes of India's imports of natural uranium and cost of the transaction are not being revealed. India is not a participant of the Non-Proliferation Treaty on Nuclear Weapons (NPT). Because of this, Australia had several times blocked the signing of an almost concluded agreement on export of raw uranium to India. A new attempt was made to finally come out of the situation for the signing of the contract in early 2013. The ongoing negotiations since then, apparently, allowed to overcome differences. The breakthrough is expected in September, during the visit of Prime Minister of Australia, Tony Abbott to India and in course of his talks with Narendra Modi. However, the deal is still under question, considers Anton Khlopkov, director of the Center for Energy and Security Studies and editor in chief of the magazine “Nuclear club”: “This, of course, will be a breakthrough for India, but nevertheless the main contribution for preparation of the document was made under the previous government. But even among experts there is no clear-cut understanding - whether the document is consistent with Australia's international obligations. Namely, not to supply nuclear materials to countries that are not parties to the NPT. These include India”. What is the likelihood this time, of a negative impact of discussions and conclusions of the expert community and of the negative views of a number of Australian politicians to the impending Indo-Australian deal? Anton Khlopkov refrained from predictions, however, drew attention to its commercial component: “I understand that in Australia, a political decision has been taken to develop relations with India in the nuclear field, to begin with, for the supply of uranium. Australia is one of the largest exporters of raw uranium. It is obvious that the current situation in the uranium market, namely - a fairly low demand for uranium and low prices - will certainly encourage the government and the uranium business in Australia to find new markets. And India is a large market. Therefore, this economic motivation of the future agreement, of course, cannot be ruled out”. The future agreement prohibits India to use Australian uranium for military purposes. However, earlier, the countries-participants of the Nuclear Suppliers imposed restrictions on India's cooperation in the nuclear field because of these very violations of the ban. In 2008, the Nuclear Suppliers Group weakened its trade regime with India. Are there any new pitfalls in this area? Anton Khlopkov is of the following opinion: “I do not think that in the present situation India needs Australian uranium to make nuclear weapons. But India had obligations to the Canada-US agreements signed in the 60’s not to use ensuing technologies and materials for the production of nuclear weapons. Despite this, India accepted a research reactor from Canada and heavy water from the United States to produce plutonium. It was subsequently used for the production of nuclear weapons. So, of course, it is important of what is written in the future agreement, and India, in this sense, cannot boast of a most positive record, notes the Russian expert”. The Future agreement on uranium between India and Australia is as transparent as it could be and does not violate the rules of the Nuclear Suppliers Group. It is within the framework of these rules that India is working with Russia, Kazakhstan, Argentina and several other countries for the procurement and enrichment of natural uranium for its nuclear energy needs. Source: Article
