US companies can now build nuclear reactors in Saudi Arabia
What's the story
The United States and Saudi Arabia have completed negotiations on a nuclear technology-sharing agreement. The talks were concluded with the signing of a joint declaration by US Energy Secretary Chris Wright and his Saudi counterpart. The deal could pave the way for American companies to build reactors in Saudi Arabia, giving a much-needed boost to the US atomic energy sector.
Economic boost
Potential impact of nuclear sharing agreement
The potential agreement could benefit US companies like Westinghouse Electric Co., which are keen on constructing plants or selling reactor technology to Saudi Arabia. However, it has raised concerns among non-proliferation experts and some members of US Congress over weapons-grade material. The Energy Department and the White House are yet to clarify if the deal will include non-proliferation requirements barring enrichment and reprocessing of spent uranium.
Partnership
Declaration lays foundation for partnership
The signed declaration is said to "build the legal foundation for a decades-long, multi-billion-dollar nuclear energy partnership with the Kingdom." It also confirms that the US government and companies will be Saudi Arabia's civil nuclear cooperation partners of choice. The White House fact sheet emphasized that all cooperation under this agreement will be conducted in accordance with strong non-proliferation standards.
Worries
Concerns over uranium enrichment
Despite the positive prospects of the deal, non-proliferation watchdogs have pointed out that a formal agreement under Section 123 of the US Atomic Energy Act was not announced. Henry Sokolski, Executive Director of the Nonproliferation Policy Education Center in Washington, noted that if they had reached a formal agreement, it would have addressed uranium enrichment concerns. He questioned why there was no mention of how these issues would be handled in the potential deal.