*EPF309 05/28/2003
Text: U.S. Awards Contracts to Shut Three Russian Plutonium Reactors
(Called significant step in advancing President Bush's nonproliferation programs) (1340)

The Department of Energy (DOE) has awarded contracts to two U.S. firms to begin shutting down the last three weapons-grade plutonium production reactors in the Russian Federation.

The contracts, worth a total of $466 million, will go to Washington Group International for work on two reactors in Seversk and Raytheon Technical Services for work on one reactor in Zheleznogorsk, DOE said.

The reactors provide heat and electricity to surrounding communities in Siberia but also make enough plutonium to produce approximately one nuclear weapon every day and a half, according to a DOE press release. The facilities will be replaced or refurbished with coal-fired heat and electricity producing equipment.

At a press conference with Russian Ambassador Yuri Ushakov May 27 in Washington, Energy Secretary Spencer Abraham called the awarding of the contracts "another significant step in our countries' cooperative work on a critical nuclear nonproliferation program."

He also announced that Ambassador Ushakov would visit DOE's Lawrence Livermore National Laboratory in California in early June.

Following are a DOE press release and Abraham's prepared remarks at the press conference:

(begin text)

Department of Energy
Washington, D.C.
www.energy.gov

Press Release
May 27, 2003

DEPARTMENT OF ENERGY SELECTS WASHINGTON GROUP, INTERNATIONAL & RAYTHEON TECHNICAL SERVICES TO BEGIN WORK ON SHUTDOWN OF RUSSIAN PLUTONIUM PRODUCTION REACTORS

-- Important Step In Bush Administration Nuclear Nonproliferation Program with Russia; Program Will Eliminate the Production of Enough Plutonium To Make One Bomb Every Day and A Half

WASHINGTON, D.C. - At a press conference with Russian Ambassador to the United States Yuri Ushakov, U.S. Secretary of Energy Spencer Abraham announced today that the Department of Energy's National Nuclear Security Administration has awarded Washington Group International and Raytheon Technical Services a total of $466 million to begin work to shutdown the last three remaining weapons-grade plutonium production reactors in Russia. The Department will work to replace those reactors with coal-fired heat and electricity plants.

Shutting down the three reactors, two located at Seversk and one at Zheleznogorsk, will end the production of enough weapons-grade plutonium to produce approximately one nuclear weapon every day and a half.

"The selection of the contractors is another significant step in advancing the Bush Administration's nonproliferation programs," Secretary Abraham said.

"Replacing these reactors with fossil fuel energy is critical to eliminate the production of weapons-grade plutonium in Russian and closing these facilities. Russia and the United States have enjoyed a good relationship on this program and we look forward to continued progress."

The awarding of the work orders is the next major step in fulfilling commitments agreed to by the U.S. and Russian governments in Vienna, Austria, implementing the Elimination of Weapons-Grade Plutonium Production Program (EWGPP).

At a ceremony in Vienna in March 2003, Secretary Abraham and Russian Minister of Atomic Energy Alexander Rumyantsev signed an agreement that would reduce the threat from weapons of mass destruction by stopping plutonium production at the last three Russian plutonium reactors. As part of the agreement, the Department of Energy, working with its partners in Russia, will provide replacement fossil-fuel facilities to produce replacement energy for heat and electricity currently produced by the reactors and serving two cities in Russia.

Working with counterparts at the Russian contracting firm Rosatomstroi, both Washington Group International and Raytheon Technical Services will implement the shutdown programs for both sites.

Washington Group International will oversee work at the Seversk site. There, the U.S. will provide assistance in refurbishing an existing fossil fuel plan to produce electricity lost from the shutdown of the reactors. The refurbishment work, once contracts are signed with Rosatomstroi, is estimated to take five years, at that time the reactors will close.

Major work at the Seversk site will include refurbishing or replacing existing coal-fired boilers, providing one new high pressure coal-fired boiler, replacing turbine generators, completing construction of the fuel supply system, refurbishing the industrial heating unit and ancillary systems.

Raytheon Technical Services will oversee work at the Zheleznogorsk site. There, the U.S. will provide assistance in building a new fossil fuel plant. Once contracts are signed with Rosatomstroi, estimated time of completion for the project is eight years and the reactor will shutdown.

Major work at the Zheleznogorsk site will include providing a co-generation boiler, an extraction/condensing steam turbine, heating only boilers, a fuel handling system, an ash removal system, environmental controls, and a hot water pipeline to connect the new plant with the district heating system.

Abraham said in a letter to Minister Rumyantsev that he expects the Department's National Nuclear Security Administration to have final contracts in place with Washington Group International and Raytheon Technical Services by June 30, 2003.

The reactors, although originally designed to produce weapons-grade plutonium, also provide heat and electricity required by the surrounding communities in Siberia. The EWGPP program is providing fossil-fueled energy plants to supply such heat and electricity to the surrounding communities, facilitating the shut down of the reactors.

The three plutonium production reactors will continue to operate until the fossil-replacement plants are completed. These reactors have deficiencies in the areas of design, equipment, and materials, and are considered to be among the highest risk reactors in the world. To ensure reactor safety, high priority safety upgrades are being expeditiously pursued. The Department's Pacific Northwest National Lab will be responsible for necessary nuclear safety upgrades at both sites. These upgrades will not extend the life of the reactor facilities.

Media Contact:
Joe Davis or Jeanne Lopatto, 202-586-4940 (DOE)
Bryan Wilkes, 202-586-7371 (NNSA)

Release No. PR-03-113
Release Date: May 27, 2003

(end text of press release)

(begin Abraham text)

U.S. Department of Energy
Washington, D.C.
www.energy.gov

Remarks prepared for U.S. Energy Secretary Spencer Abraham

Press availability with Russian Ambassador Yuri Ushakov

Forrestal Building
Washington, DC
May 27, 2003

Good Morning. Thank you all for being here. I'd particularly like to welcome Yuri Ushakov, the Ambassador of the Russian Federation to the United States. I am pleased Ambassador Ushakov could be with me this morning to announce another significant step in our countries' cooperative work on a critical nuclear nonproliferation program.

In March, Russian Minister of Atomic Energy Alexander Rumyantsev and I signed an agreement in Vienna that would close the last three Russian nuclear reactors capable of producing weapons grade plutonium, and replace them with fossil fuel energy plants.

Today, the United States is awarding $466 million in contracts to two U.S. firms to begin the process of contracting with counterparts in Russia to proceed with this important program.

The firms are Washington Group International and Raytheon Technical Services. In cooperation with Rosatomstroi, a Russian contractor, Washington Group will begin implementing the program to close two reactors at Seversk, and, Raytheon will begin implementing the program to close the one reactor at Zheleznogorsk.

Contracts will be signed for work at both sites with Rosatomstroi after access arrangements are finalized. These Russian reactors have approximately 15 years of remaining lifetime, and as a group could generate an additional 25 metric tons of weapons grade plutonium. Both the Russian Federation and the United States desire to replace these units with fossil energy facilities, and today we begin that effort together.

Mr. Ambassador, I am pleased to present you with a letter for my counterpart, Minister Rumyantsev, notifying him of this important step in implementing our agreement.

While we work on this program, other steps on nuclear nonproliferation cooperation continue. I'm pleased to announce that Ambassador Ushakov will visit the Department of Energy's Lawrence Livermore National Laboratory in early June to learn more about our activities at that facility.

And recently our Ambassador to Russia, Alexander Vershbow, visited one of the
Russian closed cities.

[Now I'd like to invite Ambassador Ushakov to say a few words before we take questions.]

(end Abraham text)

(end text)

(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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