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Australia-Russian Federation Agreement on Cooperation in the Use of Nuclear Energy for Peaceful Purposes

Australia-Russian Federation Agreement on Cooperation in the Use of Nuclear Energy for Peaceful Purposes

Following Russia's intervention in Ukraine and purported annexation of Crimea, Australia introduced autonomous sanctions and travel bans against designated persons and entities in relation to Russia. On 3 September 2014, Prime Minister Abbott announced the suspension of Australian uranium sales to Russia until further notice.

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Agreement between the Government of Australia and the Government of the Russian Federation on Cooperation in the Use of Nuclear Energy for Peaceful Purposes

THE GOVERNMENT OF AUSTRALIA AND THE GOVERNMENT OF THE RUSSIAN
FEDERATION, (HEREINAFTER REFERRED TO AS "THE
PARTIES"),

DESIRING to promote their cooperation in the use of nuclear
energy for peaceful purposes;

REAFFIRMING their commitment to ensure that the international
development and the use of nuclear energy for peaceful purposes
further the objective of the non-proliferation of nuclear
weapons;

MINDFUL that Australia and the Russian Federation are parties to
the Treaty on the Non-Proliferation of Nuclear Weapons done at
Moscow, Washington and London on 1 July 1968;

MINDFUL that the Russian Federation is a nuclear-weapon State
and is party to the Agreement between the Government of the Union
of the Soviet Socialist Republics and the International Atomic
Energy Agency for the application of safeguards in the Union of
Soviet Socialist Republics, concluded on 21 February 1985
(hereinafter referred to as "the 1985 Safeguards
Agreement");

MINDFUL that Australia, as a non-nuclear-weapon State, has,
under the Treaty on the Non-Proliferation of Nuclear Weapons,
undertaken not to manufacture or otherwise acquire nuclear weapons
or other nuclear explosive devices and that it is party to the
Agreement between Australia and the International Atomic Energy
Agency for the application of safeguards in connection with the
Treaty on the Non-Proliferation of Nuclear Weapons, concluded on 10
July 1974 (hereinafter referred to as "the 1974 Safeguards
Agreement");

REAFFIRMING their support for the objectives and provisions of
the Treaty on the Non-Proliferation of Nuclear Weapons and their
desire to promote universal adherence to that Treaty;

REAFFIRMING their support for the International Atomic Energy
Agency (hereinafter referred to as "the IAEA")
safeguards system and their desire to work together to ensure its
continued effectiveness;

TAKING ACCOUNT of their support for the principles of openness
and transparency in matters relating to nuclear energy and the
non-proliferation of nuclear weapons;

REAFFIRMING their commitment to the Convention on the Physical
Protection of Nuclear Material done at Vienna and New York on
3 March 1980;

REAFFIRMING their commitment to the International Convention for
the Suppression of Acts of Nuclear Terrorism done at New York on 14
September 2005;

HAVE AGREED as follows:

Article I

For the purposes of this Agreement:

"component" means a component part of equipment or
other item, so designated by agreement of the Parties in writing
through diplomatic channels;

"Eligible Facilities List" means the nuclear fuel cycle
facilities list provided to the IAEA, designating those facilities
eligible for IAEA safeguards in accordance with the 1985 Safeguards
Agreement;

"equipment" means those items listed in IAEA
document INFCIRC/254/Rev.8/Part 1, as amended from time to
time. Any such amendment shall have effect under this
Agreement only when both Parties have informed each other in
writing through diplomatic channels that they accept such
amendment;

"intellectual property" shall have the meaning set
out in Article 2 of the Convention Establishing the World
Intellectual Property Organization, done at Stockholm on 14 July
1967;

"material" means any non-nuclear materials listed in
IAEA document INFCIRC/254/Rev.8/Part 1, as amended from time to
time. Any such amendment shall have effect under this
Agreement only when both Parties have informed each other in
writing through diplomatic channels that they accept such
amendment;

"peaceful purpose" includes the use of nuclear
material, material, equipment, components and technology in such
fields as electric power generation, medicine, agriculture and
industry, but does not include research on or development of any
explosive devices, or any military purpose. Military purpose
does not include provision of power for a military base drawn from
any power network, production of radioisotopes to be used for
medical purposes in a military hospital, or other similar purposes
as may be mutually agreed by the Parties in writing through
diplomatic channels;

"nuclear material" means any "source
material" or "special fissionable material" as
those terms are defined in Article XX of the Statute of the
IAEA. Any determination by the Board of Governors of the IAEA
under Article XX of the Statute of the IAEA which amends the list
of materials considered to be "source material" or
"special fissionable material" shall have effect under
this Agreement only when both Parties have informed each other in
writing through diplomatic channels that they accept such
amendment;

"technology" has the meaning provided in IAEA
document INFCIRC/254/Rev.8/Part 1, as amended from time to
time. Any such amendment shall have effect under this
Agreement only when both Parties have informed each other in
writing through diplomatic channels that they accept such
amendment.

Article II

1. The Parties shall encourage and
facilitate cooperation in the peaceful uses of nuclear energy in
accordance with the provisions of this Agreement.

2. The Parties shall collaborate
in transfers of nuclear material, material, equipment, components
and technology.

3. Cooperation under this Agreement covers the
following areas of peaceful use of nuclear energy:

  1. basic and applied
    research;
  2. scientific, technical and
    industrial research and development;
  3. development, design,
    construction, operation and decommissioning of research reactors,
    nuclear power plants and other nuclear fuel cycle facilities;
  4. utilization of nuclear reactors for
    electric power production, sea water desalination and heat
    production;
  5. management of spent fuel and
    radioactive waste;
  6. nuclear safety, radiation protection
    and protection of the environment;
  7. safeguards, and physical protection
    of nuclear material and facilities;
  8. use of radioisotopes and radiation in
    agriculture, industry, medicine and environmental research;
  9. geological and geophysical
    exploration, development, production, further processing and use of
    uranium resources;
  10. regulatory aspects of the
    peaceful uses of nuclear energy; and
  11. other areas of cooperation as may be
    agreed by the Parties in writing through diplomatic channels.

4. Cooperation in specific areas
outlined in paragraph 3 of this Article may be implemented as
necessary through arrangements between a legal entity of Australia
and a legal entity of the Russian Federation which the respective
competent authority notifies the other competent authority as being
duly authorised to implement such cooperation. Any such
arrangements shall include provisions dealing with intellectual
property rights protection where such rights exist or arise.

Article III

1. Cooperation referred to in paragraph
3 of Article II of this Agreement may be undertaken in the
following forms:

  1. exchange of scientific
    and technical information;
  2. training of personnel,
    including professional and advanced training for administrative,
    scientific and technical personnel;
  3. organization of symposia and
    seminars;
  4. organization of joint projects and
    establishment of joint ventures;
  5. establishment of bilateral
    working groups for implementation of the joint projects;
  6. supply of nuclear fuel cycle
    services including uranium conversion and isotopic enrichment;
  7. trade and commercial cooperation
    relating to the nuclear fuel cycle;
  8. transfer of industrial equipment and
    industrial technology; and
  9. other forms of cooperation as may be
    agreed by the Parties in writing through diplomatic channels.

Article IV

1. For the purpose of implementing this Agreement the Parties shall
nominate competent authorities. For the Government of
Australia the competent authority will be the Australian Safeguards
and Non-Proliferation Office and for the Government of the Russian
Federation the competent authority will be the Federal Atomic
Energy Agency.

2. Notwithstanding paragraph 1 of
this Article, the Parties may nominate other competent authorities
for coordination of cooperation in the specific areas referred to
in paragraph 3 of Article II of this Agreement. A Party shall
notify the other Party in writing through diplomatic channels where
it nominates a competent authority for such purpose.

3. A Party shall notify the other
Party in writing through diplomatic channels of a change to a
competent authority.

Article V

1. This Agreement shall apply
to:

  1. all nuclear material
    transferred between Australia and the Russian Federation whether
    the nuclear material is transferred directly or through a third
    State;
  2. all forms of nuclear material
    prepared by chemical or physical processes or isotopic separation
    from nuclear material subject to this Agreement: if nuclear
    material subject to this Agreement is mixed with other nuclear
    material, the quantity of nuclear material so prepared which falls
    within the scope of this Agreement shall be an amount equivalent to
    the proportion which the nuclear material subject to this Agreement
    bears to the total quantity of nuclear material;
  3. all generations of nuclear
    material produced by neutron irradiation of nuclear material
    subject to this Agreement: if nuclear material subject to this
    Agreement is irradiated together with other nuclear material, the
    proportion of nuclear material so produced which falls within the
    scope of this Agreement shall be equal to the proportion of the
    nuclear material irradiated that is subject to this Agreement;
  4. material, equipment, components and
    technology transferred between Australia and the Russian
    Federation, whether directly or through a third State;
  5. nuclear material where
    material, equipment or components subject to this Agreement have a
    direct and major connection to the production, processing or use of
    that nuclear material; and
  6. equipment produced by the use or by
    the application of technology transferred in accordance with this
    Agreement.

2.
Nuclear material, material, equipment, components and technology
subject to this Agreement shall be transferred only to a legal
entity of Australia or the Russian Federation which the competent
authority of the receiving Party notifies the competent authority
of the supplying Party as being duly authorised to receive such
nuclear material, material, equipment, components and
technology.

Article VI

1. Nuclear material, material,
equipment, components and technology subject to this Agreement
shall remain subject to the provisions of this Agreement until:

  1. it is no longer usable
    for any nuclear activity; or
  2. it is practicably
    irrecoverable for processing into a form in which it is usable for
    any nuclear activity; or
  3. it has been transferred
    beyond the territory of Australia or beyond the territory of the
    Russian Federation in accordance with Article X of this Agreement;
    or
  4. the Parties otherwise agree in
    writing through diplomatic channels.

2. For the purpose of determining
when nuclear material subject to this Agreement is no longer usable
for any nuclear activity or is practicably irrecoverable for
processing into a form in which it is usable for any nuclear
activity, both Parties shall apply any relevant determination made
by the IAEA in accordance with the safeguards agreement between the
Party concerned and the IAEA. In the absence of a
determination by the IAEA, a determination may be made by mutual
decision of the competent authorities, in accordance with the
principles applied by the IAEA for this purpose.

Article VII

Nuclear material, material, equipment, components and technology
subject to this Agreement shall only be used for peaceful purposes
and shall not be used for the manufacture of nuclear weapons or
other nuclear explosive devices, research on or development of
nuclear weapons or other nuclear explosive devices, or be used for
any military purpose or in any way to further any military
purpose.

Article VIII

1. Where nuclear material subject
to this Agreement is within the territory of the Russian
Federation, compliance with Article VII of this Agreement shall be
ensured by a system of safeguards in accordance with the 1985
Safeguards Agreement. This means that nuclear material
subject to this Agreement shall be processed, used or stored in
accordance with paragraph 1 of Article XI of this Agreement.
The Russian competent authority shall provide the Australian
competent authority annually with the Eligible Facilities List and
any amendment to it.

2. Where nuclear material subject
to this Agreement is within the territory of Australia, compliance
with Article VII of this Agreement shall be ensured by a system of
safeguards in accordance with the 1974 Safeguards Agreement.

3. If, notwithstanding the efforts
of both Parties, the IAEA fails to administer its functions under
the Agreements referred to in paragraphs 1 and 2 of this Article in
the territory of Australia or in the territory of the Russian
Federation in which nuclear material subject to this Agreement is
present, the Parties shall forthwith arrange for the application of
safeguards satisfactory to both Parties which conform with IAEA
safeguards principles and procedures and which provide reassurance
equivalent to that intended to be secured by the safeguards system
they replace. The Parties shall consult and assist each other
in the application of such a safeguards system.

Article IX

1. Information bearing an
Australian national security classification or classified as State
Secret by the Russian Federation shall not be exchanged under this
Agreement.

2. A Party supplying information
under this Agreement may mark any such information, if in English,
"Australia-Russia-Nuclear-in-Confidence" and, if in
Russian,
"конфиденциально".
A Party receiving information so marked shall protect
this informationat a level equivalent to the protection applied by
the supplying Party to such information. Such information
shall not be disclosed or transferred to a third party without the
written consent of the supplying Party. The procedures for
transfer and protection of such information shall be set out in the
Memorandum of Understanding concluded pursuant to Article XII of
this Agreement.

Article X

1. Nuclear material subject to
this Agreement shall not be transferred beyond the territory of the
receiving Party without the prior written consent of the supplier
Party, except in accordance with paragraph 5 of this Article.

2. Nuclear material subject to
this Agreement shall not be:

  1. enriched to 20 per cent
    or greater in the isotope uranium 235; or
  2. reprocessed;

without the prior written consent of the supplier Party.

3. Material, equipment, components
and technology subject to this Agreement shall not be transferred
by the receiving Party to a third State except when the receiving
Party has obtained the prior written consent of the supplier Party
and an assurance from the third State of:

  1. peaceful use; and
  2. implementation of IAEA
    safeguards; and
  3. measures of physical
    protection at a level not lower than that imposed on the Parties
    under paragraph 2 of Article XIII of this Agreement.

4. The supplier Party shall not
withhold consent pursuant to this Article for the purpose of
securing commercial advantage.

5. Transfers of nuclear material
subject to this Agreement from the Russian Federation to a third
State which has an agreement in force with Australia concerning
nuclear transfers, in relation to which the Australian competent
authority has not advised the Russian competent authority that
Australia has found it necessary to suspend, cancel or refrain from
making nuclear transfers, can take place for conversion, enrichment
below 20 per cent in the isotope uranium 235, fuel fabrication or
use in a reactor. The Russian competent authority shall
promptly notify the Australian competent authority, in accordance
with procedures set out in the Memorandum of Understanding
concluded pursuant to Article XII of this Agreement, of such
transfers.

6. The Australian competent
authority shall provide the Russian competent authority with, and
keep up to date, the list of countries to which transfers may be
made in accordance with paragraph 5 of this Article.

Article XI

1. Nuclear material subject to
this Agreement in the Russian Federation shall only be processed,
used or stored:

  1. at facilities that are
    included in the Eligible Facilities List and are within a program
    mutually determined through consultation between the competent
    authorities; or
  2. in accordance with the
    provisions of paragraph 2 of this Article.

2. Where the competent authorities
mutually determine that it is necessary for operational reasons to
undertake conversion to uranium hexafluoride or enrichment of
nuclear material subject to this Agreement in a facility that does
not meet the terms of sub-paragraph i) of paragraph 1 of this
Article, the following arrangements shall be applied:

  1. In accordance with the
    Memorandum of Understanding concluded pursuant to Article XII of
    this Agreement, the competent authorities shall mutually determine
    the facility or facilities involved, the quantities of nuclear
    material, and such other information as may be specified in the
    Memorandum of Understanding.
  2. The nuclear material to be
    converted or enriched shall be substituted by quantities of nuclear
    material equivalent in quality and quantities to the outputs of
    such conversion or enrichment, to be added to the inventory of
    nuclear material subject to this Agreement at relevant facilities
    referred to in sub-paragraph i) of paragraph 1 of this Article, in
    accordance with procedures set out in the Memorandum of
    Understanding concluded pursuant to Article XII of this
    Agreement.

Article XII

1. Each Party shall establish and
maintain a system of accounting for and control of all nuclear
material, material, equipment, components and technology subject to
this Agreement.

2. The competent authorities of
both Parties shall conclude a Memorandum of Understanding to ensure
the effective implementation of this Agreement.

3. If nuclear material subject to
this Agreement is present in the territory of Australia or the
Russian Federation, that Party shall, upon the request of the other
Party, provide the other Party in writing through diplomatic
channels with any conclusions which the IAEA has drawn from its
safeguards activities, insofar as they relate to nuclear material
subject to this Agreement.

4. Each Party shall inform the
IAEA of all transfers and retransfers of nuclear material subject
to this Agreement to and from its jurisdiction.

Article XIII

1.
Each Party shall take such measures as are necessary to ensure
adequate physical protection of nuclear material, material,
equipment, components and technology subject to this Agreement
within its jurisdiction. A Party shall
ensure that nuclear material, material, equipment, components and
technology in international transport are adequately protected
until that responsibility is properly transferred to another State.

2. In addition to its obligations
under the Convention on the Physical Protection of Nuclear Material
done at Vienna and New York on 3 March 1980, including any
amendments that are in force for each Party, each Party shall apply
measures of physical protection in accordance with its national
legislation which meet levels not less than the recommendations of
IAEA document INFCIRC/225/Rev.4 (corrected) entitled "The
Physical Protection of Nuclear Material and Nuclear
Facilities", as amended from time to time. Any
amendment to or replacement of IAEA document INFCIRC/225/Rev.4
(corrected) shall have effect under this Agreement only when the
Parties have informed each other in writing through diplomatic
channels that they accept such amendment or replacement.

Article XIV

1. The Parties shall consult
regularly, or at any time at the request of either Party, in order
to ensure the effective implementation of this Agreement, or to
review matters relating to the peaceful uses of nuclear energy.

2. The Parties may jointly invite
the representatives of the IAEA to participate in such
consultations.

Article XV

1. The supplier Party has the
right to suspend or cancel further transfers of nuclear material,
material, equipment, components and technology
and to require the receiving Party to take corrective steps if
the receiving Party does not comply with IAEA safeguards
arrangements or with any provisions of Articles V to XIV or Article
XVI of this Agreement.

2. If corrective steps are not
taken by the receiving Party within a reasonable time, the supplier
Party has the right to require the return of nuclear material,
material, equipment, components and technology subject to this
Agreement.

3. Nothing in this Article shall
preclude recourse to dispute settlement under Article XVI of this
Agreement.

Article XVI

1. Any dispute between the Parties
arising out of the interpretation or application of this Agreement
shall be settled by negotiations carried out by the Parties in good
faith.

2. If such a dispute is not
settled by negotiations within twelve months, it shall be
submitted, at the request of either Party, to an arbitral tribunal
composed of three arbitrators appointed in accordance with the
provisions of this Article.

3. Each Party shall designate one
arbitrator who may be its national and the two arbitrators so
designated shall appoint a third, a national of a third State, who
shall be Chairman of the arbitral tribunal.

4. If within sixty days of the
request for arbitration either Party has not designated an
arbitrator, either Party to the dispute may request the President
of the International Court of Justice to appoint an
arbitrator. The same procedure shall apply if, within sixty
days of the designation or appointment of the second arbitrator,
the third arbitrator has not been appointed.

5. Except as otherwise determined
by the Parties or prescribed by the arbitral tribunal established
pursuant to this Article, each Party shall submit a memorandum
within forty-five days after the arbitral tribunal is fully
constituted. Replies of the Parties shall be due sixty days
later. The arbitral tribunal shall hold a hearing at the
request of either Party, or at its discretion, within thirty days
after replies are due.

6.
The arbitral tribunal shall adjudicate the dispute referred to it
under this Article, and make all possible efforts to deliver a
written decision within thirty days after completion of the
hearing, or, if no hearing is held, after the date both replies are
submitted. All decisions of the arbitral tribunal shall be
taken by a majority vote.

7. The decisions of the arbitral
tribunal, including those concerning its procedure, jurisdiction
and the apportionment of the expenses of arbitration between the
Parties, shall be binding on both Parties and shall be implemented
by them in good faith.

8. The Parties may submit requests
for clarification of the decision within fifteen days after it is
received and such clarification shall be issued within fifteen days
of such request.

9. Subject to paragraph 7 of this
Article, the expenses of arbitration under this Article shall be
shared equally between the Parties.

10. If and for as long as either Party
fails to comply with a decision made under this Article, the other
Party may limit, suspend or revoke any rights or privileges which
it has granted by virtue of this Agreement to the Party in
default.

Article XVII

This Agreement may be amended by agreement between the Parties
in writing.

Article XVIII

1. The Parties shall notify each
other in writing through diplomatic channels when their respective
domestic procedures for entry into force have been met. The
date of entry into force of the Agreement shall be the date of the
last notification.

2. This Agreement shall remain in
force for an initial period of 30 years and shall terminate upon
expiry of the initial period if either Party notifies the other
Party in writing through diplomatic channels of its intention to
terminate at least 180 days prior to the expiry of the initial
period.

3. If the Agreement is not
terminated in accordance with paragraph 2 of this Article it shall
remain in force indefinitely and shall only terminate 180 days
after receipt of notice of intention to terminate by either Party
in writing through diplomatic channels.

4. Unless otherwise agreed in
writing through diplomatic channels between the Parties,
termination, suspension or expiration of this Agreement or any
cooperation under it for any reason shall not release the Parties
from obligations under this Agreement in respect of nuclear
material, material, equipment, components and technology
transferred while the Agreement was in force.

5. This Agreement, upon its entry
into force, shall terminate the Agreement between the Government of
Australia and the Government of the Union of the Soviet Socialist
Republics concerning the peaceful uses of nuclear energy, concluded
on 15 February 1990 (hereinafter referred to as "the 1990
Agreement").

6. Upon termination of the 1990
Agreement, any nuclear material transferred pursuant to the 1990
Agreement shall be considered nuclear material to which this
Agreement applies.

Done in duplicate at Sydney, this seventh day of September,
2007, in the English and Russian languages, both texts being
equally authentic.

Last Updated: 25 January 2103
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