US Civilian Nuclear Deal with Russia Canceled

Via AP -

In a pointed but mostly symbolic expression of displeasure with Moscow, President Bush on Monday canceled a once-celebrated civilian nuclear cooperation deal with Russia.

Bush had sent the agreement to Congress for approval in May, after a much-heralded signing by the two nations that capped two years of tough negotiations. On Monday, he officially pulled it back, a move announced by Secretary of State Condoleezza Rice.

"We make this decision with regret," said Rice, in a statement read by spokesman Sean McCormack. "Unfortunately, given the current environment, the time is not right for this agreement."

The action combines with a recently announced $1 billion foreign aid package for tiny, West-leaning Georgia and the time Vice President Dick Cheney spent last week railing against Russia throughout its backyard to form the U.S. administration's punishment of Moscow for its invasion of Georgia. The nuclear deal was highly unlikely to win approval on Capitol Hill this year anyway, but Bush decided to actively withdraw it to make a loud statement.

Moscow, though, might not be much inclined to hear it.

Newly flush with riches from sales of its vast energy resources, Russia appears to feel it no longer has as much need for the potentially billions in revenue the deal would have provided it by allowing Moscow to establish a lucrative business as the center for the import and storage of spent nuclear fuel from American-supplied reactors around the world.

And the deal's disappearance puts a dent in some important global goals for Bush. The deal would have given Washington access to state-of-the-art Russian nuclear technology, while helping it address climate change by increasing civilian nuclear energy use worldwide and keeping nuclear material out of terrorists' hands.

But in a sign of the almost Cold War-like state of U.S.-Russia relations right now, Bush determined the extensive and unprecedented cooperation spelled out in the agreement is no longer in the national security interests of the United States.

"The U.S. non-proliferation goals contained in the agreement remain valid: to provide a sound basis for U.S.-Russian civilian nuclear cooperation, create commercial opportunities and enhance cooperation with Russia on important global non-proliferation issues," said Rice.

Neither Rice nor McCormack would discuss whether the Georgia invasion was the impetus for the decision. But Bush, in his formal notice to Congress, was blunt. He said he was withdrawing the deal "in view of recent actions by the government of the Russian Federation incompatible with peaceful relations with its sovereign and democratic neighbor Georgia."

If circumstances should permit future reconsideration of the proposed Agreement, a new determination will be made and the proposed Agreement will be submitted for congressional review pursuant to section.