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ARTICLE II IMPLEMENTATION CONTRACTS AND AGREEMENTS

ARTICLE II
IMPLEMENTATION CONTRACTS AND AGREEMENTS

 

1. The Parties, through their Executive Agents, shall within six months from entry into force of this Agreement seek to enter into an initial implementing contract to accomplish the objectives set forth in Article I of this Agreement. The Parties may conclude additional implementing contracts or agreements pursuant to this Agreement, as required. For any purchase, the Executive Agents shall negotiate terms (including price}, which shall be subject to approval by the Parties.

2. It is the intent of the Parties that the initial implementing contract shall provide for, inter alia:

(i) The purchase by the United States Executive Agent of LEU converted from HEU at facilities in the Russian Federation and sale of such LEU for commercial purposes. The United States will provide information to the Russian Federation on all commercial disposition of such LEU;

(ii) Initial delivery of LEU converted from HEU extracted from nuclear weapons resulting from the reduction of nuclear weapons pursuant to arms control agreements and other commitments of the Parties by October 1993, if possible;

(iii) Conversion of no less than 10 metric tons having an average assay of 90 percent or greater of the uranium isotope 235 in each of the first five years, and, in each year thereafter, conversion of no less than 30 metric tons of HEU having an average assay of 90 percent or greater of the uranium isotope 235; however, specific amounts will be stipulated in the first and subsequent implementing contracts or agreements;

(iv) The participation of the United States private sector and of Russian enterprises;

(v) The allocation among the United States of America, private sector firms of the United States of America, the Russian Federation, and Russian enterprises of any proceeds or costs arising out of activities undertaken pursuant to any implementing contracts;

(vi) The use by the Russian side of a portion of the proceeds from the sale of LEU converted from HEU for the conversion of defense enterprises, enhancing the safety of nuclear power plants, environmental clean-up of polluted areas and the construction and operation of facilities in the Russian Federation for the conversion of HEU to LEU;

(vii) By agreement of the Parties an equivalent amount of HEU can substitute for the corresponding amount of LEU planned for purchase by the United States Executive Agreement.