Saturday 24 October 2009

Yes, Virginia, There is a Mideast Nuke Deal

On Friday, the world awaited Iran's decision on a proposal by Western powers that the country outsource its uranium enrichment. Enriching uranium is the key step to making a bomb, so, the thinking went, if Iran is indeed sincere about wanting a peaceful nuclear-power program, a perfect fix would be to unload the supersensitive process to one of the big nuclear states, such as Russia. Iran would build its own power plants, and everyone would be happy. No such agreement was reached, however. Iran's counteroffer remains private, but what's known is that Iran offered to buy fuel abroad but made no commitment to halt enrichment.

Iran's intentions seem all the more suspect when you consider the 800-pound nuclear gorilla in the room: a striking behind-the-scenes deal that has garnered very little attention but could have huge ramifications across the region. Iran's neighbor, the United Arab Emirates, has decided to skip the shadow games and enter the nuclear club through the front door, as it is now finalizing plans to spend $40 billion to build an estimated eight nuclear plants over the next several decades and become the first openly nuclear-powered state in the Middle East. And it is doing so with the blessing of the United States.

What's groundbreaking is that the U.A.E. has promised not to construct its own uranium-enrichment facilities. Instead, it will outsource the entire fuel cycle—from enrichment to reprocessing—to an established nuclear country, probably France. The program will also be subject to strict inspections from the International Atomic Energy Agency. The fact is that roughly three quarters of the countries around the world with nuclear-power plants today rely on the international market for fuel from the major producers in France, Europe, Russia, and the U.S. Only a minority actually do their own uranium enrichment and reprocessing.

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