Current Event 2

Russia Power Company To Mine Uranium In Mongolia

http://www.nytimes.com/2009/08/26/business/energy-environment/26ruble.html

On Tuesday, Russia’s nuclear power company, Rosatom, won a concession to mine uranium in Mongolia. Rosatom will form a joint venture, and Russia will be able to produce a quarter of their total current uranium output from a deposit in Mongolia. Rosatom is supported heavily by the United States. The US encourages commercial availability of Russian enrichment services. Fifty percent of the fuel used to dilute weapons-grade uranium in the US’ nuclear power reactors is provided by a subsidiary of Rosatom. Because this fuel agreement between Russia and the US is due to expire in 2013, the demand for mined uranium is increasing. A further incentive to secure mining rights is the Russian fervor to maintain a market share in the US. Russia, itself, is lacking in it’s own natural uranium source, and they are on a land grab around the world to secure stakes in mines in order to continue long-term business.

According to Freedom House, Russia is classified as “not free.” Though their government is technically a democracy, the corruption of their leaders has driven the Freedom House to give them low scores of 5 and 6, instead of the ideal score of 1. This corruption of a technically “democratic” government should bare warning to the United States. The corruption this large state is surely to affect our own nation. That being said, is this relationship between Russia and the United States based on nuclear power a good, solid relationship? Or is it one that could turn out to be a possible threat? Upon reading this article, I was startled to discover the United State’s heavy reliance on Russia for nuclear fuel, and the reliance of Russia on the US’ markets. This alliance is one very different that the tones of the cold war, where the two nuclear nations were ready to bomb the other at any given moment. Also, it seems Russian’s reliance on the market for uranium and nuclear fuel is a suggestion they are encouraging, once again, nuclear warfare. In an attempt to expand their market, Rosatom is making more and more stakes in uranium mines. This reliance on uranium for economic expansion could make some people draw the conclusion that the second Cold War is on it’s way.