Framework agreement opens doors in environmental cooperation

A groundbreaking environmental agreement between Norway and Russia has provided the framework needed to move ahead in the crucial work of securing nuclear safety in Northwestern Russia.  For years, two major stumbling blocks-taxation and nuclear liability-have threatened to halt already planned and financed projects.

News o fNorway, issue 6, 1998

In part through the Barents Cooperation, established in January of 1993 [see article pg. 1], the Nordic countries, the European Commission and Russia have worked to enhance nuclear safety in the Barents Region.  The opening of borders that followed the end of the Soviet Union gave other countries access to assess the environmental problems left behind by the Soviet era and hence begin clean-up work.

But the lack of exemption from taxes, duties and fees on technical assistance from Norway and the lack of indemnification from lawsuits that might arise following a nuclear incident causing damage to property owned by the Russian Federation, threatened to end crucial and imminent projects.

The framework agreement-negotiated independently from the Barents Cooperation-was the result of two years of bilateral negotiations.  It promises to exempt Norwegian aid from taxes, duties and fees and it rules out legal measures against Norway, Norwegian personnel, entrepreneurs or suppliers after an accident if and when that were to occur.

In addition, a Norwegian-Russian Commission was established, with the aim to work out an international action plan.  The ultimate goal is to establish a multilateral umbrella mechanism, through which third parties will enjoy the same terms of cooperation with the Russian Federation that the framework agreement secures for Norway.  In the mean time, third party participants engaged in projects with Norwegian financing may be granted the tax and liability exemption set forth in the framework agreement, if they so wish.

The agreement was signed in Moscow on May 26 by Norway's Minister of Foreign Affairs Knut Vollebæk and Russia's Minister of Nuclear Energy Yevgeny Adamov, in connection with the official visit of the King and Queen of Norway.  H.M. King Harald is the first Norwegian monarch to set foot in Russia in modern times.  It had been almost a 1,000 years since the last Norwegian king traveled to Russia or Gardariket as the Norwegians called it then.

During the visit, H.M.  King Harald got to see some of the planned environmental projects that can now move ahead.

Most of the Norwegian-Russian projects are concentrated not far from the Norwegian border in the Andreeva Bay of Murmansk on the Kola peninsula.  So far seven projects are in the works.

One of the projects planned in Andreeva Bay is the emptying and cleaning up of the North Navy's main nuclear storage facility for nuclear fuel and waste followed by the construction of a new facility.  The dismantling of retired North Navy nuclear powered submarines will also be supported.

Projects in Murmansk include the building of a special vehicle and special railroad carts for transportation of containers of spent nuclear fuel, dismantling the storage vessel Lepse and modernization of the treatment facility for liquid nuclear waste of Atomflot (also a base for Russian nuclear powered ice breakers).

At the Zvevdotsjka plant in Severodvinsk, the plan is to modernize storage of liquid nuclear waste.  At the facility in Majak, Tsjeljabinsk, the aim is to build an intermediate storage facility for used nuclear fuel.

Norwegian financial support for projects listed in the agreement will be some $30 million over 3-4 years.  A substantial part of these funds were set aside under the Norwegian Plan of Action on Nuclear Safety (1997-98).  The agreement, which entered into force upon signature, will remain valid for five years.  Provided that the parties agree, the agreement can be extended for additional five-year periods.

A crucial factor in the endeavor to address safe handling and ultimate disposal of large amounts of nuclear waste is third party involvement.  Much has already been achieved in this area, but third party involvement must still be intensified, given the magnitude of the challenges ahead.

The hope of the Norwegian government is that the bilateral agreement between Norway and the Russian Federation will stimulate the environmental cooperation in the high north.

Key players like the European Commission, the U.S. and central EU powers like France, Great Britain, Sweden and Finland, would be more than welcome to further engage in these efforts.

See also related articles:  "The Barents Cooperation:  A common effort in the high north," "State Secretary Åslaug Marie Haga:  Norway and the Barents Cooperation," and "Karen Fredrickson:  An American perspective."


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