# Council Decision (CFSP) 2016/2001 of 15 November 2016 on a Union contribution to the establishment and the secure management of a Low Enriched Uranium (LEU) Bank under the control of the International Atomic Energy Agency (IAEA) in the framework of the EU Strategy against the Proliferation of Weapons of Mass Destruction, Division: Background

Extent: E+W+S+N.I.

In December 2010, the IAEA Director-General received a mandate from the Board of Governors to launch the setting-up of a Low Enriched Uranium (LEU) Bank and has presented a detailed plan for its establishment and secure management.
On 20 December 2011, the IAEA confirmed to the Permanent Mission of Kazakhstan to the IAEA that, based on the information provided to the Agency by Kazakhstan in its ‘Expression of Interest’ and with reference to the requirements set out in document GOV/INF/2011/7, the Ulba Metallurgical Plant (UMP) was suitable as a host site for the IAEA LEU Bank.
Several missions were conducted by the IAEA to Kazakhstan between 2011 and 2016, aimed at assessing the UMP facility and the national regulatory framework, to ensure that the LEU Bank would be able to fulfil the applicable provisions of the IAEA safety standards and security guidance. The assessments were performed in the areas of facility safety, seismic safety, emergency preparedness and response, transport safety and security, and physical protection.
A Host State Agreement (HSA) was signed between the IAEA and Kazakhstan on 27 August 2015. That agreement establishes Kazakhstan as the host state for the IAEA LEU Bank, and provides the legal framework for Kazakhstan to ensure that the IAEA LEU Bank will be managed and regulated in accordance with the laws and regulations of Kazakhstan and in compliance with the applicable provisions of the IAEA safety standards and security guidance.
A facility operator agreement was signed between the IAEA and UMP on 27 August 2015. That agreement establishes UMP as the facility where the IAEA LEU Bank will be located, and provides the legal framework for UMP to operate and manage the IAEA LEU Bank, in accordance with its license, the national regulatory framework, and the applicable provisions of the IAEA safety standards and security guidance.
In addition, the IAEA and Kazakhstan Ministry of Energy signed a Technical Agreement on the specific arrangements to be implemented for the establishment of the IAEA LEU Bank in Kazakhstan (‘Technical Agreement’). The Technical Agreement ensures that each party provides the necessary resources for the implementation of its respective activities for the timely establishment of the IAEA LEU Bank, including activities to comply with the applicable provisions of the IAEA safety standards and security guidance. Under the Technical Agreement, the parties established a joint coordination committee (JCC) to facilitate implementation of the Technical Agreement and approved a plan of specific activities (PSA), to ensure the establishment and operation of the IAEA LEU Bank in compliance with the applicable provisions of the IAEA safety standards and security guidance. The Technical Agreement requires that activities be completed in two years following the signing of the legal agreements, or by September 2017.
In November 2015, UMP began designing a new IAEA LEU storage facility to house the IAEA LEU Bank. An IAEA mission visited UMP from 29 February to 4 March 2016 to review design progress. The IAEA mission examined whether or not the applicable provisions of the IAEA safety standards and security guidance had been properly taken into account in the design process. The IAEA mission's review focused on five technical areas: building structure, safety analysis, radiation protection, emergency preparedness and response, and nuclear security. The review of the proposed design and relevant supporting documentation led to the general conclusion that the design provides adequate measures to ensure nuclear safety and security guidance.
Following the completion of the design and its review by the IAEA, in May 2016 a partnership agreement between the IAEA and UMP was signed. That agreement provides for the technical and financial terms of the establishment of the IAEA LEU Storage Facility. It marks a significant milestone in the establishment of the IAEA LEU Bank.
In May 2016, the Board of Governors report GOV/INF/2016/8 highlighted the significant progress achieved. It also provides the first baseline comprehensive Project and Financial Plan.
Board of Governors Document GOV/2010/67, both authorised the IAEA Director-General to establish the IAEA LEU Bank, and required that the costs (including the human resources costs) related to the establishment and operation of the IAEA LEU Bank must be exclusively covered by extra-budgetary voluntary contributions, with no impact to the regular budget of the IAEA. To that end, the IAEA LEU Bank project reimburses various divisions of the IAEA for the technical input and support provided to the project experts and specialists through the use of Service Level Agreements (SLAs). Those agreements, which define the services to be provided by the divisions to the project to execute the project plan (including the PSA), as well as the costs for the level of support provided from each Division, were finalised and agreed in March 2016.
From 1 April 2016, a number of Member States, the Commission, the Nuclear Threat Initiative (NTI) and the World Nuclear Transport Institute (WNTI) have pledged funds totalling approximately USD 124 900 000 and EUR 25 000 000, and the contributions received by the Agency as of this date are USD 124 900 000 and EUR 20 000 000. Financial contributions have been provided by the Nuclear Threat Initiative (USD 50 000 000), US (USD 50 000 000), UAE (USD 10 000 000), Norway (USD 5 000 000), Kuwait (USD 10 000 000), WNTI (EUR 10 000) Kazakhstan (USD 400 000). EUR 20 000 000 donated by the Commission is dedicated to purchase of LEU for the IAEA LEU Bank and up to EUR 5 000 000 have been pledged for security related upgrades. The funds for security related upgrades (up to EUR 5 000 000) are the subject to this Annex.
The next key stages for the IAEA LEU Bank are:
(a) Finalisation of the establishment of the IAEA LEU storage facility, including completing construction; confirmation that the building and equipment correspond to the design intent and the applicable safety and security provisions;
(b) Agreement on a cylinder management programme with UMP to ensure long-term safety and security of the cylinders and their readiness for transport;
(c) Commissioning of the facility;
(d) Acquisition of the IAEA LEU and transporting it to the storage facility;
(e) Start of operations.

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Source: https://www.legislation.gov.uk/eudn/2016/2001/annex/division/I/division/1 (the official version)
Page: https://openlegislation.uk/eu-decision-2016-2001/annex/division-I/division-1
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.