Canada’s Global Partnership Progress and Status Report

IAEA Contact Expert Working Group Far East Workshop May 26-28,2010 , Russia

Introduction

Slide 1

Following the attack on the United States in September 2001, there was an urgent need to examine the risks of all potential terrorism acts including nuclear or radiological. At the 2002 G8 leaders summit in Kananaskis, under Canada’s leadership, the Global Partnership Against the Spread of Weapons and Materials of Mass Destruction was initiated. As an integral component of this initiative, the Russian Federation requested the international community’s assistance in advancing the elimination of its nuclear powered submarine legacy with the aim of eliminating the problem by 2010.

Before the 2002 Kananaskis G8 Summit, Japan and the U.S. had already been assisting Russia with nuclear powered submarine elimination. Following the creation of the Global Partnership, Canada, Norway, the United Kingdom and Italy joined this effort. Canada has been actively engaged in dismantling decommissioned Russian nuclear powered submarines since August 2004. We should take pride in the progress that Russia and its international partners have achieved in NPS elimination.

Slide 2

With today’s presentation, we will endeavor to update the Contact Experts Group members with the status of Canadian NPS programme activities here in the Far East. The presentation will review Canada’s NPS Programme Objectives, Funding, International Cooperation aspects, Far East Implementation activity and potential Future Works.

Global Partnership NPS Program Objectives

Slide 3

Having passed the turning point towards 2012, Canada reaffirms the commitment to its goal to "reduce the proliferation, environmental and security risks posed by Russia’s decommissioned nuclear submarines and spent nuclear fuel." Proliferation of nuclear materials is of primary concern. Later in the presentation, we will have the opportunity to also discuss the approach that Canada has taken to address some environment challenges that NPS dismantlement activities present.

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IB82972416 Programme Funding Fiscal Years 2004 - 2012

Slide 4

The conclusion of a bilateral agreement with Russia at the Sea Island G8 Summit in June 2004 enabled Canada to conduct projects directly with the Russian Federation (RF). Under the agreement Canada implements the NPS programme through the mechanism of negotiated “Implementing Arrangements” direct with RF recipients. The total Canadian NPS programme funding contribution for Fiscal Years (FY) 2004 through 2008 was CAD $113.8 million. Project funding for Fiscal Years 2008 through 2012 is approximately $80.0 million CAD. The NPS program carries an overhead of approximately 5%.

To date, Canada has negotiated ten total Implementing Arrangements (IA’s); six with the Joint Stock Company (JSCo) Shiprepairing Center Zvyozdochka and four with the JSC Far Eastern Plant Zvezda. The total funding obligation is approximately $180 million CAD. Total IA funding (IA#5, IA#7, IA#8, IA#10) for Far East based initiatives currently stands at $43.4 million. The planned ratio for Northwest versus Far East expenditures is in the order of 66%/33%.

Canada additionally contributed $32 million to the Northern Dimension Environmental Partnership Support Fund in 2003 bringing its total commitment related to NPS remediation and elimination to approximately $210 million CAD.

Slide 5

Implementing an international programme of the magnitude of the Canadian NPS dismantlement programme presents obvious challenges in regard to budgeting, funding and program execution control. To date, DFAIT has negotiated IAs with a total value of $177 million. The Canadian contribution funding profile since 2004 shows excellent programme execution. IAs averaged approximately 16-18 months for program implementation. Canada approached the execution of funds in a similar manner as the United States (U.S.), in that IA was negotiated as a fixed price with payment of funds in Canadian dollars not authorized until each agreed work package is completed via a milestone. To date, approximately $161 million has been expended, that is payment received by the shipyards. On average, DFAIT has expended ~$25 million per year in 2005 through 2009. Both JSCo Zvyozdochka and JSC Zvezda shipyards have demonstrated an excellent record of project implementation (maintaining cost and schedule). Note the Canadian approach places both currency risk and cost over-run risks squarely with the implementing shipyard.

A significant component of Canadian program implementation is the role of Canada’s Office of the Inspector General who audit the recipient’s compliance with financial terms and conditions in each IA as well as to reviewing the overall programme management of the IA’s. The NPS programme has received excellent Inspector General reviews with a total of four audits completed and two more scheduled this year; one with Zvyozdochka (IA#6 and IA#9) and one with Zvezda (IA#8).

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1ВИ2972416 Current Achievements

Slide 6

The initial Northwest (NW) Canadian commitment for dismantling twelve nuclear powered submarines (2004-2008) was completed on schedule in March 2008. Twenty-two nuclear reactors from the eleven Victor Class NPS were de-fuelled at the JSCo Zvyozdochka shipyard in Severodvinsk and all eleven fully dismantled. One Typhoon Class strategic submarine, the largest submarine in the world, was also de-fuelled and dismantled in cooperation with the U.S. and Russia.

It’s important to note that the Canadian NPS dismantlement programme is structured to maximize the use of shipyard infrastructure improvements that were funded under the U.S. Cooperative Threat Reduction (CTR) Program. A key element of the Canadian programme is use of the U.S. funded On-Shore Defueling Facility (OSDF) at JSCo Zvyozdochka and JSC Zvezda.

In this regard as Victor Class NPS Hull #602 and Hull #606 in the Murmansk region (850 Nm from Zvyozdochka) were in reported poor technical condition, and could not be towed conventionally to JSCo Zvyozdochka for de-fuelling at the OSDF DFAIT decided to fund the transportation of both NPS as dry deck cargo on a heavy-lift vessel (HLV) from Shipyard #10 to Zvyozdochka. In August and September 2006, both NPS were successfully delivered to the shipyard using the “Transshelf’ HLV owned and operated by Dockwise Shipping B.V., Netherlands.

In July 2008, upon Canada’s Treasury Board approval for Phase III of the Global Partnership Program activities, DFAIT initiated work on the dismantlement of two Yankee Class NPS with JSCo Zvyozdochka. Consistent with previous cooperative Victor Class NPS dismantlement in the Northwest, the Yankee NPS dismantlement IA included defueling, transportation of spent nuclear fuel (SNF) to PA Mayak and transportation of three-compartment units (3CU’s) from the shipyard to JSC Nerpa near Murmansk. The shipyard successfully completed the Yankee dismantlement work in March 2010. In February 2009, the “Typhoon business model” for tri­ party cooperation was again implemented to de-fUel and dismantle a second strategic submarine; the Delta III Class strategic submarine (SSBN 392). Under this IA, Canada funded the SSBN’s defueling and shipment of the SNF to PA Mayak. Canada’s contribution also included training and re-certification of shipyard workers to support reactor defueling operations. SSBN 392 was successfully de-fuelled March 2010.

In the Far East, Canada agreed to support the Russian request to defuel and dismantle two Victor Class NPS (Hull #282 and #300) located in Kamchatka region. The two NPS could not be towed to JSC Zvezda using conventional methods safely and without risk to the environment given the significant distance involved. DFAIT therefore leveraged the experience gained with the HLV transport operation in the North-West and funded the transport of both NPS by HLV from Petropavlovsk-Kamchatsky to JSC Zvezda.

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IB#2972416 Consistent with the Canadian objective to reduce the “environmental and security risks” associated with NPS dismantlement, the DFA1T has invested significant resources in infrastructure improvements in both the RF Northwest ($4.2 million) and Far East ($12.4 million). At JSCo Zvyozdochka, Canada funded the Harris Pad scrap processing area expansion with new gas cutting systems and equipment, a system to filter the water runoff to prevent the pollution of heavy metals into the sea, and warming huts to improve worker health and safety conditions. At JSC Zvezda, DFAIT funded railroad and bridge repairs needed to safely transport SNF being stored at the OSDF transient storage pad. The railroad repair was a “critical” element of the NPS dismantlement process in the Far East and is facilitating the removal of all spent nuclear fuel from the Far East region.

International Cooperation Projects

Slide 7

The extraordinary success that the Global Partnership Programme has achieved since the G8 meeting in Kananaskis, and the success we share at the CEG is clear evidence of the benefit of cooperation between international partners. Canada is pleased to be in partnership with the U.S. and Russia on programs in the Northwest and with Republic of Korea in the Far East. Both the Typhoon Class (SSBN 724) and Delta III Class (SSBN 392) were dismantled at Zvyozdochka in cooperation with the U.S. and Russia. Canada led with the de-fuelling of the submarine reactors, the U.S. funded the elimination of the submarine strategic missile launcher systems, and Russia dismantled the remaining sections of the submarines. At Zvezda, Canada is partnering with the Republic of Korea to defuel and dismantle the two Victor Class NPS (Hull #282 and Hull #300). Canada has reaffirmed its intentions to work in partnership with the U.S., Russia, Korea or other donor nations in future submarine dismantling projects.

Canadian Far East Programme Implementation

Slide 8

The key areas of focus for Canadian involvement with NPS dismantlement in the Far East are: • NPS 282 and NPS 300 transport from Kamchatka to JSC FEP Zvezda using a heavy lift vessel; • Railway and bridge upgrades near Vladivostok • NPS 282 and NPS 300 defueling/dismantlement; • NPS 502 de-fueling; • ISO 14001 Certification of Zvezda’s Dismantling Department

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1ВЙ2972416 In addition under IA#8, DFAIT and Zvezda agreed upon an “in-kind” contribution for radiological and industrial safety training for shipyard management personnel provided in Canada. The training was successfully completed September 2008.

In cooperation with the French Global Partnership programme, Canada is leveraging its Far East railway construction project experience to provide assistance to French funded “Alpha” Class reactorcore transportation and infrastructure feasibility study activity in Dimitrovgrad.

NPS Heavy-Lift Vessel Transport - July 2009

Slides: 9-12

In the Far East, two Victor Class NPS (Hull #282 & Hull #300) located at Rybachiy Naval Base in Kamchatka were offered by the RF to the Canadian programme for dismantlement. The challenge was that neither NPS could be safely towed the 1,450 Nm to JSC Zvezdai without serious safety and environmental risks.

DFAIT leveraged the experiences gained in the successful 2006 HLV transport operation in NW Russia and funded the simultaneous transport of both NPS by HLV from Petropavlovsk- Kamchatsky to JSC Zvezda in July 2009. JSC Zvezda was the “charterer” with Dockwise B.V., Netherland as the shipping company.

Operational Planning

Planning of the operation began late 2007 with active participation from DFAIT, JSC Zvezda, RF Pacific Fleet, Dockwise, and UK Navy Salvage and Marine Operations Department. During the course of the complex multi-faceted operation, Zvezda engaged under contract the support of many agencies and entities. For example, the Marine Design Bureau Malakhite (St. Petersburg) was contracted to provide unclassified technical drawings (hull form, etc) as a founding element for Dockwise Shipping’s first production of a Cargo Securing Manual (“Transport Manual”). JSCo Zvyozdochka staffed the Governmental Decree through five stakeholder Russian Ministries and subsequently into the Prime Minister’s office for signature. In a similar manner, so as to leverage the 2006 HLV past experience, Mortek of Arkhangelsk was engaged as Zvezda’s ‘Ship Agent despite the company’s geographic separation from Zvezda. Custom agents were engaged in Sakhalin Island, Kamchatka Krai and . Pacific Fleet directorates were engaged for the provision of tugs, salvage coverage and the conduct of hydrographic work at the loading and unloading sites. Planning meetings were held in UK, the Netherlands, Moscow, Kamchatka, Bolshoi Kamen, etc. DFAIT chaired most meetings including those with the Petropavlovsk Harbour Master and representatives of the Federal Border Service and Federal Customs Service. A formal and final planning conference in Kamchatka in April 2009 was held to ensure that appropriate permissions, coordination and procedures would be in place for the NPS transport operation.

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1ВЙ2972416 Although the HLV operation was conducted in the RF Far East, the effort required expertise gathered from across North America, Europe and the RF to achieve success. The UK Royal Navy Salvage Department was very supportive with active participation in most aspects of the entire operation. For example, review of the Dockwise Transport Manual and observation of the NPS loading operations onboard the “Transshelf’. Because of the importance of the nuclear cargo, and for insurance purposes, Dockwise engaged a specialist company to develop the radiation protection plan and to monitor the entire operation. The “Transshelf’ crew received formal radiation protection and awareness training. Extensive measurement activity was conducted. No incidents of radioactive contamination were detected.

HLV Transport Operations

In July 2009, Dockwise B.V. successfully transported both NPS via the “Transshelf’ in a single operation. The transportation of two fueled NPS 1,450 Nm as dry deck cargo was a “World First’.

There were four principal stages in the HLV operation in RF waters:

• HLV “Transshelf’ deck preparations in Ship Repair Yard; • NPS loading operations in the Avacha Bay, Kamchatka; • HLV transit through the Sea of Okhotsk and Sea of Japan, and • NPS unloading operations in Bolshoi Kamen area.

Transshelf arrived at the Nakhodka shipyard June 20, 2009 to begin four days of deck preparations. Installation of the cribbing was delayed due to both rain and minor design ratification work. The ship departed for Kamchatka June 24th. NPS loading operations began on 29th June in the Avacha Bay near Petropavlovsk. Zvezda’s civilian crews, who had taken over the submarines in January 2009, completed all preparations for the transit such that both submarines were towed from Ribachiy Naval Base to the waiting Transshelf June 30th. The submarines became “dry” by early July 1 (Canada Day). NPS securing operations completed July 5th.

The Transshelf completed a five day passage through the Sea of Okhotsk, the Perouse Strait and Sea of Japan to Zvezda’s water area and arrived July 10th to begin NPS offloading. Large swells on arrival interrupted the operations 24 hours. Both NPS were successfully re-floated and towed to a Zvezda pier the July 12th. All activities regarding the Transshelf were completed July 17,h (removal of deck blocks etc.). The Transshelf subsequently departed Zvezda for Nakhodka to complete custom procedures so as to exit RF waters.

The mission was completed without injury or incidents including any reportable radiation incidents. A local film crew contracted to fully documented the HLV operations producing an excellent video record. (Copies availible on request in either English or Russian).

In summary the extensive planning and extraordinary cooperation between all stakeholders resulted in a “flawless” execution of the operation. 6

IB#2972416 In August 2009, DFAIT conducted a HLV “Wash-Up” meeting in Vladivostok with principal stakeholders. The meeting marked the successful completion of the project and provided a forum to discuss and document the lessons learned for potential “future” NPS HLV activity, such as the transportation of 3CUs from Kamchatka to DalRAO. A similar wash-up was held in the UK with The UK Royal Navy Salvage Department October 2009.

Far East Railway Upgrade Project

Slides: 13 -16

In 2003, the U.S. funded construction of the On-Shore Defueling Facility (OSDF) at JSC Zvezda. At that time it was anticipated that funding to complete the required railway infrastructure upgrades from Bolshoi Kamen Station up to Railway Station would be funded by other international partners so as to enable transport of SNF from the shipyard to PA Mayak. This funding was not, however, provided. The branch line from Bolshoi Kamen Station to Smolyaninovo where it intersects with the main rail system was left unable to support SNF special train shipments. Since 2004, the U.S and Russia, with Japanese funding, completed NPS de-fuelings but the SNF casks simply accumulated on the OSDF transient storage pads such that there was no capacity to accommodate any more SNF after September 2007.

Railway Upgrade Feasibility Design Study

In September 2007 in response to the ROSATOM request to resolve the “roadblock” to future NPS dismantlement efforts, Canada developed and negotiated IA#5 (value CAD S750K) with JSC Zvezda to conduct the minimum required design and survey works so as to produce the working documentation and all appropriate approvals necessary to fully upgrade the rail line in order to permit safe passage of the special railcars; TK-VG-18 or TK-VG-18A. The work was successfully completed March 2008 ensuring that the proposed designs would fully conform to the construction standards set by the JSC Russian Railways. This design and approval foundation activity formed the basis for the follow-on IA#7 (value CADS 12.4 million) that was signed July 2008. Under IA#7, the shipyard acted as the integrating contractor to perform the entire rail upgrade task. This included track replacement, rehabilitation of the Petrovka River Bridge, replacing the Tsarevka River Bridge, upgrading and repair of culverts, road crossings and rebuilding collapsible embankments.

Railway Project Implementation

Zvezda shipyard contracted with DalLuch ZhD Ltd,, “DVGSK-CENTER” Ltd., and JSC Dalgiprotrans to perform the railway upgrade. Work started July 2008 with a planned completion date of September 2009.

IB#2972416 Track and Culvert Repair

Approximately 12 km of track between Bolshoi Kamen Station and Petrovka were replaced in its entirety. The replacement upgraded the rails from R-50 to R-65 (a higher standard). Of note second-hand used rail was used along with wooden sleepers to reduce overall costs. The replacement track panels were mainly manufactured at the the Russian Far East Railroad (FER) Track Panel Construction Yard in Sibirtsevo. Four culverts were extended to resolve drainage problems, embankments were widened and concrete lined inceptor ditches constructed to divert water flows. Additional ballast (rock) was placed along almost the entire track so as to both raise the track and build the shoulders. The useful length of the receiving and departure track at Bolshoi Kamen Station was extended so as to accommodate the total length of the special SNF train rail cars and its two locomotives.

Bridge Repair and Replacement

Bridge work at Petrovka involved repair of the existing concrete abutments and piers supporting three approach spans; replacement of the concrete spans, and steel through truss span; repairs to, and final painting of, the steel truss span. Repair work required significant site preparation, including the grading and construction of a temporary access road from the local highway.

The second of the two bridges the Tzarevka River Bridge was replaced in its entirety. This involved the removal of the existing light weight steel truss span and its replacement with a new steel truss span designed to handle the heavy axle loads of the SNF trains. The bridge abutments were also reinforced. Site preparation work was also performed to include upgrading and placement of stone for a temporary access road. To minimize downtime on the rail line, the new truss span was constructed adjacent to the tracks and then positioned over the river adjacent to the existing bridge span. In one track shutdown period, the “old” bridge was rolled aside and the new bridge rolled into place. The final stage of completion included contractor’s crews placing rip-rap on the bridge embankment and removing excess soil from the flood-plane.

The entire project was completed ahead of schedule with official commissioning of the railway 7 August 2009. The Opening Ceremony, attended by the Canadian Ambassador to Russia and senior Russian railroad officials, Rosatom and United Shipbuilding representatives, was held 20 August 2009. The first SNF special train shipment departed Zvezda for P.A. Mayak shortly the August opening ceremony. JSC Zvezda contracted with a local film crew that fully documented the Canadian funded railway upgrade project. (Copies availible on request in either English or Russian).

NPS 282 ’’Victor III” Dismantlement Progress

Slides: 17 -18

Upon the submarine's arrival at Zvezda, the shipyard initiated preparations for dismantlement, removed equipment, masts, etc. and prepared for the defueling. Permission for defueling was

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IB#2972416 received 17th January and the defueling completed without incident 2nd February. Following de­ fuelling the NPS was transferred from the OSDF and dry-docked on Slipway #7 using the “Pallada” floating drydock. Once on the slipway polystyrene was removed from all the ballast tanks. By 28 April 2010 the submarine had been cut into three sections and the centre 3-CU moved to Facility 103 on Slip #9 with the bow and stern sections moved to the open Slip #5. “Hot works” are now underway with the estimated completion for bow and stem dismantlement August 2010. The 3CU is estimated to be formed and launched by September 2010.

The 10 SNF TUK-108/1 containers from NPS 282’s de-fuelling operation are currently in the transient storage at the shipyard awaiting a funding decision for shipment to PA Mayak. 163 cubic meters of LRW from NPS 282 have been processed onboard the Landysh and the resultant secondary wastes placed in interim SRW storage (Facility 131). The shipyard anticipates the management of SNF and radioactive waste to be completed by August 2010. The Republic of Korea contributed to the costs of this activity.

NPS 300 ’’Victor Ш” Dismantlement Progress

Slides: 19-20

Upon arrival at Zvezda, the shipyard initiated preparations for dismantlement, removed equipment, masts, etc. and prepared for the defueling in the same manner as for NPS 300. Permission for defueling was received 17lh February and the defueling completed without incident 25 March. Following de-fuelling the NPS was transferred from the OSDF and dry­ docked on Slipway #7 using the “Pallada” floating diydock March 30. By 28 April 2010 the submarine had been cut into three sections and the centre 3-CU moved to Facility 103 oh Slip #9 with the bow and stem sections moved to the open Slip #3. “Hot works” are now underway with the estimated completion for bow and stem dismantlement September 2010. The 3CU is estimated to be formed and launched by October 2010.

Ten SNF TUK-108/1 containers from NPS 300’s de-fuelling operation are currently in the transient storage at the shipyard awaiting a funding decision for shipment to PA Mayak. 155 cubic meters of LRW from NPS 300 have been processed onboard the Landysh and the resultant secondary wastes placed in interim SRW storage (Facility 131). The shipyard anticipates the management of SNF and radioactive waste to be completed by August 2010. The Republic of Korea contributed to the costs of this activity.

Note: The Landysh will undergo docking in the floating dock (Pallada) in September 2010 for its 10 year hull recertification.

1ВЙ2972416 NPS 282 & NPS 300 Republic of Korea Cooperation

Slides: 21-22

Following a regional security conference in Seoul funded by Canada in February 2007 Canada and the Republic of Korea (ROK) agreed a Memorandum of Understanding December 2007 to enable ROK funds to be used within Canada’s Global Partnership Program (“piggy backing”). Under this MOU the ROK has been providing funds for nuclear security and NPS remediation initiatives. ROK monitors have participated in two monitoring visits to JSCo FEP Zvezda.

NPS 502 ’’Akula I” Dismantlement Progress

Slides: 23-24

Discussions are ongoing regarding the scheduling for NPS 502’s handover from the Pacific Fleet. NPS 502 Akula I is currently located in an adjacent shipyard and is anticipated to be handed over to civilian control December 2010. De-fuelling of the submarine’s single reactor is anticipated in early 2011.

Environmental Management at JSC FEP Zvezda

Slides: 25-27

Canadian Regulatory Requirements

Canadian Funding for NPS Dismantling projects at JSC FEP Zvezda triggered the requirement for an environmental assessment (EA) under the Canadian Environmental Assessment Act (CEAA) and Projects Outside Canada (РОС) regulations. In May 2008, an Environmental Assessment Report (EA) was prepared with the following major steps: • Describing the physical works and activities that constitute the project (i.e. NPS and potential SSBN dismantling) and identifying those works that would have the potential to interface with the environment • Assessing the likely environmental effects of the project, identifying mitigation measures and residual effects, and determining the significance of residual effects; and • Conducting public and stakeholder consultation.

To meet EA objectives of informing the public and obtaining feedback, DFAIT implemented local public consultation in three phases: • Writing and dissemination of Consultation Information Pack (CIP) and invitations to stakeholders and general public for public meetings in Bolshoi Kamen; • Public meetings, April 2008, in Bolshoi Kamen; and

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IB#2972416 • Analysis of the public views, preparation of consultation summary report and incorporation of amendments in the screening EA report.

Based on the findings of the assessment, it was determined the project was not likely to cause significant adverse environmental effects taking into account implementation of appropriate mitigation measures.

Environmental Management System (EMS) Implementation

To verify the EA findings and to ensure that follow-up actions are implemented, an Environmental Management Plan (EMP) was prepared for NPS Dismantling in June 2008. The following are representative targets in the EMP: • Prioritization of transportation to Mayak of Spent Nuclear Fuel containers which have spent the longest period in storage; and • To provide radiation, environmental and conventional safety training to Zvezda staff prior to the commencement of NPS dismantling. Following decision by the General Director of Zvezda shipyard, environmental policies, procedures and systems have been developed and updated to ensure compliance with the international ISO 14001 standard.

In January 2010, a new Environmental Management System (EMS) was fully implemented with the assistance of Canadian technical experts. The new system is consistent with the requirements of international environmental management standard ISO 14001 and will help to ensure that the EMP requirements are met. Environmental specialist support and monitoring will be provided to JSC Zvezda by Canada via regular technical visits and frequent review of progress against EMP targets.

Both Canadian and Korean Government funding has been provided to assist with the infrastructure and training support to meeting the EMP targets. Examples of assistance already provided or under consideration for the near future include: • Provision of environmental and safety training to senior expert staff in Canada (September 2008) • Provision of additional analytical equipment to ensure adequate monitoring of environmental impacts (May 2010) • Provision of a hazardous waste incinerator • Provision of a modem dose monitoring and management system.

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IB#2972416 Support to a French Initiative to Relocate “Alfa” Class NPS Reactor Cores

Slide 28

At the October 2009 CEG Meeting, the French expressed an intent to assist the RF in the recovery, and transport of ALFA Class nuclear powered submarines reactor cores from Gemikha to JSC State Scientific Center Research Institute Of Atomic Reactors in Dimitorovgrad (NIIAR) where they will be stored and processed. The railway infrastructure in Dimitrovgrad requires extensive upgrading to handle the nuclear reactor core transport flasks.

DFAIT offered to leverage its success with the railroad upgrades in Far East to assist with the French funded feasibility study works related to the railway aspect of the infrastructure. In February 2010, the DFAIT and Zvezda contracted with Zvezda and the previous railway engineering experts to provide support. The team of three Canadian funded experts visited the Dimotrovgrad area April 2010. They will return again in July. ROSATOM and the French project team will be provided with the results of all the experts’ investigations and analysis so as to support a robust grant application to the NDEF October 2010.

Radioisotope Thermoelectric Generators (RTGs)

Slide 29

Canada’s Global Partnership Program is working in partnership with the RF and U.S. Department of Energy, National Nuclear Security Administration’s (NNSA), Global Threat Reduction Initiative (GTRI) to address the threat that RTGs present. Three Canadian contributions (GTRI#l-#3) have been made to NNSA to support the securing, removing, decommissioning, disposing and replacing with alternative power sources of up to 64 RTGs in Russia. GTRI #1 will address 10 RTGs in the Tiksi area. Seven RTGs were disassembled and removed to PA Mayak but the remaining 3 GORN type RTGs were problematic. Completion of the remaining problematic RTGs in the Tiksi is expected by December 2010. GTRI #2 addressed 10 RTGs in the Northern Sea Route. All recoveries have been successfully accomplished and the RTGs have been disassembled and transported to Mayak for disposition. The APS installations were delayed by weather and will be installed at a later date in Spring 2010 (temporary batteries have been installed in the interim). GTRI #3 resolved the problems of 39 RTGs in the Far East Coast Region. All RTGs have been removed to a secure location and the installation of APSs has been completed.

Nuclear Submarine Dismantling Intentions 2010-2013

Slide 30

The Canadian NPS Dismantlement Programme in the Far East is currently scheduled for completion June 2011 but will have authorities and funding for future initiatives through to

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1ВЙ2972416 March 2013. DFAIT has expressed its willingness to work collaboratively with ROSATOM and DTRA in assisting with any future SSBN elimination activities during this period.

Conclusions

Slide 31

Since the 2002 G8 leaders summit in Kananaskis, when the Global Partnership Against the Spread of Weapons and Materials of Mass Destruction was initiated, substantive progress has been achieved in all Global Partnership priority areas. The NPS priority area is obviously of particular note with all NPS dismantled within the Global Partnership life span.

We have reported here on the substantive contributions that Canada has accomplished in dismantling decommissioned Russian nuclear powered submarines since August 2004. This contribution, however, would not have been possible without the extraordinary good will and professionalism of the Zvezdochka and Zvezda shipyards and ROSATOM’s unwavering support and guidance.

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