Nuclear Issues

Nuclear energy powerhouse Westinghouse Electric Co. filed for Chapter 11 bankruptcy on 29 March, with its parent company Toshiba writing off more than $6 billion in losses connected to its US businesses. Westinghouse was engaged in negotiations to build six AP1000 nuclear reactors in India as part of the landmark US-India civilian nuclear agreement. The bankruptcy filing raises fresh questions, not just about the fate of the reactors, but also about the future of the nuclear deal.

In this new oped for the Bulletin of the Atomic Scientist, MTA Associate Aaron Arnold and colleague Nikos Passas consider the role of banks in monitoring and verifying proliferation-related transactions. He outlines steps that the P5+1 and Iran can take in a final agreement that will allow them to remain vigilant about proliferation financing.

"This isolation has left Tehran no option but to turn to Moscow. And, as relations between the US and Russia have deteriorated, the Middle Eastern state has the scope to become an evermore decisive and divisive factor."

Financial sanctions against Iran are contributing to the growth of regional criminal networks, which use fraud, bribery, and corruption to facilitate commerce. From airplane parts and medical equipment, to specialized materials for weapons programs, an intricate underground economy of financial and logistic intermediaries play a critical role in helping Iran circumvent Western sanctions. Do not expect this to change in a post-sanctions world...

"Many states in the region, especially those that have been vocal in their criticism of Iran's nuclear program, feel threatened not by the prospects of a nuclear Iran, but by Iranian-Western rapprochement. Political and economic isolation have helped states like Saudi Arabia, who fear losing their military, economic, and political ties and privileges with the United States. After all, Tehran and Washington did have close relations prior to 1979 and, given that the two countries have a lot in common, they could develop ties again."

"Washington has long provided a credible security guarantee along with its declaration of the nuclear umbrella in part, in return for South Korea forgoing a nuclear option. South Korea's acquisition of nuclear weapons would remove the rationale for the extension of U.S. nuclear deterrence and undermine the U.S. security commitment to Seoul."

"Moscow...has a history of manipulating energy supplies for political ends. It used the suspension and threat of suspension of gas supplies to put pressure on its neighbors, including Ukraine. That means it is reasonable for Tehran to have concerns about Russia's trustworthiness as a partner on Bushehr. And unlike some other countries, Iran doesn't have the option of turning to multiple foreign providers, and doesn't believe that it is likely anyone will come to its rescue if Russia doesn't deliver.

The world is rightly worried about Iran's uranium enrichment program. Iran claims this technology is for producing fuel for nuclear power plants, but it could be quickly shifted to making nuclear bomb material.

Observers would be forgiven for dismissing negotiations over Iran's nuclear program as Kabuki theater. Despite years of on-again, off-again efforts, after all, fears of war continue to simmer. Such frustrations are understandable -- but they may not be entirely justified.

"The negative impact of Fukushima and North Korea's dangerous nuclear politicking stand in stark contrast to the promise of growing nuclear sectors in China and South Korea. While preventing nuclear terrorism and strengthening nuclear security globally are urgent issues, how the nuclear dynamics of Northeast Asia plays out in the coming years will be more critical for the future of the global nuclear industry."