Russia & Japan Pen N-Deal
on Tech for Fuel Swap

Russia and Japan have recently signed their first nuclear energy co-operation agreement recently during a visit to Tokyo by Russian Prime Minister Vladimir Putin.

The deal will enable the transfer of Japanese technology to Russia and the sale of more nuclear fuel to Japan. The nuclear accord will also pave the way for joint mining and oil ventures, and commercial contracts worth billions of dollars.

"The nuclear power treaty, if it comes into force after approval by parliament, will allow cooperation between Japan, which boasts high levels of technology in nuclear plant construction and Russia, which is blessed with uranium resources and the capacity for enriching uranium," Aso told a news conference.

Planned contracts under the deal include supplying Japan with $100 million worth of low enriched uranium for nuclear power generation, Sergei Kirienko, the head of Russia's State Nuclear Corporation, told reporters earlier.

But he did not spell out whether Moscow would allow the International Atomic Energy Agency to inspect facilities, something Japan says is essential for the deal to come into force.

In a sign of growing business ties, state-run Japan Oil, Gas and Metals National Corp (JOGMEC) said in a statement it would sign an agreement with Irkutsk Oil Co to jointly develop two oil fields in Eastern Siberia.

The project, the latest in Japan's efforts to reduce its reliance on the Middle East for its oil needs, will cost 15 billion yen ($152.6 million) to bring it to commercial production, a JOGMEC official said. The venture aims to start production in two to four years.

Japan and Russia are also expected to sign an agreement on civilian nuclear energy use in a deal that would clear the way for Japanese companies to help build nuclear power plants in Russia.

The agreement would also allow Japan to tap Russia's uranium enrichment technology.

Russian Prime Minister Vladimir Putin, visited Tokyo with 100 company executives, met Japanese Prime Minister Taro Aso for talks on boosting trade and investment as well as on the disputed territory.

Putin and his Japanese counterpart, Taro Aso, also pledged to study "all options" to end a territorial dispute.