Trump Signs Nuclear Sharing Deal With Saudi Arabia in Policy Shift

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(Bloomberg) — The US and Saudi Arabia finalized a long-sought nuclear technology-sharing deal that could allow American companies to build reactors in the kingdom, but cracks the door open for the country to enrich its own nuclear reactor fuel. 

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While the deal could benefit Westinghouse Electric Co. and other US nuclear companies, it’s expected to break from previous nuclear sharing agreements that have expressly barred the enrichment of uranium, a policy shift that has alarmed nuclear non-proliferation experts and some members of Congress who fear it could allow Saudi Arabia to turn uranium into weapons-grade material.

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US Energy Secretary Chris Wright and Saudi Arabian Energy Minister Prince Abdulaziz bin Salman signed a “peaceful nuclear cooperation agreement” as well as a “bilateral safeguards agreement,” the Energy Department said Wednesday. 

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“These agreements reflect our two nations’ shared commitment to strengthening U.S.-Saudi commercial relations, delivering prosperity at home and security to our allies abroad,” Wright said in a statement. “Rest assured, these agreements uphold the highest standards of nuclear safety and nonproliferation, while relying on the world’s best nuclear technology and scientists, designed right here in the United States.”

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A key part of the deal, worth tens of billions of dollars, allows American companies to build a uranium enrichment facility in Saudi Arabia if a study, conducted jointly by the US and the Saudis, determines the move is necessary, according to the Wall Street Journal, which earlier reported on the matter. 

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“If the reported contents are correct, then this signals a change in US non-proliferation policy and could spark a nuclear race in the Middle East,” said Bloomberg Economics analyst Dina Esfandiary. “The US is giving Saudi Arabia what it went to war with Iran to prevent — enrichment.”

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“For Saudi Arabia, this is about more than the nuclear space. It’s about entrenching the US in its security — continuing to find ways to give a stake in Saudi security,” Esfandiary said.

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When asked about the deal earlier Wednesday, Wright said it includes “the highest standards of nuclear safeguards for nuclear safety and safeguards for nonproliferation.” 

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An agreement with the Saudis could help American firms gain a foothold in a region where rivals have been active, especially Russia. Turkey and Egypt, two of the Middle East’s largest economies and both key US allies, have been working with Moscow’s state atomic energy company Rosatom to build nuclear power plants. The first Turkish unit is slated to come online this year.

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Past nuclear technology-sharing agreements with countries such as Japan have explicitly barred the enrichment and reprocessing of spent uranium, but the White House earlier this year sent Congress a three-page report arguing for sharing sensitive nuclear technology with Riyadh, including potential cooperation on uranium enrichment and plutonium reprocessing. The document, seen by Bloomberg, said such a deal would advance US security interests while giving Washington greater visibility into the kingdom’s program.