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3 Financial Support for MPC&A Activities
Pages 31-38

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From page 31...
... These external funds for upgrading MPC&A systems have supplemented Russian investments in maintaining, operating, and occasionally upgrading existing systems. There are no publicly available estimates of the aggregated MPC&A budgets of Russian facilities or even the budgets of individual facilities.
From page 32...
... Even if new resources are earmarked for nuclear security in general, facility managers will have difficulty effectively acquiring more resources for MPC&A upgrades to protect Russian materials given the widespread perception in Russia that facility vulnerability is not a serious problem. In time, however, a coalition of MPC&A champions should be able to argue for a larger percentage of government resources for MPC&A.
From page 33...
... The Center does not support any major construction activities, although it supports projects in a wide variety of fields, including the nuclear sector. The interest that is earned on the funds of the Indigenization Fund, until they are dispensed, would be used to cover the costs of the secretariat of the Fund and the cost of projects that could become important focal points for Russian government coordination, such as training, information dissemination, and scientific conferences.
From page 34...
... Other intergovernmental mechanisms that have effectively provided international funds to sensitive nuclear facilities in Russia would also provide useful background. While the Fund would have unique characteristics, experiences of other organizations in areas such as taxation, access to sensitive facilities, and auditing procedures would be helpful.
From page 35...
... In short, the Fund would enable Russian facilities that are on sound paths toward indigenization to obtain funding to complete that process and maintain and improve their technical capabilities over the long run. Also, the management of the Fund would engage senior Russian officials from several ministries to promote indigenization.
From page 36...
... In summary, the Indigenization Fund is the most desirable alternative for the following reasons: · By placing the program in the context of the G-8 nuclear security initiatives, which are backed by significant financial commitments from most if not all of the member countries and have garnered considerable political support from Russia, the highest levels of the Russian government would likely give higher priority to modern MPC&A systems than before. · The approach of funding projects proposed by Russian institutions and subject to the approval of the U.S.
From page 37...
... As previously noted, however, the paramount importance of the MPC&A program should not be compromised. DOE should encourage Rosatom to offer one or more Russian facilities as models for efforts coordinated by the International Atomic Energy Agency (IAEA)


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