US Signs Landmark Nuclear Deal with Saudi Arabia

The United States and Saudi Arabia have agreed a landmark deal that would use American technology and expertise to establish a civilian nuclear program in the Gulf country, a move that has caused alarm across the Middle East and through the corridors of power in Washington.

The deal was signed by US Energy Secretary Chris Wright and Saudi Minister of Energy, Prince Abdulaziz bin Salman bin Abdulaziz Al Saud. 

Much of the deal remains unclear, but concerns centre on whether Saudi Arabia would have the capability to enrich uranium domestically, and what that means for nuclear proliferation.

According to a statement from US Energy Secretary Chris Wright, the 30-year deal is designed to meet the “energy needs” of oil-rich Saudi Arabia. 

Issuing a joint statement, US Energy Secretary and the Saudi Minister of Energy, the deal will be a decades-long, multi-billion-dollar partnership that involves American companies and experts working alongside the Saudi nuclear energy programme. 

According to the statement, a "bilateral safeguards agreement" was also signed along with the deal. 

Under Crown Prince Mohammed bin Salman’s economic plan, Saudi Arabia aims to use nuclear power for some electricity generation, thereby boosting oil sales by freeing up more supplies for export. 

Foreign media reported that the deal would make American companies central in the development of the country’s nuclear infrastructure, while denying competitors like China and Russia a foothold in the country.

The deal also reportedly paves the way for the building of a uranium enrichment facility in Saudi Arabia, but this would be contingent on a joint US-Saudi study determining such a facility is necessary.

The US Energy Department said the deal will be submitted to Congress for review.
U.S. cooperation with foreign countries on civilian nuclear power requires such review under the Atomic Energy Act.

Source: The Guardian | BBC | CNBC