President Donald Trump has approved a long-anticipated nuclear cooperation agreement with Saudi Arabia, a deal that could enable the kingdom to enrich its own uranium. This approval, announced by the Energy Department, involves a 30-year pact that is expected to facilitate U.S. firms, such as Westinghouse Electric Co., in developing Saudi Arabia's civilian nuclear program. The agreement, expected to undergo Congressional review, marks a significant policy shift as it is not anticipated to explicitly ban uranium enrichment, a departure from previous U.S. nuclear sharing deals.
The agreement is a "123 agreement" and an accompanying bilateral safeguards agreement, aiming to establish a "decades-long, multi-billion-dollar partnership." It would allow U.S. companies to construct a uranium enrichment facility in Saudi Arabia following a joint U.S.-Saudi study. This opens up a substantial market for key U.S. nuclear firms including Westinghouse (whose CEO, Dan Sumner, called it a "landmark step"), Bechtel, BWXT, and Centrus, allowing them to sell advanced nuclear equipment and technology to the kingdom, which currently relies heavily on fossil fuels for its energy needs.
However, the deal has drawn considerable criticism and alarm from nuclear nonproliferation experts and some members of Congress. Concerns center on the potential for Saudi Arabia to gain uranium enrichment capabilities, which could pave the way for developing nuclear weapons and trigger a nuclear arms race in the Middle East. Notably, the agreement is reportedly not expected to include the IAEA’s Additional Protocol, which would provide more rigorous monitoring and inspections, nor is it expected to ban the reprocessing of spent nuclear fuel, both considered "gold standard" safeguards against proliferation. Secretary of State Marco Rubio, prior to the announcement, stated the U.S. would not "reach any agreement with any country in the world that leads to the risk of proliferation," a statement seemingly at odds with the reported details of the pact. Senator Chris Murphy of Connecticut explicitly warned this deal "will set off a nuclear race in the region."
Despite the significant implications, the text of the deal has not been publicly released, with details emerging from officials familiar with the discussions. While the Energy Department stated the agreements uphold "the highest standards of nuclear safety and nonproliferation," experts like Darya Dolzikova of the Royal United Services Institute and Sanam Vakil of Chatham House have voiced concerns about the lack of robust nonproliferation provisions, particularly the domestic enrichment aspect. Congress will need a veto-proof majority to block the agreement, highlighting the potential difficulty in preventing its implementation.
The agreement's timing is notable as the U.S. seeks to limit Iran's nuclear ambitions, with some critics suggesting this Saudi deal could undermine those efforts. Jonathan Hinze, president of UxC, a nuclear fuel market firm, noted that without such a trade agreement, U.S. nuclear companies might be excluded from the Saudi market, potentially ceding ground to competitors like France, Russia, or China.
