Egyptian President Hosny Mubarak signed a deal in Moscow on March 25 that allows Russia to compete for a USD 1.5 to two billion tender to build his country first nuclear power plant.
The nuclear cooperation accord arrived at after what Mubarak termed “difficult” negotiations was finalised by Russia’s Rosatom nuclear energy chief Sergei Kiriyenko and Egyptian Energy Minister Hassan Younis. The agreement was especially sensitive because Moscow hoped to trade its nuclear expertise for a chance revive lucrative arms contracts with Cairo, Russian newspapers said on March 25. Both of these eventualities would be hard for the United States to stomach, diplomats and analysts said ahead of the meeting.
In opening a two-day visit with President Vladimir Putin, Mubarak expressed hope that “relations which have lasted over 50 years will further develop successfully.” The Egyptian leader, who trained as a pilot in the former Soviet Union, remembered: “I have been in this country many times, I know it well.” Putin complimented Mubarak as “without a doubt, one of the revered leaders of the Arab and Muslim world,” while he accepted an invitation to an economic forum in the country in his new capacity as Russian prime minister after stepping down in May. Mubarak was due to be the first Arab leader to meet with President- elect Dmitry Medvedev.
But diplomats said the nuclear agreement that has been years in coming was at the heart of talks. Russia is now expected to compete with China and Kazakhstan to participate in Cairo’s plans to build eight nuclear reactors starting with one in al-Dabaa, on Egypt’s Mediterranean coast.
A delicate point for Russia in the agreement is Egypt’s push to control the full cycle of nuclear production, including uranium enrichment, which can be refined for nuclear weapons.
Mubarak was believed to have promised close cooperation with international nuclear watchdogs, but the details of the agreement were not immediately disclosed.