Trump approves US nuclear deal with Saudi Arabia
The pact could mean billions of dollars for US businesses
• less than 3 min read
President Trump approved a deal potentially worth billions yesterday that will provide Saudi Arabia with a 30-year civilian nuclear program and will be administered by US businesses, but also lacks the safety oversights included in similar agreements with other countries, according to the Wall Street Journal.
The controversial agreement was signed by US Energy Secretary Chris Wright yesterday, but it still needs to be sent to Congress for approval.
So, what’s the deal?
The agreement would allow for the US construction of a uranium enrichment facility in Saudi Arabia, if needed, following a joint US–Saudi study.
It was designed to put American companies at the forefront of developing Saudi Arabia’s nuclear infrastructure. Exactly which US companies would be involved hasn’t been made public, but the WSJ reported that Westinghouse Electric would be among the biggest beneficiaries.
The US currently has similar deals, known as 123 Agreements, with 26 other countries, but this one reportedly lacks two key stipulations that other agreements contain:
- The Gold Standard, which prevents countries from enriching uranium and reprocessing spent nuclear fuel—potential precursors to the proliferation of weapons.
- The Additional Protocol, allowing the UN’s International Atomic Energy Agency to conduct surprise inspections.
This will likely raise lawmakers’ eyebrows because…Saudi Crown Prince Mohammed bin Salman said in 2018 that his country would develop a nuclear bomb if Iran did. Meanwhile, the US and Israel are currently seeking to destroy Iran’s nuclear capabilities.—DL
Become smarter in just 5 minutes
Morning Brew delivers quick and insightful updates about the business world every day of the week from Wall St. to Silicon Valley.
By subscribing, you accept our Terms & Privacy Policy.
Become smarter in just 5 minutes
Morning Brew delivers quick and insightful updates about the business world every day of the week from Wall St. to Silicon Valley.
By subscribing, you accept our Terms & Privacy Policy.