[Weekly Compilation of Presidential Documents Volume 36, Number 25 (Monday, June 26, 2000)]
[Pages 1430-1432]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Message to the Congress on the National Emergency With Respect to the 
Russian Federation

June 21, 2000

To the Congress of the United States:

    Pursuant to section 204(b) of the International Emergency Economic 
Powers Act (IEEPA), 50 U.S.C. 1703(b) and section 301 of the National 
Emergencies Act, 50 U.S.C. 1631, I hereby report that I have exercised 
my authority to declare a national emergency to deal with the threat 
posed to the United States by the risk of nuclear proliferation created 
by the accumulation in the Russian Federation of a large volume of 
weapons-usable fissile material. The United States and the

[[Page 1431]]

Russian Federation have entered into a series of agreements that provide 
for the conversion of highly enriched uranium (HEU) extracted from 
Russian nuclear weapons into low enriched uranium (LEU) for use in 
commercial nuclear reactors. The Russian Federation recently suspended 
its performance under these agreements because of concerns that payments 
due to it under these agreements may be subject to attachment, 
garnishment, or other judicial process, in the United States. 
Accordingly, I have issued an Executive Order to address the unusual and 
extraordinary risk of nuclear proliferation created by this situation.
    A major national security goal of the United States is to ensure 
that fissile material removed from Russian nuclear weapons pursuant to 
various arms control and disarmament agreements is dedicated to peaceful 
uses, subject to transparency measures, and protected from diversion to 
activities of proliferation concern. The United States and the Russian 
Federation entered into an international agreement in February 1993 to 
deal with these issues as they relate to the disposition of HEU 
extracted from Russian nuclear weapons (the ``HEU Agreement''). Under 
the HEU Agreement, 500 metric tons of HEU will be converted to LEU over 
a 20-year period. This is the equivalent of 20,000 nuclear warheads.
    Additional agreements were put in place to effectuate the HEU 
Agreement, including agreements and contracts on transparency, on the 
appointment of executive agents to assist in implementing the 
agreements, and on the disposition of LEU delivered to the United States 
(collectively, the ``HEU Agreements''). Under the HEU Agreements, the 
Russian Federation extracts HEU metal from nuclear weapons. That HEU is 
oxidized and blended down to LEU in the Russian Federation. The 
resulting LEU is shipped to the United States for fabrication into fuel 
for commercial reactors. The United States monitors this conversion 
process through the Department of Energy's Warhead and Fissile Material 
Transparency Program.
    The HEU Agreements provide for the Russian Federation to receive 
money and uranium hexafluoride in payment for each shipment of LEU 
converted from the Russian nuclear weapons. The money and uranium 
hexafluoride are transferred to the Russian Federation executive agent 
in the United States.
    The Russian Federation recently suspended its performance under the 
HEU Agreements because of concerns over possible attachment, 
garnishment, or other judicial process with respect to the payments due 
to it as a result of litigation currently pending against the Russian 
Federation. In response to this concern, the Minister of Atomic Energy 
of the Russian Federation, Minister Adamov, notified Secretary 
Richardson on May 5, 2000, of the decision of the Russian Federation to 
halt shipment of LEU pending resolution of this problem. This suspension 
presents an unusual and extraordinary threat to U.S. national security 
goals due to the risk of nuclear proliferation caused by the 
accumulation of weapons-usable fissile material in the Russian 
Federation.
    The executive branch and the Congress have previously recognized and 
continue to recognize the threat posed to the United States national 
security from the risk of nuclear proliferation created by the 
accumulation of weapons-usable fissile material in the Russian 
Federation. This threat is the basis for significant programs aimed at 
Cooperative Threat Reduction and at controlling excess fissile material. 
The HEU Agreements are essential tools to accomplish these overall 
national security goals. Congress demonstrated support for these 
agreements when it authorized the purchase of Russian uranium in 1998, 
Public Law 105-277, and also enacted legislation to enable Russian 
uranium to be sold in this country pursuant to the USEC Privatization 
Act, 42 U.S.C. 2297h-10.
    Payments made to the Russian Federation pursuant to the HEU 
Agreements are integral to the operation of this key national security 
program. Uncertainty surrounding litigation involving these payments 
could lead to a long-term suspension of the HEU Agreements, which 
creates the risk of nuclear proliferation. This is an unacceptable 
threat to the national security and foreign policy of the United States.

[[Page 1432]]

    Accordingly, I have concluded that all property and interests in 
property of the government of the Russian Federation directly related to 
the implementation of the HEU Agreements should be protected from the 
threat of attachment, garnishment, or other judicial process. I have, 
therefore, exercised my authority and issued an Executive Order that 
provides:
<bullet>     except to the extent provided in regulations, orders, 
            directives, or licenses that may be issued pursuant to the 
            order, all property and interests in property of the 
            Government of the Russian Federation directly related to the 
            implementation of the HEU Agreements that are in the United 
            States, that hereafter come within the United States, or 
            hereafter come within the possession or control of United 
            States persons, including their overseas branches, are 
            blocked and may not be transferred, paid, exported, 
            withdrawn, or otherwise dealt in;
<bullet>     unless licensed or authorized pursuant to the order, any 
            attachment, judgment, decree, lien, execution, garnishment, 
            or other judicial process is null and void with respect to 
            any property or interest in property blocked pursuant to the 
            order; and
<bullet>     that all heads of departments and agencies of the United 
            States Government shall continue to take all appropriate 
            measures within their authority to further the full 
            implementation of the HEU Agreements.
    The effect of this Executive Order is limited to property that is 
directly related to the implementation of the HEU Agreements. Such 
property will be clearly defined by the regulations, orders, directives, 
or licenses that will be issued pursuant to this Executive Order.
    I am enclosing a copy of the Executive Order I have issued. The 
order is effective at 12:01 a.m. eastern daylight time on June 22, 2000.
                                            William J. Clinton
 The White House,
 June 21, 2000.

 Note:  This message was released by the Office of the Press Secretary 
on June 22.