The Russian initiative in promising low enriched uranium fuel for the Tarapur Atomic Power Station (TAPS) is evoking mixed reactions. On March 17, 2006, Russian Premier Mikhail Fradkov sealed the deal with Prime Minister Manmohan Singh and entered into talks for supplying nuclear equipment for the construction of the Kundakulam plant in Tamil Nadu, expected to go critical by 2008.

The prospect of supplying nuclear fuel to India is considered vital for picking up the thread of Indo-Russian civil nuclear co-operation. As one of the members of the 45-member Nuclear Suppliers Group (NSG), Russia is bound by the group's restrictions on nuclear trade with India. As this deal is safety related, that would make the sale permissible under the guidelines of the Nuclear Suppliers Group in Russia's view. Russia will be supplying 60 tonnes of uranium to the safeguarded TAPS 1 and 2 under the safety exception clause. It has responded to New Delhi's demands for "urgent and limited supplies of uranium fuel to enable the Tarapur reactor to function in safe and reliable conditions" according to the MEA. Analysts say that India would be otherwise forced to shut down operations at the Tarapur plant by June or July if it does not get supplies from Russia.

Critics worry that this action will further erode international rules governing nuclear proliferation. Russia's decision was apparently spurred by the US determination last year to share civilian nuclear technology with India, which signals a flood of countries looking to trade in nuclear goods outside international treaties. "This is the first salvo," Daryl Kimball, executive director of the Arms Control Association, said on Monday. "China could be next in trying to propose a similar loophole for Pakistan." Indians disagree that Russia's decision is linked with the US-India agreement. During a visit to Moscow in December 2005, Indian Prime Minister Manmohan Singh had also said that resolving the Tarapur situation was not linked to the India-U.S. nuclear deal.

Nevertheless, the importance of Indo-Russian strategic ties to underpin the Russian initiative is not to be underestimated. In an effort to underscore the importance of India's ties with Russia, Manmohan Singh had briefed President Putin about the US-India nuclear deal. Hence, the TAPS deal signals a strong revival of India's established civil nuclear energy co-operation with Russia.

However, Russia will only be able to undertake nuclear supplies to India when the American-supported move to relax existing NSG guidelines for India comes about. The Indo-US deal will act as an enabling agreement to resume Indo-Russian civil nuclear energy co-operation. Russia had provided a consignment of core enriched uranium for Tarapur five years ago which invited severe criticism from leading NSG members, including the US. When he met Mr. Fradkov on Thursday, Prime Minister Singh sought Russian support in the NSG for expeditious changes in the guidelines to accommodate India for civil nuclear energy co-operation. This effort will consolidate the bilateral defence co-operation that has been the traditional strength of the relationship.

The US acknowledges India's energy requirements for a growing economy and an expanding infrastructure but is uneasy with the response to this development. "We think the proper sequencing would be that if India needs nuclear fuel for its reactors at Tarapur...the proper way to do this would be to have the US Congress act and hopefully change our laws, have the NSG, more particularly, act and change NSG practices, and then countries - US, France, Russia - would be free to engage, at that point, in civil nuclear trade with India," Mr. Nicholas Burns, US Under Secretary of Political Affairs, said.

It is important for India to fulfill its obligations under the Indo-US deal on civil nuclear co-operation. The Russian initiative is being viewed by the US as a spanner in the works, which is "trying to solve the issue on a long-term basis and is "committed to providing a regular supply of fuel through the NSG," State Department spokesman Adam Ereli said.

India, however, insists that the proposed sale does not violate any international law and is within the framework of the NSG guidelines, a sentiment echoed by the Russian Prime Minister Mikhail Fradkov, who was on a visit to India. "We are cooperating on this matter. We have served this issue within international framework and it does not contradict international commitments," he said.