Bush administration freezes Russia nuclear pact

By Sue Pleming

WASHINGTON (Reuters) - President George W. Bush on Monday froze a lucrative civilian nuclear pact with Russia, the first big penalty imposed on Moscow after its war with Georgia but one that can be reversed.

"The president intends to notify Congress that he has today rescinded his prior determination regarding the U.S.-Russia agreement for peaceful nuclear cooperation, the so-called 1-2-3 Agreement," said Secretary of State Condoleezza Rice.

While Bush's decision to withdraw the agreement from congressional review was seen as punitive, it was also meant to preserve the deal, a senior U.S. official said.

That official said the administration wanted to ensure the accord did not go to a vote in Congress, where it could have been rejected following Russia's military action in Georgia. If rejected, it would be difficult for a new presidential administration to pursue the agreement in the future.

"It (the nuclear accord) was likely to be killed simply as a protest in the Senate and so therefore what we are doing is rescinding the certificate that he (President Bush) had to give due to the situation in Georgia," said the senior U.S. official, who spoke on condition of anonymity.

"It is something that we can reverse at any time either by sending a new certificate or lifting this action," he added. "What it does is freezes the status of it."

Bush or a future president could resubmit it for consideration by Congress, which would have 90 legislative days to block it.

Rice also made clear the decision was not final.

"We make this decision with regret. Unfortunately given the current environment the time is not right for this agreement. We will reevaluate the situation at a later date as we follow developments closely," her statement said.

In Moscow, a nuclear official also said it was the only way to save the deal and the White House had explained this.

"We have recently received a letter from the White House where they mentioned that this was the only way to save this agreement for the new administration," the official said.

"Otherwise the agreement would be definitely blocked in the current political conditions which would have meant practically starting the entire work from the beginning again," the source said.

'WISE DECISION'

Several U.S. lawmakers came out in support of the move.

"This was a wise decision," said California Rep. Howard Berman, Democratic chair of the House of Representatives Foreign Affairs Committee. "Congress has little appetite at the moment for new and sweeping measures that would assist Russia."