Uranium enrichment comes within "processing" under Euratom Treaty: judgment (C-123/04, C-124/04)

September 13, 2006

Luxembourg, 12 September 2006

C-123/04 and C-124/04, Industrias Nucleares do Brasil SA, Siemens AG v UBS AG (C-123/04), Texas Utilities Electric Corporation (C-124/04)

Judgment of the Court of Justice (Grand Chamber) on 12 September 2006 (link to English version when available).
Full text of this Judgment

EAEC Treaty - Supplies - Property ownership - Enrichment of uranium on the territory of the Community by a national of a third State
The cases were referred to the Court by the Oberlandesgericht Oldenburg (Germany)

The Court ruled:

1. The first paragraph of Article 75 EA is to be interpreted as meaning that the terms 'processing', 'conversion' and 'shaping' in that provision also encompass uranium enrichment.

2. Article 196(b) EA is to be interpreted as meaning that an undertaking having its seat outside the territories of the Member States does not pursue, within the meaning of that provision, all or any of its activities in those territories if it maintains with an undertaking having its seat in those territories a commercial relationship either for the supply of raw material for the production of enriched uranium and the procurement of enriched uranium or for the storage of that enriched uranium.

3. Article 75(c) EA is to be interpreted as meaning that the material supplied for treatment, conversion or shaping need not be identical to the material subsequently returned and that it is sufficient for the processed material to be commensurate in terms of quality and quantity with the material supplied, although it may be impossible, in some cases, to attribute the material returned to the material supplied. In addition, the provision is to be interpreted as meaning that the application of Article 75(c) EA is not precluded where the undertaking carrying out the process acquires title to the raw material on delivery and therefore has to transfer title to the enriched uranium back to the other contracting party on completion of the process.

4. Article 196(b) EA is to be interpreted as meaning that an undertaking does not pursue all or any of its activities in the territories of the Member States within the meaning of that provision if it acquires or disposes of enriched uranium stored there.

5. Article 73 EA is to be interpreted as meaning that it does not apply to agreements concerning enriched uranium stored within the territory of the European Atomic Energy Community where all the parties to the agreement are nationals of third States.

European Court of Justice
Judgment 12 September 2006

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