Global investment guru and billionaire investor Warren Buffett has pledged $50 million to the UN agency IAEA to help the global watchdog to create a nuclear fuel bank to stop proliferation of weapons.

The UN's International Atomic Agency (IAEA) has recently approved to form the bank at an estimated cost of $150 million. The agency will provide the fuel to those countries abiding by IAEA rules and obligations.

The bank is aimed at reducing the proliferation of nuclear weapons in the guise of energy needs by several countries around the world. It will provide an alternative to those countries which otherwise seek nuclear fuel from those countries which are ready to provide but with riders or clandestinely. It is also expected to bring down the nuclear smuggling that was noticed early this decade.

Buffett told The New York Times the nuclear fuel bank may help stop proliferation of nuclear weapons and bring down risks associated with the global problem.