EXBS: Ukraine Advisor Monthly Reporting Cable

UNCLAS SECTION 01 OF 05 KIEV 001082 SIPDIS E.O. 12958: N/A TAGS: ETTC MNUC PARM PREL SUBJECT: EXBS: Ukraine Advisor Monthly Reporting Cable January - February 2006 ¶I. RED FLAG ISSUES ¶1. On October 1, 2004, ExBS Advisor requested that the Department of Homeland Security's Bureau of Customs and Border Protection (CBP) de-obligate fiscal year 2004 ExBS operational funds for use in fiscal year 2005. Despite numerous written and oral requests since then, the funds remain unavailable. ¶2. On June 13-17, 2005, CBP conducted International Border Interdiction Training-2 in Odesa for 24 Ukrainian Customs and Border Guard Officers. During the course of the class, the students were to be provided with individual tool kits that would help them in the training and in conducting regular examinations of vehicles and cargo. Due to inadequate numbers, the tool kits were not provided at the time of the training. Eight months after the training, on January 12, ExBS office was informed that tool kits were received by CBP. ExBS awaits information from CBP on the delivery of the toolkits to Kiev for distribution to the appropriate recipients. ¶3. ExBS office awaits information from CBP on delivery of approximately 200 individual tool kits, requested in 2004, to be deployed at border crossings. ¶4. In November 2004, the State Customs Service of Ukraine (SCSU) inquired about the status of a decision regarding procedures for repairing malfunctioning equipment (fiberscopes, radiation pagers and busters) provided by the U.S. Government as technical assistance. SCSU provided updated information on the U.S.-manufactured equipment, which is currently non-operational and requires repair or replacement, to ExBS. ExBS reiterates its request for instructions on arranging for repair or replacement. II. BROAD ITEMS OF INTEREST TO ADVISORS AND AGENCY MANAGERS Responsibility for border radiation control: There are discussions under way in the Government of Ukraine (GOU) regarding possible re-distribution of responsibilities for primary radiation control at ports of entry. The State Border Guard Service of Ukraine (SBGS),which was vested with such responsibilities in 2005, approached the Cabinet of Ministers of Ukraine with a request to give up responsibility for primary radiological control at Ukraine's borders. The SBGS proposed that the responsibility be transferred to the State Customs Service of Ukraine (SCSU). However, the Ministry of Environmental Protection (MEP) does not support this proposal; MEP suggests instead that all responsibilities related to radiation control be returned to MEP, which had the responsibility previously. III. COMPLETED ACTIONS FOR THE REPORTING PERIOD ¶A. SITE ASSESSMENTS AND MEETINGS DURING REPORTING PERIOD ¶1. On January 19, an ExBS representative met with Brent Eastman and Michael Stafford, U.S. Department of State (DoS),who traveled to Ukraine to take part in a meeting of the U.S.Ukraine Working Group for nuclear smuggling issues. The focus of the January 20 U.S.Ukraine meeting was to identify Ukraine's priority needs in the areas of safeguarding nuclear materials and preventing nuclear smuggling. ExBS briefed Stafford and Eastman on ExBS activities in Ukraine. General information was provided on the findings of border assessments conducted by the ExBS office in 20042005 at ports of entry along Ukraine's borders with Russia and Belarus. ¶2. On January 23, ExBS Advisor met with Volodymyr Yevseyev, Chief of the Directorate for Ecological Control at the State Border, MEP. ExBS had provided logistical support for Mr. Yevseyev's trip to Bachivsk for replacement of the control unit of the portal monitor. On October 12, the ExBS Office had received notification from the MEP about a failure of the stationary portal monitor control box installed at Bachivsk port of entry. The information was forwarded to the Department of Energy (DoE) for follow-up action. On December 1, the Embassy's DoE attache received the replacement control box; on January 27, the control unit was replaced. ¶3. On January 23, ExBS Advisor met with World Bank representative Mr. Zarnowiecki to discuss coordination of efforts to provide technical assistance to the GOU. The World Bank is implementing a project focused on Customs reform. ExBS Advisor provided brief information on ExBS activities as they relate to the SCSU. ¶4. On January 26, ExBS Advisor met with Andriy Laktionov, Deputy Chief of the Department for International Technical Assistance, Directorate for International Customs Cooperation of the SCSU. ExBS Advisor updated Laktionov on the status of delivery of 2 luggage-type X-ray units, 6 contraband detection kits, 160 radiation pagers, and 1130 individual tool kits purchased by the Department of State's Bureau for International Security and Nonproliferation, Office for Export Control Cooperation (ISN/ECC) through SAIC. The appropriate steps to officially register the project with the Ministry of Economy were also discussed. ExBS Advisor informed the SCSU about DoE-proposed training on the use of X-ray fluorescent metal analyzers on March 16-17. It is envisaged that two such units would be transferred to the SCSU immediately upon completion of the training. ¶5. On February 2, ExBS Advisor met with OSCE representatives to discuss assistance provided to the SBGS. OSCE is launching a project for Border Guard Service reform, which will mainly focus on enhancing the capacities of border guard units along Ukraine's southwestern border. ExBS Advisor provided a brief introduction to ExBS activities and how they relate to the SBGS. ExBS Advisor made recommendations to OSCE on coordinating its efforts with DoD's Proliferation Prevention Initiative (WMD-PPI). ¶6. On February 6, ExBS Advisor participated in the Embassy Border Security meeting chaired by the Deputy Chief of Mission (DCM). ExBS Advisor informed the participants of the results of the January 30-February 1 Integrity Awareness workshop held for SBGS officers and described the planned delivery of equipment to the SCSU. ¶7. On February 8, ExBS Advisor met with Dmytro Zavtur, the Chief of the Directorate for International Customs Cooperation, SCSU, to give an update on the planned delivery of equipment. ExBS Advisor proposed that the SCSU consider the possibility of holding an official turnover ceremony with the Ambassador and SCSU Chairman upon receipt and installation of the X-ray units. ExBS Advisor also informed Zavtur that, based on the results of the two Integrity Awareness Workshops held in Ukraine in November 2005 and January 2006 and feedback from their participants, ExBS had recommended that DoS consider conducting an executive level Integrity Awareness Workshop at the end of June 2006 for top management of the SCSU, the SBGS, the State Service for Export Control (SSEC),the Security Service of Ukraine (SBU),the Ministry of Interior (MOI), the National Security and Defense Council (NSDC),and Members of Parliament (MPs). DoS is currently studying this issue, and once the decision is made, the ExBS office will officially notify all the parties involved. Zavtur thanked the U.S. for the assistance being provided and requested U.S. Embassy support in SCSU efforts to obtain the status of a law-enforcement agency. Zavtur suggested that the SCSU is the only Customs agency in Europe which does not have such status, which would grant it the ability to conduct investigations and collect intelligence information related to customs offences. The Customs Code of Ukraine stipulates post-delivery audits; however prevailing legislation does not provide for such authority. ¶8. On February 15, ExBS Advisor met with Andriy Laktionov, Deputy Chief of SCSU's Unit for International Technical Assistance programs, Directorate for International Customs Cooperation, and Yuriy Drankovskyi, Senior Expert of the Directorate for Coordination of International Technical Assistance Projects of the Ministry of Economy, to discuss the registration of the project which would supply radiation pagers, contraband detection kits, individual tool kits, and X-ray units to the SCSU. ¶9. On February 23, ExBS Advisor accompanied DoS Contracting Officer Will Zehnder on a visit to the office of the Roma Ltd. Company to award contract number SOUP300-06-M-0102 for the supply of 334 computer workstations to the SCSU, with a total value of $400,000.00. ¶10. On February 24, ExBS Advisor accompanied Zehnder on a visit to the office of the BMS-Consulting Company to award contract number SOUP300-06-M-0103 for the supply of computer equipment to the SSEC, with a total value of $17,298.40. ¶11. On February 28, ExBS Advisor participated in a meeting with Zehnder and Director of the Roma Ltd. Company, Volodymyr Zhuravlyov, to sign Modification No. 001 to Contract No. SOUP300-06-M-0102 for an additional 100 computer workstations, with a total value of $120,000.00. ¶B. TRAINING CONDUCTED DURING REPORTING PERIOD ¶1. On January 30February 1, Commonwealth Trading Partners Inc., contracted to ISN/ECC, conducted Integrity Awareness Training for 29 Border Guard officers. Though the responses and feedback were very positive, the general level of cooperation on part of the trainees was noticeably lower than during the previous Integrity Awareness Workshop conducted in Kiev on November 16-18, 2005, for the officers of the State Customs Service of Ukraine. The participants pointed at differences in the legislative framework, which in some cases becomes a serious impediment in applying received knowledge and skills in practice. ¶C. EQUIPMENT DELIVERED DURING REPORTING PERIOD ¶1. On January 12, ExBS office received 160 radiation detection pagers, which were purchased by Science Applications International Corporation (SAIC) under a contract with ISN/ECC. The equipment was ordered based on the findings of the assessments conducted by the ExBS Office in 2004/2005 and will be deployed at the ports of entry along the Ukraine's borders with Russia and Belarus. Total cost of the indicated equipment is $205,120.00. The pagers were transferred to the State Customs Service of Ukraine (SCSU) on February 15. ¶2. On January 20, ExBS office received 6 contraband detection kits CT-30, which were purchased by SAIC under a contract with ISN/ECC. The equipment was ordered based on the findings of the assessments conducted by the ExBS Office in 2004/2005, and will be deployed at the ports of entry along the Ukraine's borders with Russia and Belarus. Total cost of the indicated equipment is $87,846.00. The contraband detection kits were transferred to the SCSU on February 15. ¶3. On January 26, ExBS Office received 10 GR-135 neutron identifiers. The units were ordered from CBP in 2004. The user manual and the software that allows read-out and management of the information on the computer are in English. On January 30, a request was made to CBP to arrange with the supplier for translation of the user manual and the software. Once the translated software and manuals are received the equipment will be transferred to the Ministry of Environmental Protection of Ukraine, Department for Ecological Control at the State Border. ¶4. On February 13, 1130 individual Gerber tool packs, which were purchased by SAIC under a contract with ISN/ECC, arrived in Kiev and were delivered to the SCSU warehouse. The equipment was ordered based on the findings of the assessments conducted by the ExBS Office in 2004/2005, and will be deployed at the ports of entry along the Ukraine's borders with Russia and Belarus. Total cost of equipment is $59,890.00. On February 15, ExBS Advisor and the SCSU representatives performed joint inventory of the tool kits and signed the statement of transfer. ¶5. On February 13, two X-ray luggage-type units Rapiscan- 524 arrived to Kiev Regional Customs. These units were supplied by SAIC under the contract with ISN/ECC. The X- ray units have been installed at the International Boryspil Airport, the main air gate to/from Ukraine. ¶D. IMMINENT TRAINING OR EQUIPMENT STATUS UPDATE ¶1. On February 23, DoS Contracting Officer, Will Zehnder, awarded contract No. SOUP300-06-M-0102 for supply of 334 computer workstations, to include a desktop computer, LCD monitor, laser printer, and UPS, to the State Customs Service of Ukraine. On February 28, Modification # 001 was signed for 100 additional workstations. It is expected that the equipment will be delivered to SCSU no later than September 1, 2006. The cost of the 434 computer workstations totaled $520,000.00. ExBS office is now working on getting this project registered with the Ministry of Economy of Ukraine to obtain VAT-exemption for the equipment to be supplied. ¶2. On February 24, DoS Contracting Officer, Will Zehnder, awarded contract No. SOUP300-06-M-0103 for supply of computer equipment, to include desktop computers, server, bar code reading and printing equipment, software, to the State Service of Export Control of Ukraine (SSEC). It is expected that the equipment will be delivered to SSEC no later than June 30, 2006. The cost of the equipment is $17,298.40. ExBS office is now working on getting this project registered with the Ministry of Economy of Ukraine to obtain VAT-exemption for the equipment to be supplied. The equipment was purchase based on the request received from the State Service of Export Control in November 2005. ¶3. In November, ExBS Advisor informed the State Service for Export Control of Ukraine (SSEC) experts of a proposed Administrative Enforcement Workshop developed by the U.S. Department of Commerce. Following brief description of the workshop ExBS Advisor provided materials of the course for review by the SSEC experts and requested their comments and decision as to applicability of the proposed course for the SSEC enforcement staff. On December 06, ExBS office received a letter from the SSEC in which they informed that the proposed training would not be applicable for their needs. Instead, they expressed interest in meeting with their U.S. counterparts to discuss their practical experience and existing challenges the U.S. experts face in the administrative enforcement process. ExBS Office is waiting for information form the U.S. Department of State as to the possibility of completing SSEC's request. ¶4. On February 01, State Customs Service of Ukraine notified ExBS Office about malfunctioning of the Linescan 207 Towcart unit deployed in Uzhgorod. The units were supplied by DoS in August 2004, delivered to / deployed at the ultimate locations in February 2005. Request for repair was forwarded to DoS and company manufacturer L-3 Communications. On February 17, L-3 Communications provided written guidance on how the problem can be fixed. The information was forwarded to SCSU for action. ¶5. The U.S. Coast Guard's (USCG) Maritime Law Enforcement Training, which includes Advanced Maritime Law Enforcement Boarding Officer Course and Maritime Law Enforcement Instructor Course, scheduled for June 13-July 1 was postponed to allow for the addition of materials on export controls. New dates will be determined once USCG completes the ongoing revisions to the training materials. ¶E. SIGNIFICANT DEVELOPMENTS IN EXPORT CONTROLS, NONPROLIFERATION, OR RELATED BORDER SECURITY None HERBST