MTAG/UKRAINE: UKRAINIAN EXPORT ACTIVITY TO IRAN

S E C R E T KIEV 001921 SIPDIS SIPDIS DEPT ALSO FOR T, ISN, EUR/UMB, EUR/PRA; NSC ALSO FOR DAVID STEPHENS AND DAMON WILSON E.O. 12958: DECL: 05/18/2016 TAGS: PARM PREL ETTC MTCRE MNUC IR UP SUBJECT: MTAG/UKRAINE: UKRAINIAN EXPORT ACTIVITY TO IRAN AND RELATED DEMARCHES DELIVERED REF: A. STATE 78661 ¶B. STATE 79031 ¶C. STATE 80022 Classified By: Ambassador for reasons 1.4(b,d) ¶1. (S) Stressing the importance of this issue, Ambassador passed ref A talking points to Foreign Minister Borys Tarasyuk during his May 17 farewell call. Tarasyuk said he would pass the information to the relevant officials in his ministry and pay personal attention to the preparation of a response. ¶2. (S) On May 18, we followed up with MFA Arms Control and Military-Technical Cooperation Department Director Volodymyr Belashov and Counselor Igor Kyzym. Belashov, looking serious, said the Ukrainian government strictly reviewed all applications for business with Iran and that, during his tenure on the Export Control Committee, he was aware of approximately eight refusals of requests for sales of hardware or services to Iran. When we pointed out that Zaporizhzhya Regional Foreign Economic Association (ref B) might be conducting business with Iran under the table, Belashov said the Ukrainian Security Services would investigate and, if this proved true, would open a criminal case against the firm. If the specialty steel were on Ukraine's list of controlled, dual-use exports, then the firm would be required to apply for an export license, Belashov noted. ¶3. (S) Belashov said the Ukrainian government could not restrict consultations and exploratory discussions regarding future business of the type that the Kiev Institute of Hydromechanics might be considering with Iran (ref C),but would review any potential sales that might result from such discussions. Nevertheless, MFA and other relevant Ukrainian government offices would follow up on the USG information. Belashov commented that the Ukrainian government was contemplating instituting stricter controls on all types of activity with countries subject to international restrictions on arms exports. ¶4. (U) Visit Embassy Kiev's classified website: www.state.sgov.gov/p/eur/kiev. Herbst