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