UKRAINE: POTENTIAL SALE OF CIVIL AIRCRAFT TO

C O N F I D E N T I A L KIEV 003751

SIPDIS

SIPDIS

DEPT ALSO FOR EUR/UMB AND EUR/PRA

E.O. 12958: DECL: 09/28/2016
TAGS: PREL PARM MARR MASS ETTC VE UP
SUBJECT: UKRAINE: POTENTIAL SALE OF CIVIL AIRCRAFT TO
VENEZUELA

REF: A. KIEV 3672


B. STATE 155336

Classified By: Deputy Political Counselor George Kent for reasons 1.4(b
,d)


1. (C) On September 28, we met with MFA Arms Control and
Military Technical Cooperation Department Director General
Volodymyr Belashov and Counselors Igor Kyzym and Oles
Belakoles at Belashov's request. Belashov thanked us for the
briefing on USG policy on arms transfers to Venezuela (ref
A). He said, in the spirit of transparency and close
cooperation on export control issues, he wished to inform us
that Ukrainian companies would initiate discussions regarding
a potential sale of civilian aircraft to Venezuela. The
interagency Presidential Committee on Military-Technical
Cooperation and Arms Control had met September 27 and, after
a long and detailed discussion, had decided to authorize the
negotiations. (Note: In earlier meetings, Belashov had told
us that Ukrainian companies must get further authorizations
from the interagency committee to sign a contract and again
when executing the contract.)


2. (C) Belashov noted Ukrainian aviation companies
desperately needed to conclude sales. The possible Venezuelan
deal would mean the sale of a "couple dozen" strictly
civilian aircraft and revenue of approximately U.S. $200
million. The aircraft under consideration were the AN-74 and
AN-140. Belashov said the aircraft were for strictly civil
aviation purposes, but he acknowledged that any aircraft
could be also be used for military purposes. MFA would
provide a further update if the discussion result in a
possible purchase agreement. (Note: An internet website
describes the AN-74 as a light transport, multipurpose
aircraft designed to carry cargo and passengers for short and
medium distances under a wide range of climatic conditions.
The AN-140 is described as a short-range turboprop that can
carry up to 52 passengers.)


3. (SBU) The MFA officials also noted that, if Ukraine did
not provide the aircraft, Venezuela could obtain them from
other countries. On the other hand, if a Ukrainian company
sold the aircraft, the Ukrainian government could establish
and maintain effective control over any possible after-sales
transfers and related services (e.g., maintenance, repair,
training).


4. (U) Visit Embassy Kiev's classified website:
www.state.sgov.gov/p/eur/kiev.
Taylor