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