UKRAINE/NIAG 6167: PAKISTAN HEAVY WATER PURCHASE

S E C R E T KYIV 004469 SIPDIS SIPDIS DEPT ALSO FOR ISN, EUR/UMB, EUR/PRA E.O. 12958: DECL: 12/05/2016 TAGS: ETTC MNUC PARM PREL KNNP MTCRE CH PK UP SUBJECT: UKRAINE/NIAG 6167: PAKISTAN HEAVY WATER PURCHASE AND CHINESE INTEREST IN RD-120 ROCKET ENGINE REF: A. STATE 193028 ¶B. STATE 190802 Classified By: Political Counselor Kent Logsdon for reasons 1.4(b,c,d) ¶1. (S) We relayed inquiries regarding Ukrainian State Enterprise Ecoantilid's potential sale of heavy water to the Karachi Nuclear Power Plant in Pakistan (ref A) and Ukrainian Yuzhnoye company's potential cooperation with Chinese 11 Institute on development of the RD-120 liquid rocket engine (ref B). ¶2. (S) During the December 5 meeting with MFA Arms Control and Military Technical Cooperation Department Counselors Igor Kyzym and Oleh Belokoles, Kyzym acknowledged that Yuzhnoye could be pursuing commercial arrangements with Chinese enterprises under a Ukraine-China agreement on cooperation in space development. He would follow up on our information with the National Space Agency of Ukraine. ¶3. (S) Both Kyzym and Belokoles, however, expressed strong skepticism about the accuracy of the information regarding cooperation with Pakistan. First of all, they did not recognize the name of the firm. Second, Kyzym had been in Pakistan two weeks earlier and had a discussion with the Ukrainian ambassador to Pakistan on the impact of arms and export control regimes on commercial arrangements with Pakistan. The Ukrainian ambassador, an Urdu speaker, was extremely knowledgeable on all aspects of Ukraine-Pakistan relations and had not mentioned any such pending deal. Third, such a sale would need interagency clearance and Kyzym and Belokoles had no recollection of any recent request having to do with Pakistan. Nonetheless, Kyzym acknowledged that a Ukrainian firm could be pursuing an arrangement under-the-table and said he would follow up on our inquiry. ¶4. (U) Visit Embassy Kyiv's classified website: www.state.sgov.gov/p/eur/kiev. Gwaltney