RUSSIA NOTIFIED OF ISNPA SANCTIONS

S E C R E T MOSCOW 013175

SIPDIS

SIPDIS

DEPT FOR ISN/MTR, EUR/PRA, AND EUR/RUS

E.O. 12958: DECL: 12/29/2016
TAGS: PARM MTCR PREL MNUC ETTC RS
SUBJECT: RUSSIA NOTIFIED OF ISNPA SANCTIONS

REF: STATE 203587

Classified By: Deputy Chief of Mission Daniel A. Russell. Reasons 1.4 (
B/D).


1. (S) DCM delivered on December 29 the notification of new
U.S. sanctions levied on four Russian entities for violating
the Iran-Syria Non-Proliferation Act. In delivering reftel
points, the DCM explained the sanctions reflected our serious
concern about potentially destabilizing arms transfers and
had been based on a thorough U.S. interagency review. The
USG would publish in the Federal Register next week a list of
new sanctions against entities in ten countries, including
Russia.


2. (S) Igor Neverov, Director of the Foreign Ministry's
North America Department, replied that the U.S. action was
not unexpected, given the repeated recent approaches by U.S.
officials on arms transfers and potential sanctions. That
said, the Russian Government would react negatively to the
latest round of sanctions, especially in view of their
harmful effect on bilateral relations. Neverov questioned
both the sanctions and their timing coming on the heels of
successful passage of UNSC Resolution 1737 on Iran and a very
positive call between Presidents Bush and Putin. He noted
continuing Russian efforts to convince the U.S. that
sanctions had been incorrectly applied to Rosoboronexport
last July.


3. (S) Neverov repeatedly characterized the sanctions as an
extraterritorial application of U.S. law, stated that Russian
entities were required to comply with Russian law and its
export control regime, and pointed out that the cited
conventional weapon system transfers were not related to WMD.
Speaking preliminarily, he questioned whether the cited
transfers violated any international sanction or prohibition.
Neverov pointed out that Russia itself remained concerned
about arms transfers and noted that the transfer of the
Russian S-300 system to Iran was still under review.


4. (S) Neverov said that an official Russian response to
this latest imposition of sanctions would be forthcoming
after the interagency community had a chance to assess U.S.
claims. He noted the absence of information on the cited
Rosoboronexport case and requested details.


5. (S) COMMENT: Neverov's private preliminary reaction was
predictable and measured. The public political reaction may
be less so. A response to his request for more details on
the Rosoboronexport case would be very welcome to help us
make the case for sanctions.
BURNS