DEMARCHE DELIVERED TO AUSTRIA: IRANIAN LIGHT WATER

C O N F I D E N T I A L VIENNA 001342 SIPDIS SIPDIS DEPARTMENT FOR ISN, NEA AND EUR E.O. 12958: DECL: 05/22/2017 TAGS: PARM PREL EFIN KNNP IR AU SUBJECT: DEMARCHE DELIVERED TO AUSTRIA: IRANIAN LIGHT WATER REACTOR TENDER AND BANK SEPAH ASSETS REF: STATE 66574 Classified By: Acting Economic-Political Counselor Phillip R. Nelson for reasons 1.4 (b) and (d). GoA Closes Iran's Bank Austria/Creditanstalt Account -------------- -------------- ¶1. (C) EconPolCouns and EconUnit Chief delivered reftel talking points on May 16 to Kurt Pribil and Heinrich Traumueller, Co-Executive Directors of Austria's Financial Market Authority. Traumueller characterized the Iranian Mission's use of its diplomatic account as a repository for bidders on the light water reactor as "serious." Traumueller promised to discuss the issue with the Ministry of Finance in advance of our March 21 with the MoF. ¶2. (C) On May 21, EconUnit Chief followed up with Thomas Wieser, Director General of the Ministry of Finance's Economic Policy and Financial Markets Directorate, and with Birgit Ertl, Wieser's Assistant. Ertl noted that, several weeks ago when the GoA became aware that the Iranian Mission was using its Bank Austria/Creditanstalt (BA/CA) account as a repository for bids, the Ministry of Foreign Affairs had raised its concerns directly with the Iranian Ambassador. Ertl confirmed that BA/CA had closed the account the week of May 14-18. Bank Sepah Assets in Austria -------------- ¶3. (C) We also raised reftel concerns about timely implementation of UNSCR 1747, specifically concerns about asset flight from Bank Sepah accounts in Austria prior to the implementation of UNSCR 1747 sanctions. Wieser replied that the Austrian National Bank had frozen the Sepah accounts on the basis of an April 20 European Council regulation. Wieser said he was not aware of any asset flight from the Sepah accounts in Austria. McCaw