UKRAINE REQUESTS USG SUPPORT FOR UKRAINIAN-BRAZILIAN SPACE

C O N F I D E N T I A L SECTION 01 OF 02 BRASILIA 001652

SIPDIS

STATE FOR WHA, IIP

E.O. 12958: DECL: 12/08/2018
TAGS: PREL ETTC KTIA TSPA TPHY NASA UP RS BR
SUBJECT: UKRAINE REQUESTS USG SUPPORT FOR UKRAINIAN-BRAZILIAN SPACE
LAUNCH JOINT VENTURE AT ALCANTARA

Classified By: Deputy Chief of Mission Lisa Kubiske, Reason 1.4 (b)
and (d)

REF: BRASILIA 1590


1. (C) SUMMARY. The Ukrainian Embassy in Brasilia is urging the USG
to reconsider its earlier position and now support the
Ukrainian-Brazilian space launch venture that will operate out of
Alcantara, allowing U.S. satellite firms to benefit from these
facilities. While the Ukrainians noted some possible commercial and
other benefits to the United States, they stressed that the principal
reason for the USG to agree to this request is to help keep the
Russians out of the space launch field in Brazil. Post would
appreciate Washington's guidance on how to respond to the Ukrainians
about this request. END SUMMARY.


2. (C) The Ukrainian Defense Attache in Brasilia, Brazil, requested a
meeting with Embassy staff to discuss space cooperation.
Accordingly, on December 12 Assistant Air Attache Mark Harrington and
Science Counselor Richard Driscoll met with Ukrainian Ambassador
Volodymyr Lakomov, Oleksandr Serdyuk, the General Director for
Alcantara Cyclone Space (a Ukrainian-Brazilian joint venture),and
the Rustam Akhunov, First Secretary at the Ukrainian Embassy. The
Ukrainians want USG support for the Alcantara project. They noted
that when Ukraine had raised the subject earlier with the USG that
the response had been that we would not support (though not
necessarily oppose it). Now, Ukraine would like the USG to revisit
that decision.


3. (C) Serdyuk outlined three principal reasons why the USG should be
supportive of the Ukraine-Brazil project. First, he said that
Ukraine could use its influence with the Brazilian Congress to obtain
approval for the long-stalled U.S.-Brazil space cooperation agreement
regarding Alcantara. When asked to elaborate, he said there are many
in the Brazilian Congress who are friendly towards Ukraine and he
could win them over to support ratification of the agreement with the
United States. Second, he noted that Ukraine was working with a U.S.
firm, Orbital Science, hinting that if this project ever got off the
ground that the U.S. firm Orbital Science could benefit commercially.
Also, he said U.S. satellite firms may find it much less expensive
to use the Alcantara facility than other options. He estimated a
cost savings of up to 30 percent. Third, the Ukrainians repeatedly
emphasized that if this space cooperation activity with Brazil did
not start making some headway that the Brazilians would turn to the
Russians waiting in the wings. (SEE REFTEL ABOUT RUSSIAN PRESIDENT
MEDVEDEV'S RECENT VISIT TO BRAZIL.)

ALCANTARA UPDATE


4. (C) The Ukrainians briefed Embassy officers on developments at
Alcantara. Serdyuk highlighted the ideal location of this launch
facility, which was at 2.3 degrees South and so, less expensive for
launching satellites into geostationary orbits. The Ukrainians have
a launcher, the Cyclone 2, which can carry a payload of up to 1,600
kilograms or 5.3 tons into orbit. Ukraine will provide the launch
vehicles in this joint venture; Brazil will provide basic
infrastructure, such as seaport, airport, and roads. They both would
work on construction of the launch site. Following a serious
accident at the Alcantara site on August 22, 2003, which put the
joint venture on hold for years, both sides are now trying to move
forward. Brazil has been grappling with a land title problem because
a local community descended from runaway slaves (called a quilombo)
has claimed the original site. Serdyuk reported that the Brazilian
government has decided to construct a new launch site in a nearby
locale, abandoning the initial site. The Brazilian side of
activities at Alcantara is handled by CTA, which is an entity of the
Brazilian Air Force.


5. (C) The Ukrainians are aiming to launch their first commercial
payload from the new Brazilian site in 2011, which would be an

BRASILIA 00001652 002 OF 002


Argentine satellite, and expect another Argentine satellite in 2012,
as well as some demand from Brazil Telecom.

COMMENT


6. (C) The Ukrainians want to know if the USG will reconsider its
earlier decision and agree to support the Ukraine-Brazil joint
venture by allowing them to launch U.S. satellites. While the
Ukrainians highlighted the benefits to the United States, their
principle argument was that if the USG doesn't take this step, then
the Russians will fill the void and become the chief partner for
Brazil on space cooperation. As noted in REFTEL, Brazil-Russia space
launch cooperation has high level political support. Ukrainian
protestations notwithstanding, it is unlikely that Brazil sees
cooperation with Ukraine and Russia as an either/or proposition.


7. (U) Post would appreciate Washington's guidance on how to respond
to the Ukrainian request for USG support or involvement in the
Ukrainian-Brazilian space launch joint venture.

KUBISKE