NIAG 9041: ALLEGED TRANSFER OF AUSTRIAN-ORIGIN CENTRIFUGAL PUMPS TO IRANIAN ENTITY

S E C R E T VIENNA 000516



SIPDIS



E.O. 12958: DECL: 11/24/2018

TAGS: PARM, PREL, MNUC, AU, IR

SUBJECT: NIAG 9041: ALLEGED TRANSFER OF AUSTRIAN-ORIGIN

CENTRIFUGAL PUMPS TO IRANIAN ENTITY



REF: A. A) STATE 041458

B. B) FROATS-FELIPE EMAILS



Classified By: ECONPOL Counselor J. Dean Yap. Reason: 1.5(b)



1. (S) SUMMARY: Neither the GoA nor Andritz (the Austrian

manufacturer in question) know of any sale/transfer of

nuclear-industry relevant pumps to Iranian clients. END

SUMMARY.



2. (S) EconChief delivered reftel demarche April 28 to

interlocutors in Austria's Economic Ministry and Foreign

Ministry. MinEcon and MFA representatives acknowledged the

seriousness of allegations that an Austrian company (Andritz

AG) would make available to Iranian clients any technology

that could be subverted to promote Iran's covert nuclear

program. MinEcon also expressed concern about the alleged

role of a sham end-user (Iran's

Surena Company),but pointed out that Andritz might not be

obligated to apply for a license, since the pumps in question

were not controlled under the Nuclear Suppliers' Group (NSG).





3. (S) Later on April 28, a MinEcon representative (Hans

Schramml) contacted EconChief with an interim reply:

-- Andritz representatives say that the company has no

dealings with Surena, nor with ESNICO/SNIKO.

-- Andritz has not sold centrifugal pumps to any Iranian

clients, nor have there been expressions of interest by

Iranian customers

-- The GoA requests any additional information the USG can

provide to help identify the suspected transaction -- was a

third party or third country involved?



4. (S) In a follow-up conversation on April 30, Schramml

reported that:

-- Andritz has certified to the GoA in writing that it knows

of no sale/transfer of nuclear-industry relevant pumps to

Iranian clients (nor any solicited business),including

centrifugal pumps and cooling-system pumps.

-- the GoA has flagged Surena as a "red-category" end-user in

its export control approval process, meaning any future sales

to Surena would likely be refused.

-- the GoA cautioned Andritz to watch for third parties (such

as in the U.A.E.) who might act as intermediaries in such a

sale.



The MinEcon representative opined that Andritz

representatives

are very diligent in their compliance efforts, based on the

GoA's experience so far, and noted that Andritz sells

primarily to paper/pulp manufacturers in Iran.

KILNER