2/20/2003: UKRAINE UNDER PRESSURE FOR
ALLEGED IRAQ DEAL
The Omnibus Appropriations Act for Fiscal Year 2003, signed into law by
President Bush on 20 February 2003, states that no assistance under the Act may
be provided to Ukraine "unless the Secretary of State determines and certifies
to the Committees on Appropriations that, since September 30, 2000, the
Government of Ukraine has not facilitated or engaged in arms sales or arms
transfers to Iraq…." The provision states that this ban shall not apply to US
assistance to combat infectious diseases, nuclear safety programs and
activities, assistance for victims of trafficking in persons, and to
nonproliferation and disarmament programs.[1] The provisions in the Act come in
response to allegations that Ukraine secretly sold passive radar stations to
Iraq.
President Kuchma's
ex-bodyguard, Nikolay Melnichenko,
fled Ukraine in late 2000 with hundreds of hours of recordings that suggest that
President Kuchma
has committed an array of high crimes, including illegal arms sales. One of the
recordings allegedly documents a conversation between Kuchma
and Valeriy Malev,
then the director of Ukrspetseksport (Ukraine's
arms export agency), who died in a
mysterious car accident in March 2002. In the recorded conversation, Malev
reportedly tells Kuchma that Iraq wants to buy four Kolchuga passive radar
stations for a total of $100 million through a Jordanian intermediary. Malev
suggests that the stations be disguised to look like legitimate civilian cargo,
and that Ukrainians with forged passports be sent to Iraq to oversee their
installation. Kuchma
is reportedly heard approving the illegal sale to the embargoed country. In late
September 2002, the US State Department declared the tape authentic, and accused
the Ukrainian leader of approving illegal arms sales. Kuchma
denied the accusation.[2]
In mid-October 2002, a US-British team
of experts arrived in Ukraine for a one-week investigation. The experts
concluded that they were unable to prove that Ukraine transferred radar systems
to Iraq "under openly declared contracts," but that "covert or illegal arms
trade, particularly with the complicity of third parties, remain[ed] a credible
possibility."[3] US State Department officials argued that "They [the
Ukrainians] failed to provide our US-UK
team with satisfactory evidence that the transfer to Iraq did or could not have
taken place. So the question is still open."[4] In 2002, the State
Department also suspended $54 million of aid to Ukraine as part of a wider
review of US policy towards that country.[2]
Sources:
[1] Consolidated Appropriations Act for FY2003, Div. E, Title III, Assistance
for the Independent States of the Former Soviet Union, section (f).
[2] Victor Zaborsky, "Pressure mounts on Ukraine to reveal arms trade details,"
Jane's Intelligence Review, December 2002.
[3] Tim Vickery, "U.S., Britain seek more answers after arms experts' visit to
Ukraine," Associated Press, November 6, 2002; in Lexis-Nexis Academic Universe,
http://www.lexis-nexis.com.
[4] "U.S. dissatisfied with Ukrainian cooperation on Iraq radar flap," Associated
Press, November 6, 2002; in Lexis-Nexis Academic Universe,
http://www.lexis-nexis.com.
{Entered 3/5/2003 KB}
12/24/2002: UKRAINE TIGHTENS CONTROLS
ON DUAL-USE TRANSFERS
On 24 December 2002, Ukrainian President Leonid Kuchma
signed the edict On Additional Measures to Improve Control in the Area of
International Military and Technical Cooperation. The edict is aimed at
enhancing military cooperation with foreign countries while simultaneously
increasing control over international transfers of military and dual-use goods.
One of the main changes introduced by the edict concerns the implementation of
UN sanctions. The State Service for Export
Control (SSEC)
and other executive agencies are now authorized to implement UN sanctions on
foreign countries as soon as such sanctions are announced by the Ministry of
Foreign Affairs. Previously, the
SSEC and executive agencies had
to wait for an official ruling from the Cabinet of Ministers before implementing
UN sanctions.[1,2]
Another important modification deals with the development and implementation of
Ukraine's export control strategy. For instance, the edict requires draft
presidential edicts on military and technical cooperation and export control to
be submitted for consideration to the
Presidential Committee for Policy on Military-Technical Cooperation and Export
Control. Previously the Committee did not review draft edicts. In addition,
under the 24 December edict, responsibility for the implementation of state
policy for international military and technical cooperation and export control
falls under the presidential administration's Main Directorate for Judicial
Reform. However, the edict also modified the membership of the Committee by
adding representatives from the Security Service and the Ministry of Defense,
suggesting that the Kuchma
Administration intends to increase reliance on the special services for implementing state
policy on military and technical cooperation and export control.[3]
Important changes were also introduced to the licensing process. Both the time
period in which agencies are to provide recommendations to the SSEC
regarding license applications and the time period for the SSEC
to grant or reject license applications have been reduced. In addition, the SSEC
must submit quarterly reports on exports of weapons and dual-use goods to the
president, the Customs Service, and
the State Committee for Statistics. The SSEC
is also to submit quarterly reports and proposals for improving its performance
to the president and the Council for National Security and Defense.[1,2]
Sources:
[1] "Prezident Ukrainy podpisal Ukaz 'O
dopolnitelnykh merakh po usovershenstvovaniyu kontrolya v sfere mezhdunarodnogo
voyenno-tekhnicheskogo sotrudnichestva,'" President of Ukraine Web Site,
http://www.president.gov.ua/rus/activity/122420436.html.
[2] Interfax-Ukraine, 27 December 2002; "Ukraine tightens controls in military
cooperation," BBC Worldwide Monitoring, 27 December 2002; in Lexis-Nexis
Academic Universe, http://www.lexis-nexis.com.
[3] Defense-Express Web Site, 26 December 2002; in "Ukraine's special services
gain greater role in arms trade," BBC Worldwide Monitoring; in Lexis-Nexis
Academic Universe,
http://www.lexis-nexis.com. {Entered 3/5/2003 KB}
9/25/2002: US CURBS AID TO KIEV OVER
ALLEGED RADAR SALE TO IRAQ
The US government announced the temporary
suspension of $55 million in aid to Ukraine after it was alleged that Ukrainian President Leonid Kuchma
approved the sale of the Kolchuga advanced radar system to Iraq in July 2000.
The Ukrainian government denies that it sold Kolchuga
radar systems to Iraq. If it is proven that the alleged sale took place, Ukraine
could be further penalized under US law and under the terms of the international arms embargo imposed on
Iraq by the United Nations.
10/23/2001: US TO FUND EXPORT CONTROL
INITIATIVES The Ukrainian Ministry of
the Economy and the US
Department of Defense have signed an agreement whereby the United States
will provide $4 million annually to Ukrainian export and border control
entities to prevent the illegal transfer of WMD and nuclear technologies
from Ukraine. The package will include technical
assistance to the State Service for Export Control, the
Customs
Service, and the State Committee for Border
Security. In 2001, the
United States will spend $750,000 to improve the computer system of the
State Service for Export Control and will provide $1 million to the Customs
Service and border guards to fund inspections of trucks. The United
States is also considering supplying Ukraine with radiation detection
equipment.
["SShA budut kontrolirovat ukrainskiy
eksport vooruzheniy," 23 October 2001, Bigmir.net Web Site, http://news.bigmir.net/index.php/1/26730/.]{Entered
11/1/2001 KB}
9/2001: UKRAINE PLACED ON INTERNATIONAL
BLACKLIST FOR MONEY LAUNDERING In September
2001 Ukraine became the 19th country to be added to a list of countries that
does not cooperate in money laundering prevention. According to the OECD
Financial Action Task Force on Money Laundering, which maintains the list,
Ukraine lacks a
system for reporting suspicious transactions to international financial
institutions. In addition, the country's financial system lacks customer
identification provisions.
[Financial Action Task Force on Money Laundering, "Developments in
Non-Cooperative countries and Territories," OECD Web Site, http://www1.oecd.org/fatf/pdf/PR-20010907_en.pdf,
7 September 2001.]{Entered 10/26/2001 KB}
10/99: OFFICIAL DESCRIBES CHANGES IN
DERZHEKSPORTKONTROL The October 1999 issue of the Ukrainian publication
International Security contained the transcript of an interview with
Oleksander Hryshutkin, Deputy Chairman of the
State Service for Export Control
(Derzheksportkontrol), who described
the creation of three new departments at his agency: one department
provides support to Ukraine's participation in multilateral international
regimes; a second department advises Ukrainian exporters of arms and sensitive
technologies so as to avoid the sale of such items to unstable regions; a
third department develops recommendations for further improvements of the
country's export control system. According to Hryshutkin, other subunits
of Derzheksportkontrol have been granted more authority to conduct end-use
inspections.
["'Shooting' Exports," International Security, Vol. 1,
October 1999, Center for Army, Conversion, and Disarmament Studies Web Site, http://www.niss.gov.ua/cacds/magazine/info.htm.]
{Entered 9/25/2001 KB}
9/24/99: UKRAINE PARTICIPATES IN NIS EXPORT CONTROL CONFERENCE The Ukrainian Export Control Service took part in an export control conference
held in Moscow on 24 September 1999 that was sponsored by University of
Georgia's Center for
International Trade and Security, Russia's Institute for World Economy and
International Relations, and the Moscow-based Center on Export Controls.
Current NIS export control issues were covered, including a review of the past
several years as well as recommendations for the future. The conference
focused particularly on national export control systems, participation in
international regimes, and cooperation both internationally and within the NIS
on export control issues.
["Moscow Export Controls Conference: Assessments and
Recommendations," The Monitor, Fall/Winter 1999, Vol. 5-6, No.
4-1.]{Entered 5/19/2000 GD}
9/99: NATIONAL EXPORT CONTROLS PREVENTED
TRANSFER ABROAD OF NUCLEAR AND MISSILE MATERIALS In a 24 September 1999 interview, Oleksandr
Hrishutkin, Deputy Head of the State Service of Export Controls of Ukraine,
said that in 1999 there were no more than 10 occasions when his organization
had to prohibit the export of sensitive goods. All the cases
involved materials that could be used in nuclear or missile development
programs. According to Hrishutkin, every year the service receives
5,000-8,000 applications for export licenses. He also said
that only 1-1.5% of all Ukrainian exports are subject to export
controls.
["Sistema eksportnogo kontrolya
chuvstvitelnykh tovarov ne vliyayet negativno na eksport Ukrainy,"
UNIAN, 20-26 September 1999, No. 038 (074).] {Entered 11/16/2001 EF}
6/25/99: UKRAINE TO AUTOMATE ITS EXPORT CONTROL
SYSTEM According to the head of the State Export Control
Service of Ukraine, General Valeriy Hubenko, Ukraine is planning to automate
its export control system. The automated system should reduce processing
time for license applications and increase the efficiency of the country's
export control entities.
[UNIAN, 18 June 1999; in "Kiev to automate export
control," Lexis-Nexis Academic Universe, http://www.lexis-nexis.com.]{Entered
9/24/2001 KB}
4/27/99: NO ILLEGAL NUCLEAR TRANSFERS IN
1998 According to Oleksandr Hryshutkin, deputy head of the
State Export Control Service of Ukraine,
there were no illegal transfers of nuclear technologies from Ukraine in 1998.
About 50 Ukrainian enterprises are capable of producing nuclear materials or
nuclear-related equipment or of transferring nuclear technology.
[UNIAN, 27 April 1999; in "Official: No Export of Nuclear Technologies Last
Year," FBIS Document FTS1999042001745.]{Entered
9/24/2001 KB}
3/22/99: NEW COMMISSION CREATED TO PROMOTE
UKRAINIAN ARMS SALES On 22 March 1999, the news agency DINAU reported
that a new permanent commission on military-technical cooperation had been
set up within the National Security and Defense Council. The commission will
assume the responsibilities of the interdepartmental commission for export
supervision policy and will oversee Ukrspetseksport, the
State Export Control
Service of Ukraine, and other state bodies in the military exports sphere.
The commission's task will be to promote exports of Ukrainian arms.
[DINAU, 22 March 1999; in "Ukraine:
New Body Set Up to Boost Arms Exports," FBIS Document
FTS19990322001564.] {Entered 12/3/2001 EF}
5/98: UKRAINE BECOMES MEMBER OF MTCR Ukraine formally became a member of the Missile Technology Control Regime
(MTCR) at a meeting of the MTCR's contact group in Paris. For more
information on Ukraine's position with respect to accession to the MTCR
please see the overview Ukraine, Bushehr,
and the MTCR.
[DINAU News Agency, 29 May 1998; in BBC Summary of World
Broadcasts.] {Entered 1/28/99 SP}
3/16/98:
QUADRINATIONAL AGREEMENT FOCUSES ON SHIPPING OF NUCLEAR MATERIALS On 16 March 1998 an agreement was reached
between Ukraine, Slovakia, Russia, and the Czech Republic concerning the
shipping of nuclear materials.[1] The agreement, which adheres to
IAEA regulations for shipping nuclear materials, was signed by Ukrainian
Ambassador to the Czech Republic Andriy Ozadovskyy on behalf of the Ukrainian
Government.[2]
Sources: [1] Interfax, 26 March 1998; in Interfax-Ukraine
Business Review, 16-22 March 1998, FBIS Document FTS 19980326001583. [2] UNIAN, 17 March 1998; in "Ukraine
Signs Accord on Shipping Nuclear Materials," FBIS Document FBIS-SOV-98-076.
{Entered 4/7/2000 GD}
