Please click here for the text of an archived report on Ukrainian export controls.
5 March 2007: COMMITTEE ON MILITARY-TECHNICAL COOPERATION AND EXPORT CONTROL POLICY DISBANDED
On March 5, 2007, president of Ukraine Viktor Yushchenko signed Edict No. 180/2007 “On Interagency Commission on Military-Technical Cooperation Policy and Export Control,” formally disbanding the Committee on Military-Technical Cooperation and Export Control Policy (CMTCEC), which had been under the Office of the President of Ukraine, and establishing the Interagency Commission on Military-Technical Cooperation Policy and Export Control. The new entity is a working body of the National Security and Defense Council (NSDC) of Ukraine. The edict also announced the personnel assigned to the Commission, including the appointment of Valeriy Khoroshkovskiy, the NSDC’s first deputy secretary, as head of the interagency commission.[1] The thirty-eight-year-old Khoroshkovskiy, a successful businessman and former minister of the economy and European integration (December 2002-January 2004), became the NSDC first deputy secretary on December 11, 2006, under Presidential Edict No. 1064/2006.[2,3] (See the table in Export Control Observer linked below for the full membership list of the new commission.)
The March edict finalized a process that began on November 17, 2006, when the NSDC unanimously adopted a decision to reform the CMTCEC. The November decision, approved by Presidential Edict No. 1149/2006 of December 28, 2006, stated that international military-technical cooperation and state export controls are important elements of Ukraine’s foreign and defense policies and that additional measures to increase effectiveness of the national policy in this area were needed. The NSDC therefore decided that the CMTCEC should be disbanded and a new interagency commission under the NSDC should be formed, in accordance with the law “On the National Security and Defense Council of Ukraine.”[4] The reform does not affect Ukraine’s State Service on Export Control (SSEC), the principal governing agency responsible for implementing Ukraine’s export control system.
The newly created commission will meet at least once a month. It is designed to help the SSEC in strengthening the government’s oversight in the area of export controls by drafting new export control legislation and proposing relevant changes to existing national regulations, as well as improving interagency coordination within the government agencies involved in the implementation of export controls.[1]
Sources: [1] President of Ukraine Decree No. 180/2007 of March 5, 2007, “O Mezhvedomstvennoy komissii po politike voyenno-tekhnicheskogo sotrudnichestva i eksportnogo kontrolya” (On the Interagency Commission on Military-Technical Cooperation Policy and Export Control), President of Ukraine website, http://www.president.gov.ua/ru/documents/5833.html. [2] “Khoroshkovskiy, Valeriy Ivanovich,” proUA.com, http://baza.proua.com/p/39. [3] President of Ukraine Decree No. 1064/2006 of December 11, 2006, “O naznachenii V. Khoroshkovskogo Pervym zamestitelem Sekretarya Soveta natsionalnoy bezopasnosti i oborony Ukrainy” (On the appointment of V. Khoroshkovskiy first deputy secretary of the National Security and Defense Council of Ukraine), President of Ukraine website, http://www.president.gov.ua/ru/documents/5373.html. [4] President of Ukraine Decree No. 1149/2006 of December 28, 2006, “O reshenii Soveta natsionalnoy bezopasnosti i oborony Ukrainy ot 17 noyabrya 2006 goda ‘O Komitete po politike voyenno-tekhnicheskogo sotrudnichestva i eksportnomu kontrolyu pri Prezidente Ukrainy’” (On the decision of the National Security and Defense Council of Ukraine of November 17, 2006 ‘On the Committee on Military-Technical Cooperation and Export Control Policy under the President of Ukraine’), President of Ukraine website, http://www.president.gov.ua/ru/documents/5515.html.
This item titled “Recent Changes in Ukraine’s Export Control System” originally appeared in the International Export Control Observer, March/April 2007, http://cns.miis.edu/pubs/observer/pdfs/ieco_10e.pdf.
20 March 2006: NEW CHAIRMAN OF EXPORT CONTROL SERVICE APPOINTED IN UKRAINE
On 20 March 2006, Ukrainian Prime Minister Yuriy Ekhanurov signed Cabinet of Ministers Decree No. 355 appointing Mikhail Morozov chairman of Ukraine’s State Service on Export Control (SSEC).[1,2] The position had been vacant since 18 February 2005, when President Viktor Yushchenko dismissed former SSEC chairman Oleksandr Leheida after revelations of illegal sales of six Kh-55 nuclear capable, air-launched cruise missiles to China in April 2000 and six Kh-55s to Iran in May 2001.[3]
Mikhail Morozov was born in 1954. He graduated from the Higher Technical School in Bratislava, Czechoslovakia (now Slovakia), in 1977, and the Kiev Higher Banking School in 1994. From October 2004 to April 2005, Mikhail Morozov served as the chief executive officer of the All-Ukrainian
Incorporated Bank (VaBank), and on 20 April 2005, he was appointed first deputy director general of Ukraine’s state owned arms export company Ukrspetseksport. Previously, Morozov served as first deputy director (December 2003- October 2004) and director (2001-2003) of the Progress trading firm, a subsidiary of Ukrspetseksport.[1,2,4,5] It is also worth noting that from 1984 to 1992 Morozov served in the Soviet Committee for State Security (KGB).[4,5]
[Editor’s Note:
The trading firm, Progress, was involved in the April 2000 and May 2001 illegal transfers of Kh-55 missiles to China and Iran. Both Valeriy Malev, then director general of Ukrspetseksport, and Serhiy Samoylenko, then director of Progress, were implicated in the missile sale. Morozov was appointed director of the firm after the Kh-55 sale. For more information on this case, see “Ukraine Investigates Alleged Illicit Weapons Sales to Iran and China,” NIS Export Control Observer, No. 24, February 2005, pp. 13-14, .]
Sources:
[1] “Predsedatelem Gosudarstvennoy sluzhby eksportnogo kontrolya Ukrainy naznachen M. Morozov” (M. Morozov appointed chairman of Ukraine’s State Service on Export Control), Defense Express News Agency (maintained by the Kiev-based Center for Army, Conversion and Disarmament Research), 23 March 2006, .
[2] “M. Morozov vozglavil Gossluzhbu eksportnogo kontrolya Ukrainy” (M. Morozov headed Ukraine’s State Service on Export Control), RBKUkraine News Agency, 23 March 2006, .
[3] “Yushchenko Dismisses Heads of Export Control Service and Ukrspetseksport; Appoints New Customs Chief,” NIS Export Control Observer, March 2005, pp. 6-7, .
[4] “V VABanke – smena Predsedatelya Pravleniya” (VABank’s chief executive officer has been replaced), VABank website, 11 October 2004, .
[5] “Mikhail Morozov naznachen pervym zamestitelem gendirektora ‘Ukrspetseksporta’” (Mikhail Morozov appointed first deputy director general of Ukrspetseksport), Defense Express News Agency, 25 April 2005, http://www.defense-ua.com
This item originally appeared in the International Export Control Observer: <http://www.cns.miis.edu/pubs/observer/index.htm>.
16 January 2006: UKRAINE’S EXPORT CONTROL SERVICE ISSUES 2004 ARMS SALES REPORT
On 16 January 2006, Ukraine’s State Service on Export Control (SSEC) issued a report on the country’s officially sanctioned arms exports in 2004. The report describes the types and quantities of weapons exported, the destinations of the exports, as well as the number of military and dual-use export and import licenses issued to Ukrainian companies.
According to the report, Ukrainian weapons were exported over a wide geographic area, ranging from the United States to Equatorial Guinea. In terms of the categories of exported weaponry, the shipments ranged from small arms, such as pistols, to missile launch systems. The bulk of the exported items consisted of small arms and light weapons. For example, in 2004, Ukraine exported 14,390 units of small arms (rifles and carbines) to the United States; 9,792 automatic weapons and submachine guns to Iraq; and 500 grenade launchers along with 4,724 automatic weapons and 204 light machine guns to Georgia. Another major importer, the United Kingdom, imported 1,100 units of small arms, 1,690 automatic weapons and 151 light machine guns from Ukraine, while the Czech Republic imported 765, 50, and 66 units of these weapons, respectively. Other notable weapons sales mentioned in the report include: 16 R-73 and 22 R-27 air-to-air missiles to Algeria; 114 R-27 missiles to India; three T-72 tanks to Azerbaijan; 13 BTR-80 and 28 BMP-2 armored personnel carriers to Georgia; 64 BMP-2s to Yemen; 19 BMP-2s to Uganda; and one RS-18 intercontinental ballistic missile to Russia.
As reported, in 2004 the SSEC issued 1,028 export licenses for military goods and 966 export licenses for dual-use items. In addition, the export control agency issued 221 and 34 transit licenses for military and dual-use goods, respectively. The SSEC is currently preparing a new report on arms exports in 2005.
The 2004 report in its entirety is available in Ukrainian on the SSEC website at .[1,2]
[Editor’s Note:
The SSEC report on Ukraine’s arms exports in 2004 described legitimate, government-authorized transactions—carried out prior to the installation of the reform government of Viktor Yushchenko in January 2005—and does not provide information on any illegal weapons sales. The Yushchenko administration has opened investigations into illicit exports from Ukraine made during the tenure of former president Leonid Kuchma, some of which have found extensive illegal export activity. In early 2005, after the “Orange Revolution,” Ukraine was shocked by revelations of illicit transfers of Kh-55 nuclear capable, airlaunched cruise missiles to China and Iran in 2000-2001. The year 2006 also started with a scandal related to past illegal arms sales. (See “Ukrainian Parliamentary Commission Exposes Past Illegal Arms Sales” on page 2 in this issue of the International Export Control Observer.) It is possible thatthese investigations will uncover additional information concerning Ukrainian exports during 2004. The International Export Control Observer will publish additional information on this subject as it becomes available.]
Sources:
[1] L.V. Checheyuk, “Informatsiya pro obsyahy mizhnarodnykh peredach ozbroyen, zdiysnenykh Ukrainoyu u 2004 rotsi” (Information on international arms transfers conducted by Ukraine in 2004), Ukraine's State Service on Export Control website, 16 January 2006, .
[2] “Vpervyye obnarodovan otchet ob eksporte ukrainskogo vooruzheniya” (A report on Ukraine’s arms exports has been made public for the first time), Rupor.info, 19 January 2006, .
This item originally appeared in the International Export Control Observer: .
This item originally appeared in the International Export Control Observer: .
13 January 2006: PRESIDENT YUSHCHENKO INTRODUCES CHANGES IN THE STRUCTURE OF UKRAINIAN SECURITY COUNCIL
On 13 January 2006, Ukrainian President Viktor Yushchenko signed Edict No.2/2006 “On Some Issues Concerning the Apparatus of the National Security and Defense Council of Ukraine” (NSDC). The edict expands membership of the NSDC apparatus to include the Chairman of the Committee on Military and Technical Cooperation and Export Control Policy under the President of Ukraine (CMTCEC). The NSDC is the government body coordinating Ukraine’s policies on nonproliferation, export controls and military-technical cooperation with foreign countries.
As a result, Yuriy Tereshchenko, who was appointed CMTCEC chairman on 3 November 2005, is now an NSDC apparatus member. Furthermore, the changes will expand NSDC personnel from 247 to 257 employees.[1,2,3,4,5]
Editor’s Note: On 7 July 2005, Tereshchenko was appointed the NSDC first deputy secretary and CMTCEC chairman. On 20 October 2005, he was dismissed from these positions, and reappointed CMTCEC chairman on 3 November 2005.
Sources:
[1] President of Ukraine Decree No.2/2006, 13 January 2006, “O nekotorykh voprosakh Apparata Soveta natsionalnoy bezopasnosti i oborony Ukrainy” (On some issues concerning the apparatus of the National Security and Defense Council of Ukraine), President of Ukraine website, .
[2] “Yushchenko izmenil apparat SNBO” (Yushchenko Changed NSDC Apparatus), Ukrainski Novini; in Mignews (Ukraine), 16 January 2006, .
[3] “Yushchenko ‘razdul’ apparat SNBO” (Yushchenko ‘Blew Up’ NSD Staff), Novosti Ukrainy, 16 January 2006, .
[4] “Yushchenko naznachil Tereshchenko pervym zamestitelem sekretarya SNBU” (Yushchenko appointed Tereshchenko first deputy secretary of NSDC), RIA Novosti, 7 July 2005; in Vedomosti on-line edition, .
[5] President of Ukraine Decree No. 1530/2005, 3 November 2005, “O naznachenii Y. Tereshchenko Predsedatelem Komiteta po politike voyenno-tekhnicheskogo sotrudnichestva i eksportnomu kontrolyu pri Prezidente Ukrainy” (On Appointment of Yuriy Tereshchenko Chairman of the Committee on Military and Technical Cooperation and Export Control Policy under President of Ukraine), President of Ukraine website, .
This item originally appeared in the International Export Control Observer: .
January 2006: UNCERTAIN FUTURE FOR UKRANIAN EXPORT CONTROL SERVICE
Throughout 2005, the future of the Ukrainian export control agency remained unclear. According to a 12 February 2005 proposal submitted by the Ukrainian Cabinet of Ministers to the president, the SSEC was among 14 state committees and services that were to be disbanded. Later, on 2 March 2005, newly appointed Defense Minister Anatoliy Hrytsenko indicated that the government was considering merging or subordinating the SSEC to the Ministry of Economics.[1] However, as of January 2006, the SSEC remains an independent agency, reporting directly to the Cabinet of Ministers.
Source:
[1] “New Ukrainian Cabinet of Ministers Proposes Disbanding the State Service on Export Control,” NIS Export Control Observer, (March 2005), p. 2, .
This item originally appeared in the International Export Control Observer: . {Entered 9 May 2006 SR}
16 December 2005: UKRAINIAN PARLIAMENTARY COMMISSION EXPOSES PAST ILLEGAL ARMS SALES
On 16 December 2005, during testimony before the Verkhovna Rada (Ukraine’s parliament) Serhiy Sinchenko, the head of the parliamentary commission investigating cases of illegal arms and munitions sales to other countries, declared that between 1992 and 1997, US$32 billion worth of military equipment and munitions that Ukraine inherited from the Soviet Union was stolen and illegally sold abroad. According to Sinchenko, the main reason for such uncontrolled criminal activity was the absence at the time of relevant export control legislation regulating arms transfers.[1,2,3]
According to the commission’s report, after the collapse of the Soviet Union, Ukraine inherited the “most powerful military force in Europe”—four combined-arms armies and one tank army, four air fleets, one army corps and three air defense corps, the 43rd Missile Army, heavy long-range bomber aviation capabilities and other units. The military arsenal consisted of about 9,000 tanks, 11,000 armored vehicles, 18,000 artillery systems, and up to 3,900 warplanes and helicopters. Sinchenko pointed out that foreign military experts estimated the value of the Soviet military legacy to be US$89 billion.[2,3]
The results of the commission’s investigation revealed that illegal arms sales peaked in 1996. At this time, 114 companies were engaging in weapons transfers, but only 20 percent of the transactions were carried out by entities officially authorized by the Ukrainian government. According to the commission’s findings, high-ranking Ukrainian government officials and members of parliament were involved in this unlawful business. The report claims that a large part of the illegally exported arms went to Croatia and Bosnia. According to Sinchenko, Volodymyr Gorbulin, former secretary of the National Security and Defense Council of Ukraine, was the only person who was fully aware of the extent of the illegal arms trade.[1,2,3]
Other conclusions of the commission are equally troubling. According to the commission’s report, after the collapse of the Soviet Union, Ukraine inherited 176 intercontinental ballistic missiles with strategic nuclear warheads, and, separately, 2,883 units of tactical nuclear warheads that were subsequently transferred from Ukraine to Russia. The commission found that there is a discrepancy in Ukrainian and Russian inventories of the transferred nuclear weapons: according to Russian records, Russia received 250 warheads less than Ukraine reportedly transferred. The discrepancy remains unexplained thus far.[1,2,3]
On 16 December 2005, after hearing the results of the investigation, the Verkhovna Rada issued special decree No. 3231-IV that prolonged the commission’s mandate until March 2006. It also recommended that the government undertake an inventory of the fuel assemblies that Ukraine received from Russia in exchange for transferred strategic nuclear warheads, the quantity and cost of electricity produced from them, and related revenues transferred to the state. Ukrainian parliamentarians also decided to forward the materials presented by the Sinchenko Commission to the Ukrainian General Prosecutor’s Office for further investigation.[4,5]
Sources:
[1] “Ukraine Reveals $32Bln Weapons Embezzlement,” MosNews, 19 December 2005, .
[2] “Komissiya VR zayavlyaet, chto za 5 let s Ukrainy vyvezli oruzhiya na 32 mlrd. doll.” (The Verkhovna Rada commission announces that over 5 years $32 billion worth of weapons were removed from Ukraine), proUA.com, 16 December 2005, .
[3] Marina Soroka, “Za 5 let iz Ukrainy nezakonno bylo vyvezeno vooruzheniya na 32 milliarda dolarov” (Over 5 years $32 billion worth of arms were illegally removed from Ukraine), Podrobnosti.ua, 16 December 2005, .
[4] “VR peredayet v Genprokuraturu materialy o nezakonnoy torgovle oruzhiyem” (The Verkhovna Rada submits materials about illegal arms trade to the General Prosecutor’s Office), LigaBiznesInform, 16 December 2005, .
[5] “Pro poperednyu informatsiyu Tymchasovoyi slidchoyi komisiyi Verkhovnoyi Rady Ukrayiny po perevirtsi faktiv nezakonnoyi torhivli zbroyeyu i viyskovym maynom ta yikh nezakonnoyi peredachi v inshi krayiny” (On preliminary information of the Temporary Parliamentary Commission of Verkhovna Rada investigating the cases of illegal arms and munitions sales and their illegal transfer to other countries), Verkhovna Rada Decree No. 3231-IV of 16 December 2005, Verkhovna Rada website, .
This article originally appeared in the International Export Control Observer: .
20 October 2005: NSDC UNDERGOES PERSONNEL CHANGES
Another government agency subject to reform in 2005 was the National Security and Defense Council (NSDC) of Ukraine. [Editor’s Note: Founded on 30 August 1996, NSDC is a government agency that coordinates and controls the activities of executive bodies in the sphere of national security and defense.] In particular, personnel changes affected a subdivision of the NSDC—the Committee on Military and Technical Cooperation and Export Control Policy under the President of Ukraine (CMTCEC). On 16 June 2005, President Yushchenko dismissed Yuriy Prokofyev from his position as NSDC first deputy secretary and CMTCEC chairman, replacing him with Yuriy Tereshchenko on 7 July 2005.[1] On 20 October 2005, Vitaly Krutov assumed Tereshchenko’s position as NSDC first deputy secretary, while Tereshchenko remained CMTCEC chairman.[2]
Sources:
[1] “Prezident provel kadrovyye naznacheniya” (The President Introduced Personnel Changes), Podrobnosti.ua website, 7 July 2005, .
[2] “Predsedatelem komiteta po politike VTS i eksportnogo kontrolya Ukrainy naznachen Yuriy Tereshchenko” (Yuriy Tereshchenko Appointed Chairman of the Committee on Military and Technical Cooperation and Export Control Policy of Ukraine), ITAR-TASS, 8 November 2005; in Integrum Techno, .
This item originally appeared in the International Export Control Observer: . {Entered 9 May 2006 SR}
28 September 2005: UKRAINE SECURES MISSING RADIOACTIVE MATERIAL
On 28 September 2005, authorities at the Chernobyl nuclear power plant (NPP) announced that they had found a plastic bag containing 13 pipes and a 10-cm bar that resembled fragments of nuclear fuel rods in the compound of the closed nuclear power plant.[1] The bag, emitting background radiation of 50 microroentgens per hour, was found hidden under a railroad car during a routine radiation check in the area surrounding the sarcophagus—the concrete structure erected to isolate the remains of the collapsed Unit 4 reactor. Authorities at the Chernobyl NPP said the bag containing the pipes had been taken to a temporary storage area, and an investigation was under way.[2]
Ukrainian authorities believe that the pieces may have been stolen in 1995 along with 5 kg of fresh nuclear fuel from a fuel assembly in Unit 4 of the Chernobyl NPP.[3] In 1996, four people were detained and later convicted of the fuel theft. Following the discovery of the missing fuel, the Chernobyl NPP introduced additional controls over the nuclear fuel in Unit 4 and installed radiation detection equipment in the main building and the sarcophagus zone.[2] The plant’s spokesperson, Stanislav Shektela, said the recently discovered material could have been stolen by the same individuals involved in the 1995 incident, who may have then hidden the bag but never managed to remove it from the NPP due to the tightened security.[1] Previous reports on the case, however, did not mention any additional missing material.
Sources:
[1] Aleksandar Vasovic, “Ukrainian Authorities Find Radioactive Material Believed to Be Stolen from Chernobyl,” Associated Press, 28 September 2005, in Lexis-Nexis Academic Universe, .
[2] “Na ChAES predotvrashchena popytka hishcheniya yadernogo topliva” [An attempt to steal nuclear fuel prevented at the Chernobyl NPP], UNIAN news agency, 28 September 2005, .
[3] “V Chernobyle naydeno ukradennoye 10 let nazad yadernoye toplivo” [Nuclear fuel stolen 10 years ago found in Chernobyl], Lenta.ru, 28 September 2005, .
This item originally appeared in the International Export Control Observer: . {Entered 9 May 2006 SR}
8 September 2005: NEWLY APPOINTED HEAD OF UKRANIAN STATE CUSTOMS SERVICE RESIGNS AMID A MAJOR GOVERNMENT RESHUFFLE
On 8 September 2005, President Viktor Yushchenko of Ukraine signed Edict No. 1235/2005 dismissing Volodymyr Skomarovsky from his position of chairman of the Ukrainian State Customs Service (SCS), in accordance with Skomarovsky’s own resignation request.[1] [Editor’s Note: Skomarovsky was appointed SCS Chairman on 4 March 2005.][2] Skomarovsky was replaced by Oleksandr Yehorov on 23 September 2005, in accordance with Presidential Edict No. 1334/2005.[3] Prior to this appointment, 48-year-old Yehorov served as head of Ukraine’s State Customs Committee in 1992-1996 and as first deputy chairman of the State Customs Committee in 1996-1997. From 1997 until October 2003, he was the first deputy head of the SCS.[4,5] [Editor’s Note: In January 1997, the State Customs Committee of Ukraine was renamed State Customs Service of Ukraine.]
The announcement of Skomorovsky’s dismissal was part of a general reshuffling of the Ukrainian government that started with the decision by President Yushchenko to fire Prime Minister Yulia Tymoshenko. On 8 September 2005, citing continuous infighting among factions of cabinet members that threatened to harm national interests, Yushchenko signed Edict No. 1234/2005, which terminated Tymoshenko and disbanded the entire Cabinet of Ministers.[6,7,8]
Earlier that day, Deputy Prime Minister Mykola Tomenko had announced his resignation at a press conference, where he also accused the government of widespread corruption.[7,8] Another shockwave came from the resignation letter submitted on the same day by National Security and Defense Council of Ukraine (NSDCU) Secretary Petro Poroshenko, which was accepted in Presidential Edict No. 1231.[9] The presidential edict that dismissed the prime minister and disbanded the Cabinet of Ministers also appointed 57-year-old economist Yuri Yekhanurov acting prime minister.[6] On 27 September 2005, President Yushchenko appointed Anatoly Kinakh, formerly acting deputy prime minister, as the new NSDCU secretary (Presidential Edict No. 1379).[10]
In the context of these dramatic changes in the Ukrainian government, it should be recalled that in summer 2005 President Yushchenko harshly criticized the SCS and dismissed some high-ranking regional customs officials.[11] However, it appears that the misconduct and corruption permeated the highest levels of the Ukrainian customs administration, as demonstrated by the charges that have been leveled against Skomarovsky since his dismissal. In particular, the Security Service of Ukraine (SBU) is investigating allegations of corruption and smuggling against Skomarovsky.[12] Former SBU chief Oleksander Turchinov stated at a press conference on 15 September 2005, that the SBU had already been investigating Skomarovsky’s alleged involvement in contraband operations when the latter was appointed the SCS chair. Turchinov went on to claim that Skomarovsky was appointed despite the opposition of then-Prime Minister Yulia Tymoshenko simply because he was a protégé of then-NSDCU Secretary Petro Poroshenko.[13]
Sources:
[1] Edict of the President of Ukraine No. 1235/2005 of 8 September 2005, “Ob osvobozhdenii V. Skomarovskogo ot dolzhnosti Predsedatelya Gosudarstvennoy tamozhennoy sluzhby” [On dismissal of V. Skomarovsky from his position as Chairman of the State Customs Service], President of Ukraine website, .
[2] “Ukrainian President Plans Radical Customs Cleanup and Confirms Illicit Missile Transfers,” NIS Export Control Observer, No. 26, April 2005, pp. 12- 13, .
[3] Edict of the President of Ukraine No. 1334/2005 of 23 September 2005, “O naznachenii A. Yegorova Predsedatelem Gosudarstvennoy tamozhennoy sluzhby” [On the appointment of O. Yehorov Chairman of the State Customs Service], President of Ukraine website, .
[4] “Naznachen novyy glava tamozhni” [New customs head is appointed], [Evening Kharkov] online edition, No. 106, 26 September 2005, .
[5] Alla Dunina, “Tamozhnyu ‘obyegorili’” [Customs has been ‘fooled’], Glavred.info, 7 October 2005, .
[6] Edict of the President of Ukraine No.1234/2005 of 8 September 2005, “O prekrashchenii polnomochiy Premier-ministra Ukrainy Yu.Timoshenko i otstavke Kabineta Ministrov Ukrainy” [On termination of powers of Prime Minister of Ukraine Yu. Timoshenko and dismissal of cabinet of Ministers of Ukraine], President of Ukraine website, .
[7] “Chronology of Timoshenko’s Dismissal,” ForUm [Ukrainian online newspaper], 9 September 2005; in Ukraine Now [Ukrainian English-language online news portal], .
[8] “Ukraine Leader Sacks Government,” BBC News, 8 September 2005, .
[9] Edict of the President of Ukraine No. 1231/2005 of 8 September 2005, “Ob osvobozhdenii P. Poroshenko ot dolzhnosti Sekretarya Soveta natsionalnoy bezopasnosti i oborony Ukrainy” [On dismissal of P. Poroshenko from the position of Secretary of National Security and Defense Council of Ukraine], President of Ukraine website, .
[10] Edict of the President of Ukraine No. 1379/2005 of 27 September 2005, “O naznachenii A.Kinakha Sekretaryom Soveta natsionalnoy bezopasnosti i oborony Ukrainy” [On appointment of A. Kinakh Secretary of the National Security and Defense Council of Ukraine], President of Ukraine website, .
[11] “Ukrainian President Criticizes Customs Service, Fires Customs Officials,” NIS Export Control Observer, No. 30, August 2005, pp. 5-6, .
[12] Alex Rodriguez, “In Ukraine, Old Whiff of Scandal in New Rregime,” Chicago Tribune online edition, 27 September 2005, .
[13] “Turchinov: S prikhodom Skomarovskogo kontrabanda ‘rastvela’” [Turchinov: With the Arrival of Skomarovsky the Contraband Flourished], Fraza [Ukrainian online magazine], 15 September 2005, .
This item originally appeared in the International Export Control Observer: . {Entered 9 May 2006 SR}
29 August 2005: U.S. AND UKRAINE SIGN BIOLOGICAL THREAT REDUCTION AGREEMENT
On August 29, 2005, the United States and Ukraine signed an agreement to counter the threat of bioterrorism and prevent the proliferation of biological weapons (BW), related technology, materials, and expertise. The signing ceremony was held at the Kiev Central Sanitary and Epidemiological Station and attended by Ukrainian Minister of Health Mykola Polishchuk and U.S. senators Richard Lugar (Republican of Indiana), chairman of the Senate Foreign Relations Committee, and Barack Obama (Democrat of Illinois), who came to Ukraine as part of their visit to the region to review progress being made under the U.S. Cooperative Threat Reduction (CTR) program.[1,2,3]
Under the agreement, the United States will assist Ukraine in upgrading safety and security of biological pathogens currently stored at public health laboratories throughout Ukraine. In addition, the United States will assist Ukraine in improving detection, diagnosis, and treatment of infectious disease outbreaks, as well as assessing whether they are natural outbreaks or the result of a terrorist act. The United States will provide a modern, safe, and secure diagnostic laboratory and assist in creating a national network of adequately equipped epidemiological monitoring stations. The leading Ukrainian facilities under the agreement are the I. Mechnikov Anti-plague Scientific and Research Institute in Odessa, which is expected to expand the study and capacity to diagnose the spread of avian flu in migratory birds, and the Kiev Central Sanitary and Epidemiological Station, which conducts research on highly dangerous pathogens, including those causing anthrax, tularemia, brucellosis, listeriosis, diphtheria, cholera, and typhoid.[1,2]
Ukraine became the fifth NIS country to sign a BW proliferation prevention agreement with the United States, joining Azerbaijan, Georgia, Kazakhstan, and Uzbekistan. The agreement is a result of U.S.-Ukrainian negotiations that have lasted for more than a year. On May 16, 2005, Senator Lugar wrote to Ukrainian President Victor Yuschenko asking to advance the agreement: “For several years, the United States has sought to expand our cooperation to include preventing the spread of biological pathogens and expertise to terrorists….Such cooperation is ongoing with Georgia, Uzbekistan and Kazakhstan, and just last week, the government of Azerbaijan signed an agreement to cooperate in this area. Unfortunately, bureaucratic obstacles in your government continue to block conclusion of such an agreement between the Ukrainian Ministry of Health and the U.S. Department of Defense.” According to a press release on Senator Lugar’s website, only personal intervention by former Ukrainian Prime Minister Yuliya Tymoshenko “broke a log jam within Ukrainian government bureaucracy” and made possible the signing of the agreement.[1,2]
Sources:
[1] “New Nunn-Lugar Biological Agreement Signed in Ukraine,” Office of the U.S. Senator for Indiana Richard G. Lugar (R) Press Release, August 29, 2005, U.S. Senator for Indiana Richard G. Lugar (R) website, .
[2] “U.S., Ukraine Sign Agreement to Counter Threat of Bioterrorism,” U.S. Department of State’s Bureau of International Information Programs, August 29, 2005, .
[3] “Ukraina podderzhala borbu mira s bioterrorizmom” [Ukraine Supports International Struggle Against Bioterrorism], Glavred.info (Ukraine), August 29, 2005,
This item originally appeared in International Export Control Observer: . {Entered 10 May 2006 SR}
18 February 2005: UKRAINE DISCLOSES PAST ILLEGAL SALES OF KH-55 MISSILES TO CHINA AND IRAN
Ukraine entered the year 2005 under a new government led by President Viktor Yushchenko and Prime Minister Yuliya Tymoshenko, who came to power on 23 January 2005, after the “Orange Revolution.” The year started with the new government’s recognition that the Progress trading firm, a subsidiary of Ukraine’s state-owned arms export company Ukrspetseksport, illegally transferred six Kh-55 nuclearcapable, air-launched cruise missiles to China in April 2000 and six Kh-55s to Iran in May 2001.[1] On 18 February 2005, following the disclosure, Yushchenko dismissed Oleksandr Leheida from his position as chairman of Ukraine’s State Service on Export Control (SSEC). The following month, the head of Ukrspetseksport, Valeriy Shmarov, was also dismissed, and the company was added to the list of enterprises that would be subject to a comprehensive audit. On 24 March 2005, Yushchenko appointed member of the Verkhovna Rada (Ukraine’s Parliament) Serhiy Bondarchuk to replace Shmarov as head of Ukrspetseksport. As for the SSEC, no replacement for Leheida had been announced as of January 2006.[2]
Sources:
[1] “Ukraine Investigates Alleged Illicit Weapons Sales to Iran and China,” NIS Export Control Observer, (February 2005), pp. 13-14, .
[2] “Yushchenko Dismisses Heads of Export Control Service and Ukrspetseksport; Appoints New Customs Chief,” NIS Export Control Observer, (March 2005), pp. 6-7, .
This item originally appeared in the International Export Control Observer: . {Entered 9 May 2006 SR}
20 February 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 30 September 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 U.S. 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 U.S. 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 U.S.-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] U.S. State Department officials argued that "They [the Ukrainians] failed to provide our U.S.-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 U.S. 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, 6 November 2002; in Lexis-Nexis Academic Universe, .
[4] "U.S. dissatisfied with Ukrainian cooperation on Iraq radar flap," Associated Press, 6 November 2002; in Lexis-Nexis Academic Universe, .
This item originally appeared in the NIS Export Control Observer: . {Entered 5 March 2003 KB}
24 December 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 website, .
[2] Interfax-Ukraine, 27 December 2002; "Ukraine tightens controls in military cooperation," BBC Worldwide Monitoring, 27 December 2002; in Lexis-Nexis Academic Universe, .
[3] Defense-Express website, 26 December 2002; in "Ukraine's special services gain greater role in arms trade," BBC Worldwide Monitoring; in Lexis-Nexis Academic Universe, . {Entered 5 March 2003 KB}
25 September 2002: U.S. CURBS AID TO KIEV OVER ALLEGED RADAR SALE TO IRAQ
The U.S. 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 U.S. law and under the terms of the international arms embargo imposed on Iraq by the United Nations.
["US Curbs Aid to Kiev Over Sale to Iraq," The Moscow Times online edition, , 25 September 2002] {Entered 25 September 2002 AI}
23 October 2001: U.S. TO FUND EXPORT CONTROL INITIATIVES
The Ukrainian Ministry of the Economy and the U.S. 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 website, .] {Entered 1 November 2001 KB}
September 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 website, , 7 September 2001.] {Entered 26 October 2001 KB}
14 July 2000: KUCHMA LIQUIDATES COMMISSION
On 14 July 2000 UNIAN reported that Ukrainian President Leonid Kuchma had signed a decree titled On measures to raise the effectiveness of Ukraine's military and technical cooperation with foreign countries, which liquidates the Commission on Export Control Policy and Military-Technical Cooperation with Foreign States. A committee with the same name will replace it.
[UNIAN, 14 July 2000; in "Ukraine: Kuchma Signs Decree Liquidating Military-Technical Cooperation Committee," FBIS Document CEP20000714000158.]{Entered 31 October 2001 KB}
October 1999: 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 website, .] {Entered 25 September 2001 KB}
24 September 1999: 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 19 May 2000 GD}
September 1999: 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 16 November 2001 EF}
25 June 1999: 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, ] {Entered 24 September 2001 KB}
27 April 1999: 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 24 September 2001 KB}
22 March 1999: 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 3 December 2001 EF}
May 1998: 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 28 January 1999 SP}
16 March 1998: 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 7 April 2000 GD}
Archived Export Control Report
This report was originally prepared by the Center for Nonproliferation Studies of the Monterey Institute of International Studies in January 1998 under a grant from the United States Department of Energy's Office of Nonproliferation and Arms Control. The views expressed in this report are those of the authors alone, and do not necessarily represent the views of the Department of Energy or the United States Government. Click here to see a May 2002 report on Ukraine's export control system written by CNS graduate research assistant Eduard Fesko.
Introduction
When it became an independent state on 24 August 1991, Ukraine possessed a large nuclear weapons arsenal that represented as much as 15 percent of the Soviet total. Next to the Russian Federation, it also possessed the largest civilian nuclear power program in the former Soviet Union, ranking in the top ten worldwide in terms of operational reactors and total capacity. In addition, it claimed a well-developed nuclear research infrastructure, uranium mines, chemical plants for processing uranium ore, tens of kilograms of HEU in bulk form, heavy water production capabilities, and a number of nuclear-related dual-use commodities such as zirconium, hafnium, and ion-exchange resins. Ukraine also inherited a large military industrial base equipped to manufacture ballistic missiles. Indeed, the Pivdenmash (Yuzhmash) Production Association was the largest missile factory in the world. Ukraine also manufactured solid rocket engines at the Pavlohrad Chemical Plant and produced ICBM control and guidance systems at the Khartron Scientific Production Association in Kharkiv.[1] Ukraine’s military industrial base, moreover, extended well beyond that of the nuclear and missile sectors. At the time of the collapse of the Soviet Union, it was estimated to have had approximately 15 percent of the former Soviet defense plants and military research and development facilities.[2]
Although rich in defense-related production capabilities with a large nuclear energy and missile production capacity, Ukraine inherited very little in the way of export control structures or expertise. Over the past decade, Ukraine has taken steps to set up an export control system by creating governmental bodies, legislation, and licensing procedures to help prevent the illicit transfer of nuclear, missile, and dual-use items from its territory. In addition, Ukraine has become a member of several international export control-related organizations, including the NPT, MTCR, NSG, and Wassenaar Arrangement.
Sources:
[1] William C. Potter, "The Politics of Nuclear Renunciation: The Cases of Belarus, Kazakhstan, and Ukraine," Henry L. Stimson Center Occasional Paper No. 22, (April 1995), p. 8.
[2] The Defense Industries of the Newly Independent States of Eurasia, CIA Directorate of Intelligence (January 1993), p. 7.{Updated 11/6/2001 KB}
Administrative Entities
The main export control entities in Ukraine are the Committee for Policy on Military Cooperation and Export Control and the State Service for Export Control (Derzheksportkontrol). For information on these and other entities with export control responsibilities in Ukraine, see the table below or click on the organization chart.
| Governmental or Quasi-Governmental Entity |
Export Control Responsibilities
|
| President |
Issues export control-related decrees.Reviews license applications as needed.[2,3] |
| National Security and Defense Council |
Oversees the Committee for Policy on Military-Technical Cooperation and Export Control.[2,3] |
| Verkhovna Rada (parliament) |
Two Rada commissions have a particular interest in the sphere of export controls: the Rada Commission on Defense and State Security and the Rada Commission on Foreign Affairs.[3] |
| Cabinet of Ministers |
Oversees the development of the state export control system. Grants authority to companies to engage in trade of military items. Issues decrees and approves procedures regarding export control policy. Confirms control lists.[1] |
| Committee for Policy on Military-Technical Cooperation and Export Control |
Evaluates license applications. Oversees the State Service for Export Control.[2,3] |
| Ministry of Defense |
Provides consultation to the State Service for Export Control on applications for the export of conventional arms, missile technology, and other military items. Assesses the actual need of the recipient country for military goods.[1] |
| Ministry of the Environment and Natural Resources |
Develops security measures for the protection of the environment during the international transfer of goods. Advises the State Service for Export Control on the transportation of items that can be used to create chemical, biological, or toxin weapons.[1] |
| Ministry of the Economy |
Develops recommendations for limiting the export of certain goods. Evaluates the need for a given export. Establishes end-use violations. Authenticates documents provided by exporter.[1] |
| Ministry of Environmental Protection and Nuclear Safety (MEPNS) |
The Nuclear Regulatory Administration of the MEPNS makes recommendations to the State Service for Export Control regarding license applications for the export of nuclear-related items. |
|
Ministry of Foreign Affairs |
Advises the State Service for Export Control on changes in international export control regimes, export rulings rendered by other countries, and foreign policy implications of particular export applications. Conducts end-use checks in foreign countries.[1] |
| Ministry of Health |
Issues permits for the transportation of nuclear-related goods.[1] |
| Ministry of Industrial Policy |
Advises the State Service for Export Control on the export of goods designed or manufactured with financing from the state budget. Assists exporters with export control implementation. Oversees adherence of subordinate enterprises to export control procedures.[1] |
| National Space Agency of Ukraine |
Advises the State Service for Export Control on the international transfer of items included on the missile control list.[1] |
| Scientific and Technical Center on Export and Import of Special Technologies, Hardware and Materials (STC) |
Installs internal compliance systems at Ukrainian enterprises. Conducts seminars and education programs on nonproliferation and export control.[4]
|
| Security Service |
Investigates alleged export control violations and smuggling activities. Takes measures to protect state secrets and technical information during the international transfer of controlled goods.[1] Maintains offices throughout the country. |
|
State Committee for the Protection of State Borders |
Monitors the movement of goods and people across Ukrainian borders. Administers all designated border checkpoints.[1] |
| State Customs Committee |
Examines export declarations at designated points of exit for goods. Exporters are required to present customs officials with a customs declaration and documents certifying that the exporter has permission to export the items in question and that the particular shipment has an approved export license.[1] |
|
State Service for Export Control (Derzheksportkontrol) |
Evaluates applications and issues export licenses.[1]
|
| Ukrspetseksport |
A state-owned exporter and importer of arms, ammunition, and military services.[3] |
Sources:
[1] Natalya Yurchenko, "Sistema eksportnogo kontrolya Ukrainy," STC website, http://www.ntc.kiev.ua/sec/index.html.
[2] Ukraine's Export Control System, presentation by Ukrainian export control official, Center for Nonproliferation Studies, Monterey, CA, 2 November 2001, UKR011102.
[3] Discussion with Ukrainian export control official, 9 November 2001, UKR011109.
[4] "About the Scientific and Technical Center," STC website, http://www.ntc.kiev.ua/index-e.html.{Entered 9 November 2001 KB}
Export Control Legislation
Ukraine's export control system is based on the laws of Ukraine and on a series of decrees issued by the president and the Cabinet of Ministers. (See the Ukraine: Export Control Legislation file for more information.) The State Service for Export Control is responsible for drafting new export control legislation.[1] A draft version of a comprehensive export control law, On Export Controls in Ukraine, has been under discussion since 1998 and will not likely be passed by the Verkhovna Rada until after the March 2002 elections.[2] Major export control decrees and laws in force as of November 2001 are as follows:
- Presidential Edict No. 117/98, On the Statute of State Export Control in Ukraine, 13 February 1998, is regarded as the country's most comprehensive export control document. The decree contains a catch-all provision.[2]
- Cabinet of Ministers Decree No. 767, On Approving the Regulations on the Procedures for Conducting Examinations in the Area of Export Control, 15 July 1997, outlines Ukraine's export licensing process.
- Presidential Edict No. 1279, On Further Improving State Export Controls, 28 December 1996, outlines the duties of Ukraine's export control entities.
Lists of controlled items are developed by the State Service for Export Control in coordination with ministries and government agencies and are adopted by the Cabinet of Ministers.[3] Ukraine uses the following five control lists:
- list of nuclear related items as outlined in Cabinet of Ministers Decrees No. 302 and No. 196;
- list of items that can be used to develop chemical, bacteriological and toxic weapons as contained in Cabinet of Ministers Decree No. 384;
- list of missile technology products, equipment, materials and technologies used for the creation of missiles as contained in Cabinet of Ministers Decrees No. 563 and No. 197;
- list of military goods as outlined in Cabinet of Ministers Decree No. 1358;
- list of dual-use goods as outlined in Cabinet of Ministers Decree No. 1005.[4]
Information on new legislation and licensing procedures is transmitted by the State Export Control Service to the mass media and is also published in the Ukrainian Ministry of Justice's newspaper Uryadoviy kurer.[5] See Ukraine: Export Control Legislation for summaries and full-text of past and current export control legislation.
Sources:
[1] "Statement submitted to the United Nations Secretary General pursuant to the publication of his report on small arms (A/54/258)," 12 July 2000; in SIPRI website, .
[2] Discussion with Ukrainian export control official, 9 November 2001, UKR011109.
[3] Presidential Decree No. 283/99, O vnesenii izmeneniy i dopolneniy v Ukazy Prezidenta Ukrainy ot 28 dekabrya 1996 goda N 1279 i ot 13 fevralya 1998 goda N 117, 26 March 1999.
[4] "Ukraine," SIPRI website, .
[5] "Annex to the letter dated 2 October 2000 from the Permanent Representative of Ukraine to the United Nations addressed to the Secretary-General," General Assembly document A/55/478, UN Security Council document S/2000/986, SIPRI website, . {Entered 9 November 2001 KB}
Licensing Procedures
Export licenses are issued by the State Service for Export Control (SSEC) according to procedures originally outlined in Cabinet of Ministers Decree No. 767 of 15 July 1997 and instructions of the SSEC.[1] Ukraine's licensing system uses a multi-layered approach, with applications moving through up to four layers of decision-making bodies.
- SSEC Internal Commission: The SSEC Internal Commission, comprised of SSEC department and division heads, reviews routine, straightforward applications approximately three times each week. Approved applications and commission protocols are sent to the SSEC chairman for final approval whereupon a license is issued to the exporter.[2,3,4]
- SSEC Interagency Export Council: The SSEC Interagency Export Council reviews the bulk of the applications submitted to the SSEC, including all applications to export military and dual-use goods and goods subject to reporting requirements of the United Nations and international export control regimes. It meets as needed, at least every two weeks, and may call on outside experts from government or industry for consultation. The application is forwarded to the Committee for the Policy on Military-Technical Cooperation and Export Control if the SSEC Interagency Export Council is unable to come to a unanimous decision on a license application or if the application involves the export of particular items to particular countries.[2,3,4]
- Committee for the Policy on Military-Technical Cooperation and Export Control: The Committee for the Policy on Military-Technical Cooperation and Export Control meets as needed, at least monthly, to consider license applications. The committee may call on outside experts from government or industry for consultation. Once the committee makes a decision, it sends instructions in the form of a protocol along with the application to the State Service for Export Control (SSEC), which issues the license. The application is forwarded onward to the President of Ukraine if the Committee for the Policy on Military-Technical Cooperation and Export Control is unable to come to a unanimous decision on a license application or if the application involves the export of particular items to particular countries.[2,3,4]
- President: The president of Ukraine is the highest level in the export licensing process. Presidential approval of a license is needed in rare cases only. The president's decision is forwarded to the State Service for Export Control (SSEC) for implementation.[3,4]
The duration of the licensing process depends on the type and quantity of items to be exported, but may last up to 60 days.[1] Typical export license applications are issued within five to 10 days, assuming the exporter has provided all necessary documentation.[5] The State Service for Export Control reviews hundreds of license applications each month.[6] See the table below for total numbers of licenses granted.
Export License Granted, Ukraine[7]
|
1998 |
1999 |
2000 (first six months) |
|
1,078 |
1,311 |
770 |
Ukraine does not maintain a list of countries of concern to which Ukrainian companies are prohibited from exporting. It does impose full or partial embargoes of exports to countries as designated by international bodies, such as the UN Security Council. Ukraine's export control bodies use lists of denied parties when considering export license applications.[7]
Ukraine issues two types of licenses: a one-time license and a general license. One-time licenses are issued for the export of dual-use, nuclear, and chemical goods.[3,4] General licenses allow for the export of a specific category of goods to one or several countries without specifying the volume of goods exported. General licenses are usually issued for transactions with CIS countries with which Ukraine has signed military cooperation agreements.[2] For the export of weapons, two licenses are issued. A general license is issued to allow the Ukrainian arms exporter to conclude a contract with a foreign buyer. A one-time license is issued for the actual transfer of the arms.[3,4]
Sources:
[1] U.S. Department of Commerce, Ukraine Country Commercial Guide FY 2002, US Commercial Service website, .
[2] Natalya Yurchenko, "Sistema eksportnogo kontrolya Ukrainy," STC website, .
[3] Ukraine's Export Control System, presentation by Ukrainian export control official, Center for Nonproliferation Studies, Monterey, CA, 2 November 2001, UKR011102.
[4] Discussion with Ukrainian export control official, 9 November 2001, UKR011109.
[5] "'Shooting' Exports," International Security, Vol. 1, October 1999, Center for Army, Conversion, and Disarmament Studies website, .
[6] Center for Peace, Conversion, and Foreign Policy of Ukraine, System of Control over Military Purpose Goods in Ukraine (Kiev: Center for Peace, Conversion, and Foreign Policy, 1998), Center for Peace, Conversion, and Foreign Policy website, .
/e/op/1998-04ope10uamil-goods-control.phtml.
[7] "Annex to the letter dated 2 October 2000 from the Permanent Representative of Ukraine to the United Nations addressed to the Secretary-General," General Assembly document A/55/478, UN Security Council document S/2000/986; in SIPRI website, . {Entered 12 November 2001 KB}
Licensing Nuclear Items
For nuclear or dual-use nuclear exports, the exporter must receive official approval from the Ministry of Environmental Protection and Nuclear Safety (MEPNS) before it may submit a license application to the State Service for Export Control. The MEPNS uses the following guidelines when making a decision as to whether to issue an approval:
- the importing country is required to guarantee that the commodity will only be used for peaceful purposes;
- the commodity must be placed under IAEA safeguards;
- physical protection must be provided at levels not less than those recommended by the IAEA.
- re-export of the commodity is forbidden without written permission from the Ukrainian exporter and the export control authorities of Ukraine.
The exporter must submit the following documents to the State Service for Export Control together with the license application for nuclear or nuclear dual-use exports:
- a copy of the contract;
- an end-user certificate;
- an international import certificate from the country importing the nuclear goods;
- the approval issued by the MEPNS certifying that the exporter has met all the requirements for nuclear exports;
- an approval issued by Ukrainian epidemiological and sanitary authorities certifying that the exporter has met the sanitary requirements for nuclear export;
- a verified copy of the license issued to the facility where the nuclear goods were produced, stored, etc. granting permission for said activities;
- technical specifications, if required.
The contract, end-user certificate, and international import certificate must all indicate the following:
- the end-user of the goods;
- the destination and purpose of the goods;
- a guarantee from the importer that the indicated goods (or their copies) will in no way be used for any activity related to the manufacturing of nuclear explosive devices or in a component of the nuclear fuel cycle not under IAEA safeguards, and that the goods will only be used for declared purposes;
- a guarantee from the importer that the imported goods, their copies, or products made from them will be delivered only to the end-user, and will not be re-exported without written permission from the exporter and the export control authorities of Ukraine.
All ministries and the SSEC take into consideration the political, technical, economic, and military ramifications of any export when making a decision on a particular license application. For example, according to Ukrainian export control regulations, the following factors are among those that are taken into account:
- efforts toward preventing the proliferation of nuclear weapons;
- prospects and purposes of nuclear programs supported by the importing country;
- possibility that the goods could be used to produce nuclear weapons or any type of nuclear explosive device;
- assessment of the end-use of the imported technical means.[1,2]
Sources:
[1] CNS interviews with past and present Ukrainian export control officials.
[2] Original texts of export control legislation.{Updated 12 November 2001 KB}
Enforcement
If an exporter or foreign buyer violates the conditions governing the export of items indicated in the license, or if circumstances arise that may be harmful to Ukraine's national security interests or violate its international obligations, the State Service for Export Control (SSEC) may temporarily suspend or cancel a license. Decisions by the SSEC to refuse, suspend, or cancel permits are taken in consultation with the Committee for the Policy on Military-Technical Cooperation and Export Control. Article Two of the Security Service Act, 5 April 1992, and Article One of the Act on Operational Investigatory Activity, 18 February 1992, assign law enforcement agencies the tasks of preventing, identifying, halting, and exposing illicit transfers of controlled goods. The Criminal Code covers infractions of export control rules. Article 228-6, in particular, states that illegal export of raw materials, materials, equipment, and technologies which can be used for the production of missile, nuclear, chemical, or other types of weapons, military or special hardware can lead to confiscation of property and from three to eight years in prison.
["Annex to the letter dated 2 October 2000 from the Permanent Representative of Ukraine to the United Nations addressed to the Secretary-General," General Assembly document A/55/478, UN Security Council document S/2000/986; in SIPRI website, http://projects.sipri.se/expcon/natexpcon/Ukraine/ukrpol.htm.] {Entered 12 November 2001 KB}
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Updated January 2008 |
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