This record is a partial extract of the original cable. The full text of the original cable is not available.

C O N F I D E N T I A L SECTION 01 OF 02 KIEV 000365 
 
SIPDIS 
 
E.O. 12958: DECL: 01/27/2016 
TAGS: PREL PBTS PARM PINR MD UP OSCE
SUBJECT: UKRAINE/TRANSNISTRIA: MFA DEFENDS DELAY IN CUSTOMS 
PROTOCOL ENFORCEMENT 
 
REF: A. CHISINAU 81 
 
     ¶B. KIEV 336 
     ¶C. DAS KRAMER-CARLSON TELCON 1/27/06 
 
Classified By: Ambassador for reasons 1.4(b,d). 
 
¶1. (C) Summary:  Briefing EU/G7 representatives January 27, 
Deputy Foreign Minister Veselovsky claimed the Ukrainian 
government had delayed implementation of the May 15, 2003, 
customs protocol with Moldova because the GOM's 
implementation of simplified registration procedures for 
Transnistrian business entities disadvantaged them relative 
to situation existing before Moldova's implementation of 
"Resolution 815."  Ukrainian and Moldovan representatives 
planned to meet in Odesa January 30 to resolve the problem. 
The OSCE, EU, and U.S. would be invited to participate in the 
Odesa meeting.  The assembled diplomats treated Veselovsky's 
statements with notable skepticism.  End summary. 
 
Reciprocal Actions 
------------------ 
 
¶2. (C) Deputy Foreign Minister Andriy Veselovsky briefed us 
and representatives of EU/G7 member embassies January 27 on 
the status of the December 30, 2005 joint declaration 
regarding cross-border trade between Ukrainian Prime Minister 
Yuri Yekhanurov and his Moldovan counterpart, Vasile Tarlev. 
Veselovsky said the Ukrainian government remained interested 
in resolving the Transnistria situation and wished to do 
everything in its power to ensure that Transnistrian goods 
crossed the Ukrainian border with Moldova/Transnistria in a 
fair and transparent way.  He said the joint declaration, 
however, always had envisaged reciprocal actions by the two 
parties.  Ukraine would begin enforcement of the May 15, 
2003, customs protocol requiring Moldovan government customs 
seals on all goods imported into Ukraine across the 
Moldova/Transnistria border.  In turn, the Moldovan 
government would implement a simplified system for 
registration of Transnistrian business entities as provided 
in the August 2, 2005 "Resolution 815." 
 
Unintended Consequences 
----------------------- 
 
¶3. (C) Veselovsky said the Ukrainian government had called a 
meeting January 24 with Ukrainian, Moldovan, and 
Transnistrian business representatives to brief them on its 
efforts.  During this meeting, the Transnistrian businessmen 
raised three principal concerns regarding implementation of 
Resolution 815 that, rather than simplifying procedures, made 
their situation more complicated. 
 
-- Before August 2, 2005, Transnistrian businesses received 
temporary licenses of one year's duration.  Under Resolution 
815, temporary licenses only lasted six months. 
 
-- Transnistrian companies that had temporary registration 
could only receive "simple" or certificates of origin Type C 
that do not provide certain advantages regarding re-export. 
Under Resolution 815, only permanently registered companies 
could receive certificates of origin Type A, Rm, EUR, and CT1 
(note:  which allow goods to receive benefits of Moldova's 
trade agreements with EU and CIS countries).  To receive this 
benefit and be permanently registered, Transnistrian 
businesses would need to be current on payment of all 
Moldovan taxes, which would subject them to double taxation 
for payments to both the Moldovan government and 
Transnistrian authority. 
 
-- Before August 2, 2005, only some Transnistrian shipments 
were inspected.  Now, all were inspected. 
 
¶4. (C) Veselovsky said Ukrainian Special Negotiator for 
Transnistria Issues Dmytro Tkach had discussed the matter 
with Moldovan Minister for Reintegration Vasile Sova. 
Ukrainian and Moldovan representatives would meet in Odesa 
January 30 to resolve issues regarding the joint declaration; 
the Ukrainian government hoped OSCE, EU, and U.S. 
representatives would take part in the meeting. 
 
A Skeptical Reaction 
-------------------- 
 
¶5. (C) The assembled diplomats reacted with skepticism and 
coolness to Veselovsky and subjected him to probing 
questions.  Austrian Ambassador Michael Miess expressed the 
hope of the Austrian EU Presidency that the follow-on talks 
with the Moldovans would successfully lead to Ukraine's 
speedy implementation of the customs protocol.  German 
Embassy DCM Johannes Regenbrecht launched sharp questions on 
the manner in which the decision was reached and executed, 
and seemed generally dissatisfied with Veselovsky's 
evasiveness. 
 
¶6. (C) After the meeting, Kiev-based EC Senior Adviser for 
Moldova Sabine Stoehr said Transnistrian authority "Foreign 
Minister" Litskai had been in Kiev January 21 and had made 
exactly the same case that Veselovsky had just made during 
the meeting.  She was doubtful that the Ukrainian government 
had really taken its decision as a result of the January 24 
meeting in Odesa.  She said the EU Border Assistance Mission 
had detected Transnistrian leader Igor Smirnov crossing the 
Moldova/Transnistria border into Ukraine.  (When Regenbrecht 
asked whom Smirnov had met when he was in Kiev, Veselovsky 
smiled embarrassedly and said he was not at liberty to 
comment.)  Despite Veselovsky's assurances that the Moldovan 
government had been consulted, Stoehr said she understood the 
Moldovan ambassador in Kiev had simply been called in to the 
MFA late on January 24 and informed of the Ukrainian 
government's decision. 
 
Follow-up 
--------- 
 
¶7. (SBU) Per ref C, Embassy will follow up with senior GOU 
officials to urge GOU implementation of the agreed stiffened 
border controls as soon as possible. 
 
¶8. (U) Visit Embassy Kiev's classified website: 
www.state.sgov.gov/p/eur/kiev. 
HERBST