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

UNCLAS SECTION 01 OF 05 KIEV 001082 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETTC MNUC PARM PREL
SUBJECT: EXBS: Ukraine Advisor Monthly Reporting Cable 
January - February 2006 
 
 
¶I. RED FLAG ISSUES 
 
¶1. On October 1, 2004, ExBS Advisor requested that the 
Department of Homeland Security's Bureau of Customs and 
Border Protection (CBP) de-obligate fiscal year 2004 ExBS 
operational funds for use in fiscal year 2005.  Despite 
numerous written and oral requests since then, the funds 
remain unavailable. 
 
¶2. On June 13-17, 2005, CBP conducted International Border 
Interdiction Training-2 in Odesa for 24 Ukrainian Customs 
and Border Guard Officers.  During the course of the class, 
the students were to be provided with individual tool kits 
that would help them in the training and in conducting 
regular examinations of vehicles and cargo.  Due to 
inadequate numbers, the tool kits were not provided at the 
time of the training.  Eight months after the training, on 
January 12, ExBS office was informed that tool kits were 
received by CBP.  ExBS awaits information from CBP on the 
delivery of the toolkits to Kiev for distribution to the 
appropriate recipients. 
 
¶3. ExBS office awaits information from CBP on delivery of 
approximately 200 individual tool kits, requested in 2004, 
to be deployed at border crossings. 
 
¶4. In November 2004, the State Customs Service of Ukraine 
(SCSU) inquired about the status of a decision regarding 
procedures for repairing malfunctioning equipment 
(fiberscopes, radiation pagers and busters) provided by the 
U.S. Government as technical assistance.  SCSU provided 
updated information on the U.S.-manufactured equipment, 
which is currently non-operational and requires repair or 
replacement, to ExBS.  ExBS reiterates its request for 
instructions on arranging for repair or replacement. 
 
II. BROAD ITEMS OF INTEREST TO ADVISORS AND AGENCY MANAGERS 
 
Responsibility for border radiation control:  There are 
discussions under way in the Government of Ukraine (GOU) 
regarding possible re-distribution of responsibilities for 
primary radiation control at ports of entry.  The State 
Border Guard Service of Ukraine (SBGS), which was vested 
with such responsibilities in 2005, approached the Cabinet 
of Ministers of Ukraine with a request to give up 
responsibility for primary radiological control at 
Ukraine's borders.  The SBGS proposed that the 
responsibility be transferred to the State Customs Service 
of Ukraine (SCSU).  However, the Ministry of Environmental 
Protection (MEP) does not support this proposal; MEP 
suggests instead that all responsibilities related to 
radiation control be returned to MEP, which had the 
responsibility previously. 
 
III. COMPLETED ACTIONS FOR THE REPORTING PERIOD 
 
¶A. SITE ASSESSMENTS AND MEETINGS DURING REPORTING PERIOD 
 
¶1. On January 19, an ExBS representative met with Brent 
Eastman and Michael Stafford, U.S. Department of State 
(DoS), who traveled to Ukraine to take part in a meeting of 
the U.S.Ukraine Working Group for nuclear smuggling 
issues.  The focus of the January 20 U.S.Ukraine meeting 
was to identify Ukraine's priority needs in the areas of 
safeguarding nuclear materials and preventing nuclear 
smuggling.  ExBS briefed Stafford and Eastman on ExBS 
activities in Ukraine.  General information was provided on 
the findings of border assessments conducted by the ExBS 
office in 20042005 at ports of entry along Ukraine's 
borders with Russia and Belarus. 
 
¶2. On January 23, ExBS Advisor met with Volodymyr Yevseyev, 
Chief of the Directorate for Ecological Control at the 
State Border, MEP.  ExBS had provided logistical support 
for Mr. Yevseyev's trip to Bachivsk for replacement of the 
control unit of the portal monitor.  On October 12, the 
ExBS Office had received notification from the MEP about a 
failure of the stationary portal monitor control box 
installed at Bachivsk port of entry.  The information was 
forwarded to the Department of Energy (DoE) for follow-up 
action.  On December 1, the Embassy's DoE attache received 
the replacement control box; on January 27, the control 
unit was replaced. 
¶3. On January 23, ExBS Advisor met with World Bank 
representative Mr. Zarnowiecki to discuss coordination of 
efforts to provide technical assistance to the GOU.  The 
World Bank is implementing a project focused on Customs 
reform.  ExBS Advisor provided brief information on ExBS 
activities as they relate to the SCSU. 
 
¶4. On January 26, ExBS Advisor met with Andriy Laktionov, 
Deputy Chief of the Department for International Technical 
Assistance, Directorate for International Customs 
Cooperation of the SCSU.  ExBS Advisor updated Laktionov on 
the status of delivery of 2 luggage-type X-ray units, 6 
contraband detection kits, 160 radiation pagers, and 1130 
individual tool kits purchased by the Department of State's 
Bureau for International Security and Nonproliferation, 
Office for Export Control Cooperation (ISN/ECC) through 
SAIC.  The appropriate steps to officially register the 
project with the Ministry of Economy were also discussed. 
ExBS Advisor informed the SCSU about DoE-proposed training 
on the use of X-ray fluorescent metal analyzers on March 
16-17.  It is envisaged that two such units would be 
transferred to the SCSU immediately upon completion of the 
training. 
 
¶5. On February 2, ExBS Advisor met with OSCE 
representatives to discuss assistance provided to the SBGS. 
OSCE is launching a project for Border Guard Service 
reform, which will mainly focus on enhancing the capacities 
of border guard units along Ukraine's southwestern border. 
ExBS Advisor provided a brief introduction to ExBS 
activities and how they relate to the SBGS.  ExBS Advisor 
made recommendations to OSCE on coordinating its efforts 
with DoD's Proliferation Prevention Initiative (WMD-PPI). 
 
¶6. On February 6, ExBS Advisor participated in the Embassy 
Border Security meeting chaired by the Deputy Chief of 
Mission (DCM).  ExBS Advisor informed the participants of 
the results of the January 30-February 1 Integrity 
Awareness workshop held for SBGS officers and described the 
planned delivery of equipment to the SCSU. 
 
¶7. On February 8, ExBS Advisor met with Dmytro Zavtur, the 
Chief of the Directorate for International Customs 
Cooperation, SCSU, to give an update on the planned 
delivery of equipment.  ExBS Advisor proposed that the SCSU 
consider the possibility of holding an official turnover 
ceremony with the Ambassador and SCSU Chairman upon receipt 
and installation of the X-ray units.  ExBS Advisor also 
informed Zavtur that, based on the results of the two 
Integrity Awareness Workshops held in Ukraine in November 
2005 and January 2006 and feedback from their participants, 
ExBS had recommended that DoS consider conducting an 
executive level Integrity Awareness Workshop at the end of 
June 2006 for top management of the SCSU, the SBGS, the 
State Service for Export Control (SSEC), the Security 
Service of Ukraine (SBU), the Ministry of Interior (MOI), 
the National Security and Defense Council (NSDC), and 
Members of Parliament (MPs).  DoS is currently studying 
this issue, and once the decision is made, the ExBS office 
will officially notify all the parties involved.  Zavtur 
thanked the U.S. for the assistance being provided and 
requested U.S. Embassy support in SCSU efforts to obtain 
the status of a law-enforcement agency.  Zavtur suggested 
that the SCSU is the only Customs agency in Europe which 
does not have such status, which would grant it the ability 
to conduct investigations and collect intelligence 
information related to customs offences.  The Customs Code 
of Ukraine stipulates post-delivery audits; however 
prevailing legislation does not provide for such authority. 
 
¶8. On February 15, ExBS Advisor met with Andriy Laktionov, 
Deputy Chief of SCSU's Unit for International Technical 
Assistance programs, Directorate for International Customs 
Cooperation, and Yuriy Drankovskyi, Senior Expert of the 
Directorate for Coordination of International Technical 
Assistance Projects of the Ministry of Economy, to discuss 
the registration of the project which would supply 
radiation pagers, contraband detection kits, individual 
tool kits, and X-ray units to the SCSU. 
 
¶9. On February 23, ExBS Advisor accompanied DoS Contracting 
Officer Will Zehnder on a visit to the office of the Roma 
Ltd. Company to award contract number SOUP300-06-M-0102 for 
the supply of 334 computer workstations to the SCSU, with a 
total value of $400,000.00. 
 
¶10. On February 24, ExBS Advisor accompanied Zehnder on a 
visit to the office of the BMS-Consulting Company to award 
contract number SOUP300-06-M-0103 for the supply of 
computer equipment to the SSEC, with a total value of 
$17,298.40. 
 
¶11. On February 28, ExBS Advisor participated in a meeting 
with Zehnder and Director of the Roma Ltd. Company, 
Volodymyr Zhuravlyov, to sign Modification No. 001 to 
Contract No. SOUP300-06-M-0102 for an additional 100 
computer workstations, with a total value of $120,000.00. 
 
¶B. TRAINING CONDUCTED DURING REPORTING PERIOD 
 
¶1. On January 30February 1, Commonwealth Trading Partners 
Inc., contracted to ISN/ECC, conducted Integrity Awareness 
Training for 29 Border Guard officers. Though the responses 
and feedback were very positive, the general level of 
cooperation on part of the trainees was noticeably lower 
than during the previous Integrity Awareness Workshop 
conducted in Kiev on November 16-18, 2005, for the officers 
of the State Customs Service of Ukraine.  The participants 
pointed at differences in the legislative framework, which 
in some cases becomes a serious impediment in applying 
received knowledge and skills in practice. 
 
¶C. EQUIPMENT DELIVERED DURING REPORTING PERIOD 
 
¶1. On January 12, ExBS office received 160 radiation 
detection pagers, which were purchased by Science 
Applications International Corporation (SAIC) under a 
contract with ISN/ECC.  The equipment was ordered based on 
the findings of the assessments conducted by the ExBS 
Office in 2004/2005 and will be deployed at the ports of 
entry along the Ukraine's borders with Russia and Belarus. 
Total cost of the indicated equipment is $205,120.00.  The 
pagers were transferred to the State Customs Service of 
Ukraine (SCSU) on February 15. 
 
¶2. On January 20, ExBS office received 6 contraband 
detection kits CT-30, which were purchased by SAIC under a 
contract with ISN/ECC.  The equipment was ordered based on 
the findings of the assessments conducted by the ExBS 
Office in 2004/2005, and will be deployed at the ports of 
entry along the Ukraine's borders with Russia and Belarus. 
Total cost of the indicated equipment is $87,846.00.  The 
contraband detection kits were transferred to the SCSU on 
February 15. 
 
¶3. On January 26, ExBS Office received 10 GR-135 neutron 
identifiers.  The units were ordered from CBP in 2004.  The 
user manual and the software that allows read-out and 
management of the information on the computer are in 
English.  On January 30, a request was made to CBP to 
arrange with the supplier for translation of the user 
manual and the software.  Once the translated software and 
manuals are received the equipment will be transferred to 
the Ministry of Environmental Protection of Ukraine, 
Department for Ecological Control at the State Border. 
 
¶4. On February 13, 1130 individual Gerber tool packs, which 
were purchased by SAIC under a contract with ISN/ECC, 
arrived in Kiev and were delivered to the SCSU warehouse. 
The equipment was ordered based on the findings of the 
assessments conducted by the ExBS Office in 2004/2005, and 
will be deployed at the ports of entry along the Ukraine's 
borders with Russia and Belarus.  Total cost of equipment 
is $59,890.00.  On February 15, ExBS Advisor and the SCSU 
representatives performed joint inventory of the tool kits 
and signed the statement of transfer. 
 
¶5. On February 13, two X-ray luggage-type units Rapiscan- 
524 arrived to Kiev Regional Customs.  These units were 
supplied by SAIC under the contract with ISN/ECC.  The X- 
ray units have been installed at the International Boryspil 
Airport, the main air gate to/from Ukraine. 
 
¶D. IMMINENT TRAINING OR EQUIPMENT STATUS UPDATE 
 
 
¶1. On February 23, DoS Contracting Officer, Will Zehnder, 
awarded contract No. SOUP300-06-M-0102 for supply of 334 
computer workstations, to include a desktop computer, LCD 
monitor, laser printer, and UPS, to the State Customs 
Service of Ukraine.  On February 28, Modification # 001 was 
signed for 100 additional workstations.  It is expected 
that the equipment will be delivered to SCSU no later than 
September 1, 2006.  The cost of the 434 computer 
workstations totaled $520,000.00.  ExBS office is now 
working on getting this project registered with the 
Ministry of Economy of Ukraine to obtain VAT-exemption for 
the equipment to be supplied. 
 
¶2. On February 24, DoS Contracting Officer, Will Zehnder, 
awarded contract No. SOUP300-06-M-0103 for supply of 
computer equipment, to include desktop computers, server, 
bar code reading and printing equipment, software, to the 
State Service of Export Control of Ukraine (SSEC).  It is 
expected that the equipment will be delivered to SSEC no 
later than June 30, 2006. The cost of the equipment is 
$17,298.40.  ExBS office is now working on getting this 
project registered with the Ministry of Economy of Ukraine 
to obtain VAT-exemption for the equipment to be supplied. 
The equipment was purchase based on the request received 
from the State Service of Export Control in November 2005. 
 
¶3. In November, ExBS Advisor informed the State Service for 
Export Control of Ukraine (SSEC) experts of a proposed 
Administrative Enforcement Workshop developed by the U.S. 
Department of Commerce.  Following brief description of the 
workshop ExBS Advisor provided materials of the course for 
review by the SSEC experts and requested their comments and 
decision as to applicability of the proposed course for the 
SSEC enforcement staff.  On December 06, ExBS office 
received a letter from the SSEC in which they informed that 
the proposed training would not be applicable for their 
needs.  Instead, they expressed interest in meeting with 
their U.S. counterparts to discuss their practical 
experience and existing challenges the U.S. experts face in 
the administrative enforcement process.  ExBS Office is 
waiting for information form the U.S. Department of State 
as to the possibility of completing SSEC's request. 
 
¶4. On February 01, State Customs Service of Ukraine 
notified ExBS Office about malfunctioning of the Linescan 
207 Towcart unit deployed in Uzhgorod.  The units were 
supplied by DoS in August 2004, delivered to / deployed at 
the ultimate locations in February 2005.  Request for 
repair was forwarded to DoS and company  manufacturer L-3 
Communications.  On February 17, L-3 Communications 
provided written guidance on how the problem can be fixed. 
The information was forwarded to SCSU for action. 
 
¶5. The U.S. Coast Guard's (USCG) Maritime Law Enforcement 
Training, which includes Advanced Maritime Law Enforcement 
Boarding Officer Course and Maritime Law Enforcement 
Instructor Course, scheduled for June 13-July 1 was 
postponed to allow for the addition of materials on export 
controls.  New dates will be determined once USCG completes 
the ongoing revisions to the training materials. 
 
¶E. SIGNIFICANT DEVELOPMENTS IN EXPORT CONTROLS, 
NONPROLIFERATION, OR RELATED BORDER SECURITY 
 
None 
 
 
HERBST