Ukraine caught between U.S., Russia in sale of nuclear technology to Iran (02/22/98)

Ukraine caught between U.S., Russia in sale of nuclear technology to Iran

by Yaro Bihun
Special to The Ukrainian Weekly

WASHINGTON - Ukraine has found itself between a rock and a hard place in a disagreement between the United States and Russia over exporting nuclear technology to Iran.

As reported in the Washington Post on February 8, the Clinton administration has been pressing Ukraine with a variety of carrots and sticks to cancel plans to sell turbines to be used in a Russian-built atomic power plant in Iran.

Even though Iran promised to accept international safeguards for the facility, the U.S. government remains firmly against any transfer of nuclear technology to Iran, convinced that it would ultimately be used for the development of nuclear weapons.

For nearly a year, according to the Washington Post, the United States has been trying to convince Ukraine not to participate in the Russian project, using promises of small business loans, Export-Import Bank credits, joint ventures, military and space cooperation, and access to U.S. nuclear fuel as carrots.

On the stick side, the Post reports, the administration has stressed that if Ukraine insists on selling the turbines for the Russian power plants, Washington will not sign a peaceful nuclear cooperation accord with Ukraine, which would keep Ukraine from getting U.S. technology and fuel needed to complete its atomic power plants in Rivne and Khmelnytskyi.

The Russian companies building the plant in Bushehr, Iran, want Turboatom of Kharkiv to supply the turbines for the $850 million project. Russia, too, is applying pressure on Ukraine, according to Ukraine's ambassador to the United States, Yuri Shcherbak, as quoted in the Post article. If Turboatom refuses to produce the turbines, it will forfeit all future dealings with the Russian firms, costing it hundreds of millions of dollars in lost revenue. On the other hand, if Turboatom goes through with the deal, Russia promises to provide its own technology and credits to complete the two Ukrainian power plants.

According to the Washington Post, U.S. pressure on Ukraine has become an irritant in an otherwise close bilateral relationship: it is keeping U.S. companies, such as Westinghouse Electric Corp., from participating in the $1.2 billion completion project of Ukraine's nuclear power plants, and is going counter to U.S. plans to lessen Ukraine's reliance on Russia for nuclear power technology and fuel.

Sen. Mitch McConnell (R-Ky.), characterized by the Washington Post as "a strong Ukraine advocate" who chairs the Senate subcommittee that drafts foreign aid bills, said the Clinton administration's "belligerent approach doesn't make sense" and "could drive (Ukraine) back into Russia's arms."

Asked about the dispute on February 9, State Department Spokesman James B. Foley confirmed that the administration has discussed with Ukraine its concerns about the Russian project in Iran. "We have made clear our strong desire that Ukraine not provide such assistance," he said.

Less than a week later, the Associated Press reported that the issue was discussed again in a meeting in Kyiv between the State Department's special envoy, Steven Sestanovich, and the secretary of Ukraine's National Security and Defense Council, Volodymyr Horbulin. Mr. Horbulin said afterwards that Ukraine would announce its decision within two to three weeks. (See related story on page 2.)

The Washington Post quoted a State Department official as saying that Ukraine's sale of turbines to Russia is not covered by any U.S. law on sanctions. Russia, on the other hand, could have half of its U.S. assistance budget held up if the president cannot certify to Congress that it has stopped its nuclear cooperation programs with Iran. The paper also quotes U.S. officials as saying that, so far, Russia has shown no willingness to comply with this congressional requirement.

In an interview with the Washington Post, Ambassador Shcherbak proposed the following solution to the dispute: "The best way is to have the United States and Russia directly solve this problem."

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