07MOSCOW51, RUSSIA REACTS NEGATIVELY TO IMPOSITION OF ISNPA

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Reference ID Created Released Classification Origin
07MOSCOW51 2007-01-10 13:46 2011-08-30 01:44 CONFIDENTIAL Embassy Moscow

VZCZCXRO4300
OO RUEHDBU
DE RUEHMO #0051 0101346
ZNY CCCCC ZZH
O 101346Z JAN 07
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6272
INFO RUCNCIS/CIS COLLECTIVE
RUEHXD/MOSCOW POLITICAL COLLECTIVE
RUEKJCS/JOINT STAFF WASHDC
RUEKJCS/SECDEF WASHDC
RHMFISS/CDR USEUCOM VAIHINGEN GE

C O N F I D E N T I A L MOSCOW 000051 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 01/10/2016 
TAGS: PARM MTCR PREL MNUC ETTC RS
SUBJECT: RUSSIA REACTS NEGATIVELY TO IMPOSITION OF ISNPA 
SANCTIONS 
 
REF: A. 06 MOSCOW 13175 
     B. 06 STATE 203587 
 
Classified By: Charge d'Affaires Daniel A. Russell. Reasons 1.4 (B/D). 
 
1.  (C) SUMMARY:  Russia's first official public reaction was 
calmly negative to the December 28 imposition of sanctions 
against four Russian entities under the Iran-Syria 
Non-Proliferation Act.  The Foreign Ministry characterized 
the U.S. action as an "illegal" effort to extend U.S. law to 
the activities of foreign companies.  A spokesman for 
Rosoboronexport, one of the sanctioned firms, as well as 
unofficial commentators, denounced the sanctions as an 
attempt by the U.S. to stifle increasingly competitive 
Russian companies from selling arms and to avenge sales to 
Venezuela.  While the GOR has not completed its assessment of 
the full impact of the sanctions, one Foreign Ministry 
official predicted political fallout.  END SUMMARY. 
 
2.  (SBU) Reaction to the imposition of sanctions against 
four Russian entities under the Iran-Syria Non-Proliferation 
Act (reftels) has been uniformly negative over the past two 
weeks.  Much of the press commentary described the U.S. 
action (published in the Federal Register January 5) as 
"illegal" and unfair and defended the entities involved as 
having acted in full compliance with Russia's laws and 
international obligations.  Some commentators cast the 
sanctions as an effort by the U.S. to counter the increasing 
competition posed by Russia's arms transfers to other 
countries and as a tit-for-tat response to arms sales to 
Venezuela. 
 
3.  (SBU) The Foreign Ministry issued a statement January 6, 
which constituted Russia's first official public reaction to 
the sanctions.  It referred to the imposition of sanctions as 
an "illegal" attempt by the U.S. to extend requirements of 
its domestic legislation to foreign companies and force them 
to abide by U.S. rules.  The statement rejected "unfounded 
allegations" that the entities were involved in the illicit 
transfer of missile technology or weapons of mass destruction 
(WMD) components in violation of Russian law or international 
agreements. 
 
4.  (SBU) Other officials voiced similar views.  Deputy Prime 
Minister and Defense Minister Sergey Ivanov, who also heads 
Russia's export control commission, emphasized January 6 that 
none of the entities had violated Russian law or 
international norms governing the transfer of WMD or missile 
technology.  A spokesman for Rosoboronexport (one of the four 
sanctioned entities) denied that the firm had transferred 
banned commodities or technology to Syria, Iran, or 
Venezuela.  Federation Council Speaker Sergey Mironov and 
Deputy Duma Speaker Vladimir Pekhtin were among those who 
suggested that the sanctions were imposed in response to 
increased competition from Russia. 
 
5.  (C) Andrey Belousov in the Political-Military section of 
the Foreign Ministry's North America Department told us 
January 9 that the GOR would soon consider the full impact of 
the sanctions, including their possible impact on the overall 
bilateral relationship.  Belousov said the timing of the 
sanctions (the day before a ten-day holiday period) had not 
yet allowed government officials to assess their practical 
impact, especially from an inter-agency perspective. 
However, he questioned the justification for the action, 
speculating that there would likely be fallout. 
RUSSELL

Wikileaks

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