09MINSK115, BELARUS: LIKELY MISINTERPRETATION OF USG SANCTIONS: ACTION

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Reference ID	Created	Released	Classification	Origin
09MINSK115	2009-04-10 17:03	2011-08-30 01:44	UNCLASSIFIED//FOR OFFICIAL USE ONLY	Embassy Minsk

VZCZCXRO5604
PP RUEHSK
DE RUEHSK #0115 1001703
ZNR UUUUU ZZH
P 101703Z APR 09
FM AMEMBASSY MINSK
TO RUEHC/SECSTATE WASHDC PRIORITY 0209
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHSK/AMEMBASSY MINSK 0212

UNCLAS MINSK 000115 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EUR/UMB 
TREASURY FOR OFAC 
 
E.O. 12958: N/A 
TAGS: PREL ETRD BO
SUBJECT: BELARUS: LIKELY MISINTERPRETATION OF USG SANCTIONS: ACTION 
REQUEST 
 
¶1.  (U) Please see action request para 6. 
 
¶2.  (SBU) Charge met April 10 with MFA Americas Department 
Director Sergey Rachkov at the latter's request.  Rachkov 
provided a copy of a letter to the Belarusian Steel Works (BMZ) 
in Zhlobin from the American Petroleum Institute (API; see 
partial text para 4), indicating that API has terminated BMZ's 
certification status. 
 
¶3.  (SBU) API has concluded that USG sanctions affect BMZ. 
However, the Embassy has no information that the Belarusian 
State Concern for Oil and Chemistry ("Belneftekhim"), the entity 
designated on November 13, 2007, owns, directly or indirectly, a 
50% or greater interest in BMZ.  (Comment: It seems possible 
that the phrase "Republican Unitary Enterprise" has confused 
API; similar terminology is used to describe any number of 
state-owned companies in Belarus.  End comment.) 
 
¶4.  (U) Partial text of April 7, 2009 letter to BMZ from API 
(API confirmed by phone to post that the letter was authentic): 
 
REPUBLICAN UNITARY ENTERPRISE "BYELORUSSIAN STEEL WORKS" 
PIPE ROLLING MILL 
37, Promyshlennaya Str. 
Zhlobin, Gomel Region 247210 
Belarus 
 
The API hereby informs you that it is terminating your 
certification status, effective immediately.  When Republican 
Unitary Enterprise [sic] applied for certification, it signed a 
licensing agreement which states in part: "Licensee represents 
and warrants that Licensee is not located in, or under the 
control of, a national or resident of any U.S. embargoed 
country."  Republican Unitary Enterprises has been listed in the 
U.S. Treasury regulations, and API has concluded that it is 
under the control of listed nationals of Belarus. 
 
Effective immediately, REPUBLICAN UNITARY ENTERPRISE 
"BYELORUSSIAN STEEL WORKS" PIPE ROLLING MILL shall not use the 
API monogram on any products manufactured in your 
facility...Please return the previously issued API Monogram 
License and APIQR Certificates [for ISO 9001:2000, API SPEC Q1, 
and ISO/TS 29001] to our offices in Washington, DC. 
 
¶5.  (SBU) Rachkov handled the issue calmly and professionally, 
but he made clear that the API letter is causing some 
consternation among GOB officials, who in turn are choosing to 
misinterpret it as having policy significance.  Charge reassured 
Rachkov that there had been no change in USG policy and noted 
that the letter was from a private, non-governmental 
institution.  Charge encouraged the GOB and BMZ to follow up 
with direct inquiries to the Treasury Department's Office of 
Foreign Assets Control. 
 
Action Request 
-------------- 
 
¶6.  (SBU) While the GOB pursues its own inquiries, post would be 
grateful for Washington confirmation that sanctions against 
Belneftehkhim do not apply in this instance given the lack of 
information that Belneftekhim owns a 50% or greater interest in 
BMZ. 
 
MOORE

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