KYIV ABANDONS IRAN NUCLEAR PLANT PROJECT.

Following his talks with Albright, President Leonid Kuchma announced Ukraine’s decision to refrain from supplying turbines for Iran’s nuclear power plant at Bushehr, which is being equipped mostly by Russia. Under the plan, which dates back several years, Ukraine’s Kharkiv-based Turboatom plant was to act as a subcontractor to Russia’s Zarubezhatomstroy in supplying one or two turbines for Bushehr. Caught between U.S. opposition to the project and internal pressure to proceed with the lucrative deal, the Ukrainian government had postponed a conclusive decision, despite tentative assurances by some top officials that Kyiv would not supply the turbines. The issue is particularly sensitive in this election year in Ukraine, where Kharkiv is one of the pivotal electoral battlegrounds. Kuchma’s final decision therefore entails both economic and political disadvantages. He and Udovenko, however, stated that their overriding consideration was to support U.S. and international efforts against proliferation of nuclear-weapon capabilities. (Ukrainian agencies, March 6-7)

In Moscow, President Boris Yeltsin’s foreign policy coordinator Sergei Yastrzhembsky professed to "understand Ukraine’s difficulties under massive U.S. pressure." Insinuating that Kuchma had, at their recent summit, complained to Yeltsin about that pressure, Yastrzhembsky expressed certainty that Russia will alone complete the Bushehr project for Iran. The Russian government now intends to award the turbine contract to Russia’s specialized plant in St. Petersburg. Although the decision benefits a Russian producer, Moscow postponed it as long as it could — apparently to maintain an irritant in Kyiv-Washington relations. (Russian agencies, March 7-8)

___________________________________________________________________________________________

The Monitor is a publication of the Jamestown Foundation. It is researched and written under the direction of Senior Analysts Elizabeth Teague, Vladimir Socor, Stephen Foye, and Analysts Igor Rotar, Douglas Clarke, Ben Slay, Peter Rutland, and Sally Cummings.

If you would like information on subscribing to the Monitor, or have any comments, suggestions or questions, please contact us by e-mail at <host@jamestown.org>, by fax at 202-483-8337, or by postal mail at The Jamestown Foundation, 1528 18th Street NW, Washington, DC 20036.

Unauthorized reproduction or redistribution of the Monitor is strictly prohibited by law.

The Monitor is a publication of the Jamestown Foundation. It is researched and written under the direction of senior analysts Jonas Bernstein, Vladimir Socor, Stephen Foye, and analysts Ilya Malyakin, Oleg Varfolomeyev and Ilias Bogatyrev. If you have any questions regarding the content of the Monitor, please contact the foundation. If you would like information on subscribing to the Monitor, or have any comments, suggestions or questions, please contact us by e-mail at pubs@jamestown.org, by fax at 301-562-8021, or by postal mail at The Jamestown Foundation, 4516 43rd Street NW, Washington DC 20016. Unauthorized reproduction or redistribution of the Monitor is strictly prohibited by law. Copyright (c) 1983-2002 The Jamestown Foundation Site Maintenance by Johnny Flash Productions