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Cablegate: U.S. Dispute of Russian Start Bills

VZCZCXYZ0022
OO RUEHWEB

DE RUEHC #2350 2741807
ZNR UUUUU ZZH
O 011747Z OCT 09
FM SECSTATE WASHDC
TO RUEHMO/AMEMBASSY MOSCOW IMMEDIATE 0000
INFO RUEHGV/USMISSION GENEVA IMMEDIATE 0000
RHMFISS/JOINT STAFF WASHINGTON DC IMMEDIATE
RHMFIUU/DTRA ALEX WASHINGTON DC IMMEDIATE
RHMFIUU/DTRA DULLES WASHINGTON DC IMMEDIATE
RUEKJCS/SECDEF WASHINGTON DC IMMEDIATE
RUEAIIA/CIA WASHINGTON DC IMMEDIATE

UNCLAS STATE 102350

SENSITIVE
SIPDIS
MOSCOW FOR DTRO-M/ACID
GENEVA FOR JCIC

E.O. 12958: N/A
TAGS: PARM KACT START US RS
SUBJECT: U.S. DISPUTE OF RUSSIAN START BILLS

REFS: A) STATE 027733
B) RNRRC FAX TO EMBASSY MOSCOW (DTRO-M/ACI),
DATED MAY 7, 2009
C) RNRRC FAX TO EMBASSY MOSCOW (DTRO-M/ACI),
DATED JULY 29, 2009

SENSITIVE BUT UNCLASSIFIED. PLEASE PROTECT ACCORDINGLY.

1. (U) This is an action cable (see paragraph 2).

2. (U) SUMMARY AND ACTION REQUEST. The Defense Threat
Reduction Agency (DTRA) has reviewed itemized cost lists and
bills associated with implementation of the Strategic Arms
Reduction Treaty (START) (totaling 526,826.76 USD), and
supporting documentation submitted by the Russian Nuclear
Risk Reduction Center (RNRRC) for the billable period January
1, 2009, through June 30, 2009. Based on this review, DTRA
is disputing charges totaling 7,996.73 USD and will be
forwarding a 518,830.03 USD payment to the appropriate RNRRC
account. DTRA will also be forwarding an additional 1,803.50
USD payment to the RNRRC account for previously disputed
START costs for the earlier billable period July 1, 2008,
through December 31, 2008 (Refs A and B). DTRA is also
seeking confirmation from the RNRRC that bank account
information provided by the RNRRC to Embassy Moscow
(DTRO-M/ACI) on July 29, 2009 (Ref C) should be used for
these and future U.S. START payments. In order to meet
Treaty timelines, Embassy Moscow (DTRO-M/ACI) is requested to
provide the information in paragraph 3 below to appropriate
RNRRC officials at the earliest opportunity. END SUMMARY AND
ACTION REQUEST.

3. (SBU) Begin text:

- The U.S. Defense Threat Reduction Agency (DTRA) has
reviewed a May 7, 2009, response provided by the Russian
Nuclear Risk Reduction Center (RNRRC) regarding disputed
START charges for the billable period July 1, 2008, through
December 31, 2008.

- Based on this review, DTRA will be forwarding, to the
account designated by the RNRRC, an additional 1,803.50 USD
payment. This payment is for:

-- Formerly disputed charges (totaling 109.72 USD)
from RNRRC Bill 2008/2-11 for use of the "ZIL-130 dump truck";

-- Formerly disputed charges (totaling 35.06 USD) from
RNRRC Bill 2008/2-11 for "waste reception and disposal on the
territory of Spetskhzyaistvo"; and

-- Formerly disputed charges (totaling 1,658.72 USD)
for "work of loaders" and "grass mowing along perimeter"
directly connected to services that are reimbursable under
the Treaty.

- DTRA has also reviewed RNRRC START Treaty bills, totaling
526,826.76 USD, and supporting documentation for the billable
period January 1, 2009, through June 30, 2009.

- Based on this review, DTRA is disputing charges totaling
7,996.73 USD from RNRRC Bill 2009/1-2 (30,570.57 USD) for
START cost category number 2 (servicing for inspection
airplanes). DTRA notes the disputed amount was calculated
using the 1 USD = 32.2886R dollar/ruble conversion factor
specified in the RNRRC supporting documentation).

- DTRA will be forwarding, to the account designated by the
RNRRC, a 518,830.03 USD payment for the undisputed charges.

- The 7,996.73 USD disputed amount is comprised of the
following:

-- DTRA is disputing 3,720.20 USD for landing fees.
DTRA requests clarification from the RNRRC regarding these
charges in light of Treaty provisions and past cost
settlement practices.

-- DTRA is disputing 4,056.54 USD for "Extension of
Workday" charges. DTRA requests clarification from the RNRRC
regarding these charges taking into account Treaty provisions
and past cost settlement practices.

-- DTRA is disputing 26.45 USD for taxes charged for
"Landing and Takeoff Passenger Steps" (taxes: 14.05 USD) and
"Leading the Military Aircraft" (taxes: 12.40 USD). DTRA is
not authorized to pay for taxes in accordance with
long-standing U.S. Government policy.

-- DTRA is disputing 193.54 USD (164.02 USD 29.52
USD in taxes) for "Providing Arrival-Departure" charges.
DTRA requests clarification from the RNRRC on the services
that were provided.

- Regarding the forthcoming DTRA payments of 1,803.50 USD
(for the cost settlement period July 1, 2008, through
December 31, 2008) and 518,830.03 USD (for the cost
settlement period January 1, 2009, through June 30, 2009),
DTRA requests confirmation from the RNRRC that the following
bank account should be used for these and future U.S. START
payments:

MINISTRY OF DEFENSE OF THE RUSSIAN FEDERATION
ACCOUNT NUMBER 40503840900030000257
JCS VTB BANK, RUSSIA, MOSCOW, VORONTSOVSKAYA STR., 43
SWIFT: VTBRRUMM
TO THE ACCOUNT NUMBER 890-0055-006 OF JSC VTB BANK WITH THE
BANK OF NEW YORK, NEW YORK, USA (SWIFT: IRVT US 3N)

End text.
CLINTON

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