EXTRANCHECK: PRE-LICENSE CHECK: (A) VNESH OPT

UNCLAS MOSCOW 010719

SIPDIS

USDOC FOR 532/OEA/MHAMES/DMUSLU
USDOC FOR 3150/USFCS/OIO/CEENIS/MCOSTA
USDOC FOR 532/OEE/MO'BRIEN
SIPDIS

E.O. 12958: N/A
TAGS: BEXP ETRD ETTC RS
SUBJECT: EXTRANCHECK: PRE-LICENSE CHECK: (A) VNESH OPT
TORG AND (B) FSUE SCIENTIFIC AND TECH. ATLAS, MOSCOW,
RUSSIA, LICENSE NO. D360499

REFTEL: USDOC 04045


1. Unauthorized disclosure of the information provided
below is prohibited by Section 12C of the Export
Administration Act.


2. Reftel requested a Pre-license check to determine
the legitimacy and reliability of the end-user, (A)
Vnesh Opt Torg and (B) FSUE Scientific and Tech.
Atlas, Moscow, Russia. The companies are listed on BIS
license application D360499 as the ultimate consignee
of titanium coils, model S-3-W, ST3. These items are
controlled for chemical or biological warfare reasons
under ECCN 2B350. The licensee is Serfilco Ltd., 2900
Macarthur Blvd., Northbrook, IL 60062.


3. On September 12, 2006 Export Control Attache Donald
Pearce and FSN Natalya Shipitsina conducted the
requested pre-license check at the offices of Vnesh
Opt Torg (VOT). The team met with Yekaterina Grachova,
Accountant.


4. VOT is a new company, founded in May 2006 as an
"external economic activities" organization. The
company specializes in procurement and importation of
foreign produced goods for Russian end users, as well
as freight forwarding services for Russian clients.
The company has a wide variety of clients in many
sectors. The company is familiar with export controls
as it has dealt with U.S. companies before, and is
well versed in the import and export regulations of
the Russian Federation. The company will not be an end
user of the product, and has no additional information
on the end use and end user.


5. On September 15, 2006, Export Control Attache
Donald Pearce and FSN Natalya Shipitsina conducted the
requested pre-license check at the offices of Federal
State Unitary Enterprise - Scientific and Technical
Center Atlas, Moscow, Russia. The export control team
met with Vyachyeslav Polikarpov, Chief.


6. Atlas was founded in 1951 to research and develop
products for use in electronic communications, and
branched into new technologies throughout its history.
The organization employs over 1000, and is currently
focused on telecommunications, information technology
systems, mobile telephone security systems, and other
communications electronics research. In addition,
Atlas has been tasked with production of security
devices for identification products such as passports,
visas and other identity documents. Atlas is
currently working on the chip technology for use in
biometric identity documents such as the new Russian
passport.


7. The Holographic Department was founded in 1992 to
produce security features for official documents. The
company has a full production facility, from design of
the emblem or logo to mass production of holograms.
The Holographic Department has little interaction with
other parts of the company, as it is a specialized
operation. End users of the holograms are various
government and private sector end users. Certain
holograms are also produced for commercial use,
advertising and the like.


8. The coils in reftel will be used in the electrolyte
bath used in the production of holograms. Currently
the line is using equipment purchased in 1993, which
is slowly being phased out as Atlas procures new
devices. The coils will be used to maintain a
constant temperature in the electrolyte bath, a
critical element in producing holograms. Two or three
specialists will utilize the systems to produce
holograms. The coils will be incorporated into the
baths of the rotary plate and ordinary plate systems.
The systems are in a limited access facility with a
high security regime.


9. Recommendations: Post recommends (A) Vnesh Opt Torg
and (B) Federal State Unitary Enterprise - Scientific
and Technical Center Atlas, Moscow, Russia, as
reliable recipients of sensitive U.S. origin
commodities. It is requested that post be notified of
final disposition of the application, and of any
shipments for this organization in order to conduct


appropriate FCS follow-up and statistical reporting.
(FCS MOSCOW/SBOZEK/DPEARCE)
BURNS