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