EXTRANCHECK: PRE-LICENSE CHECK:

UNCLAS MOSCOW 011262

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:
ELEKTRONEFTEMASH, MOSCOW, RUSSIA, LICENSE NO. D363343


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,
Elektroneftemash, Moscow, Russia. The company is
listed on BIS license application D363343 as the
ultimate consignee of apical type polymide film. These
items are controlled for national security reasons
under ECCN 1C008. The licensee is Mitsui and Co. Inc.,
200 Park Avenue 31st floor, New York, NY 10166.


3. On October 2, 2006, Export Control Attache Donald
Pearce and FSN Natalya Shipitsina conducted the
requested pre-license check at the offices of
Elektroneftemash (ENM),12, Krasnokazarmennaya st.,
Moscow, Russia. The export control team met with
Mikhail A. Karakhanyan, General Director.


4. ENM was founded in 2000 to conduct scientific
research and production of specialized electrical
equipment for use in the oil and gas industry. The
company was established by a group of specialists with
25 to 30 years of experience in the field. The
company is co-located with the oldest "All-Russian
Electro technical Center" in Russia. ENM employs 57,
and last year showed profits of 5,000,000 USD. The
company is also involved in electro technical research
projects, with a PhD-level researcher and five
candidates for PhD level degrees on staff.


5. ENM specializes in the production of coil wire,
Teflon tubing and connectors for use in
electromechanical pumps used in oil and gas drilling
and extraction. The company produces 250 tons per
year of the copper coil wire, which accounts for a
third of the Russian market for the wire. In
addition, it has half the Russian market for Teflon
tubing. The cables, tubes and connectors are specific
to the types of pumps used in Russian equipment, which
is built for use in cold climates.


6. The polymide film in reftel will be used as the
insulator for the copper coil wire. Although there is
one manufacturer of polymide film in Russia, the
quality is not high enough for use in the extreme
conditions found in oil and gas extraction operations.
The company meets regularly with its foreign suppliers
to discuss projects and supply requests. The coil
wires have no dual uses, and are specific to the
Russian system. This type of pump is not used
anywhere outside of Russia. ENM does not export, and
has no foreign customers.


7. Recommendations: Post recommends Elekrtoneftemash,
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