EXTRANCHECK: PRE-LICENSE CHECK: (A) JSC CHOP

UNCLAS MOSCOW 012482 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) JSC CHOP VITYAZ-S (D359202) AND (B) JSC CHOP VITYAZ-S (D358555),SAMARA, RUSSIA REFTEL: USDOC 05249 ¶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) JSC CHOP Vityaz-S (D359202) AND (B) JSC CHOP Vityaz-S (D358555),Samara, Russia. The company is listed on BIS license application D359202 and D358555 as the ultimate consignee of (A) Flir Systems Inc. model thermovision sentinel thermal imaging system and (B) flashlight camera. These items are controlled for national security and nuclear non-proliferation reasons under ECCN 6A003. The licensee is (A) Flir Systems Inc., 27700 SW Parkway Avenue, Wilsonville, OR 97070 and (B) Indigo Systems Corporation, 70 Castilian dr., Goleta, CA 93117. ¶3. FSN Natalya Shipitsina first contacted JSC CHOP Vityaz-S (Vityaz) on or about October 3, 2006. FSN Shipitsina spoke with Viktor Zalozhny, who identified himself as the General director of JSC Vityaz-S. Zalozhny agreed to meet with ECO Moscow regarding the planned purchase. The meeting was scheduled for November 8, 2006. Zalozhny provided a mobile phone number for any additional contacts. ¶4. Open source research conducted by FSN Shipitsina was unable to verify the Samara address provided by the company. A check with the website provided in reftel showed the name Vityaz-S, and noted an address and telephone number in Moscow. FSN Shipitsina contacted the company via the Moscow telephone number, and was told that there was no subunit, affiliate or related company to Vityaz-S in Samara. ¶5. On November 7, 2006 FSN Shipitsina called Zalozhny to confirm the meeting. Zalozhny stated that the company no longer plans to buy the American equipment, and therefore was reluctant to meet. FSN Shipitsina was able to convince Zalozhny not to cancel the meeting. Zalozhny said that his deputy, Mr. Aleksandr Khokhlov, would be responsible for the meeting. The meeting was confirmed for November 8 at 1500 (all times local),and promised to meet the team at the hotel and provide transportation to the offices of Vityaz. ¶6. On November 8, 2006, an Export Control Team consisting of ECO Donald Pearce and FSN Shipitsina arrived in Samara to conduct the pre-license checks. FSN Shipitsina attempted to contact Kholkhlov and Zalozhny several times via both the mobile phone and office phone numbers provided with no answer. Khokhlov failed to show at the appointed time and location for the meeting. ¶7. At 1515 the team hired a taxi and proceeded to 146, Unikh Pionerov Avenu, Samara, the address noted in reftel as the offices of Vityaz. At 1600 the team arrived at the address, observing a ground floor office with a small sign bearing the name Vityaz-S in Russian. The team approached the office, observing lights through the windows. The team entered the office, which was under renovation, and without furnishings. The workers in the office stated that the company was operating from an adjacent office. ¶8. The team approached the second door, which was not marked and had no doorknob. Prying the door open from the edge, the team made entry into a darkened, warehouse-like space; cluttered with a variety of items. There was a second door to the left of the entrance, where the team observed signs of occupancy. Upon entering the office, the team observed a similarly cluttered office, with two desks, one computer, a television set and a large antenna of the type used on a rooftop. The only appliance in the office that was operating was the television. The occupant, who identified himself as a guard, confirmed that this was the office of Vityaz. The guard stated that he did not know the whereabouts of Kholkhlov and Zalozhny, and did not know when they would return. The team returned to the taxi, and kept the office under observation until 1700. The team then departed from the area, as there was no sign of Kholkhlov or Zalozhny. ¶7. Recommendations: Post does not/not consider JSC CHOP Vityaz-S (D359202 and D358555),Samara, Russia to be a reliable recipient of U.S. origin commodities or technology. Post considers PLC completed unless BIS cables with additional questions. (FCS MOSCOW/SBOZEK/DPEARCE) BURNS