EXTRANCHECK: PRE-LICENSE CHECK: NOVIKOVA

UNCLAS MOSCOW 001721 SIPDIS SIPDIS USDOC FOR 532/OEA/MHAMES/LRITTER USDOC FOR 3150/USFCS/OIO/CEENIS/MCOSTA E.O. 12958: N/A TAGS: BEXP ETRD ETTC RS SUBJECT: EXTRANCHECK: PRE-LICENSE CHECK: NOVIKOVA IRINA PBOUL FIRM, MOSCOW, RUSSIA, LICENSE NO. D371293 REFTEL: USDOC 01301 ¶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, Novikova Irina PBOUL firm, Moscow, Russia. The company is listed on BIS license application D371293 as the ultimate consignee of 100 accushots 8-32X56 30mm tube scope w/red/green illumination, multi emerald coating, 100 accushots 8-32X56 30mm tube A.O. scope w/multi emerald coating, 100 accushots 6-24X56 30mm tube A.O. scope w/red/green illumination, multi emerald coating, 100 accushots 4-16X56 30mm tube A.O. scope w/red/green illumination, multi emerald coating, 100 accushots 4- 16X56 30mm tube A.O. scope, zero reset/locking, multi emerald coating, 100 accushots 3-12X44 30mm tube A.O. scope w/illumination, multi emerald coating, 100 accushots 3-12X44 30mm tube A.O. scope, multi emerald coating, 100 accushots 16X56 30mm tube A.O. scope, multi emerald coating, 100 accushots compact 3-12X44 30mm tube A.O. scope, multi emerald coating, 100 accushots compact 3-12X44 30mm tube scope w/angled obj., multi emerald coating, 100 accushots compact 3- 12X44 30mm tube scope w/angled obj., multi emerald coating and flip-open lens cover - adjusted 100 yards, 100 accushots 6X32 reticle intensified scope w/carry handle mounting deck, 800 5th gen full size scopes w/TS platform, 200 new gen. Golden image 3-9X40 full size rubber armor scope. These items are controlled for foreign policy reasons under ECCN OA987. The licensee is Leapers, Inc., 32700 Capitol St., Livonia, MI ¶48150. ¶3. On February 27, 2007 the apartment of Ilya Novikov and Irina Novikova, Ramenki 18-199, Moscow, Russia. The export control team met with Irina Novikova and Ilya Novikov, who do business under "Pboul" (a Government of Russia registration of independent entrepreneurs) in the name of Mrs. Novikova. ¶4. Mr. Novikov and Mrs. Novikova have run a number of small business operations from their home. Currently, they are supplying hunting supplies and shooting optics for sporting goods stores in Moscow. They plan to incorporate the business under the name of "Hunted," and are arranging for vendor space in a shopping mall in Moscow. Currently all business is conducted from the couple's apartment, with additional storage space in a secure warehouse owned by a friend of Mr. Novikov. ECO Pearce requested copies of the incorporation documents once finalized, and further requested to see the facilities of the ultimate reseller. ¶5. On April 10, 2007, Export Control Attache Donald Pearce and FSN Natalya Shipitsina conducted a follow- up visit at the showroom of Ocular, located in the Cheremushkiy Mall, Profsoyuznaya Ulitsa 56, Moscow, Russia. The export control team met with Ilya Novikov. ¶6. Mr. Novikov stated that, upon consultation with Leapers, they would continue to do business under Mrs. Novikovas pboul. Ocular is a small shop within a shopping mall, which features a variety of binoculars, monoculars and riflescopes. Mr. Novikov stated that two other suppliers are also providing merchandise to Ocular. Mr. Novikov showed the team several European riflescopes, which he has procured for resale by Okular. Okular does about half of it's sales via the Internet, from the website www.okular.ru. ¶7. Mr. Novikov showed us a small storage area where additional stock is kept, which is behind the main counter of the store. The store is protected by the shopping center's security department, which includes a guard service and electronic alarms in the store. Additional stock will be kept at a secure warehouse run by a friend of Mr. Novikov, which is located in a former military bunker. Mr. Novikov is aware of both U.S. and Russian export controls, and no products will be sold outside of Russia. ¶8. Recommendations: Post recommends Novikova Irina PBOUL firm, 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