EXTRANCHECK: PRE-LICENSE CHECK: FSUE

UNCLAS MOSCOW 001722 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: FSUE GERMANIUM, KRASNOYARSK, RUSSIA, LICENSE NO. D372120 REFTEL: USDOC 01913 ¶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, FSUE Germanium, Krasnoyarsk, Russia. The company is listed on BIS license application D372120 as the ultimate consignee of ESX150 optical machining center with 3 liner and 2 rotary axes. These items are controlled for national securities, nuclear non-proliferation reasons under ECCN 2B001. The licensee is VI Manufacturing, DBA Optipro systems 6368 Dean Parkway, Ontario, NY 14519. ¶3. On April 5, 2007, Export Control Attache Donald Pearce and FSN Natalya Shipitsina conducted the requested pre-license check at the offices of FSUE Germanium, Transportny proyezd 1, Krasnoyarsk, Russia. The export control team met with Oleg Podkopaev, General Director. ¶4. FSUE Germanium was founded in 1991 from the Germanium production facility of the Krasnoyarsk Metallurgical Plant. The facilities are located in a building on the grounds of Krasnoyarsk Metallurgical Plant (Russian abbreviation KMZ),which refines and produces articles from precious metals such as gold and platinum. KMZ is a Joint Stock Company controlled by the Krasnoyarsk Regional Government, and FSUE Germanium is 100% owned by the Government of Russia. The only product produced and refined is Germanium. The company has no military contracts. 85% of sales are exports to the United States, United Kingdom, Israel and Japan. FSUE Germanium has no clients located in Iran, North Korea, Syria or Cuba. ¶5. The machine tools cited in reftel will be used in the production of germanium lenses and forms. These items are common for use in infrared detectors and laser products. FSUE Germanium selected the U.S. origin equipment as it can produce a larger lens (up to 200mm in diameter) and can produce square forms. In addition, the device is less expensive than the closest German competitor. Five to seven operators will have access to the device, which will be installed on the first floor of the facility in a specially prepared workspace. ¶6. Due to the presence of high-value raw materials and finished commodities, security at KMZ is high. A three-meter (10 foot) high perimeter wall with razor wire and a second internal fence surround the facility, which is patrolled by armed guards. A video surveillance system and electronic sensor system are employed as well. Access is limited to employees based on work schedule (no after-hours access is allowed) and to escorted visitors. Vehicles entering the facility are searched before exiting. ¶7. Recommendations: Post recommends FSUE Germanium, Krasnoyarsk, 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