EXTRANCHECK: PRE-LICENSE CHECK: PERM MOTOR

UNCLAS MOSCOW 002074 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: PERM MOTOR FACTORY, PERM, RUSSIA, LICENSE NO. D371295 REFTEL: USDOC 01270 ¶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, Perm Motor Factory, Perm, Russia. The company is listed on BIS license application D371295 as the ultimate consignee of ITC-6080C low noise preamplified hydrophone. These items are controlled for national security reasons under ECCN 6A001. The licensee is International Transducer Corp., 869 Ward Drive, Santa Barbara, CA 93111. NOTE: Research conducted by FSN Shipitsina indicated that the end user listed in the cable was inaccurate. A request for contact information provided a new point of contact, and FSN Shipitsina was able to schedule the check. END NOTE. ¶3. On April 25, 2007, Export Control Attache Donald Pearce and FSN Natalya Shipitsina conducted the requested pre-license check at the offices of Tento Group Company (Tento),M.Gorkogo st., 9, Perm, Russia. The export control team met with Yuriy Kozlov, General Director. ¶4. Tento was founded in 1992 from the decentralization of a government enterprise involved in the export of materials such as wood and metals. The decentralization lead to a drop in business, so the new company expanded into the importation and installation of telecommunications equipment, as there was no competition in this area at the time. Tento installed some of Russia's first Nortel PBX commercial telephone systems for clients in Perm. Tento is currently an official distributor for Nortel, Cisco Systems, APC, NARA and other communications products, and uses the profits from the telecom business to fund research and development of new products. The company employs around 100 in four smaller subsidiary companies, and hopes to have around 210 employees by the end of the year and 500 in five years. Tento is planning on moving from its current offices to a newly designed office complex in downtown Perm upon completion of construction. ¶5. The equipment in reftel will be used in a monitoring system for submerged and subterranean pipelines utilized in the oil and gas industry. Currently, an organization like GazAvia, the aviation arm of Russian energy company Gazprom, conducts aerial surveillance of the lines using traditional helicopters flying at an altitude of around 150 meters. Due to the challenging terrain and depth of the pipelines, the current system has a false alarm rate of around 80%. Tento is designing a system that combines sensors in the pipes with an unmanned aerial vehicle (UAV) for the air surveillance platform, allowing for a more accurate and much more cost- effective solution. The hydrophone would be able to detect faults using a known sound signature, which would be analyzed by a software system being developed for the project. The system can also be used in environmental monitoring and safety related operations. The company is also exploring options to configure the system for use in hydroelectric plants and for mine safety. ¶6. Ten specialists will have access to the device while it is being incorporated into the system. The system will be marketed to companies such as Lukoil, who is partnering in the research and development. Construction of the device will take place at a facility purchased by Tento from the Perm Scientific- Industrial Machine Making Company (Russian acronym PNPPK),part of the Perm Motor Factory, located in Perm. The factory is a closed facility, with high security and limited access for non-employees. ¶7. On April 25, 2007 ECO Pearce and FSN Shipitsina met with Andrey A. Ploskov, Marketing and Sales Director at the offices of the Perm Scientific-Industrial Machine Making Company, 25th of October Street #106, Perm Russia. Mr. Ploskov confirmed the above-stated information regarding the Tento Group project. Mr. Ploskov stated that a tour of the facility could be arranged, however due to security regulations at the company, a 45 day lead time for security clearances would be required. ¶8. Recommendations: Post recommends Tento Group, Perm, 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/ DLUTTER /DPEARCE) BURNS