EXTRANCHECK: POST-SHIPMENT VERIFICATION:

UNCLAS MOSCOW 000256 SIPDIS SIPDIS USDOC FOR 532/OEA/MHAMES/DMUSLU USDOC FOR 3150/USFCS/OIO/CEENIS/MCOSTA USDOC FOR 532/OEE/MO'BRIEN E.O. 12958: N/A TAGS: BEXP ETRD ETTC RS SUBJECT: EXTRANCHECK: POST-SHIPMENT VERIFICATION: RUSSIAN FEDERAL RESEARCH AND TECHNOLOGICAL INSTITUTE OF BIOLOGICAL INDUSTRY, SCHELKOVSKY DIST, RUSSIA, LICENSE NO. D368202 REFTEL: 1) 06 USDOC 05898, 2) 06 MOSCOW 008630 ¶1. Unauthorized disclosure of the information provided below is prohibited by Section 12C of the Export Administration Act. ¶2. Reftel 1 requested a Post-shipment verification to determine the legitimacy and reliability of the end- user, Russian Federal Research and Technological Institute of Biological Industry (Russian abbreviation VNITIBP),Russia. The company is listed on BIS license application D358202 as the ultimate consignee of a mobile pilot plant fermenter. These items are controlled for chemical or biological warfare reasons under ECCN 2B352. The licensee is New Brunswick Scientific Co. Inc., 44 Talmadge Road, Edison, NJ ¶08818. ¶3. VNITIBP was the subject of a pre-license check for D368202 reported in reftel 2. On August 3, 2006, Export Control Attache Donald Pearce and FSN Natalya Shipitsina met with Eugene Ruban, Deputy Director of VNITIBP at his office at the Kashintsevo facility. Mr. Ruban stated that VNITIBP would utilize the fermenter for the development and production of vaccines and biological materials. Mr. Ruban stated that he was familiar with U.S. export controls and with the license conditions. Mr. Ruban was informed of the possibility of a post shipment verification, and agreed to allow the team access to the fermenter in the future should it be necessary. ¶4. Initial attempts to contact Mr. Ruban were unsuccessful. FSN Shipitsina called the contact numbers provided by Mr. Ruban, which included both his office and mobile telephone numbers, neither of which were answered initially. Another employee answered the line, and stated that Mr. Ruban was not in the office. Initially, the employee would not pass a message to Mr. Ruban. During a follow-up phone call, the employee advised FSN Shipitsina that Mr. Ruban had been hospitalized. ¶5. On January 10, FSN Shipitsina contacted Mr. Ruban via his mobile telephone. Mr. Ruban refused to meet with the team, stating that end-use verification was not in the terms of the sales contract. Mr. Ruban referred any future contacts to the General Director, and provided a telephone number. ¶6. On January 10, and several times thereafter, FSN Shipitsina called the number provided by Mr. Ruban. The line was not answered. ¶7. Recommendations: Post cannot repeat cannot verify that the fermenter is being used in accordance with the Export Administration Regulations. Post does not repeat not consider the Russian Federal Research and Technological Institute of Biological Industry (VNITIBP) as a reliable recipient of sensitive U.S. technology. (FCS MOSCOW/SBOZEK/DPEARCE) BURNS