EXTRANCHECK: PRE-LICENSE CHECK: SECURITY

UNCLAS MOSCOW 003838 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: SECURITY COMPANY FAKEL OST LTD., BALASHIKHA, MOSCOW REGION, RUSSIA, D375526 REFTEL: USDOC 06129 ¶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, Security Company Fakel Ost Ltd., Balashikha, Moscow Region, Russia. The company is listed on BIS license application D375526 as the ultimate consignee of ten thermal-eye X200XP thermal imagers. These items are controlled for national security and nuclear non- proliferation reasons under ECCN 6A003. The licensee is L3 Communications Infrared Products, 13532 North Central Expressway, Dallas, TX 75243. ¶3. On July 31, 2007, Export Control Attache Donald Pearce and FSN Natalya Shipitsina conducted a pre- license check at the offices of Security Company Fakel Ost (SCFO) Ltd., 253, Nosovikhinskoe Shosse, Balashikha, Moscow Region, Russia. The export control team met with Aleksandr Pushkarsky, General Director and Nikolay Konyukhov, Deputy General Director for Security of the Savik Company. ¶4. The Savik Company founded SCFO in 2003 to provide armed security services for the warehouse facility in Balashikha. Savik is a Russian and German joint venture specializing in motor oil distribution. Savik is expanding its business to include warehousing services for other clients, to include a high-value storage facility currently under construction. SCFO is tasked with providing 24-hour security to the facilities. SCFO currently employs 42, and is planning on tripling its staff over the next year to cover the new facilities. ¶5. The Savik facility is located on a four-hectare (10-acre) area of land bordering on undeveloped land on two sides, and railroad tracks on the rear exposure. The tall grass and trees in these areas provides concealment for potential intruders to conduct surveillance and evade capture upon escape. SCFO has detected several intrusions from these areas over the past year. Currently the company is deploying one Thermal Imaging camera and a night- vision device, but wishes to expand its operational capabilities. ¶6. The Thermal imaging cameras will be used only at the Savik facility. The company will train 10 of its patrol officers to use the cameras. The duty officer will issue the cameras to the incoming shift, and account for their return at the end of tour. Currently SCFO guards only the Savik facilities, but may someday expand to provide security to other warehouses or industrial organizations. SCFO is aware of its responsibilities regarding the safeguarding and appropriate end use of the thermal imagers. ¶7. The team was shown the duty officer's post, and was allowed to view the security procedure for accessing the safe. When not in use the cameras will be stored in a locked cabinet within the firearms storage safe in the security headquarters building. The building is manned at all times, and has an electronic security system with closed-circuit video. The safe alarm is directly connected to the local Ministry of Internal Affairs (Russian acronym MVD) Militsiya post. NOTE: The MVD Militsiya is the primary law enforcement organization of the Russian Federation, and provides local police services. END NOTE. In order to access the safe, the duty officer must first call the MVD duty officer to advise that the safe will be accessed. Failure to do so will result in an armed Militsiya response. The team was also shown a Thermal Eye X200XP thermal imaging camera, serial number 01579. The camera was stored in the locked cabinet within the safe. ¶8. Recommendations: Post recommends Security Company Fakel Ost Ltd., Balashikha, Moscow Region, Russia, as a reliable recipient 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