DE RUEHMO #4424 2531000
ZNR UUUUU ZZH
P 101000Z SEP 07
FM AMEMBASSY MOSCOW
TO RUCPDOC/USDOC WASHDC PRIORITY
INFO RUEHC/SECSTATE WASHDC 3686
RHMFIUU/US CUSTOMS AND BORDER PROTECTION WASHINGTON DC
UNCLAS MOSCOW 004424
USDOC FOR 532/OEA/MHAMES/LRITTER USDOC FOR 3150/USFCS/OIO/CEENIS/MCOSTA
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, LLC Nordix, Moscow, Russia. The company is listed on BIS license application D380382 as the ultimate consignee of polyimide apical film type. These items are controlled for national security and anti-terrorism reasons under ECCN 1C008. The licensee is Mitsui and Co (USA) Inc., 200 Park Ave, New York, NY 10017.
3. On September 5, 2007, Export Control Attache Donald Pearce and FSN Natalya Shipitsina conducted the requested pre-license check at the offices of LLC Nordix, which are located at the OOO Borets factory, 6 Skladochnaya St., Moscow, Russia. The export control team met with Victoria Dinavetskaya, General Director of LLC Nordix and Vladislav Kondratiev, Deputy General Director of Closed Joint Stock Company (Russian abbreviation OOO) Borets.
4. LLC Nordix was founded five years ago as an importer of equipment for the oil and gas industry. The company specializes in sourcing and delivery of materials and equipment from the United States and Europe. The company employs seven at two Moscow locations. The main office, located on Leningradsky Prospekt in the city center, is currently under renovation. All operations are temporarily being housed at the satellite office located at OOO Borets, in the northern section of Moscow. Nordix is acting in the capacity of an intermediate consignee in the transaction described in reftel, with the ultimate end user being OOO Borets.
5. OOO Borets was founded 119 years ago to produce pumping and compressor equipment. Today OOO Borets is a limited liability holding company producing electric submersible pump equipment and control systems for the oil and gas sector. The company employs 30,000 at six factories in Russia and one oil field services center located in Siberia. 30% of OOO Borets stock is held by the Weatherford Oil Field Services of the United States, with the remainder in the hands of private investors.
6. The commodities in reftel will be used in the shielding of motor wires, produced by OOO Borets in a cable factory located in Tomilino, a town located seven kilometers outside of Moscow. The film will be used to shield pump control cables, which will then be installed in the pipes of submersible oil pump systems, which will be used in oil field operations. Mr. Kondratiev stated that, depending on price and demand for the products, approximately 20 tons of the polymide apical film will be imported. For three years, OOO Borets imported polymide apical film from DuPont, but recently switched to Mitsui based on price point; Both DuPont and Mitsui produce high-quality film.
7. The materials will be stored in the factory warehouse, which is guarded at all times by Borets own security service. The cables will then be shipped to the OOO Borets factory in Moscow for installation into the pipes. Each pump system has three sections, with 200 meters of wire required for each section. Upon installation the completed systems are sent to the client.
8. Recommendations: Post recommends LLC Nordix and OOO Borets, 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