UNCLAS MOSCOW 004424

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: LLC NORDIX,
MOSCOW, RUSSIA, LICENSE NO. D380382

REFTEL: USDOC 07710


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