EXTRANCHECK: POST-SHIPMENT VERIFICATION: ST.

UNCLAS MOSCOW 004958 SIPDIS SIPDIS USDOC FOR 532/OEA/MHAMES/LRITTER 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: ST. PETERSBURG PHYSICS AND TECH CENTER FOR RESEARCH AND EDUCATION, ST. PETERSBURG, RUSSIA, LICENSE NO. D371956 ¶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, St. Petersburg Physics and Tech Center for Research and Education, St. Petersburg, Russia. The company is listed on BIS license application D371956 as the ultimate consignee of one Gen. III MBE System per quote no: NPG061006 and serial no: 703, one 8200 cryopump compressor, one CT-8 cryopump and two 40' helium lines. These items are controlled for national security and anti-terrorism reasons under ECCN 3B001. The licensee is Veeco Instruments Inc., 100 Sunnyside Boulevard, Woodbury, NY 11797. ¶3. On September 28, 2007, Export Control Attache Donald Pearce and FSN Natalya Shipitsina met with Anton Egorov, Chief Scientist, St. Petersburg Physics and Technical Center for Research and Education of the Russian Academy of Science (PTC),St. Petersburg, Russia. The meeting was conducted in the lobby of the Angleterre Hotel in central St. Petersburg. ¶4. Mr. Egorov stated that due to a visit by a delegation from the Federal Security Service of the Russian Federation (Russian abbreviation FSB),it was impossible to utilize the center's meeting room. Additionally, as the security clearance for ECO Pearce had not been granted, access to the storage area where the commodities are being stored was denied. Mr. Egorov offered to allow FSN Shipitsina to gain access, however, due to the contract agreement the shipping cartons would have to remain sealed. ¶5. NOTE: Prior to the scheduled meeting, FSN Shipitsina was advised that applications for security clearance required for access to the PTC facilities, and was told the required permits would arrive in time for our visit. On September 27, after arriving in St. Petersburg, we were informed that those permits were not yet approved, and that the meeting facilities at the center were going to be used by the FSB delegation. We agreed to meet Mr. Egorov at the hotel and requested he bring documents to establish the bona fides of the transaction and the organization. END NOTE. ¶6. The Ioffe Physical-Technical Institute of the Russian Academy of Science established the PTC in 2004 to consolidate research projects, organize conferences, and provide specialized educational facilities for students of physics. The PTC is headed by Nobel laureate Zhores Alfiorov, who also serves as Vice-President of the Russian Academy of Science and a member of the Duma, the legislative body of the Russian Federation. The center has programs for students in 9th through 12th Grades as well as at the University and Post-Graduate levels. Up to 250 students per semester attend classes and perform experiments in the centers laboratories. ¶7. The equipment in reftel is to be installed in the semiconductor laboratory, which is located in the second building of the PTC. The laboratory currently contains a Riber 49 MBE system for production of epiwafers used in the fabrication of electronic, optoelectronic and laser devices. The equipment in reftel will be assembled by representatives of Veeco, with a target date of December, 2007 for the installation. A post-shipment verification could be easily accomplished during the installation process. 8.Recommendations: While Post believes that the St. Petersburg Physics and Tech Center for Research and Education, St. Petersburg, Russia would be a reliable recipient of sensitive U.S. origin commodities, the findings are severely limited as no site visit was allowed, the commodities are still in portable form, and no verification could be conducted by the ECO. ECO recommends a follow-up PSV be conducted concurrent with the installation of the equipment. (FCS MOSCOW/SBOZEK/DPEARCE) BURNS