EXTRANCHECK: PRE-LICENSE CHECK:

UNCLAS MOSCOW 005752

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:
KAVKAZTRANSGAZ, STAVROPOL, RUSSIA, LICENSE NO. D384246

REFTEL: USDOC 09022



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,
Kavkaztransgaz, Stavropol, Russia. The company is
listed on BIS license application D384246 as the
ultimate consignee of a Flir Systems Inc. model
thermacam gasfinder thermal imaging system. These
items are controlled for national security and nuclear
non-proliferation reasons under ECCN 6A003. The
licensee is Flir Systems, Inc., 27700 SW parkway
Avenue, Wilsonville, OR 97070.


3. On November 20, 2007, Export Control Attache Peter
Liston and FSN Natalya Shipitsina conducted the
requested pre-license check at the offices of
Kavkaztransgaz, 6, Pr. Oktyabrskoy Revolutsii,
Stavropol, Russia. The export control team met with
Aleksey Yachinsky, Chief Engineer.


4. Aleksey Yachinsky, Chief Engineer at Kavkaztransgas
LTD, Stavropol, Russia was interviewed by ECO Liston
about Kavkaztransgas' pending license request to
purchase the Flir Systems Inc. model thermacam
gasfinder thermal imaging system. Yachinsky stated
that he has been with Kavkaztransgas more then 10
years, and holds a Doctorate in Technical Science. He
stated that Kavkaztransgas cerebrated it's 50
anniversary in 2006. Yachinsky further stated that
Kavkaztransgas is a subsidiary of Russian energy giant
Gazprom and has 8000 employees throughout Southern
Russia.


5. Aleksey Yachinsky indicted that the Flir Systems
Inc. model thermacam gasfinder thermal imaging system
will be used at Kavkaztransgas compressor stations to
detect gas leakage in their pipeline-to-pipeline
system. Yachinsky indicted that the thermal imaging
system is not a significant purchase, however, it will
be financed through GazpromBank. Yachinsky indicated
that the Flir Systems Inc. model thermacam gasfinder
thermal imaging system will be secured at all times
when not in use. He further stated that there would
be two specialists trained in Moscow on the use of the
system prior to its usage and that it will not be
taken outside of Russia. Yachinsky also stated that
he and the company are familiar with the restrictions
on the use and disposal of the system under the
license from the Department of Commerce and have
purchased licensable equipment from the United States
in the past.


6. Recommendations: Post recommends Kavkaztransgas,
Stavropol, 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/PLISTON)
BURNS