EXTRANCHECK: POST-SHIPMENT VERIFICATION:

UNCLAS MOSCOW 000670 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: ANDREY ZINENKOV, EUROCHIM SPB, ST. PETERSBURG, RUSSIA, LICENSE NO. D357531 REFTEL: USDOC 06911 ¶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, Eurochim Spb, St. Petersburg, Russia. The company is listed on BIS license application D357531 as the ultimate consignee of a Metrohm 716 Dosimat, one Metrohm 665 Dosimat, two Perkin-Elmer LC systems, one Satoris BP210S, one Perkin-Elmer LC system and one Varian 3800 GC with auto-sampler. These items are controlled for chemical and biological weapons and anti-terrorism reasons under ECCN 2B350. The licensee is General Electric Co. Plastic Group, One Lexan Lane, MT. Vernon, IN 47620. ¶3. On January 31, 2007, Export Control Attache Donald Pearce and FSN Natalya Shipitsina conducted the requested post-shipment verification with Eurochim Spb, 14, Kourchatova st., St. Petersburg, Russia. The export control team met with Andrei Zinenkov, Senior Staff Scientist and Aleksey Sominich, Financial Director. ¶4. Eurochim was founded in 1992 as a a research laboratory for processing of waste products of petrochemical production. Currently the main concentration of the business is the distribution of tires, and the company partners with international tire companies such as Continental, Goodyear and Michelin. The company also imports and exports both raw materials and finished petrochemical and rubber products. Eurochim estimates 25,000,000 USD in annual turnover, with imports accounting for 5,000,000 USD, and exports for 20,000,000 USD. The company is also a full-service provider of heavy equipment to chemical, petrochemical and oil-refining industrial enterprises. Eurochim has a research and development laboratory on premesis, with 25 full-time engineers and three PhD Candidates on staff. The company employs 300, and maintains offices, laboratories and warehouses on a large industrial facility in St. Petersburg. ¶5. The equipment in reftel is currently in the custody of a Customs Warehouse. Due to strict import regulations, Russian Customs will hold certain dual- use equipment for import certification. The last pump system imported under USDOC license took six months to clear customs in St. Petersburg. Eurochim and GE are in close negotiations with the Russian Customs Service to ensure delivery of the commodities. ¶6. When delivered, Eurochim plans on installing the system described in reftel in the laboratory. The laboratory has around the clock security, with an electronic surveillance system. Mr. Zinenkov gave a tour of the laboratory facilities, and identified for the team all U.S. origin equipment. Digital photographs of the systems and equipment were taken, and are available from post upon request. ¶7. Recommendations: While post recommends Eurochim Spb, St. Petersburg, Russia as reliable recipients of sensitive U.S. origin commodities, the finding is limited as the equipment in reftel was still in Customs custody. Post considers the matter closed unless BIS cables with further instructions. (FCS MOSCOW/SBOZEK/DPEARCE) BURNS