EXTRANCHECK: PRE-LICENSE CHECK: PTK

UNCLAS MOSCOW 001595 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: PTK ELECTROSTEEL LLC, MOSCOW, RUSSIA, LICENSE NO. D397317 REFTEL: USDOC 03408 ¶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, PTK Electrosteel LLC, Moscow, Russia. The company is listed on BIS license application D397317 as the ultimate consignee of the HAAS Manufactured ES-5-4T, a horizontal machine with 40" X 18" X 22" (XYZ) travels, imbedded 4th axis and a 5-axis option making this machine capable of 5-axis simultaneous contouring. These items are controlled for national security and non-proliferation reasons under ECCN 2B001. The licensee is HAAS Automation Inc., 2800 Sturgis Road, Oxnard, CA 93030. ¶3. On June 3, 2008, Export Control Attach Peter Liston and LES Natalya Shipitsina conducted the requested pre-license check at the offices of Electrosteel LLC, B. Andronevskaya 23, Moscow, Russia. The export control team met with Boris Dolgikh, General Director of Electrosteel LLC. ¶4. General Director Boris Dolgikh told the export control team that Electrosteel LLC was founded in ¶2000. Dolgikh stated that Electrosteel LLC has been producing unfinished stamped banks and casting blanks of turbine blades for various Russian industries for 7 years. Electrosteel LLC then subcontracts the unfinished turbine blades to be refined and finished to the required specifications of the customer. Electrosteel LLC employs 25 people and grosses approximately $10 million dollars a year. ¶5. Dolgikh told the export control team that Electrosteel LLC intends to purchase the commodity in reftel through the HAAS Automation Inc. Moscow representative. Dolgikh stated that he often attends industry trade show and exhibitions and that that is where he learned of the reftel commodity. Dolgikh stated that reftel commodity would enable Electrosteel LLC to produce their own finished product, a chrome steel turbine blade. Dolgikh stated that his company would no longer be dependant on subcontracting out the finishing work. ¶6. Electrosteel LLC appears to have the technical and commercial sophistication and the physical resources consistent with those for which the commodity in question was designed. It should be noted here that if the license is granted, and Electrosteel LLC goes through with the purchase from HAAS, they intend to purchase a commercial property within 100km of Moscow where they will build a production facility. The Export Control Team would recommend a Post-Shipment Verification in that event. ¶7. The export control team believes that Electrosteel LLC has both a legitimate need and a legitimate end use for the subject reftel commodity. ¶8. Recommendations: Post recommends Electrosteel LLC, 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/PLISTON) RUSSELL