EXTRANCHECK: POST-SHIPMENT VERIFICATION: IEG

UNCLAS MOSCOW 001921 SIPDIS USDOC FOR 532/OEA/M.HAMES/L.RITTER 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: IEG RAS (INSTITUTE OF ENVIRONMENTAL GEOSCIENCE, RUSSIAN ACADEMY OF SCIENCES),MOSCOW, RUSSIA, LICENSE NO. NLR REFTEL: USDOC 03648 ¶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, IEG RAS (INSTITUTE OF ENVIRONMENTAL GEOSCIENCE, RUSSIAN ACADEMY OF SCIENCES),Moscow, Russia. The company is listed on BIS license application: NLR as the ultimate consignee of one (1) seismograph, spares and accessories. ECCN 0X000. Controlled by the Department's Export Control Administration Regulations. The exporter is Geometrics, 2190 Fortune Drive, San Jose, CA 95131. ¶3. On July 1, 2008, Export Control Attach Peter Liston and Commercial Specialist Valaria Khalina conducted the requested post-shipment verification with IEG RAS (INSTITUTE OF ENVIRONMENTAL GEOSCIENCE, RUSSIAN ACADEMY OF SCIENCES),Moscow, Russia. The export control team met with Senior Lead Scientist Nikita A. Raqozin and his associate, Lead Scientist Dr. Isaak G. Mindel. ¶4. The IEG RAS was established on May 21, 1996 as an Engineering Geological, Geoenvironmental and Seimological Research Center. The multi-field research center consists of 16 laboratories, among them 8 laboratories engaged in geoenvironmental and engineering geological research, 3 within the Seisomogical Center, 2 at the St Petersburg Division, and 3 general-purpose laboratories. The Institute employs approximately 100 people, 80 of which are researchers and scientist. The staff at IEG RAS has performed more than 150 contract research projects, the customers being large Russian and foreign companies, i.e., joint-stock companies Gazprom, Lukoil, ALROSA, Sakalinenergy, as well as the government administrations of Moscow, St Petersburg, Tatarstan Republic, Leningrad and Krasnodar regions. ¶5. The IEG RAS conducts research and testing throughout Russia and the CIS and there is ample open source information available on the Institute. The commodity in reftel, the seismograph, spares and accessories, was in use by IEG RAS engineers at the time of the PSV and was therefore unavailable for inspection by the Export Control Team. At the request of the Export Control Team, Nikita A. Raqozin did produce the invoice and purchase agreement from Geometrics of San Jose, CA, for the seismograph, spares and accessories and stated that the Institute had in fact purchased two (2) seismographs from Geometrics not one (1) as indicated in reftel. Nikita A Raqozin did offer to make the reftel commodity available to the Export Control Team at a later date if requested. ¶6. The Export Control Team did not find any of the Institute's answers evasive. The subject commodity is consistent with equipment used by the Institution. The Institution advised the ECO of an additional seismograph in the purchase order that Commerce was not aware of. Lastly, there are no indications of impropriety. ¶7. Recommendations: Post recommends IEG RAS (INSTITUTE OF ENVIRONMENTAL GEOSCIENCE, RUSSIAN ACADEMY OF SCIENCES),Russia as reliable recipients of sensitive U.S. origin commodities. (FCS MOSCOW/SBOZEK/PLISTON) BEYRLE