METI EXPRESSES CONCERN ABOUT DUAL USE LICENSE FOR

S E C R E T TOKYO 002366 SIPDIS E.O. 12958: DECL: 07/08/2018 TAGS: ETTC KOMC RU JA SUBJECT: METI EXPRESSES CONCERN ABOUT DUAL USE LICENSE FOR SHIPMENT TO RUSSIA Classified By: Charge d'Affaires, a.i. James P. Zumwalt for reasons 1.4 b, d. ¶1. (S) METI Export Controls Deputy Director Atsushi Tanizawa delivered the following nonpaper in English August 27 and requested any USG response by September 12, the ministry's deadline to approve or deny the license request. Begin Text: We really appreciate your cooperation with us. We have detected a suspicious export of non-listed CNC turning center from Japan to Russia. Although the stated end-use of this equipment is for production of soft ice cream freezer, we are concerned about this transaction because there is a risk that the CNC turning center may be used for development of a nuclear weapon. The end user is Ural Electrochemical Integrated Plant (UEIP). According to the Sandia National Laboratories' web site, this company is one of Russia's major nuclear industry research centers, which is also producing low-level enriched uranium. We are also concerned about the consignee of this export, Joint Stock Company Techsnabexport (JSCT). JSCT is a Russian national company which is involved in the transaction of nuclear fuel. We have ordered to exporter of the CNC turning center to apply for an export license under the provision of the catch-all control. For our licensing decision, we would like to know whether the USG has any particular concerns about UEIP or JSCT regarding unacceptable risk of nuclear proliferation. It is fully appreciated if you would rely to us by September 12. Consignee Joint Stock Company Techsnabexport Address: 26, Staromonetniy per., 119180, Moscow, Russia tel: 7 (499) 949-26-83 fax: 7 (495) 951-17-90 General Director: Alexey Grigoriev Website: http://www.tenex.ru/english.html End User Ural Electrochemical Integrated Plant Address: 2 Dzerzhinsky Str., Novouralsk, Sverdovsk Region, 624130, Russia Website: http://ueip.org/index-eng.htm Sandia National Laboratories website: http://www.sandia.gov/ASC/russia/ueip.html End Text. ¶2. (S) Tanizawa told EconOff when he presented this nonpaper METI would like to know if the USG has any proliferation concerns with this company and other countries of concern such as Iran, DPRK or others. He also said the export from Japan is the Japanese branch of the Consignee, Joint Stock Company Techsnabexport. ZUMWALT