BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON

UNCLAS MOSCOW 002409 SENSITIVE SIPDIS DEPARTMENT FOR PM/DDTC - BLUE LANTERN COORDINATOR E.O. 12958: N/A TAGS: ETTC KOMC RS SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSE 050083308 REF: STATE 66234 ¶1. (SBU) Summary: MXM Hunting Club received the 99 firearms mentioned in reftel on May 14, 2008, and has since sold them. MXM Hunting Club has been owned by Andrey Shelestov since April 2009, although the company has been in business since 2000. The company sells sporting goods, including firearms, to sportsmen and hunters living primarily in the Moscow region. In 2008 MXM Hunting Club sold about 100 U.S.-origin rifles and about 200 U.S.-origin shotguns. The store's security system is in full compliance with Russian Federation law. Shelestov told us he is aware of regulations governing the import of U.S.-origin defense articles. End Summary. ¶2. (SBU) In a July 17 meeting, owner of MXM Hunting Club Andrey Shelestov told us his company received the 99 firearms mentioned in reftel on May 14, 2008, and has since sold them to customers. ¶3. (SBU) According to Shelestov, MXM Hunting Club was founded in ¶2000. He became the owner of the MXM Hunting Club in April 2009, although he has been in the firearms business for about 10 years. Shelestov also owns stores in St. Petersburg, Yekaterinburg, and Yaroslavl. ¶4. (SBU) According to Shelestov, MXM Hunting club sells sporting goods, including firearms, to sportsmen and hunters living primarily in the Moscow region. His company also provides advice on hunting and firearms selection to customers. Shelestov said he also planned to set up a website so customers can view the company catalogue and arrange for product sales online. ¶5. (SBU) Shelestov told us MXM Hunting Club sold approximately 100 U.S.-origin rifles (valued at around USD 150,000) and 200 U.S.-origin shotguns (valued at around USD 300,000) in 2008. ¶6. (SBU) The security of MXM Hunting Club facilities is in full compliance with Russian Federation law, according to Shelestov. The company stores its firearms in a vault that is alarmed when they are not on display. Only personnel trained by the Ministry of Interior are allowed in the vault. ¶7. (SBU) According to local law enforcement, MXM Hunting Club is properly authorized to import and sell defense items in Russia. Local law enforcement has no information that would call into question MXM Hunting Club's reliability as a recipient of U.S. defense articles. ¶8. (SBU) Shelestov told us MXM Hunting Club understood the regulations governing the import of U.S.-origin defense items, including the prohibitions against unauthorized re-transfers and re-exports. Our assessment is that MXM Hunting Club is primarily a commercial venture, and we do not have reason to believe that the company would be an unreliable recipient of U.S.-origin defense items. BEYRLE