EXTRANCHECK: PRE-LICENSE CHECK: PROTON LLC, MOSCOW, RUSSIA,

UNCLAS MOSCOW 002974 SIPDIS USDOC FOR 532/OEA/LRITTER USDOC FOR 3150/USFCS/OIO/CEENIS/MCOSTA USDOC FOR 532/OEE/MO'BRIEN USDOC FOR 532/BIS/OEA/TWILLIS/EHOLLAND/ANALYST E.O. 12958: N/A TAGS: BEXP ETRD ETTC RS SUBJECT: EXTRANCHECK: PRE-LICENSE CHECK: PROTON LLC, MOSCOW, RUSSIA, LICENSE NO. D422663 REFTEL: REQUEST #6110074; DATED 11/10/2009 ¶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, Proton LLC, Moscow, Russia. The organization is listed on BIS license application D422663 as the ultimate consignee of one vertical machining center with 20QX16QX14 travels (X,Y,Z) with a 2-axis trunnion table TR110, capable of 5-axis simultaneous machining. This item is controlled for national security, nuclear nonproliferation and anti-terrorism reasons under ECCN 2B001. The licensee is Haas Automation Inc., 2800 Sturgis Road, Oxnard, CA 93030. ¶3. On December 3, 2009, Commercial Attach Ilona Shtrom and LES Natalya Shipitsina conducted the requested pre-license check at the offices of Proton LLC., Pushkina st., 23A, Sobinka, Vladimir Region, Russia. The export control team met with Dmitry Ponomarenko, General Director, EMG. EMG is a small business and is ProtonQs parent company. Founded in 2003, Proton employs approximately 50 individuals. EMG, the parent company, employs approximately 400. EMG includes a variety of other organizations within its structure including a company called QModelQ and QMethodQ. All companies work in electro-technical sector. ¶4. ProtonQs customers include mostly oil/gas companies as the company produces the vacuums utilized in pumping oil out of the ground. Proton exports to some countries of the former Soviet Union (e.g. Kazakhstan),as well as India. The equipment the company wishes to purchase from Haas will be utilized to improve efficiency and produce more components with fewer machine operators. Proton is located in an industrial area and appeared to be fully surrounded by a security gate. Mr. Ponomarenko indicated security is available 24/7 because, otherwise, it would not be safe to leave such expensive equipment. The export control team was given a brief tour of the building which will house the Haas equipment. The facility appeared new and was not yet in operation pending receipt of the equipment. When the export control team explained the purpose of the visit, Mr. Ponomarenko stated he has received Haas equipment in the past and didnQt understand the reason for our visit now. Additionally, he stated he is aware that several former defense related organizations have ordered and already received the same equipment and were never contacted for a PLC (he noted one such organization located in Novosibirsk). Mr. Ponomarenko stated he understands the equipment may not be re-exported and has plans to make additional purchases from Haas in the future. ¶5. Recommendations: Post recommends Proton LLC, Sobinka, Vladimir Region, Russia, as a reliable recipient of sensitive U.S. origin commodities. (FCS MOSCOW/ JMARKS/ISHTROM) BEYRLE