BULGARIA: MIXED RESULTS FOR KHAN ASPARUH BLUE

S E C R E T SOFIA 000612 SIPDIS PM/DTCC FOR BLUE LANTERN COORDINATOR E.O. 12958: DECL: 10/14/2019 TAGS: ETTC KOMC GT BU SUBJECT: BULGARIA: MIXED RESULTS FOR KHAN ASPARUH BLUE LANTERN (BAL 118-09) REF: SECSTATE 104728 Classified By: CDA John Ordway for reasons 1.4 (b) and (d). ¶1. (SBU) Per reftel instructions, on October 12, Post visited foreign intermediate consignee, Khan Asparuh, in connection with subject case. After performing due diligence, post confirmed derogatory information regarding Khan Asparuh within the Bulgarian Ministry of Energy. Khan Asparuh denied any business dealings with Combat S.A., from Guatemala, or the International Security and Defense Systems Company, from Israel. END SUMMARY. ¶2. (C) Regarding the bona fides of Khan Asparuh, answers below are keyed to questions in ref A, paragraph 5: (To Khan Asparuh) --When was your company established and who are its principals? Does your company or any of its principals do business under any other name? Khan Asparuh was established in April 2005. Jordan Petkov is the Deputy Managing Director and Sales Manager. Todor Kozykarov is the Managing Director. --What products and services does your company provide? Who are your regular business partners and where do they reside? Who are your regular customers and where do they reside? The company can provide any type of products that any of the manufacturers in Bulgaria provides. Additionally, they arrange for the servicing and refurbishment of all types of military air and ground vehicles. Khan Asparuh conducts significant business with Arcus, Arsenal, and VMZ on the Bulgarian side, and Alliant, ATK, and GD on the U.S. side. --What is your relationship with Combat S.A. of Guatemala and International Security & Defense Systems (ISDS) of Israel? What are the terms of the agreement between your company, Combat S.A., and/or ISDS in this transaction? Vladimir Velichkov and Jordan Petkov, both, deny conducting business, directly or indirectly, with Combat S.A., from Guatemala, or the International Security and Defense Systems Company, from Israel. --What is your relationship with the Guatemalan Ministry of National Defense? What are the terms of the agreement between your company and the Ministry of National Defense in these transactions? Who is your point of contact with the Ministry of National Defense? N/A. --What role is your company playing in these transactions? Is your company receiving any fees or commissions for its services in these transactions? If so, please provide details and documentation. N/A. --Is your company paying any fees or commissions to any third parties for their services in these transactions? If so, please provide details and documentation, including name and addresses for these third parties. N/A. --Did your company manufacture these rifles? If not, please explain when and from whom you acquired them. N/A. (To Ivelina Bahchevanova, Ministry of Energy, International Controlled Trade and Security Directorate. --Is Khan Asparuh properly registered and authorized to broker or export defense articles in Bulgaria? Khan Asparuh is properly registered and authorized to broker and export defense articles in Bulgaria, but their license is set to expire on October 20, 2009. --Do you have any derogatory information on Khan Asparuh that would question its reliability as a supplier of defense articles? We have heard numerous negative comments concerning Vladimir Velichkov, an unofficial, but clearly important player inside Khan Asparuh. He is rumored to have been involved in widespread corruption and bribery during his tenure in office as the head of the Internationally Controlled Trade and Security Directorate. His specific role inside Khan Asparuh is still not yet clearly defined. Velichkov's questionable past, coupled with deceptive business practices regarding repackaging and repainting military equipment, are cause for significant concern in future dealings with Khan Asparuh. ORDWAY