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Cablegate: Extrancheck: Pre-License Check: Perm Motor

VZCZCXYZ0016
PP RUEHWEB

DE RUEHMO #2074/01 1270833
ZNR UUUUU ZZH
P 070833Z MAY 07
FM AMEMBASSY MOSCOW
TO RUCPDOC/USDOC WASHDC PRIORITY
INFO RUEHC/SECSTATE WASHDC 9953
RHMFIUU/US CUSTOMS AND BORDER PROTECTION WASHINGTON DC

UNCLAS MOSCOW 002074

SIPDIS

SIPDIS

USDOC FOR 532/OEA/MHAMES/LRITTER
USDOC FOR 3150/USFCS/OIO/CEENIS/MCOSTA

E.O. 12958: N/A
TAGS: BEXP ETRD ETTC RS
SUBJECT: EXTRANCHECK: PRE-LICENSE CHECK: PERM MOTOR
FACTORY, PERM, RUSSIA, LICENSE NO. D371295

REFTEL: USDOC 01270

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, Perm
Motor Factory, Perm, Russia. The company is listed on
BIS license application D371295 as the ultimate
consignee of ITC-6080C low noise preamplified
hydrophone. These items are controlled for national
security reasons under ECCN 6A001. The licensee is
International Transducer Corp., 869 Ward Drive, Santa
Barbara, CA 93111. NOTE: Research conducted by FSN
Shipitsina indicated that the end user listed in the
cable was inaccurate. A request for contact
information provided a new point of contact, and FSN
Shipitsina was able to schedule the check. END NOTE.

3. On April 25, 2007, Export Control Attache Donald
Pearce and FSN Natalya Shipitsina conducted the
requested pre-license check at the offices of Tento
Group Company (Tento), M.Gorkogo st., 9, Perm, Russia.
The export control team met with Yuriy Kozlov, General
Director.

4. Tento was founded in 1992 from the decentralization
of a government enterprise involved in the export of
materials such as wood and metals. The
decentralization lead to a drop in business, so the
new company expanded into the importation and
installation of telecommunications equipment, as there
was no competition in this area at the time. Tento
installed some of Russia's first Nortel PBX commercial
telephone systems for clients in Perm. Tento is
currently an official distributor for Nortel, Cisco
Systems, APC, NARA and other communications products,
and uses the profits from the telecom business to fund
research and development of new products. The company
employs around 100 in four smaller subsidiary
companies, and hopes to have around 210 employees by
the end of the year and 500 in five years. Tento is
planning on moving from its current offices to a newly
designed office complex in downtown Perm upon
completion of construction.

5. The equipment in reftel will be used in a
monitoring system for submerged and subterranean
pipelines utilized in the oil and gas industry.
Currently, an organization like GazAvia, the aviation
arm of Russian energy company Gazprom, conducts aerial
surveillance of the lines using traditional
helicopters flying at an altitude of around 150
meters. Due to the challenging terrain and depth of
the pipelines, the current system has a false alarm
rate of around 80%. Tento is designing a system that
combines sensors in the pipes with an unmanned aerial
vehicle (UAV) for the air surveillance platform,
allowing for a more accurate and much more cost-
effective solution. The hydrophone would be able to
detect faults using a known sound signature, which
would be analyzed by a software system being developed
for the project. The system can also be used in
environmental monitoring and safety related
operations. The company is also exploring options to
configure the system for use in hydroelectric plants
and for mine safety.

6. Ten specialists will have access to the device
while it is being incorporated into the system. The
system will be marketed to companies such as Lukoil,
who is partnering in the research and development.
Construction of the device will take place at a
facility purchased by Tento from the Perm Scientific-
Industrial Machine Making Company (Russian acronym
PNPPK), part of the Perm Motor Factory, located in
Perm. The factory is a closed facility, with high
security and limited access for non-employees.

7. On April 25, 2007 ECO Pearce and FSN Shipitsina met
with Andrey A. Ploskov, Marketing and Sales Director
at the offices of the Perm Scientific-Industrial
Machine Making Company, 25th of October Street #106,
Perm Russia. Mr. Ploskov confirmed the above-stated
information regarding the Tento Group project. Mr.
Ploskov stated that a tour of the facility could be

arranged, however due to security regulations at the
company, a 45 day lead time for security clearances
would be required.

8. Recommendations: Post recommends Tento Group, Perm,
Russia, as reliable recipients of sensitive U.S.
origin commodities. It is requested that post be
notified of final disposition of the application, and
of any shipments for this organization in order to
conduct appropriate FCS follow-up and statistical
reporting.
(FCS MOSCOW/ DLUTTER /DPEARCE)
BURNS

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