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Cablegate: Extrancheck: Post-Shipment Verification:

VZCZCXYZ0011
PP RUEHWEB

DE RUEHMO #1473 1441323
ZNR UUUUU ZZH
P 231323Z MAY 08
FM AMEMBASSY MOSCOW
TO RUCPDOC/USDOC WASHDC PRIORITY
INFO RUEHC/SECSTATE WASHDC 8237
RHMFIUU/US CUSTOMS AND BORDER PROTECTION WASHINGTON DC

UNCLAS MOSCOW 001473

SIPDIS

USDOC FOR 532/OEA/MHAMES/DMUSLU
USDOC FOR 3150/USFCS/OIO/CEENIS/MCOSTA
USDOC FOR 532/OEE/MO'BRIEN

E.O. 12958: N/A
TAGS: BEXP ETRD ETTC RS
SUBJECT: EXTRANCHECK: POST-SHIPMENT VERIFICATION:
ELCUS ELECTRONIC COMPANY, ST.PETERSBURG, RUSSIA,
LICENSE NO. NLR

1. Unauthorized disclosure of the information provided
below is prohibited by Section 12C of the Export
Administration Act.

2. Reftel 1 requested a post-shipment verification to
determine the legitimacy and reliability of the end-
user, Elcus Electronic Company, St. Petersburg,
Russia. The company is listed on BIS license
application: NLR as the ultimate consignee of
integrated circuits. ECCN EAR99, 4A994. The exporter
is Data Device Corporation, 105 Wilbur Place, Bohemia,
NY 11716.

3. On May 14, 2008, Export Control Attache Peter
Liston and LES Natalya Shipitsina conducted the
requested post-shipment verification with Elcus
Electronic Company, St. Petersburg, Russia. The export
control team met with Sergey Khvosch, General Director
and Yury Savchuk, Chief Engineer.

4. Elcus Electronic Company was founded in 1993 by
Sergey Khvosch. Khvosch had been conducting research
on Integrated Circuit Boards while part of the Russian
University system and wrote and published the first
Russian language book on the subject. Elcus
Electronics Company is located in a secure facility
with 24 hour manned and electronically monitored
security. Khvosch had begun DBA Elcus prior to 1993
while still employed at the University, and only
established it as a private company upon leaving.
Elcus Electronic Company employees 100 people, mostly
technicians and engineers, and manufactures all aspects
of integrated circuit boards. The Export Control Team
was provided complete access to the facility and was
able to see and observe the manufacturing processes.

5. The subject commodities in reftel were manufactured
into circuit boards for long time Elcus Electronic
Company customer, UKBP - Ulyaganovskoe Construction
Equipment Bureau. UKBP produces avionics and
navigational equipment for civilian use only. Elcus
Electronics Company provided the export Control Team
with proprietary customer documentation attesting to
the sale of the commodities in reftel to UKBP for
visual inspection.

6. Recommendations: Post recommends Elcus Electronic
Company, St. Petersburg, Russia as a reliable recipient
of sensitive U.S. origin commodities.
(FCS MOSCOW/ SBOZEK/PLISTON)
RUSSELL

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