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Cablegate: Extrancheck: Post-Shipment Verification:

VZCZCXYZ0006
PP RUEHWEB

DE RUEHMO #2534/01 2380906
ZNR UUUUU ZZH
P 250906Z AUG 08
FM AMEMBASSY MOSCOW
TO RUCPDOC/USDOC WASHDC PRIORITY
INFO RUEHC/SECSTATE WASHDC 9670
RHMFIUU/US CUSTOMS AND BORDER PROTECTION WASHINGTON DC

UNCLAS MOSCOW 002534

SIPDIS

USDOC FOR 532/OEA/L.RITTER/M.HAMES
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:
ELVIRA PRODUCTION CO., ZHELEZNODOROZHNY, RUSSIA,
LICENSE NO. D390095

REFTEL: USDOC 04948

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

2. Reftel requested a Post-shipment verification to
determine the legitimacy and reliability of the end-
user, Elvira Production Co., Zheleznodorozhny, Moscow
Region, Russia. The company is listed on BIS license
application D390095 as the ultimate consignee of
sixteen (16) model no. HMC559, GAAS MMIC PHEMT
distributed amplifier die which operates between DC
and 20 GHZ. These items are controlled for national
security (NS), anti-terrorism (AT), missile technology
(MT), and nuclear proliferation (NP) reasons under
ECCN 3A001. The licensee is Hittite Microwave
Corporation, 20 Alpha Road, Chelmsford, MA 01824.

3. On August 21, 2008, Export Control Attach Peter
Liston and conducted the requested post-shipment
verification with Elvira Production Co.,
Zheleznodorozhny, Moscow Region, Russia. The ECO
Liston met with Anatoliy Belchikov, General Director,
and Sergey Belchikov, Sales Director at their offices
located at 10 Zavodsava Street, Zheleznodorozhny,
Moscow Region, Russia.

4. According to Sergey Belchikov, Elvira Products Co.
was established in 1993, and specialized at that time
in the development of surveillance and counter-
surveillance equipment for Russian law enforcement.
As that industry became saturated in Russia, Elvira
moved to entry detection equipment with critical
monitoring applications, primarily de-bugging
equipment. The vast majority of their customers were
still Russian law enforcement. However, Sergey
Belchikov indicated that with the growth of the
Russian private sector, also came the growth of
economic espionage and the need protect "confidential
information". Elvira was able to bypass strict legal
restraints on the sale of their equipment to the
private sector by marketing their products as
protecting confidential information, and not
surveillance detection equipment. Elvira still
manufactures non-linear detection equipment, or NLJD,
called the Lornet 24 and were clear in advising the
ECO that no U.S. licensable technology goes into it.
Elvira has approximately 110 employees all located at
the complex visited by the ECO. Elvira is moving to a
brand new 300 square meters gated complex located
adjacent to their current operations that is still
under construction and which they will own.

5. Elvira is also in the business of manufacturing
Network Analyzers similar to those manufactured by
Agilent Technology. Elvira's Network Analyzers will
accurately characterize components by measuring their
effect on the amplitude and phase of swept-frequency
and swept power test signals. The 16 model HMC559,
GAAS MMIC PHEMT distributed amplifier die will be used
in the manufacture of the Elvira Network Analyzers.
Sergey Belchikov presented the 16 Hittite amplifier
die to the ECO for inspection, and stated that based
upon the delivery schedule they were not sure that
they would have had them in time for their last
manufacturing schedule and that is why they have not
utilized them as of yet. Sergey Belchikov indicated
that Elvira makes two different model Network
Analyzers, one with the licensable Hittite amplifiers
and one without. Their target market are the Russian
companies on budgets that cannot afford the higher end
Agilent Technology type Network Analyzers.

6. Based upon the interview conducted by ECO Liston
it is believed that Elvira Production Co. LTD will be
utilizing the subject commodity for which it is
licensed. They were open and forthwith to all
questions presented by the ECO and were not evasive.
The entire shipment was accounted for and there is no
indication of impropriety.

7. Recommendations: Post recommends Elvira Production
Co., Zheleznodorozhny, Moscow Region, Russia, Russia
as a reliable recipient of sensitive U.S. origin
commodities.


(FCS MOSCOW/JMARKS/PLISTON)
BEYRLE

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