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Cablegate: Extrancheck: Post-Shipment Verification: St.

VZCZCXYZ0023
PP RUEHWEB

DE RUEHMO #4958 2841211
ZNR UUUUU ZZH
P 111211Z OCT 07
FM AMEMBASSY MOSCOW
TO RUCPDOC/USDOC WASHDC PRIORITY
INFO RUEHC/SECSTATE WASHDC 4546
RHMFIUU/US CUSTOMS AND BORDER PROTECTION WASHINGTON DC

UNCLAS MOSCOW 004958

SIPDIS

SIPDIS

USDOC FOR 532/OEA/MHAMES/LRITTER
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: ST.
PETERSBURG PHYSICS AND TECH CENTER FOR RESEARCH AND
EDUCATION, ST. PETERSBURG, RUSSIA, LICENSE NO. D371956

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, St. Petersburg Physics and Tech Center for
Research and Education, St. Petersburg, Russia. The
company is listed on BIS license application D371956
as the ultimate consignee of one Gen. III MBE System
per quote no: NPG061006 and serial no: 703, one 8200
cryopump compressor, one CT-8 cryopump and two 40'
helium lines. These items are controlled for national
security and anti-terrorism reasons under ECCN 3B001.
The licensee is Veeco Instruments Inc., 100 Sunnyside
Boulevard, Woodbury, NY 11797.

3. On September 28, 2007, Export Control Attache
Donald Pearce and FSN Natalya Shipitsina met with
Anton Egorov, Chief Scientist, St. Petersburg Physics
and Technical Center for Research and Education of the
Russian Academy of Science (PTC), St. Petersburg,
Russia. The meeting was conducted in the lobby of the
Angleterre Hotel in central St. Petersburg.

4. Mr. Egorov stated that due to a visit by a
delegation from the Federal Security Service of the
Russian Federation (Russian abbreviation FSB), it was
impossible to utilize the center's meeting room.
Additionally, as the security clearance for ECO Pearce
had not been granted, access to the storage area where
the commodities are being stored was denied. Mr.
Egorov offered to allow FSN Shipitsina to gain access,
however, due to the contract agreement the shipping
cartons would have to remain sealed.

5. NOTE: Prior to the scheduled meeting, FSN
Shipitsina was advised that applications for security
clearance required for access to the PTC facilities,
and was told the required permits would arrive in time
for our visit. On September 27, after arriving in St.
Petersburg, we were informed that those permits were
not yet approved, and that the meeting facilities at
the center were going to be used by the FSB
delegation. We agreed to meet Mr. Egorov at the hotel
and requested he bring documents to establish the bona
fides of the transaction and the organization. END
NOTE.

6. The Ioffe Physical-Technical Institute of the
Russian Academy of Science established the PTC in 2004
to consolidate research projects, organize
conferences, and provide specialized educational
facilities for students of physics. The PTC is headed
by Nobel laureate Zhores Alfiorov, who also serves as
Vice-President of the Russian Academy of Science and a
member of the Duma, the legislative body of the
Russian Federation. The center has programs for
students in 9th through 12th Grades as well as at the
University and Post-Graduate levels. Up to 250
students per semester attend classes and perform
experiments in the centers laboratories.

7. The equipment in reftel is to be installed in the
semiconductor laboratory, which is located in the
second building of the PTC. The laboratory currently
contains a Riber 49 MBE system for production of
epiwafers used in the fabrication of electronic,
optoelectronic and laser devices. The equipment in
reftel will be assembled by representatives of Veeco,
with a target date of December, 2007 for the
installation. A post-shipment verification could be
easily accomplished during the installation process.

8.Recommendations: While Post believes that the St.
Petersburg Physics and Tech Center for Research and
Education, St. Petersburg, Russia would be a reliable
recipient of sensitive U.S. origin commodities, the
findings are severely limited as no site visit was
allowed, the commodities are still in portable form,
and no verification could be conducted by the ECO.
ECO recommends a follow-up PSV be conducted concurrent
with the installation of the equipment.
(FCS MOSCOW/SBOZEK/DPEARCE)
BURNS

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