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Cablegate: Blue Lantern Level 3: Pre-License End-Use Check On

VZCZCXYZ0008
RR RUEHWEB

DE RUEHMO #2754 2561150
ZNR UUUUU ZZH
R 121150Z SEP 08
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC 9962
INFO RUCPDOC/USDOC WASHINGTON DC
RUEKJCS/SECDEF WASHDC
RHMFIUU/FBI WASHINGTON DC
RUEAIIA/CIA WASHDC
RHMFIUU/HQ BICE INTEL WASHINGTON DC

UNCLAS MOSCOW 002754

DEPARTMENT FOR PM/DDTC - BLUE LANTERN COORDINATOR

SIPDIS

E.O. 12958: N/A
TAGS: ETTC KOMC RS
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON
APPLICATION 050118911

REF: STATE 89919

1. (U) Summary: Diagnost representatives told us they plan to
purchase the reftel item to use as a demonstration model for
prospective customers, including Zenit. Diagnost was established in
1991 and the five original owners still run the company. Diagnost
operates as a broker of monitoring and control equipment, purchasing
goods from the U.S. and Europe and selling them to companies located
mostly in the Russian Federation. These companies include steel
mills and aluminum plants, among others. The only role Zenit will
play in this transaction is that of potential customer. Post
verified the bona fides of Diagnost and recommends it as a reliable
end-user of United States Munitions List (USML) items. End Summary.


2. (U) In a September 11 meeting, Diagnost Director Aleksandr Kozlov
and Sales Manager Dmitriy Cheredeyev told us their company has been
in business since 1991. They are co-owners of the company, along
with Mikhail Petrevshenkov, Aleksandr Sergeyev, and Gennadiy
Yasinovskiy. Diagnost is a limited-liability corporation.

3. (U) Diagnost operates as a broker of monitoring and control
equipment. It imports equipment from U.S. companies such as Mikron
and European companies such as Chauvin-Arnoux of France and Ion
Science Innovation of the United Kingdom. It deals in items such as
infrared radiometric cameras, ultrasonic sensors, electronic
measuring devices, and the like. Diagnost's customers typically
include steel mills, aluminum plants, oil and gas companies, and
power stations all over Russia, as well as in Ukraine, Belarus and
Kazakhstan.

4. (U) Diagnost does possess supporting documentation, including
purchase orders, for this transaction. Diagnost plans to use this
Hotshot HD-XT Predictive Maintenance Camera System (FLIR) strictly
as a demonstration model to show to potential customers. If the
customers would like to buy the item, Diagnost would then order
another example of the item from Electrophysics Corp. and sell it to
the customer. Diagnost does not own a large warehouse or storage
facility. Instead, it purchases items from foreign sellers only
after it has an order from a customer. Goods waiting for
distribution are kept in the company's office, which is located
inside a guarded building.

5. (U) Zenit was listed on the Blue Lantern application simply as a
potential customer. Diagnost plans to show the item to Zenit; Zenit
will not actually use the item listed on the reftel application.

6. (U) Diagnost understands the restrictions on USML items,
especially the prohibition against unauthorized re-transfers and
re-exports. Post verified the bona fides of Diagnost and recommends
it as a reliable end-user of USML items.

BEYRLE

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