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Cablegate: Extrancheck: Post-Shipment Verification: Ojsc Rpe Kvant,

VZCZCXYZ0014
PP RUEHWEB

DE RUEHMO #2262 2450549
ZNR UUUUU ZZH
P 020549Z SEP 09
FM AMEMBASSY MOSCOW
TO RUCPDOC/USDOC WASHDC PRIORITY
INFO RUEHC/SECSTATE WASHDC 4699
RHMFIUU/US CUSTOMS AND BORDER PROTECTION WASHINGTON DC

UNCLAS MOSCOW 002262

SIPDIS

USDOC FOR 532/OEA/LRITTER
USDOC FOR 3150/USFCS/OIO/CEENIS/MCOSTA
USDOC FOR 532/OEE/MO'BRIEN
USDOC FOR 532/BIS/OEA/TWILLIS/EHOLLAND/ANALYST

E.O. 12958: N/A
TAGS: BEXP ETRD ETTC RS
SUBJECT: EXTRANCHECK: POST-SHIPMENT VERIFICATION: OJSC RPE KVANT,
MOSCOW, RUSSIA.

REFTEL: REQUEST #4210016; DATED 5/28/2009

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, OJSC RPE Kvant, Moscow,
Russia. The company is listed on BIS license application D383270 as
the ultimate consignee of one chemical vapor model E450LDM (MOCVD
system) engineered for the high-volume production of compound
semiconductor material. This item is controlled for national
security and anti-terrorism reasons under ECCN 3B001. The licensee
is Veeco Instruments, 100 Sunnyside Boulevard, Woodbury, NY 11797.

3. On August 27, 2009, Commercial Attach Katja Kravetsky and LES
Natalya Shipitsina conducted the requested post-shipment
verification at the office of OJSC RPE Kvant, 3-rd Mytischinskaya
street, 16, Moscow, Russia. The export control team met with Prof.
Marlen Kagan, Head of Photovoltaics Department, and Sergey Sharov,
Chief Technologist.

4. OJSC (Joint Stock Company) RPE Kvant is a state-owned enterprise
(under the Russian Federal Space Agency), established in 2007 as a
successor to RPE Kvant, founded in 1919; it currently employs a
staff of over 1000. RPE Kvant is a leading organization in Russia
in the field of development and production of solar cells and solar
batteries. Its products have both space and terrestrial
applications. RPE Kvant participates in national and international
conferences and exhibitions - most recently the Moscow Aerospace
Show. The main commercial application for its production is in
telecommunications.

5. RPE Kvant provided documentation that supported the shipment
reported in reftel. The export control team was able to identify and
view the E450LDM MOCVD system at the RPE Kvant facilities. A Veeco
Instruments representative worked with RPE Kvant to install the
MOCVD system. It is currently functioning, but production will not
commence until the end of the year.

6. The export control team found that the MOCVD system will be used
for the end use for which it was licensed, there are no indications
of impropriety, and the consigneeQs answers were not evasive.

5. Recommendations: Post recommends OJSC RPE Kvant, Moscow, Russia,
as a reliable recipient of sensitive U.S. origin commodities.
(FCS MOSCOW/JMARKS/KKRAVETSKY)
BEYRLE

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