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Cablegate: Blue Lantern Level 3: Post-Shipment End-Use Check On

VZCZCXYZ0004
RR RUEHWEB

DE RUEHMO #2409 2640842
ZNR UUUUU ZZH
R 210842Z SEP 09
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC 4865
INFO RUETIAA/DIRNSA FT GEORGE G MEADE MD
RUCPDOC/USDOC WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RHMFIUU/FBI WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RHMFIUU/HQ BICE INTEL WASHINGTON DC

UNCLAS MOSCOW 002409

SENSITIVE
SIPDIS

DEPARTMENT FOR PM/DDTC - BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: ETTC KOMC RS
SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON
LICENSE 050083308

REF: STATE 66234

1. (SBU) Summary: MXM Hunting Club received the 99 firearms
mentioned in reftel on May 14, 2008, and has since sold them. MXM
Hunting Club has been owned by Andrey Shelestov since April 2009,
although the company has been in business since 2000. The company
sells sporting goods, including firearms, to sportsmen and hunters
living primarily in the Moscow region. In 2008 MXM Hunting Club
sold about 100 U.S.-origin rifles and about 200 U.S.-origin
shotguns. The store's security system is in full compliance with
Russian Federation law. Shelestov told us he is aware of
regulations governing the import of U.S.-origin defense articles.
End Summary.

2. (SBU) In a July 17 meeting, owner of MXM Hunting Club Andrey
Shelestov told us his company received the 99 firearms mentioned in
reftel on May 14, 2008, and has since sold them to customers.

3. (SBU) According to Shelestov, MXM Hunting Club was founded in
2000. He became the owner of the MXM Hunting Club in April 2009,
although he has been in the firearms business for about 10 years.
Shelestov also owns stores in St. Petersburg, Yekaterinburg, and
Yaroslavl.

4. (SBU) According to Shelestov, MXM Hunting club sells sporting
goods, including firearms, to sportsmen and hunters living primarily
in the Moscow region. His company also provides advice on hunting
and firearms selection to customers. Shelestov said he also planned
to set up a website so customers can view the company catalogue and
arrange for product sales online.

5. (SBU) Shelestov told us MXM Hunting Club sold approximately 100
U.S.-origin rifles (valued at around USD 150,000) and 200
U.S.-origin shotguns (valued at around USD 300,000) in 2008.

6. (SBU) The security of MXM Hunting Club facilities is in full
compliance with Russian Federation law, according to Shelestov. The
company stores its firearms in a vault that is alarmed when they are
not on display. Only personnel trained by the Ministry of Interior
are allowed in the vault.

7. (SBU) According to local law enforcement, MXM Hunting Club is
properly authorized to import and sell defense items in Russia.
Local law enforcement has no information that would call into
question MXM Hunting Club's reliability as a recipient of U.S.
defense articles.

8. (SBU) Shelestov told us MXM Hunting Club understood the
regulations governing the import of U.S.-origin defense items,
including the prohibitions against unauthorized re-transfers and
re-exports. Our assessment is that MXM Hunting Club is primarily a
commercial venture, and we do not have reason to believe that the
company would be an unreliable recipient of U.S.-origin defense
items.

BEYRLE

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