VZCZCXYZ0016
PP RUEHWEB

DE RUEHMO #1722 1061109
ZNR UUUUU ZZH
P 161109Z APR 07
FM AMEMBASSY MOSCOW
TO RUCPDOC/USDOC WASHDC PRIORITY
INFO RUEHC/SECSTATE WASHDC 9325
RHMFIUU/US CUSTOMS AND BORDER PROTECTION WASHINGTON DC

UNCLAS MOSCOW 001722 
 
SIPDIS 
 
SIPDIS 
 
USDOC FOR 532/OEA/MHAMES/LRITTER 
USDOC FOR 3150/USFCS/OIO/CEENIS/MCOSTA 
 
E.O. 12958: N/A 
TAGS: BEXP ETRD ETTC RS
SUBJECT: EXTRANCHECK: PRE-LICENSE CHECK: FSUE 
GERMANIUM, KRASNOYARSK, RUSSIA, LICENSE NO. D372120 
 
REFTEL: USDOC 01913 
 
¶1. Unauthorized disclosure of the information provided 
below is prohibited by Section 12C of the Export 
Administration Act. 
 
¶2. Reftel requested a Pre-license check to determine 
the legitimacy and reliability of the end-user, FSUE 
Germanium, Krasnoyarsk, Russia. The company is listed 
on BIS license application D372120 as the ultimate 
consignee of ESX150 optical machining center with 3 
liner and 2 rotary axes. These items are controlled 
for national securities, nuclear non-proliferation 
reasons under ECCN 2B001. The licensee is VI 
Manufacturing, DBA Optipro systems 6368 Dean Parkway, 
Ontario, NY 14519. 
 
¶3. On April 5, 2007, Export Control Attache Donald 
Pearce and FSN Natalya Shipitsina conducted the 
requested pre-license check at the offices of FSUE 
Germanium, Transportny proyezd 1, Krasnoyarsk, Russia. 
The export control team met with Oleg Podkopaev, 
General Director. 
 
¶4. FSUE Germanium was founded in 1991 from the 
Germanium production facility of the Krasnoyarsk 
Metallurgical Plant.  The facilities are located in a 
building on the grounds of Krasnoyarsk Metallurgical 
Plant (Russian abbreviation KMZ), which refines and 
produces articles from precious metals such as gold 
and platinum.  KMZ is a Joint Stock Company controlled 
by the Krasnoyarsk Regional Government, and FSUE 
Germanium is 100% owned by the Government of Russia. 
The only product produced and refined is Germanium. 
The company has no military contracts.  85% of sales 
are exports to the United States, United Kingdom, 
Israel and Japan.  FSUE Germanium has no clients 
located in Iran, North Korea, Syria or Cuba. 
 
¶5. The machine tools cited in reftel will be used in 
the production of germanium lenses and forms.  These 
items are common for use in infrared detectors and 
laser products.  FSUE Germanium selected the U.S. 
origin equipment as it can produce a larger lens (up 
to 200mm in diameter) and can produce square forms. 
In addition, the device is less expensive than the 
closest German competitor.  Five to seven operators 
will have access to the device, which will be 
installed on the first floor of the facility in a 
specially prepared workspace. 
 
¶6. Due to the presence of high-value raw materials and 
finished commodities, security at KMZ is high.  A 
three-meter (10 foot) high perimeter wall with razor 
wire and a second internal fence surround the 
facility, which is patrolled by armed guards.  A video 
surveillance system and electronic sensor system are 
employed as well.  Access is limited to employees 
based on work schedule (no after-hours access is 
allowed) and to escorted visitors.  Vehicles entering 
the facility are searched before exiting. 
 
¶7. Recommendations: Post recommends FSUE Germanium, 
Krasnoyarsk, Russia, as reliable recipients of 
sensitive U.S. origin commodities. It is requested 
that post be notified of final disposition of the 
application, and of any shipments for this 
organization in order to conduct appropriate FCS 
follow-up and statistical reporting. 
(FCS MOSCOW/SBOZEK/DPEARCE) 
BURNS