VZCZCXYZ0000
RR RUEHWEB

DE RUEHMO #4189 2400606
ZNR UUUUU ZZH
R 280606Z AUG 07
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC 3274
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RHMFIUU/FBI WASHINGTON DC
RUEAIIA/CIA WASHDC
RUEKJCS/SECDEF WASHDC

UNCLAS MOSCOW 004189 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC RS
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE CHECK ON 
APPLICATION 050052700 
 
REF: SECSTATE 104411 
 
¶1.  (U) Reftel requested a pre-license check to confirm the 
bona fides of the World of Arms company, the foreign 
consignee listed in the license applications detailed in the 
DTC Case 050052700.  The commodities in question are 30 Model 
597 Semi Auto rifles, .22 cal W/Scope and 20 Model 700 Bolt 
Action rifles, .17-.458 cal W/Scope, valued at USD 17,990.00. 
 
¶2.  (U) On August 16, 2007, we visited the headquarters and 
showroom of World of Arms located at 24a Kotelnicheskava, 
140000 Lubertsy, Russia.  The team met with Mr. Vladimir L. 
Nosikov, First Deputy General Director of Kolchuga Limited 
and Sergey Frolenkov, General Director of World of Arms. 
 
¶3.  (U) Kolchuga was founded in 1993 as a hunting and 
shooting sports retailer, and has since added two additional 
locations in the Moscow area and a network of 50 independent 
distributors throughout Russia.  In addition, Kolchuga has 
its own taxidermy specialty service, a security company, and 
a realty company.  Kolchuga's stores sell approximately 750 
rifles and shotguns per month, plus it sells approximately 
300 rifles and shotguns a month to its network of 
distributors.  Kolchuga also sells ammunition for rifles and 
shotguns and a wide range of hunting and shooting 
accessories.  Kolchuga is owned by Mr. Mikhail Khubutia and 
Mr. Rafael Etoumyan, though operations are managed by the 
General Director, Mr. Alexander Nikolayich Elysiev.  Mr. 
Nosikov described Kolchuga's typical customer as male, 25-45 
years old, and "well off" financially.  The hunting and 
shooting sports market in Russia is well established. 
 
¶4.  (U) World of Arms is a wholly owned subsidiary of 
Kolchuga, founded in 2006 as part of the company 
reorganization. World of Arms will be responsible for 
warehousing and distribution of firearms, ammunition, knives, 
and other sporting goods and accessories for the Kolchuga 
stores and 280 associated dealerships throughout Russia. 
World of Arms employs around 200 people at their premises in 
Lubertsy.  Prior to 2006, Kolchuga had been utilizing 
long-term storage made available by the Ministry of Emergency 
Situations in downtown Moscow, but was unable to continue the 
arrangement due to the Ministry's operational needs. 
Kolchuga's facility includes several large high-security 
rooms for firearms and ammunition.  In addition, Kolchuga has 
a small showroom and shop at the location. 
 
¶5.  (U) Kolchuga and World of Arms are familiar with the 
requirements of U.S. export control licenses, as they have 
been the recipient of both State Department and Commerce 
Department licenses.  The sale of firearms and ammunition 
requires special permits from the Government of Russia (GOR), 
and requires the seller to keep records of sales.  The 
records are kept both in hand-written bound logbooks and a 
computerized database maintained by Kolchuga for the purpose 
of printing monthly reports for the Ministry of Internal 
Affairs.  The data include date of purchase, purchaser's name 
and permit number, model and serial number for firearms, type 
and quantity of ammunition purchased, and the buyer's 
signature.  Individuals may own only five firearms (rifles or 
shotguns, handguns are limited to security or police use), 
and may purchase only ammunition of a type corresponding to 
firearms they own.  Buyers are limited to 400 rounds of 
ammunition per visit. 
 
¶6.  (U) Firearms and ammunition are stored in locked cabinets 
within the World of Arms showroom.  The showroom has armed 
security during business hours provided both by Kolchuga's 
own security company and a police officer on detail.  The 
facility has an electronic security system linked to the 
police, heavy reinforced doors, and all exterior windows in 
the storage area are barred on both sides. 
Burns