VZCZCXYZ0025
RR RUEHWEB

DE RUEHC #2021 0082022
ZNR UUUUU ZZH
R 082021Z JAN 08
FM SECSTATE WASHDC
TO AMEMBASSY MOSCOW 0000

UNCLAS STATE 002021 
 
SIPDIS 
 
SIPDIS 
MOSCOW FOR NICKOLAS KATSAKIS 
 
E.O. 12958: N/A 
TAGS: ETTC RS KOMC
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK 
ON LICENSE 05-050077022 
 
 
¶1. This is an Action Request. See paragraphs 2 - 4. 
 
¶2. The Department's Office of Defense Trade Controls 
Compliance (PM/DTCC) requests Post's assistance in conducting 
a pre-license check on license 05-050077022 for the export of 
ammunition components to Russia. Post is requested to 
complete this Blue Lantern check within 30 days. Lack of 
response to a Blue Lantern check will affect pending and 
future licenses involving parties to this license. 
 
¶3. Reason for Request: Applicant has submitted this 
application on two previous occasions, each being returned 
without action. The first application (050053908) did not 
sufficiently explain the provided end-use and the second 
(050055208) was submitted with a new end-use that was not 
supported by the documentation provided. The current 
submission claims commercial re-sale as the end-use. 
Considering the caliber and quantity of the ammunition 
components as well as the previous submissions for these 
items, the bona fides of this transaction and end-user should 
be established. 
 
¶4. Action Request: Post is requested to establish the bona 
fides of Barnaul Cartridge Plant as a reliable recipient of 
United States Munitions List (USML) articles. Post should 
also determine the client-base of Barnaul Cartridge Plant to 
whom the manufactured ammunition may be sold. The following 
points are provided for guidance: 
 
(To Barnaul Cartridge Plant)-- How long has your company been 
in the business of importing and selling defense articles? 
Are you familiar with the restrictions governing the import 
of U.S. Munitions List (USML) commodities, in particular, the 
prohibition of unauthorized re-export? Who are your regular 
customers and where do they reside? Can you elaborate on the 
specific end-use of these items? Does your company have any 
purchase orders from any potential buyers for these items? 
What use does your company have with such a high quantity of 
ammunition components? 
 
¶5. Details of license application: 
 
DTC Case: 05-050077022 
 
QUANTITY/COMMODITY: 
 
10,103,000 Components for Ammunition (cal .224 - .355) 
 
License Value: USD $909,270 
 
SELLER: 
 
Hornady Manufacturing Co. 
PO Box 1848 
Grand Island, NE 68803 
 
FOREIGN CONSIGNEE: 
 
Same as end-user. 
 
FOREIGN END-USER: 
 
Barnaul Cartridge Plant 
28 Kulagina St. 
656002 Barnaul 
Russia 
 
PURPOSE: 
 
Commercial re-sale 
 
¶6. Submitted in support of the license application were the 
following documents (PM/DTCC will fax documentation to Posts 
upon request): 
 
DSP-83 signed by Nikolay Stepanov on behalf of end-user and 
Tonya Finck on behalf of US applicant. Dated Nov 27, 2007. 
 
Explanation of Import Authorization from Russian Ministry of 
Internal Affairs signed by AN Kiselev dated April 28, 2007 
(ref # 42/1842) 
 
Letter of Explanation from Hornady Manufacturing signed by 
Greg Hanson 
 
Letter of Explanation from Barnaul Cartridge Plant signed by 
Nikolay Stepanov dated Nov. 16, 2007. 
 
Invoice from Hornady Manufacturing dated June 26, 2007. 
 
Purchase Order from Banaul Cartridge Plant dated August 20, 
2007, signed by Yakov Altergot. 
 
¶7. Please slug reply for PM/DTCC - BLUE LANTERN COORDINATOR 
and include the words "Blue Lantern" and the case number in 
the subject line. POC is Kyle M. Ballard, Phone: 
202-663-1929; Email: BallardKM@state.gov; SIPRNET: 
BallardKM@state.sgov.gov. The Blue Lantern Guidebook (ref) is 
available as a PDF file in the Bunche Library's E-Book 
Collection on the DOS Intranet: 
http://virtuallibrary.state.gov/ 
BlueLanternGuidebook2006%2520 final .pdf 
 
¶8. Department is grateful for Post's assistance in this 
matter. 
RICE