VZCZCXYZ0003
PP RUEHWEB

DE RUEHMO #1595 1570629
ZNR UUUUU ZZH
P 050629Z JUN 08
FM AMEMBASSY MOSCOW
TO RUCPDOC/USDOC WASHDC PRIORITY
INFO RUEHC/SECSTATE WASHDC 8421
RHMFIUU/US CUSTOMS AND BORDER PROTECTION WASHINGTON DC

UNCLAS MOSCOW 001595 
 
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: PTK 
ELECTROSTEEL LLC, MOSCOW, RUSSIA, LICENSE NO. D397317 
 
REFTEL: USDOC 03408 
 
 
¶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, PTK 
Electrosteel LLC, Moscow, Russia. The company is 
listed on BIS license application D397317 as the 
ultimate consignee of the HAAS Manufactured ES-5-4T, a 
horizontal machine with 40" X 18" X 22" (XYZ) travels, 
imbedded 4th axis and a 5-axis option making this 
machine capable of 5-axis simultaneous contouring. 
These items are controlled for national security and 
non-proliferation reasons under ECCN 2B001. The 
licensee is HAAS Automation Inc., 2800 Sturgis Road, 
Oxnard, CA  93030. 
 
¶3. On June 3, 2008, Export Control Attach Peter 
Liston and LES Natalya Shipitsina conducted the 
requested pre-license check at the offices of 
Electrosteel LLC, B. Andronevskaya 23, Moscow, Russia. 
The export control team met with Boris Dolgikh, 
General Director of Electrosteel LLC. 
 
¶4.  General Director Boris Dolgikh told the export 
control team that Electrosteel LLC was founded in 
¶2000.  Dolgikh stated that Electrosteel LLC has been 
producing unfinished stamped banks and casting blanks 
of turbine blades for various Russian industries for 7 
years.  Electrosteel LLC then subcontracts the 
unfinished turbine blades to be refined and finished 
to the required specifications of the customer. 
Electrosteel LLC employs 25 people and grosses 
approximately $10 million dollars a year. 
 
¶5. Dolgikh told the export control team that 
Electrosteel LLC intends to purchase the commodity in 
reftel through the HAAS Automation Inc. Moscow 
representative.  Dolgikh stated that he often attends 
industry trade show and exhibitions and that that is 
where he learned of the reftel commodity.  Dolgikh 
stated that reftel commodity would enable Electrosteel 
LLC to produce their own finished product, a chrome 
steel turbine blade.  Dolgikh stated that his company 
would no longer be dependant on subcontracting out the 
finishing work. 
 
¶6. Electrosteel LLC appears to have the technical and 
commercial sophistication and the physical resources 
consistent with those for which the commodity in 
question was designed.  It should be noted here that 
if the license is granted, and Electrosteel LLC goes 
through with the purchase from HAAS, they intend to 
purchase a commercial property within 100km of Moscow 
where they will build a production facility.  The 
Export Control Team would recommend a Post-Shipment 
Verification in that event. 
 
¶7. The export control team believes that Electrosteel 
LLC has both a legitimate need and a legitimate end 
use for the subject reftel commodity. 
 
¶8. Recommendations: Post recommends Electrosteel LLC, 
Moscow, 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/PLISTON) 
RUSSELL