VZCZCXYZ0012
PP RUEHWEB

DE RUEHMO #0317 0411454
ZNR UUUUU ZZH
P 101454Z FEB 09
FM AMEMBASSY MOSCOW
TO RUCPDOC/USDOC WASHDC PRIORITY
INFO RUEHC/SECSTATE WASHDC 1847
RHMFIUU/US CUSTOMS AND BORDER PROTECTION WASHINGTON DC
RUEHKV/AMEMBASSY KYIV 0322

UNCLAS MOSCOW 000317 
 
SIPDIS 
 
USDOC FOR 532/OEA/M.HAMES/L.RITTER 
USDOC FOR 3150/USFCS/OIO/CEENIS/MCOSTA 
USDOC FOR 532/OEE/MO'BRIEN 
USDOC FOR 532/BIS/OEA/TWILLIS/EHOLLAND/ANALYST 
KYIV FOR FCS 
 
 
E.O. 12958: N/A 
TAGS: BEXP ETRD ETTC RS
SUBJECT: EXTRANCHECK: POST-SHIPMENT VERIFICATION: SCIENTIFIC AND 
INDUSTRIAL CONCERN (SIIC) NAUKA, KIEV, UKRAINE, LICENSE NO. D384296 
 
REFTEL: USDOC 0116 
 
¶1. Unauthorized disclosure of the information provided below is 
prohibited by Section 12C of the Export Administration Act. 
 
¶2. Reftel requested a Post-shipment verification to determine the 
legitimacy and reliability of the end-user, Scientific and 
Industrial Concern (SIIC) Nauka, Kiev, Ukraine. The company is 
listed on BIS license application D384296 as the ultimate consignee 
of a low pressure thin film deposition system, model MOCVD D-180 
LDM.  These items are controlled for national security reasons under 
ECCN 3B001.A.2.  The licensee is SVT Associates Inc., 7620 Executive 
Drive, Eden Prairie, MN  55344. 
 
¶3. On January 29, 2009, Export Control Attach Peter Liston and LES 
Olena Stepanska conducted the requested post-shipment verification 
with the Scientific and Industrial Concern (SIIC) Nauka, Kiev, 
Ukraine.  The export control team met with Sergey Yurievich Larkin, 
General Manager, at the Ministry of Science and Education, Kiev, 
Ukraine. 
 
¶4. The Scientific and Industrial Concern (SIIC) Nauka (Nauka) is a 
government funded research facility involved in the development of 
commercial applications of solid-body electronics.  Nauka cooperates 
with foreign entities in joint enterprises in many of their research 
and development projects.  Nauka is involved with projects with 
Germany, Russia, Turkey and the United States.  Nauka was founded in 
part by the Ukraine Scientific Research Center QFornonQ; the 
National Scientific Center QKharkov Physical-Technical InstituteQ; 
Scientific & Production Enterprise QSaturnQ; Scientific Research 
Company QKaratQ; Radio Astronomical Institute, National Academy of 
Sciences; and the scientific technological concern QInstitute of 
MonocrystalsQ, National Academy of Science. 
 
¶5. Sergey Yurievich Larkin advised the export control team that the 
commodity in reftel was purchased in 2007 and is being used at the 
Karat facility for arsenide and phosphide semiconductor research. 
Larkin stated that he expects production to start at the end of this 
year.  The Karat plant is located approximately 7 hours outside of 
Kiev.  Sergey Yurievich Larkin stated that Nauka has also purchased 
two additional units from the reftel exporter SVT Associates, which 
are awaiting customs clearance in Kiev.  Sergey Yurievich Larkin 
gave the export control team a series of photos showing the reftel 
commodity installed and operating at the Karat facility.  Larkin 
stated that the Karat facility is a former military complex with 
limited access. 
 
¶6. Although the export control team was not able to personally 
inspect the reftel commodity, it does appear that it is being used 
for the purpose for which it was licensed.  The company had ordered 
two additional units.  There are no indications of impropriety with 
Nauka and the LarkinQs answers to the export control team were not 
evasive. 
 
 
¶7. Recommendations: Post recommends Scientific and Industrial 
Concern (SIIC) Nauka, Kiev, Ukraine as a reliable recipient of 
sensitive U.S. origin commodities. 
(FCS MOSCOW/JMARKS/PLISTON) 
BEYRLE