VZCZCXYZ0008
RR RUEHWEB

DE RUEHAD #0976 2880741
ZNR UUUUU ZZH
R 150741Z OCT 09
FM AMEMBASSY ABU DHABI
TO RUCPDOC/USDOC WASHINGTON DC
INFO RUEHC/SECSTATE WASHDC 2991
RHMFIUU/DEPT OF HOMELAND SECURITY WASHINGTON DC UNCLAS ABU DHABI 000976 
 
STATE FOR PM/DTCC FOR BLUE LANTERN COORDINATOR 
USDOC FOR 532/BIS/OEA/TWILLIS/EHOLLAND/LHINES/RJERSEKI 
DHS FOR ICE/STRATEGIC 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS:        
 
SUBJECT: EXTRANCHECK: PRE-LICENSE CHECK: STREIT MIDDLE EAST FZCO, 
DUBAI, UAE. 
 
REF: A. USDOC OEA Email, dated 9/23/09 
      B. ABU DHABI 0897, dated 9/10/09 
 
 
 1. Ref A email requested that post conduct two additional 
pre-license checks (previous checks were conducted per Ref B) to 
determine the disposition of armored vehicles shipped by Streit USA 
Armoring, North Charleston, SC to Streit Middle East FZCO located in 
the Jebel Ali Freezone, Dubai, UAE. These vehicles are controlled 
under ECCN 9A018. 
 
 2. On October 13, 2009, BIS Export Control Officer (ECO) Nasir Khan 
and Immigration and Customs Enforcement (ICE) Special Agent Henry 
Casillas met again with Mr. Dmitri Khazanski, Director of Sales and 
Marketing for Streit Middle East FZCO. ECO requested additional 
information regarding the structure, operations, financial dealings 
and relationship between Streit USA and Streit Middle East. Streit 
USA and Streit Middle East are separate companies that share the 
same owner, a Canadian Citizen named Guerman Goutorov. Streit USA, 
Streit Canada, and Streit Group UAE are all manufacturing companies 
while Streit Middle East is involved only in sales. The newest 
manufacturing plant is the Streit USA operation which is geared 
towards meeting U.S. government armored vehicle orders worldwide. 
 
 3. Streit Middle East purchases its vehicles directly from Streit 
USA and both companies have separate accounting structures. Since 
it's a separate legal entity Streit Middle East does not share 
profits for its sales with Streit USA. Khazanski stated that Streit 
Middle East is like a dealership for Streit Group's manufacturing 
arms. Streit Middle East orders these vehicles for inventory which 
is why they are able to edge out their competitors who often can't 
meet customer requirements in time.  Customers for sales are either 
often repeat customers or are developed through contacts and 
business development visits throughout the region. Streit USA is 
responsible for the export licenses but does not conduct regular 
audits of Streit Middle East. Khazanski stated that since Streit USA 
and Streit Middle East are "right and left pocket of the same pants" 
they would do whatever might be required by Streit USA regarding 
export requirements. Khazanski provided ECO with a business 
prospectus booklet which provides a detailed overview of Streit 
Group's structure and operations (these documents have been sent to 
OEE WAFO via FEDEX). 
 
 4. Regarding the vehicle shipments in question for these PLCs the 
following information was provided: 
 
      a. License D423875: Chevrolet Suburbans - these vehicles are 
destined for ANHAM LLC which according to Khazanski is 
procurement/contracting firm that supports the U.S. Department of 
Defense's Kabul Regional Contracting Center for USG end users in 
Afghanistan. 
 
      b. License D423789: Chevrolet Suburbans - vehicles are 
destined for the exclusive use by the company, Auto Trend in the 
Philippines. Khazanski provided end user statements attested to the 
Dubai Police which indicate that these armored vehicles are 
re-exported for the sole use by each customer (these documents have 
been emailed to OEE WAFO). 
 
 5. Post is unable to make a definitive determination on the ultimate 
end users for each vehicle beyond what has been provided in 
documentation. 
 
OLSON