11. Scientist caught in "dual-user" frame-up

By Svetlana Nikolaeva The Moscow News

A researcher in Russia's republic of Bashkortostan has been charged with spying for South Korea

 The Supreme Court of Bashkiria (Bashkortostan) has once again adjourned the trial of Dr. Oskar Kaibyshev, which the local media described as another spy case, due to the defendant's illness. The Bashkiria Prosecutor's Office believes that the accused and his lawyers are playing for time, and is determined to ensure that the verdict is delivered as soon as possible. Meanwhile, the trial was declared off-limits to the public. Not surprisingly, the "spy case" has generated extensive rumors and speculation.

The Charges

The criminal case against Oskar Kaibyshev, director of the Russian Academy of Sciences Institute for Metals Superplasticity Problems (IMPS) in Ufa, the capital of Bashkortostan, was opened on March 29, 2003. That day, agents of the Federal Security Service (FSB) Directorate for the Bashkortostan Republic found a group of South Korean businessmen from ASA Co. Ltd. at the customs zone of Ufa Airport in possession of some technical documentation recorded on several computer disks. ASA Co Ltd., a tire manufacturing company, had cooperated with the IMPS since 2000. An expert who was summoned to the airport studied the documentation for two hours, coming to the conclusion that it contained "dual-use information" that could have civilian as well as military applications.

Dr. Kaibyshev was charged on four counts of the penal code: illegal transfer of dual-use technology, appropriation and embezzlement of funds, abuse of office, and forgery.

Meanwhile, sources at the IMPS believe that the case in fact began in 2000, when the institute signed a contract with businessman Dmitry Glukhov who offered his services as an intermediary in the acquisition of some research equipment. Under the contract, he received 2.5 million rubles, providing only 262,000 rubles worth of supplies, and pocketing the rest. The director sued him at the Arbitration Court. The case ended with an out-of-court settlement in 2002. The businessman undertook to repay the debt and left the republic. The IMPS reported the incident to the FSB Directorate which said that it was "outside its province."

Then Dr. Kaibyshev was faced with even more serious problems. Rif Baimurzin, an IMPS research associate, created a competing company, called Aeroportal, with seed capital coming from the self-same Dmitry Glukhov. The company promoted IMPS technology on foreign markets. In 2000, Baimurzin was fired. He then sued Dr. Kaibyshev, demanding the recognition of his rights as co-author of three inventions. In late 2003 (when the investigation had already brought charges of espionage), Baimurzin lost his case in Ufa's Sovietsky District Court.

Now comes the most interesting part. Guess who was the expert asked to evaluate the documentation seized from the South Koreans at Ufa Airport? That's right - Rif Baimurazin. He was the one who looked through a 525-page document in English, concluding that there were grounds for pressing criminal charges. This is remarkable since his IMPS personnel file says that he only speaks Russian and Bashkir.

Scaring Off Clients

The main charge against Dr. Kaibyshev comes under Statute 189 (illegal export of dual-use technology). The object at issue is the spherical cylinder for use in tire manufacturing; a titanium 180-mm spherical cylinder that can withstand a pressure of hundreds of atm. The technology was patented as early as the 1980s. ASA Co Ltd. was going to use it in making tires, while the FSB suspected that it could be used in the aerospace industry.

It should be noted in this context that all of the IMPS's contracts are signed with the approval of the Russian Economic Development and Trade Ministry, also under the supervision of the FSB, which means that it gave the go-ahead to the deal with the South Koreans.

Three reviews were made during the investigation. The first two were made by export control commissions of the Russian Academy of Sciences and the Economic Development and Trade Ministry, which concluded that the technology in question did not have dual-use applications. The third appraisal, made by the St. Petersburg Center for Industrial Development Projects, found that export of that technology was subject to mandatory controls. According to some sources, the Center is an FSB affiliated structure.

Due to the flimsiness of evidence on the Statute 189 charges, the prosecution will apparently put the main thrust on Dr. Kaibyshev's alleged breach of financial regulations. He is charged with stealing more than 3.5 million rubles (approx. $115,000) from the Institute that he directed.

"That scared off many clients," Kamil Farkhutdinov says. "In 2002, we had six foreign contracts and five contracts via the International Technical Center. In 2003, we were still working on the four remaining contracts; in 2004, we had none and in 2005, only one contract. Several new contracts are pending, but we are afraid that the FSB could accuse us of transferring sensitive technology.

According to a report in The Washington Post, Dr. Kaibyshev said that he believed the case was actually an attempt to control the revenue that could potentially flow to his institute from its cooperation with the South Korean firm and other businesses as the institute seeks patents for some of its techniques.

The Bashkortostan Prosecutor's Office, however, is convinced that Dr. Kaibyshev broke the law and that he should not be seen as a victim of "espionage wars." Although prosecutors say it is too early to talk about punishment, if convicted, the 68-year-old researcher would face up to 10 years in prison.