Category Archives: CONFIDENTIAL

07MOSCOW5006, A/S FRIED DISCUSSES CFE WITH DFM KISLYAK ON EVE OF

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Reference ID Created Released Classification Origin
07MOSCOW5006 2007-10-15 14:21 2011-08-30 01:44 CONFIDENTIAL Embassy Moscow

VZCZCXRO9702
OO RUEHDBU
DE RUEHMO #5006/01 2881421
ZNY CCCCC ZZH
O 151421Z OCT 07
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4620
INFO RUEHZG/NATO EU COLLECTIVE PRIORITY
RUCNCIS/CIS COLLECTIVE PRIORITY

C O N F I D E N T I A L SECTION 01 OF 04 MOSCOW 005006 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 10/10/2017 
TAGS: PREL PINR PBTS MARR OSCE MD RS
SUBJECT: A/S FRIED DISCUSSES CFE WITH DFM KISLYAK ON EVE OF 
2+2 VISIT 
 
Classified By: AMBASSADOR WILLIAM J. BURNS FOR REASON 1.4 (B,) 
 
1.  (C) Summary: On October 11, A/S Fried and U/S Defense 
Edelman continued bilateral discussions with DFM Sergey 
Kislyak on the U.S.-proposed CFE parallel actions plan in 
advance of October 12-13 2 2 talks.  Fried warned that if 
Russia followed through on its threat to suspend 
implementation of the current CFE Treaty in December, the 
effect would not be to promote negotiations aimed at 
maintaining the Treaty, as Russia claimed to believe. 
Rather, Russian suspension would make it difficult for any 
NATO Ally to ratify the Adapted Treaty and would erode the 
viability of the CFE regime.   Fried urged Kislyak to take 
seriously the U.S. approach.  Kislyak expressed appreciation 
for U.S. willingness to identify a process intended to break 
the impasse on CFE but argued that the parallel actions plan 
was substantively insufficient.  Kislyak encouraged the U.S. 
to consider provisional application of A/CFE by all CFE 
States Parties, accompanied by near-term political 
commitments to address Russia's key CFE and related concerns 
(including on renegotiation of flank limitations after entry 
into force and a definition of substantial combat forces). 
Fried countered that it might be possible to address some of 
Russia's concerns via political commitments, but only in the 
context of a package approach that addressed remaining 
Istanbul Commitments on Moldova and Georgia.  Kislyak 
underscored that Russia's aim was not to pull out, but 
achieve entry into force of the A/CFE.  End Summary. 
 
U.S. Ready and Willing to Negotiate 
----------------------------------- 
 
2.  (C) Following bilateral meetings in Washington and Paris 
and the informal seminar in Berlin, Assistant Secretary 
Daniel Fried and Under Secretary of Defense Eric Edelman met 
with Deputy Foreign Minister Sergey Kislyak on October 11 to 
build on discussions regarding the U.S.-proposed parallel 
actions plan.  Fried recalled that the USG had developed its 
"parallel actions plan" to break the impasse on ratification 
of Adapted CFE by NATO Allies and fulfillment of remaining 
Istanbul Commitments by Russia.  Noting that Russia has not 
provided a definitive response to the U.S. proposal, Fried 
said the USG was prepared to address Russian concerns raised 
in previous meetings.  He reviewed his recent conversations 
with Allies on the plan, and confirmed that a number of them 
are willing to initiate A/CFE Treaty ratification procedures 
as soon as Russia agrees to the parallel actions approach. 
Fried said  Allies did not need  Russia to publicly accept 
NATO's linkage between Istanbul Commitments and ratification, 
but Russia must be willing to work with the Allies to 
creatively resolve these issues. 
 
Russia Says Plan Overlooks Key Concerns 
--------------------------------------- 
 
3.  (C) Kislyak noted that Russia was pleased with certain 
elements of the parallel actions plan, including the idea of 
consultations on Baltic States' accession to the CFE Treaty. 
More generally, however, Kislyak said the plan was 
substantively insufficient, though the concept of a 
step-by-step approach was acceptable.  He asserted that the 
parallel actions approach  maintained an "unacceptable 
linkage" between the Istanbul Commitments and the 
ratification of the A/CFE Treaty (Note: This is a neuralgic 
point with Russia, and one Kislyak did not dwell on in the 
Paris or Washington discussions of CFE.  End note.) 
 
4.  (C) Kislyak asserted that the remaining Istanbul 
Commitments and the A/CFE Treaty are both important but one 
has nothing to do with the other.  He reiterated Russia's 
position that to move forward on A/CFE, the U.S. had to break 
the linkage.  Kislyak also stated that Russia views the 
parallel actions plan as providing the NATO Allies with 
results (i.e., the withdrawal of Russian forces from Moldova 
and Georgia), while Russia receives only promises and 
"processes" on ratification.  For example, there is no 
guarantee that the Allies, particularly the U.S., would 
complete ratification once Russia withdrew its PKF and 
equipment from Moldova and Georgia. 
 
5.  (C) Kislyak underscored that the parallel actions plan 
allows Moldova and Georgia, which are "not nearly as 
interested" in the ratification of the A/CFE Treaty as Russia 
and the Allies, to use the Treaty as an instrument to push 
their own interests with regard to solving the conflicts 
within their respective borders.  Kislyak asserted that the 
Treaty will never enter into force because it depends on the 
position of Georgia and Moldova, both of whom will constantly 
move the goal posts. 
 
Additional Elements Must Be Added to Plan 
 
MOSCOW 00005006  002 OF 004 
 
 
----------------------------------------- 
 
6.  (C) As a way forward, Kislyak reiterated Russia's 
proposal for provisional applica
tion of the A/CFE Treaty as a 
way to get beyond the impasse.  This would address Russia's 
uncertain prospects for U.S. ratification of Adapted CFE. 
Russia would also want other steps: a political commitment 
reflecting agreement on a resolution of Russia's flank 
concerns on Russia's terms that would take effect immediately 
after entry into force of the Adapted Treaty; and steps to 
address other Russian desiderata, including collective CFE 
ceilings for NATO, and a definition of substantial combat 
forces. 
 
U.S. Attempts to Address Russian Concerns 
----------------------------------------- 
 
7.  (C) Rejecting Kislyak's claim that the U.S. has hardened 
its position on Istanbul and ratification of Adapted CFE, 
Fried reminded that Russia, and not the U.S., has threatened 
to suspend its participation in the CFE Treaty.  Fried 
underscored USG interest in finding a way forward on A/CFE, 
noting that the current version of the parallel actions plan 
is not set in stone.  Fried outlined for Kislyak USG 
proposals to build on the plan and facilitate the fulfillment 
of Russia's Istanbul Commitments. 
 
Transnistria - Marshall Center Conference 
----------------------------------------- 
 
8.  (C) In response to Russia's insistence on the achievement 
of a political settlement between Chisinau and Tiraspol as a 
precondition for internationalizing the Russian PKF in 
Transnistria, Fried suggested  convening a conference at a 
location such as the German Marshall Center to discuss both 
issues related to a settlement and the internationalization 
of  the current PKF.  All parties to the "5 2"  would be 
invited.  Noting that Moldova would likely agree to this 
approach, Fried said that the U.S. would encourage Moldova to 
issue a statement declaring its commitment to peacefully 
resolve the conflict.  Ideally, the conference would produce 
an agreement on the internationalization of the PKF and 
accelerated negotiations on the settlement of Transnistria. 
 
9.  (C) Kislyak commented that the Marshall Center conference 
proposal, in its present format, is "putting the cart before 
the horse."  From Russia's perspective, the conference would 
need to focus on a settlement, and only after that should the 
international community focus on the internationalization of 
the PKF.  He doubted Russia would support a conference that 
produced an internationalization of the PKF and only a 
commitment to continue talks on Transnistria.  However, when 
DAS Kramer commented that MFA Transnistria Negotiator 
Ambassador Nesterushkin suggested to the U.S. the conference 
idea, Kislyak agreed to consult with Nesterushkin. 
 
10.  (C) Kislyak added that legally, the 1992 agreement 
between Moldova and Russia on the presence of the Russian, 
Moldovan, and Transnistrian peacekeeping forces remains in 
effect.  Kislyak disputed USG assertions that Moldova has 
formally called for the withdrawal of the Russian forces and 
munitions stockpiles.  He noted that Russia had already 
withdrawn 40 tons of munitions, but the withdrawal stopped 
when the political conditions unraveled in 2003-2004.  Fried 
challenged Kislyak's assertion that there is no legal or 
practical way to  move beyond the 1992 Agreement, noting that 
 Russian officers would remain part of the international PKF 
to provide continuity. 
 
11.  (C) On a practical level, Kislyak stressed that in the 
absence of a political agreement between Chisinau and 
Tiraspol, only the Russian PKF would be acceptable to the 
Transnistrians and thus only Russian PKF would be able to 
maintain stability in the region.  Kislyak added that Russia 
also needed to consider the safety of Russian citizens living 
in the country.  Kislyak added that even under the best 
circumstances, Russia would not be able to withdraw its 
ammunition from Transnistria by December 31, in accordance 
with the parallel actions plan.  Kramer explained that the 
sense of urgency was driven by Russia's looming suspension 
from the Treaty December 12. 
 
Gudauta - Relocation of Russian PKF 
----------------------------------- 
 
12.  (C) Fried expressed appreciation for constructive 
discussions on Gudauta issues with Russian Ambassador at 
Large Chernov, which had helped to clarify Russian thinking. 
Fried said the U.S. was not trying to solve the Abkhaz issue 
via the Istanbul Commitments; at issue now was one question, 
the Russian presence at Gudauta.  As long as the Russian PKF 
 
MOSCOW 00005006  003 OF 004 
 
 
remained a fact of life in the region, we could understand as 
a practical matter Russia's need to provide it with 
logistical support.  The question was why that support 
required a Russian presence at the Gudauta base.  Gudauta was 
far outside the security zone. 
 
13.  (C) Recalling Chernov's comments (to EUR/RPM Deputy 
Director Jennifer Laurendeau), Fried acknowledged that it may 
well be difficult for Russia to engage Georgia directly on a 
Gudauta solution.  The U.S. would be prepared to work with 
the Georgians to identify alternative facilities in the 
region that Russia could use to support its PKF.  Russia 
could continue PKF support functions from another location, 
depart from Gudauta and transfer the base legally to Georgia. 
 In return, Tbilisi would agree to allow  Russian logistics 
support to relocate to Sukhumi, or another facility in 
Abkhazia.  We would encourage Georgia to reiterate its 
commitment to a peaceful solution to the conflicts and 
provide assurances regarding its intentions concerning 
Gudauta.  Transparency steps, including a expert visit to the 
facility, would be part of the approach. 
 
14.  (C) Kislyak tried to poke holes in the proposal by 
suggesting that a fact-finding mission to Gudauta without a 
clear mandate has been done before and is a "futile 
exercise."  Kislyak also noted that Russia needed Georgia to 
guarantee the legal status of its PKF in Abkhazia before it 
could agree to any legal transfer of bases.  How could Russia 
be certain Georgia would not try to throw Russia out of a new 
facility if the PKF left Gudauta?  Finally, Kislyak countered 
that Gudauta is not serving as a military base, but only a 
"logistical support facility" for the Russian PKF. 
 
15.  (C) Fried responded that the decision should be even 
easier for Russia, since Gudauta only supports a logistical 
facility and Gudauta is actually further away from the 
conflict zone than Sukhumi.  He reminded Kislyak that Russia 
has already completed most of its Istanbul Commitments 
concerning Georgia, and Russia should not allow one 
relatively minor issue to stand in the way of A/CFE.  Kislyak 
agreed to study the proposal to relocate the PKF to Sukhumi, 
or elsewhere in Abkhazia. 
 
Other Elements of Possible Package 
---------------------------------- 
 
16.  (C) At the end of the two-hour
meeting Fried summed up 
his vision of a possible package approach that would allow 
Russia and NATO to agree on the parallel actions approach. 
 
-- Agreement on steps leading to fulfillment of remaining 
Russian commitments on Moldova and Georgia 
 
-- A discussion of the meaning of the term "substantial 
combat forces" in the NATO-Russia Founding Act; 
 
-- As an alternative to the Russian proposal for provisional 
application of the A/CFE Treaty, the USG was willing to 
explore with Allies the possibility of a political commitment 
that no State Party would take any action inconsistent with 
the A/CFE.  (Kislyak dismissed this idea as implicit in 
signature of the A/CFE Treaty). 
 
-- As an alternative to Russia's desire for a collective 
ceiling on NATO, which Fried rejected as incompatible with 
the new European security environment and with the Adapted 
CFE Treaty's post-Cold War structure,  Fried said the U.S. 
could discuss with Allies the idea of possible modifications 
to equipment ceilings after entry into force of the Adapted 
Treaty.  . 
 
-- In response to Kislyak's concern that Russia needed more 
than a promise to discuss  the flank limitations for Russia, 
Fried made three points:  the flank is an essential part of 
the Treaty and important for stability in a region of 
tension; the idea that the flank would disappear for Russia 
but be retained for Russia's neighbors was a non-starter, 
particularly unrealistic to the extent that Russia wanted the 
Baltic States to join CFE subject to flank restrictions; 
Parliaments were unlikely to ratify a Treaty whose core 
limitations were subject to renegotiation and would laugh at 
a political commitment to abolish the flanks for Russia, 
which Russia has demanded.  He observed that NATO Allies had 
already indicated they would be prepared to consider 
proposals by Russia to revise its flank limits in response to 
genuine military needs, as States Parties had already done 
twice in the past.  We could envision a political commitment 
to review the operation of the Adapted Treaty after it 
entered into force, and this would encompass the flank. 
 
Russia Says December 12 Deadline Not "End of the World" 
 
MOSCOW 00005006  004 OF 004 
 
 
--------------------------------------------- ---------- 
 
17.  (C) Fried warned Kislyak that if Russia suspends 
implementation of the current CFE Treaty on  December 12, 
this would seriously erode the entire CFE architecture 
structure.   Allies would not be in a position to ratify 
A/CFE, and countries such as Armenia and Azerbaijan may be 
tempted to build up rapidly their conventional arms.  Kislyak 
asserted that  the December 12 deadline "is not the end of 
the world." Russia's aim is not to pull out of CFE or destroy 
the regime, Kislyak asserted.  Rather, Russia is trying to 
achieve entry into force of the A/CFE with changes that were 
long overdue.  Kislyak stated that one reason why Russia did 
not want to fully withdraw from the treaty is because Russia 
wants the United States to join the A/CFE.  Fried and Edelman 
noted that if CFE limitations went away for Russia, they 
would erode for all, and Russia should think this through. 
 
18.  (C) Kislyak assured Fried that, should the December 12 
deadline pass without a resolution, Russia does not plan to 
change its force posture, "unless provoked."  Kislyak said 
that he has heard "rumors" that NATO countries have 
threatened to redeploy their troops, and warned against such 
actions.  Fried and Edelman denied any such rumors. 
 
19.  (C) Kislyak explained that because the State Duma 
ratified the CFE Treaty, it must pass a law in order for 
Russia to withdraw from it.  Kislyak thought that the Duma 
would take up the bill ratifying Putin's moratorium decree, 
which also gives him authorization to retract the moratorium, 
by November 1.  Kislyak said he expected the bill to pass 
without difficulty, as it "was very popular," and suspension 
would most likely occur in December.  Fried reiterated that 
the suspension would not have the effect Russia claimed to 
seek: by suspending implementation of CFE, Russia would 
damage NATO Allies' ability to move forward on ratification 
of A/CFE, and Russia would be blamed for eroding a major 
treaty that the U.S. and all of Europe -- including Russia -- 
considered a pillar of European security and political 
cooperation. 
 
Agreed To Keep Talking 
---------------------- 
 
20.  (C) Kislyak expressed his appreciation for the United 
States' resolve to find a solution to the impasse on CFE, 
noting that the U.S. proposals were "inching in the right 
direction."  Fried stressed that the U.S. was not presenting 
"take it or leave it" proposals, and the U.S. remained 
willing to work with Russia to reach an acceptable outcome. 
 
21.  (C) A/S Fried cleared this cable. 
Burns

Wikileaks

07MOSCOW4966, KPRF ZYUGANOV UP ON PARTY, DOWN ON GOVERNMENT

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Reference ID Created Released Classification Origin
07MOSCOW4966 2007-10-12 08:31 2011-08-30 01:44 CONFIDENTIAL Embassy Moscow

VZCZCXRO7729
PP RUEHDBU
DE RUEHMO #4966/01 2850831
ZNY CCCCC ZZH
P 120831Z OCT 07
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC PRIORITY 4554
INFO RUCNCIS/CIS COLLECTIVE PRIORITY
RUEHXD/MOSCOW POLITICAL COLLECTIVE PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 MOSCOW 004966 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 10/12/2017 
TAGS: PGOV PINR RS
SUBJECT: KPRF ZYUGANOV UP ON PARTY, DOWN ON GOVERNMENT 
 
 
Classified By: Ambassador William J. Burns.  Reasons:  1.4 (d). 
 
Summary 
------- 
1. (C) In discussions with the Ambassador on October 9, 
Gennadiy Zyuganov -- the head of the Communist Party of the 
Russian Federation (KPRF) -- demonstrated the resilience, 
determination, and political wiles that have kept him on the 
national stage far longer than any might have imagined.  At 
the same time, his ideologically-tinged rhetoric, nostalgia 
for a system long gone, and insular world view provided 
continued evidence as to why he has never been able to go 
much beyond the narrow constituency that forms the backbone 
of the KPRF.  He appeared confident that the KPRF would 
continue to play a role in national politics, and spoke 
frankly and often humorously about the challenges and 
benefits engendered by Putin's decision to stand on United 
Russia list for the Duma elections in December.  Zyuganov 
aired sometimes insightful criticisms of the Putin 
administration and its policy failures, but offered only his 
usual helping of socialist solutions to address those 
problems.  End summary. 
 
Putin, Putin, Putin 
------------------- 
 
2. (C) Putin's association with United Russia had 
fundamentally changed the election dynamic, according to 
Zyuganov, and posed a challenge for the KPRF in December.  He 
posited that the move made the President the virtual 
"Secretary General" of a party of power, with a political 
infrastructure extending to the regions, where the governors 
stood ready to implement the Kremlin's commands.  Zyuganov 
estimated support for United Russia at about 25-35% and 
Putin's popularity at 50% -- a formidable challenge in a fair 
fight for the KPRF and other political parties.  And in 
Zyuganov's eyes, the fight will not be fair.  He predicted 
that governors would be under the threat of losing their jobs 
if they failed to ensure a strong United Russia victory and 
thus would use administrative resources to achieve a further 
10-15% vote for the President's party. 
 
3. (C) Zyuganov lamented the financial support and media 
coverage that United Russia enjoyed, blustering that if he 
had the same resources, the KPRF would win both the Duma and 
the Presidency.  He claimed that more than 90% of press 
coverage favored United Russia (according to data collected 
by a KPRF-linked media monitoring group), leading to problems 
for the party's ability to get across its message.  Moreover, 
with Putin now aligned with United Russia, the overwhelming 
tide of press coverage focused on the President would benefit 
the party of power, as well.  Zyuganov said that he was going 
to raise the issue of media bias in discussions in the Duma, 
with Putin, and with heads of the networks.  He had few 
expectations that things would change. 
 
4. (C) The silver lining for Zyuganov is that he saw Putin's 
decision as having a far greater impact on his party's main 
competitors for the left vote -- Just Russia (SR) and the 
Liberal Democratic Party of Russia (LDPR).  He has long 
condemned SR as an empty shell without ideology or real 
organization, and he has nothing but invective for his 
nemesis Sergey Mironov, who heads the party.  Now that SR is 
experiencing some real trouble, he likely sees his critique 
as being vindicated.  Ultimately, he expects SR and LDPR to 
surmount the 7 percent threshold needed to enter the Duma, 
but only with the Kremlin's help.  Having the two parties in 
the legislature would allow the Kremlin to gain a 
constitutional majority, according to Zyuganov.  Plus, the 
Kremlin benefits from "alternative voices" to raise 
controversial issues and concerns, including those expressed 
by the LDPR "clown" Vladimir Zhirinovskiy. 
 
5. (C) Speaking about the younger electorate, Zyuganov 
posited Russian youth, despite their inactivity in politics, 
are "fed up" with the system and infused with a leftist 
orientation. He reiterated KPRF claims that the party is 
gaining support among the younger generation and cited as 
evidence the strong showing by the KPRF in regional elections 
last spring, particularly in "education" towns like 
Novosibirsk as well as in Omsk and Krasnoyarsk.  (Comment: 
Polling data and analysis by other political observers 
suggest that the KPRF's gains in attracting younger voters 
are regional, not national.) Zyuganov also stated that his 
party would monitor the  elections process in December by 
creating 5-person teams of observers, vote counters, and 
journalists.  The KPRF has implemented similar oversight 
operations in the past.  Zyuganov cited an earlier effort in 
Orel oblast, in which the communists' count was made more 
quickly than the official tally and was on the mark. 
 
"Plan Zyuganov" 
 
MOSCOW 00004966  002 OF 002 
 
 
--------------- 
 
6. (C) Zyuganov appeared confident that his party's message 
-- a "red-left" agenda -- was in tune with the mood of the 
population. He argued that compared with other European 
countries, the share of government controlled companies in 
Russia's economy was too small.  From 35 - 40 percent of 
industries in "ad
vanced" European countries were controlled 
by the state, while in Russia only 10 percent belonged to the 
government.  Zyuganov was particularly piqued about the sale 
of the state military-industrial complex -- a likely 
reference to the possible IPO for arms giant Rosoboroneksport 
-- and its transfer to people "who know nothing" about the 
industry (a likely reference to Putin pal and 
Rosoboroneksport head Sergey Chemezov) 
 
7. (C) The Putin administration's energy policy also drew 
criticism, as Zyuganov claimed that the share of oil sale 
revenues that the Russian government takes -- which he said 
was only 34 percent -- compares unfavorably with other oil 
producers such as the US and the United Arab Emirates, which 
he claimed had tax rates of 60 percent and 90 percent, 
respectively.  (Comment: This assessment contradicts the 
opinion of energy sector experts, who see Russia's tax burden 
as excessive and a disincentive for investment.)  The result, 
according to Zyuganov, is insufficient funding for social 
programs.  He estimated that only 3 percent of expenditures 
are on social programs compared to 19 percent under the 
Soviet system and 22% in the U.S.  Further, he claimed that 
60 percent of government expenditures were spent in "the 
center," with the regions competing for the rest.  Voicing 
the concerns of his primary constituency -- the AARP 
generation -- he despaired of the low pension payments of 
five thousand rubles per month, three-fifths of which was 
needed for rent. 
 
Zubkov: One of the Clan, But Not of the Family 
--------------------------------------------- - 
 
8. (C) Zyuganov is one of the few prominent politicians for 
whom the moniker "Soviet-style administrator" is a 
compliment, and he employed it in discussing newly appointed 
Premier Viktor Zubkov.  He noted that Zubkov had been a 
capable leader during Soviet times, turning a "broken-down" 
state farm into a model for others to emulate.  Zyuganov had 
little optimism that Zubkov and the government would be able 
to do much besides managing day-to-day crises, especially 
when the Kremlin and the Duma were focused on elections. 
 
9. (C) In contrast to his warm words for Zubkov, Zyuganov was 
dismissive of the rest of the government and complained that 
Putin merely reshuffled the same deck when selecting cadres. 
He criticized Dmitriy Kozak's work on administrative reform 
when in the Presidential Administration.  (Zyuganov said the 
reform was so complex and poorly presented that it did not 
delineate who was responsible to whom.)  He was also critical 
of Kozak's performance as Polpred for the Southern Okrug, 
indirectly blaming him for the continuing instability in the 
North Caucasus.  He further blamed Kozak and the Putin 
administration in general for an insensitivity to 
"nationalities" (inter-ethnic) issues and called for the 
revival of a ministry to deal with those topics. 
 
Comment 
------- 
 
10. (C) Zyuganov looked like a man ready for a fight, even 
one that he considers to be stacked against him and his 
party.  He remains engaging in his own way, and he uses humor 
to deliver some of his hardest blows -- perhaps a skilled 
learned as captain of his college comedy team long ago. 
Despite his populist style, he is pragmatic enough to 
recognize that he too plays a role for the Kremlin that is 
useful to Putin and his circle. 
Burns

Wikileaks

07MOSCOW4949, SIX-PARTY TALKS: VIEWS FROM MOSCOW

WikiLeaks Link

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Reference ID Created Released Classification Origin
07MOSCOW4949 2007-10-11 05:05 2011-08-30 01:44 CONFIDENTIAL Embassy Moscow

VZCZCXRO6382
OO RUEHDBU
DE RUEHMO #4949/01 2840505
ZNY CCCCC ZZH
O 110505Z OCT 07
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4533
INFO RUEHXD/MOSCOW POLITICAL COLLECTIVE PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 MOSCOW 004949 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 10/01/2017 
TAGS: PREL PGOV PARM MNUC KNNP ECON KN KS JA RS
SUBJECT: SIX-PARTY TALKS: VIEWS FROM MOSCOW 
 
Classified By: Ambassador William J. Burns.  Reasons 1.4 (B/D). 
 
1.  (C) Summary.  The Russian Government welcomed the October 
3 Six-Party Agreement, terming it the best outcome possible 
at this stage, although DFM Kislyak cautioned about further 
"bumps in the road" given the nature of the DPRK regime. 
Moscow experts largely echoed the official view and 
encouraged continued U.S.engagement, while warning against 
"haste" in dealing with the North.  While few Russian 
companies show interest in investment in North Korea, and the 
GOR is wary of any financial obligations, Rostechnadzor Chief 
General Pulikovskiy is aggressively flogging a business plan 
through his private sector partner, which they maintain would 
convince Kim Jong Il to give up his nuclear card.  End 
summary. 
 
October 3 Agreement 
------------------- 
 
2.  (C)  DFM Kislyak told the Ambassador that he was cautious 
about the October 3 Agreement, warning that there will be 
"bumps in the road somewhere," given the nature of the North 
Korean regime.  Nevertheless, Kislyak welcomed the step 
forward.  Separately, MFA Korea Desk Senior Counselor, and 
participant of the Six Party Plenary, Oleg Davydov assessed 
the latest Plenary as a success and the October 3 Agreement 
as the maximum that could have been achieved.  He noted that 
the Six-Party process is dominated by U.S.- North Korea 
bilateral engagement, with which the GOR tries not to 
"interfere."  What comes after disablement is of paramount 
importance for the complete denuclearization of the Korean 
peninsula, Davydov stressed. 
 
How We Got There: MFA's View 
---------------------------- 
 
3.  (U) In Vremya Novostey on the eve of the latest Six-Party 
Plenary session, Russian Chief Negotiator DFM Losyukov 
reiterated that the Six-Party Talks gained a fresh impetus 
when the U.S. made a "serious tactical concession" and began 
talking with North Korea.  While the countries participating 
in the Six-Party process were equal, progress depended on the 
U.S. and North Korea.  The article stated that the U.S. need 
for a concrete accomplishment in the nuclear area and the 
North's desire for normalization complemented each other. 
Losyukov cautioned that the North would play carefully, 
attempting to maximize "economic and political dividends" 
before giving up its nuclear potential. 
 
4.  (U) While the disablement of nuclear facilities was 
practically done, the ultimate fate of the facilities remains 
the North's "red line," stressed Losyukov.  The North could 
rejoin the NPT regime and allow regular inspection by an IAEA 
team in order to revive discussion on a KEDO (Korean 
Peninsula Energy Development Organization)-like projects, 
which in 1994 was ready to build two light water reactors to 
provide North Korea with alternative energy sources.  He 
commented that at this point, it is difficult to imagine 
either the U.S. or Russian government would be willing to 
foot the bill for the reactors.  Losyukov warned that the 
North's nuclear card includes the removal of U.S. troops from 
South Korea, which is an important component of the U.S.'s 
Asian Pacific security architecture. 
 
5.  (U) Losyukov praised the five Working Groups'(WG) 
contribution to the process, affirming that the WGs provided 
fora for topics which the Plenary failed to address.  He 
called the Russia-chaired 5th WG a prototype for regional 
issues and thought that it could be transformed into a 
permanent working mechanism, if North Korea's resistance 
could be overcome.  Losyukov criticized the U.S.'s "haste" in 
its premature discussions for creating an organization and 
advised a measured approach that "includes all serious 
players of the region." 
 
6.  (U) Losyukov welcomed the South-North Korea Summit 
October 2-4 and stressed that Unification was not a threat to 
Russia but an opportunity to engage with another strong 
neighbor while the U.S. would have to readjust its 
overwhelmingly pro-South policy. 
 
Non-Official Views 
------------------ 
 
7.  (C)  Moscow North East Asia experts echoed the GOR view 
that engagement was good but warned against haste in dealing 
with the DPRK, given the unpredictability of the regime. 
Vasiliy Mikheyev of the Institute for World Economy and 
International Relations (IMEMO) thought it was a mistake to 
link Six-Party incentives to the North's nuclear programs, 
rather than to its reform measures.  The nuclear issue is 
critical but the real problem is a "bad" regime.  Once the 
regime changes, the nuclear problem will disappear, as we 
 
MOSCOW 00004949  002 OF 002 
 
 
have seen in South Africa, added Mikheyev. 
 
8.  (C) Several experts criticized the GOR's "passivity" in

the Six-Party process.  Fedor Lukyanov, Editor-in-Chief, 
Russia in Global Affairs, thought that GOR officials consider 
that North Korea falls short of the "prestigious" foreign 
policy objectives where Russia asserts itself as in the 
"status defining" cases of Kosovo and the missile defense. 
Moscow Institute of International Relations (MGIMO)'s Aleksey 
Bogaturov agreed.  Despite geographical proximity, North 
Korea never entered Russia's consciousness as a threat and 
Russia could afford to "hide" behind China.  With the 
Six-Party Talks moving ahead, the GOR has begun engaging 
more, all agreed. 
 
9.  (C) Russian experts are equally critical of U.S. 
motivations, calling the new U.S. direction, 
"Clintonization."  Mikheyev told us that the Six-Party 
progress only reflected the vicissitudes of U.S. policy.  The 
North, a staunch believer in bilateral rather than 
multilateral contacts, pursued the separation of U.S.- North 
Korea talks from the Six-Party process and succeeded. 
 
Seeking Economic Opportunities Outside the Process 
--------------------------------------------- ----- 
 
10.  (C) While very few Russian companies are willing to 
invest in North Korea, a notable exception is the Russian 
firm, "Trest," which is seeking a direct deal with the Kim 
regime with a business plan that includes 10 coal-fired power 
stations, banks, an oil refinery and metal processing plants. 
 Claiming a special connection with the North's leader, 
through his partner, Rostechnadzor head Konstantin 
Pulikovskiy (who accompanied Kim Jong Il on his train trip 
through Russia in 2001), the company's owner Artyom Atalyants 
dismissed the Six-Party Talks as an "ineffective, 
ill-conceived political game."  Atalyants argues that 
economic assistance, in the form of building power stations, 
will jump-start economic recovery, without which, the North 
will not give up its nuclear card.  Atalyants thought that 
his oil refinery, already in existence in Najin, could propel 
a chain reaction of economic development.  On October 5, 
Atalyants requested USG assistance in securing oil supply 
from Sakhalin -- from Exxon Mobil's share -- for his oil 
refinery -- and a USD 5 billion loan guarantee.  Besides 
Pulikovskiy, Atalyants's project doesn't appear to have 
traction elsewhere in the GOR bureaucracy.  The MFA Korea 
Desk dismissed it as "unrealistic." 
Burns

Wikileaks

07MOSCOW4939, RUSSIAN EXPERTS ON MOSCOW’S APPROACH TO IRAN

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Reference ID Created Released Classification Origin
07MOSCOW4939 2007-10-10 11:04 2011-08-30 01:44 CONFIDENTIAL Embassy Moscow

VZCZCXRO5468
OO RUEHBC RUEHDE RUEHDIR RUEHKUK
DE RUEHMO #4939/01 2831104
ZNY CCCCC ZZH
O 101104Z OCT 07
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4507
INFO RUEHZG/NATO EU COLLECTIVE PRIORITY
RUCNIRA/IRAN COLLECTIVE PRIORITY

C O N F I D E N T I A L SECTION 01 OF 03 MOSCOW 004939 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 10/04/2017 
TAGS: PREL PARM KNNP MASS ETRD IR RS
SUBJECT: RUSSIAN EXPERTS ON MOSCOW'S APPROACH TO IRAN 
 
REF: MOSCOW 3434 
 
Classified By: Classified by Ambassador William J. Burns for reasons 1. 
4 (b,d) 
 
1.  (C) Summary: "Balance" is the word used to describe 
Russia's Iran policy by Moscow's leading Iran watchers. 
Putin is sufficiently concerned about Iran's nuclear program 
to keep Russia engaged on the issue.  According to the MFA, 
he will reinforce the point with Ahmadinejad in Tehran 
October 16.  Yet, Russia doesn't view the Iranian regime as a 
direct and immediate threat to its interests and intends to 
continue its longstanding political and economic ties to 
Tehran.  Hence, Russia's policy of engagement, arms sales and 
carefully calibrated cooperation on Bushehr.  None the less, 
experts here believe that, at the end of the day, unchanged 
Iranian behavior will lead Russia to support a third UNSC 
resolution in December, but will resist efforts by the U.S. 
and European powers to take a rougher approach to Iran.  In 
other words, Russia wants to maintain a united front with the 
west on Iran's nuclear weapons program, but does not believe 
the current situation requires a more drastic response. End 
Summary. 
 
GOR Paying Close Attention to Iran 
---------------------------------- 
 
2.  (C) MFA Iran expert and Deputy Director for the Second 
Asia Department Ali Moustafabeli told us that Russia is 
increasingly concerned about Ahmadinejad's extremist "and 
even erratic" behavior.  Aside from Iran's nuclear 
aspirations, Moustafabeli acknowledged Iran's aggressive 
promotion of Shiite Islamic Revolution, which mainly involves 
active support of: radical Shiite groups in Iraq, including 
Moqtadr al-Sadr's group, and Iraqi PM al-Maliki's government; 
and radical Islamic groups Hamas in Israel and Hizbollah in 
Lebanon.  Moustafabeli also did not deny Iran's increasingly 
active role in Afghanistan, agreeing that Iran has ratcheted 
up its support of Shia mullahs and political parties in the 
country. 
 
Putin Will Talk Tough with Adhmadinejad 
--------------------------------------- 
 
3.  (C) Moustafabeli stressed that Putin's primary reason for 
attending the October 16 Caspian Sea Summit was to reiterate 
to Ahmadinejad "in unambiguous terms" that Iran must fulfill 
its UNSC and IAEA obligations regarding its nuclear energy 
program and immediately cease all enrichment activities. 
Putin will also urge Ahmadinejad to step back from his 
"extreme views and activities" in the region and "reach a 
compromise" with the international community.  In an effort 
to demonstrate the extent to which Russia was prepared to go 
to moderate Iran's behavior, Moustafabeli noted that the 
Iranian leadership has repeatedly conveyed its 
"disappointment" with Russia's strong support of the IAEA and 
UNSC discussions on Iran.  Moustafabeli asserted that the 
nuclear weapons issue has significantly affected the 
"historically deep and intense" bilateral relationship, but 
Russia was committed to maintaining the pressure on the 
regime. 
 
But Not Too Tough; Russia's Balanced Approach to Iran 
--------------------------------------------- -------- 
 
4.  (C) However, Moustafabeli expressed in equally strong 
terms Russia's reluctance to intensify at this time the 
international pressure on Ahmadinejad.  Moustafabeli 
identified Russia's fundamentally different perception of 
Iran as the defining factor in Russia's "go slow" approach to 
Iran.  Russia does not perceive Iran as the primary 
destabilizing factor in the region and the "international 
menace" that the U.S. and EU make the regime out to be. 
 
Key Elements of Russia's Perception of Iran 
------------------------------------------- 
 
5.  (C) Well-connected political analysts in Moscow firmly 
support Moustafabeli's position and they point to the 
following factors that "justify" Russia's more balanced 
approach to Iran's resurgence: 
 
-- Iran Is "Years Away" From A Nuke: Moustafabeli and 
Institute for Strategic Assessments President Aleksandr 
Konovalov posited that a key difference between Russia's and 
the West's understanding of the Iranian threat is that the 
former is not convinced Iran possesses the technology and 
equipment to produce a nuclear weapon within the next three 
to five years.  Russian Institute for Strategic Studies 
Director Yevgeniy Kozhokin, whose institute provides analysis 
to Russia's security services, added that any intelligence 
data that suggests otherwise is at best inaccurate, and at 
 
MOSCOW 00004939  002 OF 003 
 
 
worst, fabricated to present a stronger case for invading 
Iran. 
 
-- Nuclear-Armed Iran Is Not End of the World: Russia clearly 
does not want another addition to the nuclear weapons club. 
However, Moustafabeli and our contacts said there are 
considerably more "catastrophic scenarios," such as a 
nuclear-armed Pakistan without Musharraf in power.  Israel 
and Middle East Studies Institute Directo
r Yevgeniy 
Satanovskiy stressed that this possibility causes more 
concern for Russia than Iran's possession of a nuclear 
weapon. 
 
-- Iran's Nuclear Ambitions Are Defensive in Nature: 
Moustafabeli and others with whom we spoke claim to be 
convinced that Iran's nuclear aspirations are primarily in 
response to the "very real possibility" of a U.S.-led attack 
on Iran.  Institute for Political and Military Analysis 
Senior Analyst Aleksandr Kramchikin asserted that Iran views 
a nuclear weapon as little more than an insurance policy. 
 
-- Iranian Activities "Logical Response" to U.S. Policies: 
Despite its own qualms, Russia does not view Iran's support 
of radical Islamic groups in Iraq, Lebanon, and Israel as 
anything other than a realpolitik response to U.S. policies 
in the region.  While certainly not endorsing Iran's support 
of terror and extremism, Moustafabeli said Russia considers 
the current unrest in Iraq a greater cause for long-term 
instability.  Analysts agreed, arguing that Iran, as a 
"natural regional power," is only filling the power vacuum 
left by the departure of Saddam Hussein.  Ahmadinejad will 
maintain regular contact with the al-Maliki government, but 
Russia acknowledges that Iran aims to keep Iraq feeble and 
non-threatening to Iranian interests.  Russia in Global 
Affairs Editor Fedor Lukyanov added that Iran's Shiite 
Islamic Revolution is also aimed at balancing Israeli and 
Saudi Sunni influence in the region.  If the USG were to 
adjust its policies in the region, including committing to a 
withdrawal of troops from Iraq, then Russia analysts assert 
that we would observe a commensurate shift in Iran's foreign 
policy. 
 
-- Iran's Activities Not Directed at Russia: Iran's 
aggression is mainly directed at the United States, and not 
at Russia or even the EU.  IMEMO Iran expert Vladimir 
Yevseyev pointed out that Iran's Shiite Islamic revolution is 
not likely to stir up sectarian violence in Russia, given 
that the 20 million Muslims in Russia are nearly all Sunni. 
Moustafabeli asserted that notwithstanding his government's 
commitment to deal with Iran's nuclear weapons program, 
Russia still has to protect its "substantial" interests in 
Iran's defense, energy, and transportation sectors. 
Acknowledging that Russia's trade with Iran is only around 
$2.5 billion and the $800 million Bushehr nuclear plant 
project no longer represents "big money" for Russia, New 
Eurasia Foundation President Andrei Kortyunov and Lukyanov 
maintained that Russia still wants to keep its foot in the 
door for whenever the nuclear weapon issue is resolved. 
 
-- Iranian Domestic Politics Will Prevail: Moustafabeli 
argued that Ahmadinejad's radical views, disastrous handling 
of the economy, and pariah status in the international 
community,  have eroded much of his domestic popular support, 
and it is "entirely possible" that he will be voted out of 
office in the 2009 presidential elections.  Moustafabeli 
cited the Iranian president's defeat in the most recent 
municipal elections and the selection of "pragmatist" Ali 
Rafsanjani as chairman of the powerful Council of Experts as 
the most telling indicators of Ahmadinejad's uncertain 
position.  Yevseyev relayed to us reports from his personal 
contacts in Iran about Iranians' growing frustration with the 
ever-rising fuel prices, claiming that the Iranian government 
is now rationing fuel to families in increments of only 100 
liters per month via gas cards.  However, Moustafabeli and 
experts note that Ahmadinejad still enjoys some level of 
popular support because he continues to skillfully portray 
the USG as the enemy.  Institute of Oriental Studies Director 
Vyacheslav Belokrenitskiy asserted that Iranians are above 
all nationalists and tougher sanctions or a military strike 
against the regime would only motivate the masses to rally 
around their president. 
 
Diplomatic Approach Key to U.S.-Russian Cooperation on Iran 
--------------------------------------------- -------------- 
 
6.  (C) In light of these factors, Moustafabeli said Russia 
will likely support adopting a third UNSC resolution in 
December (assuming Iran fails to fulfill its obligations 
under the IAEA action plan), but Russia will insist on a 
"soft" document, without much teeth.  Cautioning against more 
confrontational approaches, Moustafabeli argued the West and 
Russia needed to maintain a coordinated and united front 
 
MOSCOW 00004939  003 OF 003 
 
 
against Iran.  He added that Putin is sufficiently concerned 
about Iran's nuclear weapons program to keep him focused and 
engaged on this issue, but Russia does not assess that the 
current circumstances require a more drastic or swift 
response.  Policy Foundation President Vyacheslav Nikonov 
agreed with Moustafabeli's assessment that Russia would walk 
away from any scenario that involved significantly broader 
economic sanctions and would actively oppose a military 
solution. 
 
Comment 
------- 
 
7.  (C) Many of our official and outside contacts are 
concerned about Iran's blatant defiance of its international 
obligations and its destabilizing tendencies in the region, 
but they are clearly more concerned about possible U.S. and 
EU approaches to solve the Iranian problem.  Although Russia 
will continue to pursue its juggling act, Moscow's support 
for a third (even if watered-down) UNSC resolution could 
further chip away at Russia's strategic relationship with 
Iran. 
Burns

Wikileaks

07MOSCOW4932, WINTER CUTOFFS OF RUSSIAN GAS LESS LIKELY THIS YEAR

WikiLeaks Link

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Reference ID Created Released Classification Origin
07MOSCOW4932 2007-10-10 07:59 2011-08-30 01:44 CONFIDENTIAL Embassy Moscow

VZCZCXRO5268
PP RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHMO #4932/01 2830759
ZNY CCCCC ZZH
P 100759Z OCT 07
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC PRIORITY 4502
INFO RUCNCIS/CIS COLLECTIVE PRIORITY
RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUEHXD/MOSCOW POLITICAL COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RHEBAAA/DEPT OF ENERGY WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 MOSCOW 004932 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR EUR/RUS, FOR EEB/ESC/IEC GALLOGLY AND WRIGHT 
DOE FOR HARBERT, HEGBORG, EKIMOFF 
DOC FOR 4231/IEP/EUR/JBROUGHER 
NSC FOR MCKIBBEN 
 
E.O. 12958: DECL: 10/10/2017 
TAGS: EPET ENRG ECON PREL RS
SUBJECT: WINTER CUTOFFS OF RUSSIAN GAS LESS LIKELY THIS YEAR 
 
REF: A. MOSCOW 3777 
 
     B. 06 MOSCOW 13174 
     C. 06 MOSCOW 546 
     D. 06 MOSCOW 0084 
 
Classified By: Ambassador William J. Burns for Reasons 1.4 (b/d) 
 
------- 
SUMMARY 
------- 
 
1. (C) Despite the noise created by the press, Russia seems 
to have learned from the PR blunder of shutting off gas to 
Ukraine in the winter of 2006 (ref D) and we expect a 
relatively quiet winter this year with respect to gas 
supplies.  The immediate resolution of the recent 
mini-dispute over an accruing debt for gas deliveries is 
indicative of the scenario we can expect this winter between 
Russia and Ukraine -- public posturing, followed by private 
negotiations and agreement, and continued gas flows.  The 
situation was similar to one this summer with Belarus (ref 
A), which ended with no disruptions and payment by Belarus of 
its arrears.  As Georgia now gets most of its gas from 
Azerbaijan and pays European prices for Russian gas, it 
should not face the usual tensions.  End summary. 
 
-------- 
OVERVIEW 
-------- 
 
2. (C) Gazprom,s director of international affairs, Ivan 
Zolotov, told us recently that he does not foresee any 
problems with gas supplies this winter to or through any 
transit states.  Several analysts with whom we spoke agreed. 
Cambridge Energy Research Associates (CERA) research director 
Vitaly Yermakov told us October 5 that he does not see much 
risk of supply reductions, despite any political tensions. 
He added that adequate physical supplies, given ample storage 
by Gazprom due to mild temperatures last winter, should also 
help ease tensions, even if demand spikes.  These points are 
reiterated by several investment houses in Moscow who view 
the potential impact of such incidents on Gazprom's bottom 
line with a microscope. 
 
--------------------------------- 
UKRAINE - Who Owes Money to Whom? 
--------------------------------- 
 
3. (SBU) Gazprom issued a tersely worded press release on 
October 2nd suggesting it would reduce supplies to Ukraine 
"in case of debt non-repayment."  Gazprom claimed that 
Ukraine owes $1.3 billion for gas deliveries.  As dozens of 
press articles ran with titles such as "Gazprom to cutoff gas 
to Ukraine," Ukrainian Energy Minister Boyko was in Moscow 
successfully negotiating an end to the dispute.  On October 3 
Gazprom announced the debt issue had been resolved, and First 
Deputy Prime Minister and Gazprom Chairman Dmitri Medvedev 
told the press the two sides "had reached an agreement to 
avoid such problems in the future." 
 
4. (C) Ukrainian Embassy First Secretary Yaroslav Dubovich 
confirmed to us privately October 4th that the Ukrainian side 
will pay what it owes by November 1, after which the 2008 
price negotiations would begin in earnest.  The murky nature 
of the intermediaries who transport gas to Ukraine (largely 
from Turkmenistan) was highlighted by Dubovich's inability, 
despite repeated direct questions, to clarify who actually 
owes money to whom.  Dubovich finally just smiled and 
admitted the question is difficult to answer. 
 
5. (C) Dubovich theorized Gazprom timed its statement to make 
it difficult for the new Ukrainian government to avoid 
repayment.  He added that Gazprom wants to lay blame on 
Ukraine in case of any disruptions to European supplies 
transiting the country.  He stressed, however, that Ukraine 
"guarantees" that all gas intended for Europe will transit 
uninterrupted.  He also emphasized that there would be no 
supply disruptions of any kind. 
 
6. (C) Dubovich did admit concern that Gazprom's attempts to 
secure a share of Ukraine,s internal gas distribution and 
its transit system may lead Gazprom to maintain relatively 
 
MOSCOW 00004932  002 OF 002 
 
 
low prices as leverage to gain the assets.  But he also said 
he thought the "correct" netback price Ukraine should pay is 
about $170-$185 per thousand cubic meters, not radically 
higher than current prices.  (Note: he also pointedly asked 
whether we could interest an American company in playing a 
part in an international consortium to run the transit 
system.  End Note). 
 
------------------------------- 
BELARUS - Lookin' for Cheap Gas 
------------------------------- 
 
7. (SBU) The situation this week with Ukraine was similar to 
one this summer with Belarus -- Gazprom announced that 
Belarus owed some $500 million and threatened a cutoff, both 
sides publicly blustered, Belarus agreed to pay, and the &#x
000A;situation was resolved. 
 
8. (SBU) Belarus's general circumstances, however, are 
different.  Russia relies on transit through Ukraine for some 
75-80% of its gas exports to Europe vs. about 20% through 
Belarus.  Belarus is also much more dependent economically on 
subsidized gas, and pays the lowest prices among the FSU 
countries.  Furthermore, as Dubovich said, "Belarus's issue 
is that it doesn't want to pay," as opposed to the political 
disputes that have characterized Russian-Ukrainian relations. 
 
9. (SBU) The resolution of the Belarus debt this summer, the 
sale to Gazprom of half its distribution network 
(Beltransgaz) as part of a 2006 agreement, and Russia's more 
cooperative stance, make potential supply disruptions to and 
through Belarus this winter unlikely.  Negotiations, however, 
may go down to the wire, as they did last year (ref B). 
 
-------------------------------- 
GEORGIA - Paying European Prices 
-------------------------------- 
 
10. (SBU) While Georgia continues to be a major political 
irritant for the Kremlin, it is no longer at much risk for 
gas supply disruptions.  Following last year's row over gas 
with Russia (ref C), Georgia now gets most of its gas from 
Azerbaijan and pays European prices for the gas it receives 
from Russia, thus effectively isolating it from the Russian 
pressure. 
 
------- 
COMMENT 
------- 
 
11. (C) Gas supplies, routes, and interdependency will 
continue to be major factors in relations between Russia, 
Ukraine, and Belarus.  While Russia's dependency on these 
transit states will likely diminish as it pursues export 
route diversification, it will not disappear any time soon. 
Nor will Ukraine's and Belarus's dependence on Russian gas 
and hopes for discounted prices.  This winter we expect some 
continued tension over prices, some public back-and-forth 
between political leaders, and, in the end, negotiated 
settlements that prevent any reductions in gas deliveries. 
Ukraine's price of $130 per thousand cubic meters of gas will 
likely rise, but not to Western European levels.  Belarus's 
price will rise but not to Ukrainian levels. 
 
12. (C) With elections in Russia causing some political 
uncertainty and Russia's reliability as an energy supplier 
under scrutiny by the EU and others, the Kremlin will likely 
try to avoid increasing concerns about its role in regional 
and global energy markets.  That does not, however, rule out 
the potential for political developments in any of these 
countries, or further arrears, leading to public spats.  End 
comment. 
Burns

Wikileaks

07MOSCOW4931, DUMA DEPUTIES PROPOSE MISSILE DEFENSE CONFERENCE

WikiLeaks Link

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Reference ID Created Released Classification Origin
07MOSCOW4931 2007-10-10 07:18 2011-08-30 01:44 CONFIDENTIAL Embassy Moscow

VZCZCXRO5223
PP RUEHDBU
DE RUEHMO #4931 2830718
ZNY CCCCC ZZH
P 100718Z OCT 07
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC PRIORITY 4501
INFO RUCNCIS/CIS COLLECTIVE PRIORITY
RUEHXD/MOSCOW POLITICAL COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY

C O N F I D E N T I A L MOSCOW 004931 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 10/10/2007 
TAGS: PGOV PINR PINS PREL
SUBJECT: DUMA DEPUTIES PROPOSE MISSILE DEFENSE CONFERENCE 
 
 
Classified By: Political M/C Alice Wells.  Reasons 1.4 (b) and (d). 
 
1.  (C) Summary:  State Duma Defense Committee Advisor 
Valeriy Ignatiev confirmed that the Russian State Duma 
deputies who are members of the Inter-party conference on 
foreign policy proposed on September 26 that members of the 
U.S. Congress and parliamentarians from the Czech Republic 
and Poland meet with their Russian counterparts to discuss 
the deployment of the proposed missile defense (MD) system in 
Europe.  Neither Post nor the Embassies of the Czech Republic 
or Poland have received any official notice of this proposal, 
although GOR has privately discussed the issue with our 
Polish contacts.  The resolution could be adopted the week of 
October 15.  End Summary. 
 
------------ 
The Proposal 
------------ 
 
2.  (U) The proposal reads in part: 
 
"We ask the parliamentary parties of the United States, the 
Czech Republic, and Poland to soberly assess the inevitable 
negative consequences of the planned deployment of elements 
of the U.S. missile defense system in Europe and to prevent 
irretrievable steps. 
 
The U.S. plans, if implemented, would open a way toward 
dangerous violations of strategic stability and would create 
a threat to security in the world.  Our parties will spare no 
efforts to avoid such a turn of events and make this issue 
the subject of a serious discussion at reputable 
international fora." 
 
---------------------------- 
No Official Notification Yet 
---------------------------- 
 
3.  (C) Our contacts in the Polish Embassy told us that 
neither the Polish Embassy in Moscow nor the Polish MFA in 
Warsaw has received any official notification of such a 
conference from the Russian government.  Our Polish contacts 
added, however, that in private conversations Oleg 
Burmistrov, Deputy Director of the Russian MFA North America 
Desk, said that there are several competing plans.  In 
addition to the announced plan for U.S. congressmen and 
parliamentarians from the Czech Republic and Poland to meet 
with Russian MPs, another plan would be to invite 
parliamentarians from all "interested countries," such as 
Great Britain, France, Germany, and others to the conference. 
 Still another plan would be to invite government officials 
from the various countries to the conference.  No matter what 
shape the conference would take, our Polish contacts said 
that they did not think Poland would participate unless all 
the other invited countries accepted the invitation. 
 
4.  (C) Our contacts in the Czech Embassy told us that the 
Czech government also has not received any official 
notification of an upcoming MD conference.  They speculated 
that the Czech government would be interested in such a 
meeting to help settle the differences between the West and 
Russia. 
 
---------------------- 
An Act of Desperation? 
---------------------- 
 
5.  (C) State Duma Defense Committee Advisor Valeriy Ignatiev 
told us the proposal was largely an impotent gesture.  He 
said these Duma members simply wanted to demonstrate to their 
constituents that they are trying to do something about U.S. 
plans to place a missile defense system in Europe.  Ignatiev 
opined that the proposal is unlikely to gain traction in the 
State Duma. 
 
6.  (C) Aleksandr Belkin, Deputy Executive Director of the 
Council of Foreign and Defense Policy, also characterized the 
move as one of desperation.  Arguing that "Russia feels like 
a neglected child who starts fires in the corner of a room to 
get attention," Belkin said Russia does not believe that it 
can stop U.S. plans for deploying an MD system in Europe.  He 
predicted that if the Duma deputies' proposed meeting did 
take place, Russia would use it to ask the Europeans to 
reconsider their support for MD.  Belkin reiterated that 
Russia objects strongly to placing an MD system in Poland 
because of the often-strained relations between the two 
countries.  He argued that Russia would have fewer objections 
if MD rockets were placed in Hungary rather than Poland. 
Burns

Wikileaks

07MOSCOW4929, RUSSIA WILL PROVIDE MILITARY ASSISTANCE TO

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Reference ID Created Released Classification Origin
07MOSCOW4929 2007-10-10 06:17 2011-08-30 01:44 CONFIDENTIAL Embassy Moscow

VZCZCXRO5182
PP RUEHDBU RUEHPW
DE RUEHMO #4929 2830617
ZNY CCCCC ZZH
P 100617Z OCT 07
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC PRIORITY 4499
INFO RUCNAFG/AFGHANISTAN COLLECTIVE
RUEHXD/MOSCOW POLITICAL COLLECTIVE
RUCNDT/USMISSION USUN NEW YORK 0364

C O N F I D E N T I A L MOSCOW 004929 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 10/03/2017 
TAGS: PGOV PREL MASS AF RS
SUBJECT: RUSSIA WILL PROVIDE MILITARY ASSISTANCE TO 
AFGHANISTAN 
 
Classified By: Ambassador William J. Burns for reasons 1.4 (b/d). 
 
1.  (C) Summary: Concern over Afghanistan's deteriorating 
security has led Russia to propose a significant military 
assistance program to support the Karzai government.  The MFA 
told us October 5 that a draft military aid package awaits 
Putin's approval.  The program will include the direct 
transfer of armaments, vehicles, small arms and ammunition 
valued at hundreds of millions of dollars.  The MFA 
reiterated Russia's support for the U.S.'s and NATO's role in 
Afghanistan, cautioning not to read too much into its recent 
UNSC abstention on the ISAF mandate renewal resolution; the 
abstention was solely related to concerns about potential 
broader application of the new language on OEF maritime 
operations.  End Summary. 
 
2.  (C) On October 5, Head of the MFA Afghanistan Desk Yuriy 
Khokhlov previewed plans to restart a significant military 
assistance program to help the Afghan Government.  The draft 
plan to provide hundreds of millions of dollars worth of 
armaments, vehicles, small arms and ammunition, following 
September 19 Interministerial Commission's approval, is 
awaiting Putin's endorsement.  According to Khokhlov, Russia 
hopes to soon begin discussions with the Afghan Government on 
establishing end use verification and control mechanisms to 
ensure that the armaments are not stolen or sold to the 
Taliban.  Although there is understandable reluctance to send 
Russian military advisors to Afghanistan, this has not been 
definitively ruled out. 
 
3.  (C) Despite concerns about Karzai's weakness, Khokhlov 
reiterated that Russia continues to support the Karzai 
Government.  Moscow's major preoccupation is that, amid the 
deteriorating situation, the Taliban now control close to 40 
percent of Afghanistan.  Russian remains opposed to any 
reprochement with the Taliban or attempt to include them in 
the government, which could result in the Taliban's return to 
power and use of Afghanistan as a base for destabilizing 
Central Asia. 
 
4.  (C) Khokhlov volunteered that Russia continues to support 
the U.S. and NATO role in Afghanistan.  MFA International 
Organizations Department Director Aleksandr Konuzin 
separately clarified that the Russian abstention on the UNSC 
resolution renewing ISAF's mandate was prompted by Ministry 
of Defense concerns about new language on OEF's maritime 
operations.  Konuzin took our point that the language was 
introduced to help the Japanese, but commented that his 
Defense colleagues remained wary about implications for 
potential future U.S. military operations in the Persian Gulf 
and boarding of Russian vessels. 
 
5.  (C) Comment: If approved as described, the Russian 
military assistance program would represent a major step 
forward in Russia's support for the Afghan central 
government.  While the draft program obviously needs to be 
tailored to Afghan needs, it already sounds better than 
Russia's 2002-2005 Afghan military assistance program, which 
ended before the entire $200 million worth of material could 
be delivered. 
Burns

Wikileaks

07MOSCOW4916, RUSSIA: CIVAIR: ENTRENCHED BUSINESS INTEREST TRIES

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Reference ID Created Released Classification Origin
07MOSCOW4916 2007-10-09 08:33 2011-08-30 01:44 CONFIDENTIAL Embassy Moscow

VZCZCXRO4122
PP RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHMO #4916/01 2820833
ZNY CCCCC ZZH
P 090833Z OCT 07
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC PRIORITY 4468
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUEHXD/MOSCOW POLITICAL COLLECTIVE PRIORITY
RUEHTA/AMEMBASSY ASTANA PRIORITY 0132
RUEHKV/AMEMBASSY KYIV PRIORITY 0166
RUEHMT/AMCONSUL MONTREAL PRIORITY 0125
RHEHNSC/NSC WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RHMFISS/HOMELAND SECURITY CENTER WASHINGTON DC PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 MOSCOW 004916 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EUR/RUS PATTERSON 
EEB BYERLY AND COLEMAN 
USDOC FOR 4321/ITA/MAC/EUR/RISA BROUGHER AND BEADLE 
USDOC FOR 3004/CS/ADVOCACY/BLOOM 
USICAO MONTREAL FOR LAURA FAUX-GABLE 
NSC FOR WARLICK AND MCKIBBON 
 
E.O. 12958: DECL: 10/09/2017 
TAGS: EAIR ECON PREL RS
SUBJECT: RUSSIA: CIVAIR: ENTRENCHED BUSINESS INTEREST TRIES 
TO HOLD ONTO MONOPOLY POSITION 
 
REF: A. MOSCOW 4526 
     B. KYIV 1974 
     C. KYIV 2383 
 
Classified By: ECON M/C ERIC SCHULTZ 
 
------- 
SUMMARY 
------- 
 
1. (C) In a September 28 meeting, International Air Transport 
Association (IATA) regional representative Dmitri Shamraev 
noted the welcome resolution of IATA,s problems in Ukraine 
(reftels) but cautioned that IATA was not yet out of the 
woods in Russia given the entrenched position of 
Transportation Clearing House (TCH), which has succeeded in 
maintaining a near monopoly over ticket sales in Russia and 
is at odds with industry efforts to modernize the global 
ticket clearinghouse system.  END SUMMARY. 
 
--------------------------- 
TCH,S TICKET SALES MONOPOLY 
--------------------------- 
 
2. (SBU) According to Shamraev, there is no entity in Ukraine 
that resembles TCH.  In Ukraine, the dispute has centered 
around attempts by the civil aviation authorities to extract 
rents from IATA,s BSP system, which has operated in Ukraine 
since September 2005 and has taken over 60 percent of ticket 
sales. 
 
3. (SBU) By contrast, in Russia, TCH is a regional competitor 
to IATA,s BSP system and it has used its considerable 
influence over the civil aviation sector to preserve a near 
monopoly over ticket sales.  Only 5-10 percent of all ticket 
sales in Russia are made through IATA,s modern, efficient 
BSP system, with the rest still under TCH,s control. 
 
4. (SBU) Shamraev told us TCH has successfully slowed BSP,s 
introduction in Russia through a variety of tactics.  TCH had 
threatened travel agencies with lost business should they 
switch to BSP.  TCH had also pointed out that the 
transparency and discipline that the BSP system demands would 
reduce the travel agencies rent-seeking opportunities.  TCH 
had also used civil aviation officials to question BSP,s 
legality.  Government pressure on IATA intensified last fall 
when federal tax authorities conducted an audit of IATA,s 
Moscow offices.  Shamraev said that investigators 
discontinued their review when they could not find any 
incriminating evidence in their search but he did not rule 
out future harassment along these lines. 
 
5. (SBU) To counter TCH,s influence, IATA has enlisted the 
help of politically-connected allies to make their case with 
the government.  In particular, IATA has partnered with 
VneshTorgBank (VTB), a bank with close ties to the Kremlin, 
to conduct all their payment clearing operations. 
 
------------------- 
TIDE MAY BE TURNING 
------------------- 
 
6. (SBU) Shamraev said that TCH is probably fighting a losing 
battle as travel agencies and airlines realize the economic 
benefits and advantages of IATA,s BSP.  Aeroflot joined the 
BSP in June 2007, and is already realizing its advantages, 
especially with respect to e-ticketing.  Aeroflot had 
initially requested only two sales stations, but recently 
asked IATA for a number of additional outlets. 
 
7. (SBU) In addition, travel agencies that do business with 
TCH have created separate offices to handle their 
international ticket sales with the BSP system to avoid TCH 
pressure.  Moreover, some international airlines, such as 
British Airlines, are pushing travel agencies to join BSP by 
threatening to move completely to an E-ticket platform ahead 
 
MOSCOW 00004916  002 OF 002 
 
 
of IATA,s scheduled May 2008 deadline.  (NOTE: Only BSP 
certified travel agencies are able to process tickets for 
BSP-member airlines that have fully converted to E-ticketing. 
 IATA has set May 2008 as the deadline to convert its BSP 
system to 100 percent E-ticketing. END NOTE.) 
 
------- 
COMMENT 
------- 
 
8. (C) The TCH/IATA conflict is a classic example of an 
entrenched business interest fighting the adoption of a more 
efficient system.  BSP would increase the economic welfare of 
all other parties concerned but at the cost of TCH,s 
monopoly rents inherited from the collapse of the Soviet 
Union.  Market forces and IATA,s technologically superior 
services seem likely to win out in the end, particularly 
given IATA,s efforts to court local allies such VTB and 
Aeroflot.  END COMMENT. 
Burns

Wikileaks

07MOSCOW4912, RUSSIA-ARMENIA RELATIONS

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Reference ID Created Released Classification Origin
07MOSCOW4912 2007-10-09 03:31 2011-08-30 01:44 CONFIDENTIAL Embassy Moscow

VZCZCXRO3867
OO RUEHDBU
DE RUEHMO #4912 2820331
ZNY CCCCC ZZH
O 090331Z OCT 07
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4461
INFO RUCNCIS/CIS COLLECTIVE PRIORITY
RUEHXD/MOSCOW POLITICAL COLLECTIVE PRIORITY
RUEHVEN/USMISSION USOSCE PRIORITY 2373

C O N F I D E N T I A L MOSCOW 004912 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 10/01/2017 
TAGS: PREL PGOV ECON AM RS
SUBJECT: RUSSIA-ARMENIA RELATIONS 
 
 
Classified By: Political M/C Alice G. Wells.  Reasons 1.4 (B/D). 
 
1.  (C) Summary.  According to the MFA, the September 25 
visit to Moscow by Armenian Prime Minister Sarkisyan 
reaffirmed the historical strong ties between the two 
countries.  Both GOR officials and the Armenian Embassy 
expressed satisfaction with the direction and extent of 
bilateral engagement.  To the extent that there is a road 
block to bettering relations, it is Armenia's "troublesome" 
neighbors, who limit its direct transportation routes to 
Russia.  End summary. 
 
Relationship Strong and Growing 
------------------------------- 
 
2.  (C)  MFA Armenia Desk Head Aleksandr Zagainov told us 
October 2 that the historically strong Armenia - Russia 
relations remain free of contentious issues.  The meeting 
between the two prime ministers, held shortly after Zubkov's 
appointment as Prime Minister, centered on new economic 
projects.  Although Russia's investment in Armenia is only 
USD 800 million per year, Zubkov promised to double the 
amount in the near future.  Zagainov noted that despite 
Armenia's "difficult" neighborhood -- Turkey, Iran, Georgia's 
Abkhazia and Azerbaijan, bilateral trade reached USD 350 
million in the first half of 2007 and is steadily growing. 
Troubles in the regions force import/exports to transit 
Ukraine, the Black Sea and Georgia before reaching Russia. 
Zagainov said that military cooperation is also continuing 
bilaterally as well as through the Collective Security Treaty 
Organization (CSTO).  Hosting Russian military bases is a 
tradition for Armenia, added Zagainov. 
 
Complementarity Works 
--------------------- 
 
3.  (C) Armenian Embassy Political Counselor Ara Badalyan 
echoed the GOR official view.  According to him, the secret 
of success is Armenia's policy of complemetarity, which aims 
to balance Euro-integration and friendly engagement with 
Russia, and its traditional diaspora culture that guides 
Armenian foreign policy.  With an estimated two million 
Armenians residing in Russia, and one and half million in the 
U.S., the Armenian government cannot afford a difficult 
relationship with either.  That said, Russia remains the 
biggest importer of Armenian goods.  Although the resolution 
of the Nagorno-Karabakh conflict remains a top priority for 
Armenia, lack of progress in Minsk Group negotiations has not 
affected Armenia's relationship with Russia, added Badalyan. 
 
4,  (C) Badalyan attributed the slow tempo of bilateral trade 
to troubles in the neighborhood.  In the absence of 
Transcaucasus railways and a direct route through Abkhazia, 
Armenia relies on ships through Georgia.  Baldalyan 
criticized the Georgian government for seeking conflict, 
rather than peace, with the GOR, saying, "The Georgians 
should learn the Armenian way." 
 
Comment 
------- 
 
5.  (C) While largely a non-event, the Sarkisyan visit 
underscored the stability in Russia-Armenia relations, which 
are not expected to be disrupted by the presidential 
elections scheduled in both countries for 2008. 
Burns

Wikileaks

07MOSCOW4910, DUST SETTLES ON PUTIN’S SURPRISE ANNOUNCEMENT

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Reference ID Created Released Classification Origin
07MOSCOW4910 2007-10-05 15:45 2011-08-30 01:44 CONFIDENTIAL Embassy Moscow

VZCZCXRO8175
OO RUEHDBU
DE RUEHMO #4910/01 2781545
ZNY CCCCC ZZH
O 051545Z OCT 07
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4458
INFO RUCNCIS/CIS COLLECTIVE PRIORITY
RUEHXD/MOSCOW POLITICAL COLLECTIVE PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 MOSCOW 004910 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 10/05/2017 
TAGS: PREL PGOV PINR KDEM RS
SUBJECT: DUST SETTLES ON PUTIN'S SURPRISE ANNOUNCEMENT 
 
REF: MOSCOW 4833 
 
Classified By: Ambassador William J. Burns.  Reasons 1.4.(B/D). 
 
Summary 
------- 
 
1. (C) Putin's October 1 announcement that he will head the 
pro-Kremlin United Russia (YR) party list (reftel) has been 
portrayed by the opposing Kremlin party's Chairman Sergey 
Mironov as proof that YR had gone into receivership, and had 
to be bailed out by the President.  In a meeting with the 
Ambassador after the announcement, Duma Deputy Aleksandr 
Lebedev seemed to take the news of Putin's potential 
premiership in stride and guessed that unspecified assurances 
by Putin had buoyed Mironov, whom he had seen before his 
feisty October 4 press conference.  The President's dramatic 
decision seems to have generated little overt blowback here, 
with most observers persuaded in advance that more of Putin 
was either a well-deserved encore or an outcome to be 
expected from a leader increasingly convinced that the 
country cannot live without him. End summary. 
 
Making Sense of 
the Maneuvering 
--------------- 
 
2. (C) Contacts with whom we have spoken in the days since 
Putin's announcement were more self-assured in explaining the 
events of October 1, less certain on what might happen next 
in a political space that has had much of the information 
sucked out of it.  Mercator President Dmitriy Oreshkin summed 
up the sentiments of many in guessing only that Putin would 
remain in government in some capacity. Russia, he said, had 
overnight become a country with an unpredictable present and 
future, in addition to its traditionally unpredictable past. 
 
3. (C) Putin's decision to temporarily ally himself with YR 
was understood both as an effort to win a popular mandate 
that he could point to in asserting, both to skeptics in 
Russia and outside the country, that he had a kind of 
democratic legitimacy.  Were he to be simply appointed prime 
minister, he could be seen as clinging to power. As the head 
of a party that won 60 percent of the vote, he could claim a 
mandate to rule. Oreshkin thought that electoral mathematics 
had forced Putin's hand.  He noted that YR had won less than 
45 percent of the vote in the March regional elections, even 
with strenuous efforts by regional elites, and Putin need a 
constitutional majority in the new Duma, either to amend the 
Constitution in order to shift power to the premiership, or 
to create a power base for himself outside the government. 
 
4. (C) The President's decision to head the party list, but 
not join the party itself, allowed Putin to claim that he was 
not part of the horsetrading that voters associate with party 
life. It also maintained a fine, but important distinction 
for traditional voters, who expected the President to preside 
over the country but not be a part of it. Remaining above the 
party allowed Putin to avoid accepting responsibility for the 
party's track record when in office. 
 
5. (C) All of the prerequisites for a seamless tradition from 
Putin President to Putin Premier seem to be in place. He has 
an aging and compliant Prime Minister who could become either 
acting or elected President and is all but certain to win a 
popular mandate in the Duma elections.  Still, in the view of 
some, their remains an element of uncertainty that argues for 
Putin returning to the Kremlin, and that is the amount of 
power wielded by the President.  In a system so lacking in 
stabilizing institutions that the Kremlin can see in Garry 
Kasparov's Other Russia a potential Orange Revolution, it is 
possible for Putin to suspect that his harmless friend Viktor 
Zubkov, or the advisers who would materialize around him, 
might not relinquish power once they have it. 
 
6. (C) With Zubkov's appointment and Putin's announcement, 
there is much speculation that the sun for now seems to be 
setting on possible successors Sergey Ivanov and Dmitriy 
Medvedev.  Some observers suggest that they may find 
themselves now scorned by their biggest booster --Putin-- 
because of their inability to make themselves into credible 
candidates after near nightly visits to Russians' living 
rooms. Clan ethics make it unlikely that either will be 
ousted, at least immediately, and the sheer unpredictability 
of the process does not exclude a comeback for either as the 
succession scenario advances. 
 
A Confident Putin 
----------------- 
 
7. (C) Duma Deputy Aleksandr Lebedev told the Ambassador 
October 3 that he had seen Putin about three weeks ago, and 
 
MOSCOW 00004910  002 OF 002 
 
 
found him "very confident."  The President seemed at ease as 
he teased Lebedev about his prickly relationship with Moscow 
Mayor Luzhkov, and gave Lebedev the greenlight to continue to 
complain about the way that the city is administered.  Putin 
animatedly discussed Lebedev's ideas for unsnarling Moscow's 
traffic, and seemed very interested in legislation the Deputy 
had proposed on plea bargaining and affordable housing. 

Lebedev saw Putin's interest in these nuts-and-bolts issues 
as evidence that a possible stint as prime minister was under 
consideration. 
 
8. (C) Lebedev claimed as well to have seen Mironov 
immediately after the Just Russia Chairman's meeting with 
Putin and before his October 4 press conference.  Mironov was 
very self-confident; Lebedev guessed he must have received 
assurances from Putin.  (Some of the media read significance, 
however, into the fact that the meeting was given little 
publicity by the Presidential Administration.)  Lebedev 
disagreed with Mironov's assertion that Just Russia, not the 
Communist Party, would make it over the seven-percent barrier 
to the Duma.  The Communists were "disciplined, a real 
party," Lebedev noted. 
 
9. (C) Lebedev was complaisant about Putin's October 1 
announcement, even alleging that he had expected it.  His 
unruffled reaction tracked with other conversations the 
Ambassador has had this week, suggesting that the possibility 
of a sharply negative reaction among the elites is unlikely. 
 
Comment 
------- 
 
10. (C) Although a month ago virtually no one would have 
predicted that Putin would head United Russia's list and 
Prime Minister Zubkov would be talking pension in Penza, the 
calendar is a fixed variable, and with each successive day, 
the possibilities for further such maneuvering are reduced, 
and the outlines of the endgame should become clearer. 
Burns

Wikileaks