Daily Archives: December 12, 2007

07MOSCOW5796, GETTING THE VOTE OUT: HOW UNITED RUSSIA PULLED OFF

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Reference ID Created Released Classification Origin
07MOSCOW5796 2007-12-12 15:26 2011-08-30 01:44 CONFIDENTIAL Embassy Moscow

VZCZCXYZ0000
OO RUEHWEB

DE RUEHMO #5796/01 3461526
ZNY CCCCC ZZH
O 121526Z DEC 07
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5824
INFO RUCNCIS/CIS COLLECTIVE PRIORITY
RUEHXD/MOSCOW POLITICAL COLLECTIVE PRIORITY

C O N F I D E N T I A L MOSCOW 005796 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 12/12/2017 
TAGS: PGOV PINR KDEM PREL PHUM RS
SUBJECT: GETTING THE VOTE OUT: HOW UNITED RUSSIA PULLED OFF 
THE DUMA ELECTIONS 
 
REF: A. MOSCOW 5432 
     B. MOSCOW 5548 
 
Classified By: POL M/C Alice G. Wells.  Reasons: 1.4 (b,d). 
 
1.  (C) Summary:  A comparison of electoral statistics from 
the December 2 Duma elections and the previous elections in a 
number of selected regions shows that United Russia's use of 
administrative assets to get out an increased number of 
voters made a difference in the December 2 Duma elections. 
Voters for Just Russia, the Union of Right Forces (SPS), and 
the Communist Party still participated but, given the huge 
increase in voters for United Russia they -- with the 
exception of the Communists -- received a smaller percentage 
of the vote than in 2003.  The additional 500,000 absentee 
ballots issued counted for only a small part of the over 9 
million more votes cast this time around than in 2003.  This 
message reviews in more detail election results in those 
regions to which Embassy has traveled in the last year.  End 
summary. 
 
United Russia, Communists Improve 
--------------------------------- 
 
2. (C) United Russia received substantially more than the 
majority of votes in all but a few regions throughout Russia 
in the December 2 Duma elections.  It doubled its vote count 
from just under 23 million votes in 2003 (38 percent of the 
vote) to almost 45 million in 2007 (64 percent of the vote). 
Of the other parties, only the Communist Party (KPRF) 
increased its take, going from just under 7,650,000 votes in 
2003 to around 8,100,000 votes on December 2.  The increase 
in United Russia votes is most certainly due to its 
administrative ability to pressure people into voting, its 
decision to cast the Duma vote as a referendum on Putin after 
his decision to head the United Russia candidate list and 
Putin's own eleventh hour appeals to voters to support United 
Russia. The increase in support for the Communists shows 
their success in casting themselves as the only relevant 
opposition party.  This contrasts to the widely-held belief 
that support for the Communists among voters would wane as 
the ranks of their largest constituency, pensioners who had 
it better under the Soviet Union, thin out. 
 
Some Regions Do Too Well, 
Others Not Well Enough 
------------------------- 
 
3.  (SBU) Voter participation across Russia did not vary 
greatly, except in the Caucasus, where United Russia won over 
90 percent of the vote and the Republic of Mordovia, where 
some local precincts initially gave United Russia over 100 
percent of the vote (later revised by the regional election 
commission to "only" 94.5 percent).  United Russia fared less 
well in the Far East, the Altai territory, Moscow and St. 
Petersburg (just over 50 percent) and even worse in Voronezh 
and the Nenetsk autonomous districts (at or just under 50 
percent).  The media report that some governors and local 
United Russia leaders are being held responsible for the bad 
results in their regions.  Turnout in the rural parts of the 
Omsk region was 20 percent higher than in Omsk city and the 
regional governor has blamed the mayor for failing to get out 
the vote and, according to The Moscow Times, the mayor of a 
village in Bashkortostan paid the ultimate price for his 
election shortcomings -- he hanged himself on the eve of the 
election after superiors chided him for not doing enough to 
secure over 80 percent support for United Russia.  Few 
commentators believe that Yuriy Luzhkov and Valentina 
Matvienko, the mayors of Moscow and St. Petersburg, 
respectively, will pay any price for their citizens' election 
choices, however. 
 
4.  (SBU) The Communists (KPRF) did best in the so-called 
"red belt," polling several points above the national average 
in Voronezh, Samara, and Novosibirsk.  Their luck ran out in 
Rostov-on-Don, where the United Russia ticket led by a 
popular, long-sitting governor pulled in over 70 percent of 
the vote.  The KPRF ran a respectable second in Rostov with 
10.3 percent of the vote (down from almost 15 percent in 
2003), enough to grab one seat from the region. 
Zhirinovskiy's Liberal Democratic Party (LDPR) registered an 
almost 20 percent drop in support from 2003 across Russia. 
In 2003, it garnered almost 7,000,000 votes, but got only 
5,700,000 in 2007.  Still, it increased its number of 
deputies from 29 to a projected 40 in the next Duma.  As was 
the case in the last election, the LDPR did best in the Far 
East, reportedly getting 13 percent in the Primorskiy region 
and Khabarovsk and 11 percent in Chita and Magadan.  Just 
Russia may have just gotten into the next Duma on the 
strength of its performance in St. Petersburg (16 percent), 
Astrakhan (20 percent) and Stavropol (13 percent).  In the 
 
end, Just Russia lost over 3,000,000 votes that its 
constituent parties (Rodina, the Russian Party of 
Pensioners/Party of Justice, and Party of Russian 
Rebirth/Russian Life Party) had polled in the 2003 Duma 
elections.  Nationally, the Union of Right Forces (SPS) saw 
its
vote count drop by 72 percent.  Given the higher turnout 
for the December 2 election, this drop translated into a 
decrease of overall voter support from 4 percent in 2003 to 
only 1 percent in 2007. 
 
Problematic Voting: A Problem? 
------------------------------ 
 
5.  (SBU) Some election observers have raised the issue of 
early voting and the use of absentee ballots.  While the 
election violations are serious in any event, the absentee 
and early numbers involved do not appear to be large enough 
to affect the turnout.  The number of early voters in Russia 
increased 23 percent from 2003 to 2007; however even at 
90,000, earlier voters account for only 0.1 percent of the 
entire vote cast on December 2.  Similarly, the number of 
absentee ballots cast more than doubled; however, they 
represent less than two percent of all votes cast. (The use 
of the term "absentee ballot" is a bad translation of the 
Russian term "okrepitelniy talon."  Russians, with few 
exceptions, can only vote on election day.  They cannot mail 
their ballot as U.S. citizens do, but must go to their local 
election commission to receive a certificate indicating they 
have been removed from the voting registry of their home 
district.  They can then take this certificate to any polling 
station on the day of elections. If the certificate is lost 
or stolen, that voter cannot vote.) 
 
Siberia:  Mostly Quiet 
---------------------- 
 
6.  (C) In the Tomsk region, our contacts report that the 
election went off without incident.  Aleksandr Prokopevich, 
the Deputy Editor of Tomsk Novosti, said that there had been 
reports of falsified election results, but he had seen no 
"facts" to support those allegations.  According to CEC data, 
United Russia received approximately 57 percent of the vote 
in Tomsk, an increase of more than 10 percent over what the 
party polled in regional elections in March 2007. 
Prokopevich suggests that this resulted from Putin's decision 
to be the "locomotive" for the United Russia ticket, because 
Putin is more popular than even well-regarded Tomsk Governor 
Kress who headed the list last March.  Rural voters in Tomsk 
turned out in even greater numbers in support of United 
Russia -- roughly 70 percent -- whereas only around 50 
percent of urban voters picked Putin's new party , an 
increase of 2-3 percent.  The Yabloko representative to the 
regional legislative assembly, Vasiliy Eremin, viewed the 
election with greater concern, seeing the use of 
administrative resources (such as directing students in Tomsk 
city to vote for United Russia) and the overwhelming 
dominance of the "party of power" on television, as shaping 
the election results.  He was depressed that SPS had lost 
ground in an "academic city" like Tomsk, where educated 
elites have traditionally supported liberal parties.  SPS in 
particular suffered from direct administrative pressure, 
which Eremin said had led to a drop from 7.7 percent in the 
March regional elections to less than 2 percent in the Duma 
election, which put it behind Yabloko. Prokopevich suggested 
that many who supported the liberals earlier may have turned 
their votes to United Russia, which had "delivered" on 
promises of economic growth and stability that the "liberals" 
had promised, but failed to deliver. 
 
7.  (SBU) Voting in other Siberian regions also proceeded 
without incident, although the KPRF accusing the 
administration of "stealing" votes. KPRF head Gennadiy 
Zyuganov singled out the Kemerovo region in his complaints 
about election procedures on December 2.  In Kemerovo, the 
governor is a former communist himself and the KPRF viewed 
the region's coal mining towns as fertile ground. Results 
there differed sharply from other Siberian regions, looking 
more like those from the North Caucasus.  Total turnout was 
80% (compared to 60% in neighboring Krasnoyarsk, Tomsk and 
Irkutsk), with 75% of the voters supporting United Russia. 
The KPRF also noted problems in Krasnoyarsk Kray, describing 
the election as a "triumph of administrative resources." In 
the April regional elections, the Communists had won 20 
percent of the vote. However, only approximately 12 percent 
of Krasnoyarsk region voters checked the box for KPRF on 
December 2, compared to 60% for United Russia.  The KPRF 
continues to protest the outcome, calling for the governor of 
Kemerovo region -- as well as others -- to be removed from 
power and initiating a suit with the Constitutional Court to 
have the CEC invalidate the results. 
 
8.  (C) From all reports, the campaign in Irkutsk was quiet 
and boring.  Galina Solokina of Teleinform, a news and 
information agency in Irkutsk, claimed that the outcome was 
expected prior to the election.  There were many political 
party and international observers in the regions, and 
violations were relatively few in number. United Russia 
received 57 percent of the vote, lower than its national 
tally of 64 percent.  Altay Kray, another Siberian region, 
also proved less bountiful for United Russia at 54 percent. 
When we visited these regions earlier in the year, contacts 
reported that Siberia supported United Russia less than the 
rest of the country, a contention supported by the election 
results.  Solokina maintained December 6 that protest votes 
in Irkutsk went to LDPR and KPRF.  However, a comparison of 
the election results of 2003 and 2007 suggests otherwise. In 
Altay Kray and Irkutsk, all parties except United Russia saw 
a decrease in the number of votes received.  KPRF in Altay 
Kray lost only one percent of the vote, to win a healthy 17 
percent in December, while in Irkutsk all parties except 
United Russia lost more than 10 percent.  In both regions, 
United Russia doubled its vote count. 
 
9.  (C) LDPR received 10 percent of the vote in Altay Kray 
and 11 percent in Irkutsk compared with its 8 percent 
national showing.  In both instances, however, the vote for 
LDPR was lower than the 16 percent received by the party in 
both regions in 2003.  The KPRF fared better in Altay Kray (a 
typical red belt region) with 16 percent of the vote compared 
to its showing of 18 percent in 2003.  The vote for KPRF in 
Irkutsk was 11 percent on December 2, slightly lower than its 
national percentage and much lower than its 16 percent 
showing in 2003.  Even the minor parties maintained did 
better in Siberia.  Ten percent of the voters in Altay Kray 
voted for parties that did not make it into the Duma compared 
with 12 percent in Irkutsk.  Nationally, only eight percent 
voted for such parties. 
 
10.  (C) Aleksey Petrov from the Union of Right Forces (SPS) 
described a dour mood among Irkutsk party members. SPS had 
conducted its own poll two weeks before the election which 
indicated up to nine percent of the respondents would vote 
for the party.  However, on December 2, SPS received only 1.5 
percent of the vote. As a result, the leader of Irkutsk SPS 
resigned with three other top leaders (including Petrov). 
 
A Sea Change Along the Volga &#x
000A;---------------------------- 
 
11. (C) In Samara, election results demonstrated a remarkable 
shift in electoral fortunes for Just Russia, SPS, and United 
Russia.  United Russia won just over half of the votes cast 
-- a more than 20 percent increase over the March regional 
elections and the 2003 Duma elections, in which the party 
received around 33 percent of the vote.  "Just Russia," which 
did surprisingly well in the March regional election and the 
Samara Mayor's race, saw its support plummet from 15 percent 
to only 8.9 percent on December 2.  Vladimir Zvonovskiy of 
the Fund for Social Research traced  United Russia's improved 
fortunes to votes thrown to United Russia from the 
newly-created "Green" party, which was connected to a local 
oligarch, and which had received 8 percent of the vote in the 
March regional elections. Also nudging United Russia's 
numbers was the "Putin factor;"  citizens heeding the 
President's call for support.  Zvonovskiy ascribed SPS's drop 
in the polls, from 8 percent in March to one percent in 
December, to the failure of the party's campaign, which 
seemed to abandon the traditional "liberal" agenda for a more 
anti-establishment tone. 
 
12.  (C) Penza Oblast's election data, particularly reports 
on voting turnout over the course of the day, provide some 
evidence that Governor Bochkarev used administrative 
resources to "get out the vote" for United Russia.  By 10:00 
A.M. on election day, more than 9 percent of the population 
had already voted, and by day's end more than 70 percent of 
the registered voters had cast their ballots.  Penza also had 
a high percentage of voters who participated "outside of 
their polling places," a practice that could have allowed 
Russian officials to "manage" returns without independent 
oversight.  Semen Vaykhshtayn, the Chief Editor of Penza's 
Ekho Moskvy, noted that the increased turnout was "normal," 
with the population more energized by Putin's participation 
in the race.  He admitted there were instances of 
administrative pressure, particularly the registration of 
"non-local" students in local universities to vote in Penza. 
Vakhshtayn thought the results as meeting expectations, but 
pointed out that the KPRF did less well than expected by 3-4 
percentage points (receiving 13 percent instead of the 
expected 17-18 percent).  Aleksandr Esenkov of Just Russia 
voiced his disappointment with the results not only of the 
Duma race in which the party received only 5 percent, but 
 
also for the regional legislature.  In parallel elections on 
December 2, his party barely scraped by the 7 percent 
threshold to enter the regional legislature to win one seat 
in the 25-member body.  The KPRF won two seats, while United 
Russia swept the rest. 
 
United Russia's "Solid South" 
----------------------------- 
 
13.  (C) In Stavropol Kray, Just Russia received only 
one-third of the votes it won in the March 2007 elections, 
dropping from 37% to 13%, while United Russia discovered 
hitherto unknown popularity by soaring from 23% to 61%.  As 
reported in ref a, United Russia was stung by its loss in 
March (the only region where it received fewer votes than 
Just Russia), and responded by removing the governor from the 
party, replacing the head of the Stavropol Elections 
Commission with a United Russia lawyer, and bringing in 
nationally-popular figures such as Minister of Emergency 
Situations Shoigu, an Olympic gold-medal wrestler, and a pop 
singer to head its regional list.  Shortly before the 
election, the Just Russia regional list was decapitated when 
local duma Speaker Andrey Utkin removed himself, citing a 
desire to focus on local politics.  Soon thereafter, the 
regional elections commission removed head of the Just Russia 
list Stavropol Mayor Dmitriy Kuzmin from the ballot for 
illegal campaigning. The local prosecutor subsequently 
announced investigations of Utkin and Kuzmin on separate 
corruption charges and just prior to the election local media 
widely reported that a search of the mayor's office had 
turned up an embarrassing collection of Nazi memorabilia. 
Just Russia and its predecessors had historically done well 
in the region, with Just Russia's constituent party Rodina 
even outpolling the KPRF in the past. The KPRF had received a 
solid 14% of the vote in past elections, but pulled only 11% 
on December 2. 
 
14.  (C) There were few surprises in Rostov-on-Don, where 
turnout approached 70 percent and United Russia likewise 
pulled in 70 percent of the vote.  United Russia 
representatives has promised as much during our visit there 
two weeks before the election (ref b).  If, as expected, 
neither the governor nor the head of the local duma take up 
their seats, they may be used to reward members in regions 
where the party did not do as well. 
 
Closer to Moscow, Some Variation 
-------------------------------- 
 
15  (SBU) In the Lipetsk region south of Moscow, results 
tracked the national norm.  United Russia saw its percentage 
of the vote increase by leaps from the 2003 Duma elections in 
which it received 28 percent of the vote, to a 50 percent 
take in regional elections in October 2007, to the December 2 
elections in which it received 63 percent. KPRF's support 
dropped by nearly seven thousand voters to 13 percent of the 
vote (down from 17.5 percent in the 2003 elections). 
Lipetsk, unlike many regions in Russia, did not see its total 
numbers of voters increase. 
 
16.  (C) Although KPRF received enough votes in Voronezh 
(208,000 or 16 percent) to send two deputies to the federal 
Duma, KPRF local party official Lidiya Kuznetsova said the 
elections were "even dirtier and more unfair than usual." 
According to Kuznetsova, local government officials were told 
to ensure 65 percent for United Russia.  While some districts 
in the region exceeded that number, in the end 56.6 percent 
of the region's vote went to United Russia. Although United 
Russia received a lower percentage in Voronezh than the 
national average of 64 percent, support for the party more 
than doubled since the 2003 Duma elections.  The biggest 
loser was Just Russia, which saw its percentage of votes it 
received as the "Rodina" party drop from 23.7 percent in 2003 
to only nine percent in 2007. 
 
Comment 
------- 
 
17.  (C) While not an exhaustive review of electoral 
statistics, these results from regions in which we have 
engaged in substantial outreach over the past year provide a 
snapshot of United Russia's use of its great advantage in 
local and federal administrative assets to get out the vote, 
or at least its vote.  A still unanswered question raised by 
some observers is how in a country that demographers claim is 
losing population every year, an additional 200,000 eligible 
voters appeared on the rolls. 
BURNS

Wikileaks

07MOSCOW5795, RUSSIA SUSPENDS PARTICIPATION IN CFE TREATY

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Reference ID Created Released Classification Origin
07MOSCOW5795 2007-12-12 15:18 2011-08-30 01:44 UNCLASSIFIED Embassy Moscow

VZCZCXRO9988
OO RUEHIK RUEHLN RUEHPOD RUEHVK RUEHYG
DE RUEHMO #5795 3461518
ZNR UUUUU ZZH
O 121518Z DEC 07
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5823
INFO RUCNCFE/CONVENTIONAL ARMED FORCES IN EUROPE COLLECTIVE
RUEHXD/MOSCOW POLITICAL COLLECTIVE IMMEDIATE
RUEHZG/NATO EU COLLECTIVE IMMEDIATE

UNCLAS MOSCOW 005795 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL KCFE NATO MARR RS
SUBJECT: RUSSIA SUSPENDS PARTICIPATION IN CFE TREATY 
 
REF: MOSCOW 5749 
 
1.  As expected, at midnight December 12, Moscow suspended 
participation in the Conventional Forces in Europe Treaty 
(CFE).  According to the statement issued by the Foreign 
Ministry, Russia has suspended all actions under the Treaty, 
including exchanges of information on troop levels, and 
inspections.  The statement said that Russia would not be 
bound by any restrictions of the Treaty, including on the 
strength of conventional forces or flank deployments, while 
noting that the GOR did not presently intend to undertake a 
"massive build-up" of troops on Russia's borders.  Future 
deployments would be based on the specific political-military 
situation, "including the readiness of our partners to 
demonstrate restraint." 
 
2.  The statement attributed Russia's suspension to CFE 
requirements that affected Russia's security and which 
demanded urgent measures; to the failure of the NATO 
countries to ratify the Adapted Treaty and bring it into 
force; and to unacceptable linkages (e.g. Istanbul 
commitments).  Continued participation in the Treaty would 
"threaten Russia's national interests in the sphere of 
military security." 
 
3.  The statement reiterated that the GOR was ready to 
continue discussions and to lift the suspension once the 
following issues were resolved: 
 
-- How to account for new members of NATO; 
 
-- parameters for restrictions on the deployment of forces in 
foreign territories; 
 
-- elimination of the flank restrictions for Russia; 
 
-- Accession of the Baltics and Slovenia; and 
 
-- Ratification and entry into force of the A/CFE and 
commencement of its modernization. 
BURNS

Wikileaks

07MOSCOW5794, UNION STATE PRESIDENCY NOT ON PUTIN’S AGENDA IN

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Reference ID Created Released Classification Origin
07MOSCOW5794 2007-12-12 15:06 2011-08-30 01:44 CONFIDENTIAL Embassy Moscow

VZCZCXRO9949
PP RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHMO #5794/01 3461506
ZNY CCCCC ZZH
P 121506Z DEC 07
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC PRIORITY 5821
INFO RUCNCIS/CIS COLLECTIVE PRIORITY
RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 MOSCOW 005794 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 12/11/2017 
TAGS: PREL ETRD MARR PARM BO RS
SUBJECT: UNION STATE PRESIDENCY NOT ON PUTIN'S AGENDA IN 
MINSK 
 
REF: MOSCOW 4315 
 
Classified By: M/C for Political Affairs Alice G. Wells for reasons 1.4 
 (b/d). 
 
1.  (C) Summary. The MFA strongly denied press rumors that 
Putin's December 13-14 trip to Minsk would create him 
president of a Russia-Belarus Union State, making it clear 
that Belarus had a long way to travel before it would be a 
partner for Russia.  Putin's trip will focus on reviewing 
2007's "difficult" bilateral relations and increasing 
economic integration.  The MFA emphasized that differences 
between Russia and Belarus were the results of a complicated 
economic policy, and not political troubles, pointing to 
frequent ministerial meetings and an increased budget for the 
Union State.  The MFA expects to finalize a common customs 
tariff on railroads and continue work on a common currency 
and customs union.  Regarding military cooperation, the MFA 
discounted press reports about the sale of Iskander missiles 
to Belarus and noted that discussions on a possible joint air 
defense were preliminary.  The MFA also noted that it was 
following Belarus closer economic ties with Venezuela, but 
was not overly worried. 
 
Putin Will Not Become Head of a Union State 
------------------------------------------- 
 
2.  (C) In a December 11 meeting, MFA Belarus Section Head 
Nikita Matkovskiy stated emphatically that Putin's December 
13-14 trip to Belarus would not end with Putin assuming the 
office of president of a Russia-Belarus Union State. 
 He told us that Putin and Lukashenko would discuss the Union 
and its next steps, but that political unification had been 
slowed by difficulties with economic integration.  He noted 
that both sides had changed "tremendously" since the Union 
originated in 1996, and the relationship needed to be 
adjusted in accord with modern realities.  Not until there 
was "fundamental economic harmonization" would political 
union even be considered, Matkovskiy said, but Russia would 
move in step with Belarus. 
 
A Hard Year, But a Good Relationship 
------------------------------------ 
 
3.  (C)  Matkovskiy told us Putin's trip to Minsk would 
consist of two separate events: bilateral consultations with 
Lukashenko and a plenary meeting of the Russia-Belarus Union. 
 During the bilateral meeting Putin will focus on the current 
state of the relationship.  Matkovskiy noted that 2007 "was 
not a good year."  He told us that Russia's decision to shift 
to a "pragmatic, market-based approach" to Belarus obviously 
added tension to the bilateral relationship, but the GOR 
believed that the course was correct -- and profitable.  In 
2007, trade increased to $24 billion, a clear indicator of 
success.  He emphasized that differences between the Russian 
and Belarusian governments this year were not political, but 
bumps in a complicated economic process, and Russia was 
pleased at Belarus's "modest steps" towards a market economy. 
 
4.  (C) During the Russia-Belarus Union session, Putin and 
Lukashenko will sign an agreement on a common customs tariff 
on railroads as part of continuing work on a common customs 
and currency policy. Putin and Lukashenko will announce the 
increase of the Union's budget  by 10% in 2008s.  Matkovskiy 
added that Putin and Lukashenko would discuss a planned 
Russian-built nuclear plant in Belarus, commenting that 
Russia is "sure" it will be built. 
 
Possible Iskander Missile Sales 
------------------------------- 
 
5.  (C) While not confirming recent press reports, Matkovskiy 
told us that any sale of SS-26 Iskander short-range ballistic 
missiles by Russia to Belarus complied with "all 
international agreements."  He said that Iskander missiles, 
while still effective, were last generation technology, and 
their possible sale was not "new news."  He also noted that 
Russia and Belarus had discussed the possibility of joint air 
defense, but any plans were still in the preliminary stage. 
(Note: There have been press reports recently that Russia 
planned to move ahead with the transfer of Iskander missiles 
to Belarus, as a response to the U.S. missile defense plans 
in Eastern Europe.  MFA officials have denied the reports, 
while noting that Russia could transfer such missiles to 
Belarus if warranted.  Defense experts have questioned the 
wisdom of placing Iskanders in Belarus.  End Note.) 
 
Belarus and Venezuela: Watching Closely 
--------------------------------------- 
 
6.  (C)  Matkovskiy noted that in the last year and a half, 
 
MOSCOW 00005794  002 OF 002 
 
 
Belarus had taken steps to widen its international contacts. 
While Russia saw this as a positive step and encouraged 
Belarusian attempts to solve its economic problems through 
market solutions, the GOR was following Belarus's 
international contacts closely to see if they affected 
Russian interests.  Regarding the announcement of a recent 
Belarusian-Venezuelan oil production
joint venture, he said 
that although the GOR was concerned about Russian oil 
producers who had lost stakes in Belarusian oil refineries 
early in 2007, it was not overly worried about the 
increasingly active Lukashenko-Chavez relationship.  The GOR 
felt that the two countries "were too remote" and that 
relations had reached their maximum capacity and would not 
continue to increase. 
 
Comment 
------- 
 
7.  (C) Matkovskiy consistently reinforced his message that 
troubles between Belarus and Russia were economic speedbumps, 
not core political differences.  Although he suggested Russia 
has not abandoned the idea of a union state, neither Putin 
nor Lukashenko seem interested in the ten year old project. 
BURNS

Wikileaks

07MOSCOW5790, RUSSIA UNLIKELY TO BACK DOWN ON BRITISH COUNCIL

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Reference ID Created Released Classification Origin
07MOSCOW5790 2007-12-12 13:28 2011-08-30 01:44 CONFIDENTIAL Embassy Moscow

VZCZCXRO9826
PP RUEHAG RUEHROV
DE RUEHMO #5790/01 3461328
ZNY CCCCC ZZH
P 121328Z DEC 07
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC PRIORITY 5810
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE

C O N F I D E N T I A L SECTION 01 OF 02 MOSCOW 005790 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 12/12/2017 
TAGS: PREL SCUL RU UK
SUBJECT: RUSSIA UNLIKELY TO BACK DOWN ON BRITISH COUNCIL 
CLOSURES 
 
REF: LONDON 4501 
 
Classified By: Ambassador William J. Burns: Reasons 1.4 (b, d). 
 
1.  (C)  Summary:  UK diplomats do not expect the GOR to back 
down from its threat to close two British Council centers on 
January 1, with the latest salvo from the MFA making the 
"tactical mistake" of linking Russian actions to the July 
measures taken by the UK in response to the Russian failure 
to cooperate in the Litvinenko investigation.  Concluding 
that this campaign is FSB-driven, the UK Embassy expects the 
GOR to forcibly shut down the St. Petersburg-based British 
Council on or shortly after January 1, and the UK will not 
preemptively move Council operations to its Consulate in 
order to ward off a Russian raid. The Yekaterinburg-based 
British Council, due to its co-location with the Consulate, 
is unlikely to be raided but will face mounting unofficial 
barriers to conducting outside programs.  The largest British 
Council operation in Russia, located in Moscow's Foreign 
Literature Library along with our American Center and 
Alliance Francaise, has not been a target of Russian 
government efforts.  The UK will attempt to shame the GOR 
over the collateral damage that thousands of Russian students 
will face, and seeks strong EU condemnation, but no U.S. 
action, at this stage.  We will reinforce our concerns 
privately with senior GOR officials.  End Summary 
 
2.  (C)  In December 11-12 meetings, UK emboffs provided an 
update on Russia's threat to close the British Council 
centers located in St. Petersburg and Yekaterinburg on 
January 1, 2008 (reftel), underscoring again that Russian 
actions would be in violation of its international treaty 
obligations under the Vienna Convention and the legally 
binding 1994 UK-Russia Agreement on cooperation in the fields 
of education, science and culture.  Following FM Lavrov's 
assertion during a recent diplomatic reception that the 
presence of the British Councils was illegal, UK Ambassador 
Brenton sent a letter citing Russian violations of its treaty 
commitments.  In a letter dated December 7, Deputy Foreign 
Minister Titov responded.  The letter: 
 
-- cited the "unfriendly actions" taken by the UK in July 
(i.e. the expulsion of four Russian diplomats, cessation of 
talks on a bilateral visa facilitation regime, and halt to 
intel cooperation, in response to the lack of GOR cooperation 
in the Litvinenko poisoning case); 
-- incorrectly set out Russia's legal basis for action; and 
-- reiterated that the two British Councils would be closed 
on January 1, absent a revocation of the July actions. 
 
3.  (C)  The UK emboffs emphasized that while the GOR had 
targeted the British Councils since 2004, following Russian 
oligarch Boris Berezovskiy's residence and asylum in London, 
Titov's letter made the "tactical error" of linking in a 
ham-handed manner the British Councils' existence to the 
Lugavoy prosecution.  The UK Embassy views Russian actions as 
orchestrated by the FSB, with several of its Embassy staff 
under intensified and unpleasant scrutiny.  (Note:  Brenton 
remains the subject of condemnation by the Kremlin-sponsored 
youth organization "Nashi," whose activists recently called 
for his diplomatic expulsion and continue to dog his public 
appearances.  However, presumably under instructions, the 
obviously paid activists have not resumed their sit-in 
outside the UK Embassy and ceased harassing Brenton's 
family.)  Separately, the GOR sent notice of an outstanding 
100 million ruble Council tax obligation, following a 
previous round of tax inspections that had resulted in 
supplemental payments.  The linkage drawn to UK policy 
measures taken in response to the Litvinenko poisoning, the 
UK diplomats noted, only served to underscore that the GOR 
was flaunting its treaty commitments for ulterior objectives. 
 
4.  (C)  While Brenton is meeting with DFM Titov again today, 
the UK Embassy sees no Russian mood for compromise, with both 
St. Petersburg Governor Matvienko and the city's 
international affairs director declining to meet Brenton on 
December 11 to discuss the Council's status.  (Note: On 
December 12, MFA spokesman Kaminin went public with Russian 
threats, and charges that the British Council centers were 
operating illegally.)  Instead, the UK Embassy expects the 
GOR to forcibly close down the St. Petersburg Council on or 
shortly after January 1.  Given the experience of the 2004 
raid by tax authorities, the UK is braced for the worst: the 
breaking down of doors, seizure of equipment, and potential 
harassment of local employees.  (While its UK staff are all 
diplomats, the Council's local employees could be subject to 
detention.)  The St. Petersburg-based British Council is the 
most vulnerable, because of the high profile of its Director 
(who is Lord Kinnock's son) and due to the fact that it is 
not co-located inside the UK Consulate, as is the case in 
Yekaterinburg.  While the GOR has sent four diplomatic notes 
protesting the Yekaterinburg British Council's use of 
 
MOSCOW 00005790  002 OF 002 
 
 
diplomatic facilities, the UK Embassy predicts that no action 
will be taken against that Council, due to
local officials' 
appreciation for the trade office and visa services provided; 
instead, the Council will continue to face unofficial 
barriers in hosting outside programs. 
 
5.  (C)  The UK does not plan to make it easy for Russia by 
preemptively relocating British Council operations and 
personnel to the St. Petersburg Consulate, although in the 
event of the Council's forced closure that will be its 
fallback position.  Instead, it hopes to shame the GOR with 
the collateral damage that its actions against the Council 
will cause for the thousands of Russian students who use the 
facilities, both as a resource and as a test-taking center 
for those seeking UK university admissions (and their numbers 
include many of the nation's elite off-spring). 
 
6.  (SBU)  Curiously enough, the largest and highest profile 
British Council presence in Russia, the one in Moscow, has 
not been the subject of threats by the GOR.  The Moscow-based 
British Council center is located in the Foreign Literature 
Library along with our American Center, Alliance Francaise, 
and the cultural centers of several other embassies.  The UK 
Embassy had no clear explanation why Moscow was untouched, 
but speculated that the fact that Russia had a cultural 
center in London was probably the reason why. 
 
7.  (C)  Comment:  The UK Embassy tells us that it is seeking 
a strong and coordinated EU condemnation of Russian actions, 
which also violate EU-Russia agreements on cultural 
cooperation, but is not looking for U.S. involvement at this 
stage.  We plan to underscore privately with senior GOR 
officials the negative message sent by Russian actions, and 
recommend that in the event of the forcible closure of the 
two British Council centers that we coordinate our public 
message with the Germans and the French -- whose criticism is 
more likely to register with senior GOR officials at this 
time.  (Ambassador discussed this informally with French and 
German counterparts December 12, and also stressed our 
concern privately to First Deputy FM Denisov -- who was 
unmoved.)  Complicating the issue for the French is the 
opening of their Yekaterinburg consulate in December, with 
the grand opening ceremonies planned for January.  FYI, the 
U.S. with its 32 American Corners and French with its 12 
Alliance Francaise centers have the most extensive cultural 
outreach operations across Russia of western countries. 
BURNS

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07MOSCOW5784, GREF CENTER’S VIEWS ON RUSSIA’S ECONOMIC DIRECTION

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Reference ID Created Released Classification Origin
07MOSCOW5784 2007-12-12 04:55 2011-08-30 01:44 CONFIDENTIAL Embassy Moscow

VZCZCXRO9471
PP RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHMO #5784/01 3460455
ZNY CCCCC ZZH
P 120455Z DEC 07
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC PRIORITY 5799
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUEHXD/MOSCOW POLITICAL COLLECTIVE PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RHMFISS/DEPT OF ENERGY WASHINGTON DC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY

C O N F I D E N T I A L SECTION 01 OF 03 MOSCOW 005784 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR EUR/RUS KELLY, WATSON, PATTERSON 
DEPT FOR EEB/ESC 
DOE FOR HARBERT/EKIMOFF 
DOC FOR 4231/IEP/EUR/JBROUGHER 
NSC FOR WARLICK 
 
E.O. 12958: DECL: 12/11/2017 
TAGS: ECON EIND PREL RS
SUBJECT: GREF CENTER'S VIEWS ON RUSSIA'S ECONOMIC DIRECTION 
 
REF: MOSCOW 2527 
 
Classified By: Ambassador William J. Burns. Reasons: 1.4 (b, d). 
 
------- 
Summary 
------- 
 
1. (C) In a December 6 meeting, Ksenia Yudaeva, Director of 
Research at the Center for Strategic Research (CSR or the 
Gref Center), the economic brain trust for the GOR's economic 
reforms in the early years of President Putin's 
administration, told econoff that while reform momentum has 
slowed the Center remains influential.  She said the Center's 
current projects include preparing the Ministry of Economic 
Development and Trade's (MEDT) long-term economic strategy 
paper, preparing regional economic development strategies for 
Minister of Regional Development Kozak, and conducting 
research for Sberbank and the newly created Development Bank. 
 Yudaeva appeared resigned to the current GOR reliance on 
state corporations as a model of economic policy and may be 
pinning her hopes on CSR's contacts in the GOR to lobby 
against the excesses of state intervention in the economy. 
She said that inertia will most likely characterize GOR 
economic policy for some time following the March 2008 
presidential elections.  End summary. 
 
---------------------------- 
Gref Center Stays Plugged In 
---------------------------- 
 
2. (SBU) Yudaeva said that when Putin became prime minister 
in 1999, he established the CSR, with GQman Gref as its 
head, to develop an economic reform program and put thQ 
Russian economy onto a market path.  (N.B. Gref went on to 
head MEDT until the cabinet reshuffle in October and was 
appointed the head of Sberbank in November.)  Over the past 
eight years, the Center has been the center of economic 
legislation drafting or has contributed to drafts of Putin's 
key reforms, including the flat tax, land privatization, 
pension reform, health care, benefits monetization, and the 
public private partnership initiative.  While reform momentum 
slowed two years ago and the CSR's role in economic 
policy-making diminished, Yudaeva said the center remains 
influential.  For instance, she noted that Elvira Nabiullina, 
another former head of CSR, was appointed MEDT Minister in 
September 2007. 
 
3. (SBU) Yudaeva said CSR is currently working on a number of 
projects for the MEDT, the Ministry of Regional Development, 
Sberbank, and the Development Bank.  In addition, she noted 
that she and CSR president Mikhail Dmitriev sit on a number 
of government commissions, such as commission on 
administrative reform and corporate governance, to emphasize 
the close working relationship between the GOR and CSR. 
 
4. (SBU) According to Yudaeva, her staff is currently working 
with the MEDT on the preparation of a new long-term economic 
strategy paper.  However, she said the paper would be more of 
a comprehensive overview of economic trends instead of a new 
strategy on economic development.  The Center is also working 
closely with newly-appointed Minister of Regional Development 
Kozak.  In April, while still Southern polpred, Kozak 
approached her to work on an economic development strategy 
for the Southern District.  Since Kozak's new appointment, 
the project has expanded to include drafting of an economic 
strategic plan for all seven federal districts.  She added 
that the Ministry will not allocate a single kopeck for 
development projects in any of the seven districts until each 
district presents a strategic development plan. 
 
5. (C) Yudaeva said CSR is also conducting research for 
Sberbank, now that Gref has been appointed as its head, and 
is working with the newly created Development Bank.  Yudaeva 
said that the deputy director of the Development Bank, Sergei 
Vasiliev, is a close colleague. 
 
6. (SBU) In response to a question about CSR's sister 
organizations in the regions, Yudaeva said that the Moscow 
CSR office has no relationship with these regional think 
tanks that use the CSR moniker and that her office often 
 
MOSCOW 00005784  002 OF 003 
 
 
competes with these other offices on various projects. 
 
--------------------------------------------- -- 
Russia's Competitiveness and State Corporations 
--------------------------------------------- -- 
 
7. (SBU) Yudaeva talked about the competitiveness research 
project that CSR started at the beginning of 2006.  Then-MEDT 
Minister Gref hired Harvard academic Michael Porter to 
conduct research on Russia's competitiveness vis-a-vis other 
countries.  On November 22, CSR conducted a seminar with 
presentations prepared by Harvard University professors 
Michael Porter and Christian Ketels.  The report, which can 
be found on CSR's website, presents an overv
iew of Russia's 
competitiveness vis-a-vis the rest of the world. 
 
8. (SBU) In addition to high oil prices, the report 
highlighted the ruble devaluation and unused production 
capacity as factors behind much of the economic growth from 
1998 to 2004.  However, these factors had been exhausted by 
2004 and Russia's competitiveness has started to decline. 
The report noted the GOR's failure to take advantage of 
Russia's macroeconomic stability to implement reforms, such 
as overhauling the health care and educational systems, to 
increase competitiveness and diversify the economy. 
 
9. (C) Yudaeva commented that Porter's reports have generated 
mixed reactions from the MEDT.  For example, MEDT Director of 
Forecasting Andrey Klepach, criticized the report for not 
offering any new ideas.  He also criticized the report's 
reliance on international indices and rankings, which fail to 
capture important nuances in the trends.  MEDT Deputy 
Minister Androsov, on the other hand, was quite pleased with 
the report because the MEDT could use it to support its 
position in internal GOR debates on economic policy. 
 
10. (C) Yudaeva said that, in general, she agreed with the 
conclusions in the report especially its criticism of the 
state's growing presence in the economy.  She admitted that 
little could be done about this shift, in particular given 
the many vested interests in the Kremlin surrounding the push 
to create state corporations.  For example, she said that 
Chemezov's ambitions were the sole reason behind the recent 
creation of Rostechnologiya, the defense sector holding 
company that will absorb arms exporter Rosoboronexport and a 
half a dozen other defense sector companies. 
 
11. (SBU) Yudaeva said that another reason for the GOR's 
preference in relying on state corporations to address 
everything from shipbuilding, housing, and the nuclear 
industry to preparing for the 2014 Winter Olympics in Sochi, 
is its frustration that the privatization drive in the 1990's 
has not revived Russia's manufacturing base.  She said the 
GOR wanted faster results and guarantees.  She added that the 
Russian mentality, shared by the population and government 
officials alike, to trust authority figures over private 
agents, also contributed to the shift in economic policy to 
the state corporation model. 
 
-------------------------- 
Post Putin Economic Policy 
-------------------------- 
 
12. (C) Turning to economic policy after the March 2008 
presidential elections, Yudaeva commented that economic 
policy would most likely continue without significant change 
with a new president.  She said that only external factors 
could lead to a significant change in economic policy.  For 
example, a large drop in energy prices or some other external 
shock might lead to an economic policy course correction. 
 
14. (C) Yudaeva appeared resigned to the fact that the GOR 
has chosen the state corporation model to solve its immediate 
economic problems.  She said there were cycles in Russia's 
economic policy history with periods of centralization and 
decentralization following one another.  The trend towards 
centralization would eventually make way for more 
liberalization.  In a few years, for instance, she predicted 
that the GOR would liberalize the gas sector with 
semi-autonomous companies allowed to operate side by side 
with Gazprom. 
 
MOSCOW 00005784  003 OF 003 
 
 
 
15. (SBU) When asked whether any of the presidential hopefuls 
are creating think tanks similar to Putin's creation of CSR 
in 1999 when he became prime minister, Yudaeva commented that 
the economic environment was completely different in 1999. 
At the time, the country was in the midst of an economic 
crisis and drastic measures were necessary, but now, there 
was no urgency.  She added that other economic think tanks 
are positioning themselves as CSR's successors, but she 
claimed they are not presenting any new ideas (reftel). 
BURNS

Wikileaks