Daily Archives: March 12, 2009

09MOSCOW604, RUSSIA PROPOSES TO START DISCUSSIONS ON ACCESS TO GENETIC

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Reference ID Created Released Classification Origin
09MOSCOW604 2009-03-12 14:59 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Moscow

VZCZCXRO7718
PP RUEHAST RUEHHM RUEHLN RUEHMA RUEHPB RUEHPOD RUEHTM RUEHTRO
DE RUEHMO #0604/01 0711459
ZNR UUUUU ZZH
P 121459Z MAR 09
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC PRIORITY 2333
INFO RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RUEAEPA/HQ EPA WASHDC
RUEHRC/USDA FAS WASHDC 5454

UNCLAS SECTION 01 OF 02 MOSCOW 000604 
 
STATE FOR OES/ENRC 
COMMERCE PLEASE PASS TO USPTO 
USDA FOR ARS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAGR SENV TBIO KIPR PREL PGOV KRVC EFIS RS
SUBJECT: RUSSIA PROPOSES TO START DISCUSSIONS ON ACCESS TO GENETIC 
RESOURCES WITH U.S. 
 
REF: A. STATE 9667 
 B. LOBSTEIN-SEYMOUR E-MAIL 03/02/2009 
 
SENSITIVE BUT UNCLASSIFIED -- NOT FOR INTERNET DISTRIBUTION 
 
1. (SBU) SUMMARY: On March 2, officials of the Ministry of Natural 
Resources and Ecology (MNRE) and the Federal Agency for Natural 
Resources Management Supervision (Rosprirodnadzor) told EST that 
Russia's policies and procedures on access to genetic resources and 
sharing of benefits are fragmented and complex, with significant 
gaps.  The Duma is considering new legislation to address challenges 
that are arising, such as the safety of genetically modified 
organisms (GMOs).  There is no body of law or regulation to address 
certain other areas, most significantly the commercial applications 
of genetic resources.  The MNRE officials urged that the USG and GOR 
begin a serious expert-level discussion to define common principles 
in this area.  Post believes this offer would be useful for OES to 
explore in light of wide-ranging U.S.-Russia scientific cooperation 
and GOR concerns about retaining the benefits of potential 
commercial applications of Russia's genetic resources.  END 
SUMMARY. 
 
2. (U) On March 2, EST Officer and Environment Specialist met at 
MNRE with Amirkhan Amirkhanov, Deputy Director of the Ministry's 
Department of Policy and Regulation in Environmental Protection and 
Ecological Safety; Valeriy Orlov, the Head of the Ministry's 
Division of Flora and Fauna Biodiversity Conservation; and Tatyana 
Skripnik, the Head of the Division for Permits and Fauna Species 
Control at the Federal Agency for Natural Resources Management 
Supervision (Rosprirodnadzor). 
 
Legislation and regulation of research 
-------------------------------------- 
 
3. (SBU) The MNRE officials explained that Russia's policies and 
procedures on access and benefit sharing (ABS) with regard to 
genetic resources are fragmented and contain significant gaps.  In 
its general policies, Russia is guided by its Constitution, which 
obligates citizens in general terms to protect the environment; the 
U.N. Convention on Biodiversity; the U.N. Convention to Combat 
Desertification; and related documents.  However, procedure and 
authority in specific cases depend upon the type of genetic resource 
at issue, the location, and the purpose for which the access is 
intended. 
 
4. (SBU) In practice, Russian law regards Russian genetic resources 
as national property, and foreign access to those resources is 
subject to federal government approval; regional and local 
authorities, private actors, and indigenous groups have little or no 
influence in this area.  For example, the Federal Fisheries Service 
must approve access to marine fauna specimens; the Federal Forestry 
Service must approve access to forest resources; access to human 
biological samples lies within the purview of the Ministry of Health 
and Social Development; etc. 
 
5. (SBU) There is an established procedure for registering new 
(e.g., genetically modified) organisms for production in Russia; 
however, no GMOs have yet been registered.  Our MNRE counterparts 
attributed this to the onerous bureaucratic procedure involved, 
which includes review by an interagency commission on biotechnology. 
 (Note: On March 5, a senior Russian scientist told EST that the 
delay in approving any GMOs was due to the refusal of Monsanto to 
provide proprietary genetically modified seed corn for study by his 
institute, which is working to develop a methodology for biotech 
safety assessment.  Until the institute can complete this study, the 
scientist said, no GMOs will be approved for domestic production. 
End note.)  A new draft law on genetic engineering safety is before 
the parliament for consideration, but it is unknown when lawmakers 
will examine it.  In some cases relating to ABS, such as commercial 
exploitation of genetic resources, Russia has no laws in place at 
all. 
 
6. (U) One area where there is a clear procedure is in issuing 
permits to research vessels for expeditions in Russian waters.  The 
Embassy frequently processes requests to MFA for research vessel 
clearance, which span the gamut from drilling seabed core samples to 
taking samples of fish for scientific study.  The GOR requires six 
months' advance notice in the form of a research prospectus 
delivered to MFA under cover of diplomatic note.  MFA circulates the 
request to the relevant specialized agency for approval.  If there 
is any question or need for clarification, the application is 
returned, the applicant institution must apply again, triggering a

new six-month timeline. 
 
MOSCOW 00000604  002 OF 002 
 
 
 
Permits for collection of biological specimens 
--------------------------------------------- - 
 
7. (U) As noted above in the case of access to specimens, approval 
procedures for collection of specimens varies according to the type 
of specimens, the location, and the purpose.  Research vessels 
obtaining sea fauna samples or core drilling samples would apply via 
the standard procedure for research vessels.  Researchers seeking 
human tissue samples generally apply through the Ministry of Health; 
those seeking forest flora samples go through the Forestry Service; 
etc. 
 
Transport of biological specimens 
--------------------------------- 
 
8. (U) Permits to export biological specimens are governed by 
Government Decree 854, issued in 1992.  This decree includes lists 
of items whose export and import are subject to licensing, and whose 
export must be approved by the Ministry of Industry and Trade, with 
the concurrence of Rosprirodnadzor.  Export and import of items not 
subject to licensing are subject only to Rosprirodnadzor approval. 
The designation of types of specimens subject to licensing 
requirements is not guided explicitly by CITES provisions.  There 
are no established rules on transport of specimens within the 
country.  The Federal Veterinary and Phytosanitary Service enforces 
additional requirements and gives approval for export and import of 
certain types of flora and fauna. 
 
Status of MAT and PIC 
--------------------- 
 
9. (U) According to our contacts, Russia has no established 
regulations or procedures that address the concepts of prior 
informed consent (PIC) or mutually agreed terms (MAT) for research 
permission and the sharing of benefits. 
 
Easiest to work with Academies of Science 
----------------------------------------- 
 
10. (U) Amirkhanov and Orlov noted that scientific researchers 
generally find it more convenient to collaborate under a written 
cooperation agreement with institutes affiliated with one of the 
major scientific academies: primarily the Russian Academy of 
Sciences, the Russian Academy of Medical Sciences, and the Russian 
Academy of Agricultural Sciences.  Member institutes are plugged 
into a federally coordinated bureaucracy that can help facilitate 
the necessary permissions and clearances to gain access, obtain 
samples, and transport them in the course of legitimate scientific 
research. 
 
"Serious discussion" needed on commercialization 
--------------------------------------------- --- 
 
11. (SBU) Amirkhanov emphasized that the major gap in Russian 
regulation is in the area of commercial exploitation of genetic 
resources.  This has been a sore point with the Russian government 
because of the issue of intellectual property rights, which has 
arisen as a result of the wide range of international scientific 
cooperation on development of technologies and materials -- often 
with Russian know-how and Russian resources, but often without 
sufficient (from the Russian point of view) guarantees that Russia 
will realize returns to that capital.  Amirkhanov said that our 
visit was fortuitous, because the U.S. and Russia need to begin a 
serious expert-level discussion to define principles governing 
access and benefit sharing in commercial exploitation. 
 
BEYRLE

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09MOSCOW592, 43 BILLION FOR LABOR UNLIKELY TO PROVIDE RELIEF

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Reference ID Created Released Classification Origin
09MOSCOW592 2009-03-12 06:45 2011-08-30 01:44 CONFIDENTIAL Embassy Moscow

VZCZCXRO7156
PP RUEHDBU RUEHHM
DE RUEHMO #0592/01 0710645
ZNY CCCCC ZZH
P 120645Z MAR 09
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC PRIORITY 2315
INFO RUCNCIS/CIS COLLECTIVE PRIORITY
RUEHXI/LABOR COLLECTIVE PRIORITY
RUEHXD/MOSCOW POLITICAL COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY

C O N F I D E N T I A L SECTION 01 OF 03 MOSCOW 000592 
 
SIPDIS 
 
STATE FOR EUR/RUS, DRL 
NSC FOR ELLISON 
DOL FOR BRUMFIELD 
 
E.O. 12958: DECL: 03/12/2019 
TAGS: ELAB ECON EIND PGOV SOCI RS
SUBJECT: 43 BILLION FOR LABOR UNLIKELY TO PROVIDE RELIEF 
 
REF: MOSCOW538 
 
Classified By: EconMinCouns Eric T. Schultz, Reasons 1.4 (b,d) 
 
------- 
SUMMARY 
------- 
 
1. (C) Billions of rubles programmed for regional employment 
stimulation are unlikely to ease labor market stress owing to 
unrealistic targets, local government corruption, and poor 
planning.  The Russian federal government intends to use new 
regional labor programs to create one million jobs, train and 
relocate workers, and develop small businesses nationwide. 
Academics, bankers, and labor leaders, however, contend that 
while assistance for unemployed, underemployed, and at-risk 
workers is crucial for social stability, the 
government-backed regional employment scheme is woefully 
unequal to the task.  Experts were especially critical of the 
GOR,s plan to offer SME loans to the unemployed, which they 
said would face insurmountable obstacles.  End summary. 
 
--------------------------------------------- ---- 
RUSSIA ALLOCATES BILLIONS TO STIMULATE EMPLOYMENT 
--------------------------------------------- ---- 
 
2. (U) As noted in reftel, late last year, the GOR allocated 
43.7 billion rubles to subsidize regional programs aimed at 
reducing labor market stress.  The federal government will 
establish agreements with each region through which it will 
provide 95 percent of program funding if the regional 
government supplies the remaining five percent from its 
budget.  Program activities are to include advanced 
professional training, employment and internship placement, 
relocation support, as well as technical and financial 
assistance to enable unemployed workers to start small 
businesses.  Nationwide, the federal government expects to 
create one million jobs, train 160,000 workers, generate 
50,000 jobs through small businesses, provide relocation 
assistance to 27,000 workers, and place 9,000 university 
graduates in internships. 
 
3. (U) Regional plans are to consist of comparable activities 
for the same target groups: unemployed and underemployed 
workers as well as those at risk of termination.  In 
addition, certain regions (oblasts) have also identified 
specific objectives based on the local economic context.  The 
following illustrates the variety of regional programs under 
consideration: 
 
-- Authorities in Bryansk plan to focus on arranging 
employment in the industrial, housing and communal service, 
agricultural, construction, and forestry sectors. 
 
-- Job placement services will be critical in Yaroslavl, 
where extreme estimates predict 49,000 workers will lose 
their jobs this year. 
 
-- Krasnoyarsk will include a competition for grants of up to 
100,000 rubles to assist with small business start-up.  The 
Krasnoyarsk labor and employment service also plans to assist 
unemployed workers in relocating to areas (within the region) 
where there is still a demand for labor, with an emphasis on 
investment projects in the electricity, mineral, hydrocarbon, 
heating, transportation, and forestry sectors. 
 
4. (U) As of March 4, the Ministry of Public Health and 
Social Development had received 82 proposed programs, 
approved 44 through an interagency working group, and signed 
30 agreements.  It initially anticipated signing the 
remaining agreements by the end of last month.  The federal 
labor and employment service has already transferred over 2.4 
billion rubles in federal subsidies for programs to ten 
regions with signed agreements. 
 
--------------------------------------------- 
EXPERTS SKEPTICAL THAT REGIONAL PROGRAMS WILL IMPROVE THE 
LABOR SITUATION 
--------------------------------------------- 
 
5. (C) In conversations with us, experts at the Higher School 
of Economics (HSE), Independent Institute of Social Politics 
(IISP), Deutsche Bank, and the All-Russian Confederation of 
Labour (ARCL) were uniformly skeptical that the regional 
programs would succeed. 
 
 
MOSCOW 00000592  002 OF 003 
 
 
6. (C) Some of the experts were convinced that the GOR,s 
plans were insufficient to the problem.  Yevgeni Gontmakher, 
head of the Social Policies Center of the Russian Academy of 
Sciences Institute of Economics, argued the government's 
measures were a step in the right direction, but he doubted 
they would be able to contain what he predicted would be 
massive unemployment growth.  Deutsche Bank's Yaroslav 
Lissovolik commented that similar government schemes to 
transfer resources to the regions in the 1990s failed to 
alleviate the unemployment situation, and said the GOR was 
unlikely to have learned from its past mistakes. 
 
7. (C) Other experts cited the government's lack of expertise 
as a major impediment.  In a recent interview with 
"Kommersant," Director of the Institute for the Management of
 
Social Processes Tatiana Chetvernina commented that even if 
they received funding, federal and regional labor and 
employment agencies had no clue about what kinds of training 
and other assistance to offer the unemployed.  HSE Director 
Vladimir Gimpelson told us professional retraining was 
problematic given the uncertainty of which professions or 
skills would be in demand after the crisis.  ARCL's President 
Boris Kravchenko reported that regional governments had 
approached businesses and unions, but were unable to develop 
a firm idea of what kinds of skills workers would need in the 
future.  Further, he noted, employment agencies in the 
regions were inundated with job seekers, and had to turn many 
away owing to staffing shortages. 
 
8. (C) Finally, still another group of experts saw relocation 
assistance as a non-starter.  IISP Regional Program Director 
Natalya Zubarevich doubted there would be many takers for 
relocation assistance given the fact that many of the 
vacancies in the labor and employment service's job bank were 
for minimum or below subsistence wage positions.  The 
majority of positions listed with salaries actually above 
20,000 rubles were in Moscow, where even that amount was 
insufficient to support a family.  Andrey Ivanov, spokesman 
for the Tverskaya oblast governor, told "Vedomosti" his 
region (200 km outside of Moscow) was suffering from 
increased unemployment owing to the return of workers who 
lost their jobs in Moscow, bringing into question the 
reliability of Moscow as a potential destination for 
relocated workers.  Also, difficulties in obtaining 
residential permits, arranging new living quarters, and 
leaving existing social networks make relocation an 
unacceptable option for many unemployed in the regions. 
 
--------------------------------------------- ------- 
LOANS AND TRAINING FOR SMEs FACE HARSH INSTITUTIONAL 
ENVIRONMENT 
--------------------------------------------- ------- 
 
9. (C) Gimpelson was especially critical of the government's 
scheme to offer SME loans to the unemployed given the often 
hostile institutional environment for SME development in the 
regions.  He noted, however, that some regional governments 
have developed their own approaches to small business 
development.  For instance, Krasnoyarsk region plans to 
establish an internet portal with information on business 
start-up and provide competitive grants of up to 100,000 
rubles for entrepreneurial activities.  Altai region will 
assist unemployed workers starting businesses with 
documentation at municipal employment centers, pay 
registration fees, and provide entrepreneurship courses and 
consultations. 
 
10. (C) In general, Gimpelson concluded, small businesses 
continue to face significant bureaucratic obstacles to 
successful development: burdensome inspections, taxes, and 
other administrative problems related to official corruption. 
 None of the experts with whom we spoke believed the measures 
contained in regional programs would be sufficient to 
overcome these obstacles.  They also underscored the point 
that the crisis had hit SMEs particularly hard, resulting in 
an ever-increasing number of bankruptcies in this sector. 
 
------- 
COMMENT 
------- 
 
11. (C) The government's programs to stimulate employment and 
counteract negative labor market trends are motivated largely 
by fears of potential social unrest.  However, the regional 
employment programs are for the most part ill-conceived, and 
misappropriation of funds by corrupt regional officials will 
 
MOSCOW 00000592  003 OF 003 
 
 
further limit their effectiveness.  The programs are unlikely 
to improve the labor situation appreciably.  End Comment. 
BEYRLE

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