RUSSIA/ITALY: LAVROV REASSURES FRATTINI ON UNSC

C O N F I D E N T I A L ROME 002853

SIPDIS


E.O. 12958: DECL: 07/22/2014
TAGS: PREL IR IT UNGA RU
SUBJECT: RUSSIA/ITALY: LAVROV REASSURES FRATTINI ON UNSC
ENLARGEMENT; ASKS FOR REFOCUS ON QUINT IN BALKANS

REF: A) ROME SIPRNET 7/15 B) ROME 2745

Classified By: POL MINISTER-COUNSELOR TOM COUNTRYMAN.
REASON: 1.4 (B)(D)


1. (C) SUMMARY: During their July 15 meeting in Rome, FM
Frattini and Russian FM Lavrov reviewed preparations for the
annual Russia-Italy Summit, which will take place in Moscow
"sometime in November." Frattini underlined Russia's need to
"adopt western standards" concerning business regulations,
especially as they apply to foreign investors. Lavrov
reiterated Moscow's view that an international conference on
Iraq was critical to the reconstruction and reconciliation
process. Frattini offered to use Italian "good offices" in
the region to explore whether there was sufficient interest
for such a conference among border countries. Lavrov is
concerned that not having simultaneous legislative and
presidential elections will deprive the Kabul government of
"legitimacy." He urged Frattini to "refocus" on the Contact
Group mechanism in KOSOVO. Lavrov indicated that there would
be "good news" in the near future regarding Russian approval
of Kyoto. Frattini was relieved to hear that it would take
the strong support of an "overwhelming majority" of the UN
General Assembly, not just two-thirds, for Russia to accede
to more permanent Security Council seats. END SUMMARY.

November Summit/Commercial Interests
--------------


2. (C) MFA Russia/East Europe Office Director Marco Marsilli
briefed poloff on the some of the non-public highlights of
Russian FM Lavrov's Rome meeting with FM Frattini. (Ref a.
summarizes press statements and joint declarations issued
during the visit.) Lavrov also met with PM Berlusconi,
President Ciampi and Chamber President Casini during his July
14-15 visit but, according to Marsilli, these were mainly
non-substantive courtesy calls made in recognition of
Lavrov's first official visit to Italy as FM. Marsilli said
that both sides were pleased with the results and overall
tone of this first bilateral meeting between the ministers.
They reviewed preparations for the annual Russia-Italy
Summit, which will take place in Moscow "sometime in
November" and will focus on furthering the strong
economic/commercial links between the countries. Marsilli
noted that Italy was Russia's second-largest trading partner
after Germany.


3. (C) Frattini told Lavrov that he had met recently with
Italian entrepreneurs and investors with interests in Russia,
who had described specific concerns and experiences.
Frattini underlined that while most Italian business people
were pleased with their interactions with their Russian
counterparts in industry and manufacturing, there was far
less satisfaction when it came to government bureaucracy and
regulations, Frattini underlined Russia's need to "adopt
western standards." The Italian business people were
unanimous in expressing frustration with confusing
regulations, indecipherable chains of command, inconsistent
and often contradictory central-government and local
regulations, and outright corruption and demands for
kickbacks, particularly in the customs service and contract
award process. Lavrov took this information on board, and
assured Frattini that Moscow was aware of the problems
encountered by foreign investors and would continue to
address their concerns. Marsilli noted that Lavrov seemed
"intrigued" by an idea put forward by Frattini for an
ombudsman's office designed to respond to the particular
issues of foreign businesses, and promised to follow up when
he returned to Moscow.

Iraq/Afghanistan
--------------


4. (C) Lavrov reiterated Moscow's view that an international
conference on Iraq, which would include border countries, was
critical to the reconstruction and reconciliation process.
Lavrov averred that if neighboring countries were involved in
a diplomatic initiative to assist the international coalition
in Iraq, they were far less likely to support or foment
terrorist or destabilizing activities. Frattini agreed in
principle, and said that it was worth exploring specifics of
this Russian idea. Marsilli said that Frattini offered to
use Italian "good offices" in the region to explore whether
there was sufficient interest for such a conference among
border countries. Frattini will follow up with Lavrov.


5. (C) Lavrov told Frattini that he was satisfied with
preparations thus far for Afghan presidential elections in
September, but is concerned that not having simultaneous
legislative elections would deprive the Kabul government of
"legitimacy." Marsilli said that Frattini registered this
concern without comment.

KOSOVO
--------------


6. (C) Lavrov told Frattini that he was troubled by the
recent tendency towards using a "NATO/US/EU arrangement" to
address issues in KOSOVO at the expense of the Contact Group,
and urged Frattini to "refocus" on the CG. Lavrov lamented
the lack of progress in addressing the concerns of the Serb
minority in KOSOVO, and the slow pace of "demilitarization"
of Kosovar Albanians. Lavrov also bemoaned that "certain
western countries" had accepted the inevitability of an
independent KOSOVO.

Russia/EU
--------------


7. (C) Both ministers stated that the pace of EU/Russia
cooperation was on target, including extension of partnership
and cooperation agreements to the ten new members. Frattini
urged rapid Russian adoption of the Kyoto agreement, to which
Lavrov made no promises but hinted that there would be "good
news" in the near future. Lavrov said that he hoped ongoing
discussions would successfully address issues related to the
flow of goods through Kaliningrad, and urged continued EU
focus on the status of Russian minorities in the Baltics.

UN Reform
--------------


8. (C) Frattini reiterated his government's strong concerns
(ref b),that pressure from Germany and Japan was moving the
UNGA towards accepting additional permanent Security Council
seats, which would exclude Italy. Frattini was worried that
recent unspecified public statements and accounts of meetings
between Russian officials with interlocutors from other
(unspecified) countries indicated Moscow was now leaning
toward the German/Japanese position. Frattini was therefore
relieved, said Marsilli, when Lavrov emphasized that Russia
was "in no hurry" to expand the P-5. Moscow was willing to
consider all UN reform proposals, he continued, but it would
take the strong support of an "overwhelming majority" of the
General Assembly, not just two-thirds, for Russia to accede
to restructuring that included more permanent Security
Council seats. Lavrov stated that should such overwhelming
support emerge, Russia would consider Germany, Japan, India
and Brazil logical candidates for membership.


9. (C) Comment: Marsilli said that Frattini was most
relieved that Lavrov had referred to "overwhelming" numbers
(far more than two-thirds support) as a condition which must
be satisfied before Moscow would entertain enlarging the
UNSC. As stated in ref b, the Italian Government, at levels
high and low, constantly ping their US interlocutors for
signals on our views. FM Frattini even raised the issue with
a visiting delegation from the Anti-Defamation League. We
have been informed by our contact at the Canadian Embassy
that FM Frattini has requested a bilat on the margins of UNGA
with FM Graham, and that the main topic of that conversation,
at least from the Italian side, will be UN reform. We can
expect that during any similar bilat with Secretary Powell,
Frattini will be seeking the same specific reassurances from
the US that he received from Lavrov.

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2004ROME02853 - Classification: CONFIDENTIAL