RUSSIAN PRESIDENT PUTIN'S FIRST VISIT TO EGYPT

C O N F I D E N T I A L SECTION 01 OF 02 CAIRO 003626

SIPDIS

E.O. 12958: DECL: 05/12/2015
TAGS: PREL PGOV KPAL KNNP ECON EG IS UNSC
SUBJECT: RUSSIAN PRESIDENT PUTIN'S FIRST VISIT TO EGYPT
FALLS SHORT ON SUBSTANCE

Classified by ECPO Counselor John Desrocher for reasons 1.4
(b) and (d).

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Summary
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1. (C) The visit of Russian President Vladimir Putin April
26-27 to Cairo, Egypt will be remembered more for its
ceremonial and nostalgic aspects than for substantive
agreements or strategic re-alignments. Putin and Egyptian
President Mubarak released a joint statement after their
summit meeting while senior officials addressed efforts to
strengthen bilateral commercial and cultural ties. The
Russians came hoping to sign an agreement on the peaceful
uses of nuclear energy but were put off by an unprepared
Egyptian side. The two sides agreed to the opening of a
privately-funded Russian university near Cairo, to the
expansion of tourism, and to the sale of Russian aviation
equipment. Regarding Putin's public announcement while in
Cairo of his desire to host an international conference on
the Middle East Peace Process, the GOE listened politely, but
is wary of Moscow's seriousness and fundamental ability to
alter the status quo in the region. End summary.

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First Visit to Egypt, Region
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2. (C) On his first-ever visit to the Middle East, and as
the first Russian President to visit Egypt in 41 years,
Vladimir Putin's twenty-two hour overnight visit to Cairo
attracted a good deal of media fanfare but fell short on
substance, according to local contacts. The first stop on
his regional tour recalled in nostalgic terms the strategic
relationship between the former Soviet Union and the Egypt of
Arab nationalist Gamal Abdel Nasser during the 1950's and
1960's. Still, most local commentators agreed that the visit
itself was more newsworthy than any agreements Putin and
Mubarak approved during the short stay. Russian Embassy
Political Counselor Dmitri Dogadkin argued May 11 to poloff
that the visit had been "a success," while admitting at the
same time the visit's modest outcomes. Putin, he said,
wished to reciprocate the several visits to Russia made by
Egyptian President Mubarak. Furthermore, the Russian side
believed that with fairly modest efforts, two-way trade with
Egypt could be expanded.

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Middle East Peace Process
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3. (C) Putin surprised both the Egyptians and the media with
an announcement that he was prepared to host an international
conference on the Middle East Peace Process in Moscow later
in the year. According to MFA Cabinet staff member Hala Al
Ghanem, the Egyptian side politely expressed interest in the
idea but wished to have more details on the proposal before
committing further. Putin's public statements made later in
Israel suggesting that the conference should be held only at
the "experts" level, she said, left the impression that the
Russian President was not entirely serious or engaged in this
portfolio. Russia, she continued, recognized that it no
longer played a significant role in the region, and wishes
now to regain some of its past influence.

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Putin-Mubarak Joint Statement
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4. (C) Following their April 26 meeting (initially
one-on-one with interpreters followed by an expanded
meeting),the two leaders released a joint declaration
entitled "On Reinforcing of Friendly Relations and
Partnership Between the Russian Federation and the Arab
Republic of Egypt." The five-page, 16-point declaration
contains Russian consideration of Egypt as a "worthy
candidate" for a seat on an expanded UN Security Council,
support for a WMD-free Middle East, a condemnation of
terrorism, support for the unity and territorial integrity of
Iraq, agreement to coordinate on reaching a lasting peace in
the Middle East, and agreement to further enhance
parliamentary, military, social, economic, and technical ties
between the two countries. The document further references a
decision to establish a joint high-level follow-up mechanism
of deputy foreign ministers. In addition to the joint
statement, Dogadkin said, the two leaders discussed the
regional situation, Iraq, Syria and Lebanon, as well as
reform in Egypt and the region.

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Russian Egyptian Bilateral Projects
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5. (C) According to Dogadkin, Russian exports to Egypt total
only USD 800 million, while imports from Egypt total USD 600
million (USD 550 million of which consists of money spent by
Russians on tourism in Egypt). The Russian side believes it
can both sell more to Egypt in the areas of machinery and
technology, and increase tourism by Russians to Egypt.
Already, Dogadkin said, Russia is pressing to overtake Italy
as the second largest national group of visitors to Egypt,
surpassed only by Germany. Russia will try to promote
expansion of existing joint production work in the automobile
and truck markets, he said. The Russian side had also
intended to sign a joint agreement during the Putin visit on
the peaceful uses of nuclear energy, but arrived to find that
the Egyptians were still in the process of reviewing the
technical details of the proposed agreement. Dogadkin,
stating that "the ball is now in Cairo's court, was unable to
describe the agreement in any more detail than to qualify it
as focused on research and technical exchanges. Russia has
no intention, he noted, to assist with the building of
nuclear power plants such as in Iran. Dogadkin said that two
sides agreed to an Egyptian proposal to establish a
privately-funded Russian-Egyptian university in Cairo. The
two sides, he also noted, would look to increase their
cooperation in the military sphere with Russia hoping to
service and upgrade military hardware from the former Soviet
Union still in the Egyptian armory. A Russian firm, Dogatkin
said, finalized a deal during the visit to sell five
commericial aviation jet engines (Pratt-Whitney) to a private
Egyptian cargo firm owned by Ibrahim Kamel.


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GRAY