Identifier
Created
Classification
Origin
05YEREVAN500
2005-03-21 13:41:00
CONFIDENTIAL
Embassy Yerevan
Cable title:  

PUTIN'S UPCOMING VISIT TO ARMENIA: CEMENTING TIES

Tags:  PREL ECON ENRG AM RU 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 YEREVAN 000500 

SIPDIS

E.O. 12958: DECL: 03/21/2015
TAGS: PREL ECON ENRG AM RU
SUBJECT: PUTIN'S UPCOMING VISIT TO ARMENIA: CEMENTING TIES

REF: A) YEREVAN 287 B) YEREVAN 391 C) YEREVAN 476

Classified By: DCM A.F. Godfrey for reasons 1.4 (b, d).

-------
SUMMARY
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C O N F I D E N T I A L SECTION 01 OF 02 YEREVAN 000500

SIPDIS

E.O. 12958: DECL: 03/21/2015
TAGS: PREL ECON ENRG AM RU
SUBJECT: PUTIN'S UPCOMING VISIT TO ARMENIA: CEMENTING TIES

REF: A) YEREVAN 287 B) YEREVAN 391 C) YEREVAN 476

Classified By: DCM A.F. Godfrey for reasons 1.4 (b, d).

--------------
SUMMARY
--------------


1. (C) Russian president Vladimir Putin will visit Yerevan
March 24 to 25 on what the Russian Embassy describes as a
"working visit." He will make only a few stops during his
roughly 24-hour visit, and Russian diplomats told us to
expect "no surprises." While the visit may be routine from
Moscow's point of view, it looms large for Armenia,
especially on energy issues. Korobkov emphasized that this
visit is taking place because of the GOAM's continued urging,
and noted that Putin expects to discuss regional security
(especially N-K) and economic issues. End Summary.

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ECONOMIC ISSUES HIGH ON THE AGENDA
--------------


2. (C) During Putin's visit he will be focusing on commercial
and economic issues between Russia and Armenia. Oleg
Korobkov, Political Counselor of the Russian Embassy, told us
that Putin would pressure the Government of Armenia to
support Russian interests in Armenia's energy sector, noting
that he expected Armenia to accept Gazprom's participation in
the extension of the Iran - Armenia gas pipeline closer to
Yerevan (ref B). Part of Putin's delegation includes
businessmen Ara Abrahamyan, RAO-UES Chairman Anatoliy Chubays
and banker V. O. Levin. Putin may well press the GOAM for
approval of RAO-UES' acquisition of Armenia's power
distribution network, Electricity Network of Armenia.
Korobkov added that Russia would offer in return to restart
work some of the large, idle factories it acquired in the
2003 debt-for-equity swaps with Armenia. In a separate
meeting March 16, Deputy Minister of Energy Iosef Isayan
confirmed that Putin and members of his delegation would
discuss the Iran - Armenia pipeline and the RAO-UES' bid to
acquire the electricity network during the visit. Isayan
said that his ministry was proposing that the Armenian side
discuss a recent proposal by Georgian Prime Minister Zurab
Noghaideli to extend the Iran - Armenian pipeline to Georgia
(ref C).


3. (C) In his first meeting in Yerevan, Putin will be

discussing economic issues with Minister of Defense Serzh
Sargsian, the Armenian Co-Chair of the Intergovernmental
Commission. (Note: The Armenian-Russian Intergovernmental
Commission handles mostly economic issues, and functions in a
similar fashion to the former U.S-Russian Gore-Chernomyrdin
Commission. End Note.) According to Korobkov, among the
issues they will discuss are transport issues, energy issues,
the impact of renewed Kavkaz-Poti rail ferry service, and
economic ties.

--------------
DOING A FAVOR FOR KOCHARIAN
--------------


4. (C) Korobkov portrayed this (oft-postponed) visit as the
result of heavy GOAM pressure. He noted especially that the
ostensible reason for the visit, the opening of the "Year of
Russia in Armenia" had been created to make the timing
plausible. That having been said, he continued to point out
that this year was the Year of Azerbaijan in Russia -- next
year, Korobkov added, will be the Year of Armenia in Russia
and the Year of Russia in Azerbaijan. Of course Putin will
discuss Nagorno-Karabakh (N-K) with Kocharian, Korobkov told
us, but we should expect nothing new, "since all Russian
efforts" on N-K are "coordinated through the Minsk Group
Co-Chairs." In addition to regional security issues,
Korobkov noted, we should expect that most of the
conversation will focus on economic issues.

--------------
COMMENT
--------------


5. (C) According to Korobkov, Russia views this visit in
largely economic terms, bringing along high-profile
businessmen to prove the point. Korobkov seemed to back off
Russia's past efforts to make Armenia promise to reduce the
diameter of the Iran-Armenia pipeline and to focus on
Gazprom's efforts to control any extension of the pipeline
past the Southern Armenian town of Kajaran. We expect that
Putin may use the opportunity to pressure Armenia into
further concessions regarding the Iran - Armenia gas
pipeline, and push for Russian participation in any future
transit line to Georgia. What direct pressure Putin will
exercise about RAO-UES' bid to buy the electricity
distribution network is not certain, although Chubays'
presence as part of Putin's official delegation may speak for
itself.


6. (C) Contrary to GOAM wishes and earlier press information,
Putin will not be visiting the "Genocide Memorial" during
this "working visit."

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PRESIDENTIAL DELEGATION
--------------


7. (C) Putin will be accompanied by a fairly large delegation
by Russian standards (a 60-member advance team, an additional
25 support staff and a 40-member delegation),the core group
is relatively small. Putin will be joined in most meetings
by:
--Sergey Eduardovich Prykhodko, Presidential Administration
--Aleksandr Sergeyevich Sokolov, Minister of Culture
--Mikhail Yefimovich Shvydkoy, Federal Rosagenstvo Kultura,
Former Minister of Culture
--Artur Nikolayevich Chilingarov, Gosduma
--Igor Yevgenyevich Levitin, Minister of Transport
--Ara Abrahamyan
--Anatoliy Borisovich Chubays, Chairman of RAO-UES
--V. O. Levin, banker

--------------
SCHEDULE
--------------


8. (C) Putin's draft schedule follows:

Thursday, March 24

20:00 Putin (accompanied by his wife) arrives in Yerevan

21:00 Putin meets with Minister of Defense Serzh Sargsian,
Armenian Co-Chair, Intergovernmental Commission

RON Presidential Guest House

Friday, March 25

11:00 Putin meets with President Kocharian
Presidential Palace

13:00 Kocharian and Putin proceed to a working lunch
Hotel Yerevan (includes spouses)

15:00 Putin calls on the Catholicos
Echmiadzin

17:00 Putin, Kocharian open the Year of Russia in Armenia
Opera (includes spouses)

20:00 Putin departs Yerevan

(Note: Bella Kocharian will host Lyudmilla Putina for a
ladies' cultural program during the majority of the visit.
End Note.)
EVANS