IN ANNUAL Q&A, PUTIN EXCLUDES THIRD TERM, WORRIES

UNCLAS SECTION 01 OF 02 MOSCOW 011989

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR EUR/RUS

E.O. 12958: N/A
TAGS: PREL PGOV KDEM SOCI PINR RS
SUBJECT: IN ANNUAL Q&A, PUTIN EXCLUDES THIRD TERM, WORRIES
ABOUT GEORGIA, PROMISES GOVERNMENT PLAN TO ADDRESS
INTERETHNIC PROBLEMS


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Summary
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1. (SBU) On October 25, President Putin hosted his annual
"direct line to the President," during which he answered
questions from Russia's regions and from Russian speakers
abroad (Sevastopol, Ukraine). This year's "direct line"
lasted 2 hours and 54 minutes, outstripping last year's by
one minute. The Presidential Administration reports that 2.3
million questions were posted. Putin's performance was
broadcast by three television networks and two radio
stations. Preceding "direct line" was a broadcast
documenting actions taken in response to questions posed in
previous years. The President seemed comfortable and very
much in command of the facts throughout the marathon session
that had him fielding questions ranging from North Korean
nuclear tests to taxes on summer cottages. A selective
survey of the highlights follows. End summary.

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North Korean Nuclear Test
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2. (U) Putin, in a mild jab at the U.S., stressed the test
was impermissible, but not all of the participants in the
negotiations did all that they could in order to avoid an
impasse. North Korea cannot be put in a position, where its
only solution is to further heighten tensions. The most
recent test occurred because: "...not all of the
participants were able to strike the right note during the
negotiations." The only way forward, said Putin, was to
return to the six-party talks. Putin detected signals that
North Korea is ready to return to the negotiations, assuming
its national interests --connected with its security and the
peaceful use of nuclear energy-- are taken into account.

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Relations with Georgia
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3. (U) Putin was concerned by militarization in Tbilisi;
relations are complicated by Georgian efforts to resolved
problems militarily. Tbilisi should not ignore the UNOMIG
resolution. Russia is willing to do what it takes to
normalize relations. Russia has no plans to expand its
territory but, as to Abkhazia, Russia cannot permit
bloodletting.

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2008 Presidential Elections
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4. (U) Putin said a clear "no" to a third term. "I like my
work, but the Constitution does not give me the authority" to
be elected a third time. He hoped he would win the trust of
the Russian people by "not tailoring the (Constitution) to
advance his personal interests."

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Interethnic Conflicts
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5. (U) Putin promised by mid-November a comprehensive
government plan for addressing the increasing number of
conflicts in Russia. A government that "cannot defend its
citizens, is unnecessary," he said. In his answer, Putin did
not suggest that the interethnic problem was systemic in
nature. He noted that after ethnic clashes in Kondopoga
(Karelia) the leadership of the local FSB and Ministry of
Internal Affairs were disciplined. Putin urged voters to
choose their local leaders carefully.


6. (U) Elsewhere during the session, Putin noted that there
should be no "ethnic factor" in the war against crime. "I
cannot endorse selective enforcement along ethnic lines, and
I call on law enforcement and the administrative authorities
to refrain from such behavior." In answering yet another
question, Putin spoke of the need to better control migration
and labor permits as a partial solution to the problem.


7. (U) Putin conditionally defended recent expulsions of
ethnic Georgians from Russia, alleging that at a time when
five thousand Georgians had been expelled, "15,300 citizens
of one country, and 13,400 of another" had been forced to
leave.


MOSCOW 00011989 002 OF 002


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Recent Assassinations
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8. (U) Putin attributed recent "economic" assassinations to
the fact that the "state has begun to step on the toes of
those who try to profit at the expense of the people." He
averred that the number of contract killings has decreased.
Investigations of such killings must be successfully
completed, and that is the case "both for the killings of
mass media representatives and for economic crimes."

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Corruption
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9. (U) Putin acknowledged that corruption is one of most
serious challenges in Russia. He advocated for strengthened
involvement of civil society institutions, enhanced control
over law enforcement officials and local bureaucrats, and the
creation of conditions that create disincentives for bribery.

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The Economy
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10. (U) Heralding Russia's economic growth of 6.6 percent,
Putin also pointed out that average incomes have grown 11
percent this year; salaries have increased 12.8 percent, and
pensions by 6.8 percent. Regarding 2007 expenditures, Putin
noted that the government will spend 7.5 billion rubles to
subsidize fuel for farms; make payments to mothers with more
than one child, and increase pension payments. He also stated
that inflation is expected to be slightly higher in 2007.
Putin made a reference to Russia's dependency on high world
energy prices for economic growth, but said that the economy
is beginning to diversify.
BURNS