ZIMBABWEAN TRADE DELEGATION VISITS RUSSIA

C O N F I D E N T I A L MOSCOW 004374 SIPDIS SIPDIS E.O. 12958: DECL: 04/23/2016 TAGS: PREL ETRD ZI RS SUBJECT: ZIMBABWEAN TRADE DELEGATION VISITS RUSSIA Classified By: Political Minister Counselor Kirk Augustine for reasons 1.4 (b, d). ¶1. (C) Poloff met with MFA Africa Department Counselors Mikhail Gulyakin and Andrey Stolyarov April 21 to discuss the April 3-13 visit to Moscow and St. Petersburg of Zimbabwean Reserve Bank Governor Gideon Gono and Transport Minister Chris Mushohwe to promote Russian investment in Zimbabwe. Gulyakin and Stolyarov characterized the visit as "mostly for show" and said that few concrete results were achieved. They said that the impetus for the trade delegation came completely from the Zimbabwean side. After failing to secure IMF loans last month, Governor Gono is coping with Zimbabwe's deep economic crisis by seeking investment from other sources. Gulyakin and Stolyarov said that Russia's USD 20 million in trade with Zimbabwe was unlikely to grow to rival that of Zimbabwe's largest trading partner, China. Queried about GOR policy toward Zimbabwean officials, they saw no reason why Russia would avoid contact with a government that was no more autocratic than "the norm in Africa." ¶2. (C) While in Moscow, Governor Gono and Minister Mushohwe met with their respective counterparts in the Russian government, Central Bank Head Sergey Ignatiev and Transport Minister Igor Levitin. Gulyakin and Stolyarov said Gono did not raise the possibility of loans from Russia in his meeting with Ignatiev since he knew that the GOR would not likely find Zimbabwe creditworthy. Gono also met with Chamber of Commerce and Industry Vice-President Georgiy Petrov. Gulyakin and Stolyarov said that in each case the parties signed memoranda of understanding that were of little significance. ¶3. (C) Gono also met with representatives of the company Tyazhpromeksport, a large industrial equipment exporter that in the past has helped several African governments develop industrial projects. Gulyakin and Stolyarov said representatives of the company would pay a reciprocal visit to Zimbabwe next month, but no concrete plans had formed. Gono and Mushohwe met with representatives of Ilyushin Finance to discuss buying five Ilyushin 96-400 planes. Gulyakin and Stolyarov were skeptical of the GOZ's ability to afford the planes. ¶4. (C) COMMENT: Moscow's interest in the trade delegation was directly proportional to the dubious benefits of investment in Zimbabwe. The GOZ's courting of Russia presumably reflects a perception that Russia remains a willing partner to governments on unfavorable terms with the West. BURNS